2005 City of Chandler Council Minutes

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					                    2005 City of Chandler Council Minutes

Regular Meetings                August 25, 2005

January 13, 2005                September 8, 2005

January 27, 2005                September 29, 2005

February 10, 2005               October 13, 2005

February 24, 2005               October 27, 2005

March 10, 2005                  November 14, 2005

March 24, 2005                  November 17, 2005

April 14, 2005                  December 12, 2005

April 28, 2005                  December 15, 2005

May 12, 2005                    SPECIAL MEETINGS

May 26, 2005                    February 7, 2005

June 09, 2005                   May 23, 2005

June 23, 2005                   August 29, 2005

July 25, 2005                   September 8, 2005

July 28, 2005                   September 26, 2005

August 11, 2005                 October 13, 2005
MINUTES OF THE REGULAR MEETING OF THE HONORABLE MAYOR AND CITY COUNCIL
OF THE CITY OF CHANDLER, ARIZONA, held in the Council Chambers in the Chandler Library,
22 S. Delaware, on Thursday, January 13, 2005 at 7:05 p.m.

THE MEETING WAS CALLED TO ORDER BY MAYOR BOYD DUNN.

The following members answered roll call:   Boyd W. Dunn          Mayor
                                            Phillip Westbrooks    Vice Mayor
                                            Bob Caccamo           Councilmember
                                            Lowell Huggins        Councilmember
                                            Matt Orlando          Councilmember
                                            Martin Sepulveda      Councilmember (arrived late)
                                            Donna Wallace         Councilmember


Also in attendance:    W. Mark Pentz        City Manager
                       Pat McDermott        Assistant City Manager
                       Rich Dlugas          Assistant City Manager
                       Dennis O’Neill       City Attorney
                       Marla Paddock        City Clerk

Staff present: Nachie Marquez, Mart Eynatten, Garrett Newland, Doug Ballard, Chief Kiyler

INVOCATION: The invocation was given by Pastor Forest Erickson – The Rock Church

PLEDGE OF ALLEGIANCE:          Vice-Mayor Westbrooks led the Pledge of Allegiance.

SCHEDULED PUBLIC APPEARANCES:

Note: Scheduled Public Appearances were taken out of original agenda order by the Mayor.

Service Recognitions

MAYOR DUNN was joined by Chief SHERRY KIYLER in recognizing GARY HEATH for 25 years
of service in the Police Department. Gary began his career with the City of Chandler as a reserve
officer in 1972. He served in this capacity until 1985 and left the program as a reserve sergeant.
Gary was hired as a dispatcher in 1979. In this capacity, he worked both as a dispatcher and a
jailer. Gary was assigned as a support services supervisor in 1981 where he worked
communications, jail, identification and records. Gary is very active in Cub Scouts and Boy
Scouts by serving as a Den Leader and Assistant Scoutmaster. He has been active in the
Fraternal Order of Police and the Chandler Management Association serving on the boards of
both organizations. Gary has given many years of excellent service to the citizens of Chandler
both as a city employee as well as a community-minded activist.

MAYOR DUNN was joined by City Manager MARK PENTZ in recognizing DOUG BALLARD for
10 years of service in the Planning and Development Department. Doug started with the city in
November 1994 after having spent the previous 10 years in Fort Pierce, Florida. He is the
longest tenured Planning Director in the City’s history and has been a big part of the City’s
phenomenal growth. Under Doug’s direction, the City has approved and guided the largest
projects ever to be built within the City such as the Chandler Fashion Mall, the Intel campus on
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Chandler City Council
Thursday, January 13, 2005
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South Price Road, the Wells Fargo Corporate offices, the Motorola Expansion on north Alma
School Road and the major restaurant/retail development at Ray/I-10. Doug pioneered some real
improvements to the building permit process including on-site plan review and building inspection
for major projects. He has directed the preparation of major code amendments such as the city
center zoning district, the big box ordinance and residential childcare. Doug was instrumental in
establishing significant development policies such as the single-family residential diversity
standards and residential in-fill development. He championed the issue of city build-out after
having done much of the preliminary work for developing a build-out strategy.

Proclamation – Celebration of Unity Week

MAYOR DUNN was joined by Human Relations Commission Chair JOEL MUNTER as he read a
proclamation proclaiming January 10-17, 2005 as Celebration of Unity Week. Mr. Munter
recognized those members of the Human Relations Commission present. MAYOR DUNN
commended the work of the Commission.

Recognition of Celebration of Unity Creative Expression Competition Winners

MAYOR DUNN commented that the competition this year was expanded to include visual and
performance arts which resulted in 500 entries in the Creative Expression Competition. The
MAYOR was joined by Paul Pagani from Barnes and Noble, sponsor of the competition, and Joel
Munter, Human Relations Commission Chair, to assist in presenting the awards. Mr. Munter
also acknowledged Albertson’s as being a co-sponsor of the competition.

Performance Art: Daniel D’Souza, piano, Tarwater (Jeff Hensley, Principal); Kimberly Carson,
vocal, Tarwater; Daniel Koning, steel drum, home schooled; Neha Gupta, Jessica Brown, Neha
Diridharan, dance, Chandler High School (Mr. Terry Williams, Principal). Honorable Mention for
Performance Art – Best of Show: Scott Stine, Jared Shelton, Jenna Rios, video, Chandler High
School.

Visual Art: Grant Fisher, poster, Bright Beginnings (Karen Edress); Marco Guiterrez, poster,
Galveston (Diane Ruchon); Stephanie Payne, Photo, Hamilton High School (Dr. Dupree); not
present - Doreen Zhao, poster, Chandler High School.

Writing: Jillian Marcus, poem, Dobson Academy; Sharon Oh, poem, Santan K-8 (Heather
Anguiano); Asenath Rallison, essay, Hamilton High School, (Dr. Dupree).

School Participation Winners: Highest Participation Total, Hamilton High School (Dr. Dupree);
Highest Percentage of Participation, Bright Beginnings (Karen Edress).

Mr. Munter thanked Leah Powell, Nikki Tapia and Gina Hill for their help. MAYOR DUNN
reminded everyone of the unity events being held in Chandler beginning Friday, January 14th.

Distinguished Budget Presentation Award FY 04/05

MAYOR DUNN was joined by Management Services Director PAT WALKER who stated that the
City of Chandler has received the Distinguished Budget Presentation Award from the
Government Finance Officers Association for the 17th consecutive year. It is the highest
recognition in governmental budgeting that a City can receive. Ms. Walker thanked all
departments in the City for compiling the data and working with the budge office to make this
document possible. Ms. Walker also recognized the budget staff, Janet Northrup, Wendy
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                                                                                       Chandler City Council
                                                                                 Thursday, January 13, 2005
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Rodriguez, Kim Prendergast and Karen DeMember for their work on the document. Budget
Manager SUSAN HORNER accepted the award on behalf of the City.

Community Bridges Presentation

MAYOR DUNN introduced KRISTEN POLIN, Director of Community Programs at Community
Bridges, who recognized the City of Chandler for their efforts in supporting construction of the
Center for Hope in Mesa. The Center for Hope is a $3 million facility constructed during the past
year for pregnant women who are struggling with addiction and psychological problems. This is
the first program of its kind in the East Valley to provide support services for newborns, young
children and their mothers.

Ms. Polin said that the first women coming into the Center would be coming in next week. There
are 8 women screened for the 24-bed facility. Their intent is to create a national model including
job training, GED opportunities and childcare programs. She again thanked the Council on behalf
of the board of directors for their support.

Tony Kao & J. J. Hwan – Celebration of Unity

MAYOR DUNN introduced TONY KAO, member of the City’s Human Relations Commission, and
J. J. HWAN who invited the Mayor and Council to attend the East Valley Chinese New Year
Celebration to be held February 6, at the Greater Phoenix Chinese Christian Church. Mr. Hwan,
event chairperson, gave a brief presentation about the program.

Dean Anderson –Signage Policy – Emergency Clauses for Urgent Care Use

Former Councilmember DEAN ANDERSON related a serious incident that occurred
approximately 3 weeks ago. His son required urgent care assistance after normal doctor’s hours.
There is an urgent care facility on the northeast corner of Alma School and Chandler Boulevard.
The location is difficult to find because there is no signage on Alma School Road. The only
visible signage is on the building itself which faces Chandler Boulevard. Coming to the facility
from the east, you would pass the entrance before seeing the facility. He asked personnel in the
office if they had had complaints about the difficulty in finding the facility and was told they often
have complaints. The City does not currently recognize a distinction between an urgent care
facility and regular doctor’s office. An urgent care facility is open seven days a week for extended
hours. Mr. Anderson asked that the City review the special needs of an urgent care facility
versus a regular doctor’s office and other tenants in a condo/office situation to allow exemptions
with appropriate restriction in the name of public safety/public health.

MAYOR DUNN directed Staff to follow-up with a review of the code in this area.

VICE-MAYOR WESTBROOKS said that he received a call from this physician when he first
opened his office. It is an issue that needs to be reviewed in terms of specialty signage
especially for health care facilities. Planning and Development Director DOUG BALLARD stated
that Staff would review the ordinance and how urgent care is defined and report back to Council.

COUNCILMEMBER HUGGINS commented that he felt people were not aware that fire
departments have paramedics that can administer emergency care. He also congratulated Dr.
Anderson on being a finalist for Teacher of the Year.
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Chandler City Council
Thursday, January 13, 2005
Page 4


MAYOR DUNN asked the City Attorney if Unscheduled Public Appearances and the Consent
Agenda could be acted on before the rest of the Scheduled Public Appearances to allow more
seating for those standing in the back. Dennis O’Neill responded that it would be acceptable to
do so.

MAYOR DUNN announced that the following Scheduled Public Appearances, and anyone
wishing to speak regarding Go-Peds, would be heard after approval of the Consent Agenda.

MAYOR DUNN clarified that this is an opportunity for the Council to hear from individuals
regarding the possible banning of the use of go-peds on City streets. There is nothing on the
agenda for action and no decisions will be made, but direction can be given to staff. There is a
process by which information is obtained from Staff, information gathering from the community
and a scheduled time to come back to Council to hear from citizens before a final decision is
made. Other valley cities have addressed this issue and some have taken action. Chandler will
handle the issue in a way that will allow for the most Staff and public input, as well as input from
the Police regarding the current code.

Greg Dutton – Motorized Play Vehicles (Go-Peds)

GREG DUTTON, resident of Twelve Oaks, said that he is present on behalf of 200 petition
signers to request that City ordinance #12-5 be amended to either ban motorized play vehicles
from city streets or increase requirements for safe operation. He has been active in raising
awareness for the quality of life and safety issues caused by motorized scooter operation in
neighborhoods for the past 5 years. During that time, he has met with children and parents to
encourage safe, legal and respectful operation. He has spoken with riders regarding ways to
make the scooters quieter and has helped repair them in his garage. He hoped to educate them
on the right and privilege of operating a motor vehicle on public rights-of-way. Mr. Dutton
continued that he has made other efforts to promote tolerance by meeting with “fed up” citizens to
inform them of City ordinances and of the do’s and don’ts of confronting operators. He has also
spoken at beat meetings and met with police officers to work out the best approaches to curb
repeat offenders. Letters have been written to the Mayor and City Council. In spite of those
efforts, day-to-day abuses continued and tempers flared and responsible parties were seeing no
consequences for their actions. He finally concluded that education alone was a losing
proposition. He started a petition at the request of neighbors and had no problem getting
signatures from Twelve Oaks or Gila Springs. He met with the City Prosecutor and Police
Commanders to convince them that there needed to be strict enforcement of the current
ordinance. The result was increased enforcement. On March 23, 2004, Chief Kiyler issued a
warning letter to 800 homes in Twelve Oaks and it was hand-delivered by officers to parents of
known operators. That letter campaign worked for a while. In December, during a race between
go-ped operators, a young man received a severe head injury, but the incident has left its mark.
Up to this point, the neighbors have done all they can to work with each other and stay within the
existing City ordinances, but it is not enough. Go-peds have their place, but not on City streets.
They belong at sanctioned racing events. These vehicles are no longer a mode of transportation,
but have become recreational vehicles like ATV’s, go carts and dirt bikes. Eighty percent of those
who have signed the petition, urge Council to follow Tucson and Phoenix to ban gas-powered
and motorized scooters from public rights-of-way. The other 20% would like consideration to be
given to Reno, Nevada’s decision to raise the minimum recommended operator age to 16 with a
valid driver’s license and adequate insurance. They also ask the retailers present to join with
them in working with the City and professional go-ped associations to explore ideas to develop
public or private recreation areas and explore ways to host and promote more racing events in
Chandler.
                                                                            Minutes of the Regular Meeting
                                                                                     Chandler City Council
                                                                               Thursday, January 13, 2005
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COUNCILMEMBER SEPULVEDA asked Mr. Dutton if he was making a distinction between gas-
powered and electric powered. Mr. Dutton responded that he is.

MAYOR DUNN asked why the distinction in terms of safety? Mr. Dutton replied that he is here
for two reasons – quality of life and safety that includes noise. He showed Council how a
modified go-ped can be identified. MAYOR DUNN asked if all go-peds sound alike or are some
more muffled than others? Mr. Dutton said that when the vehicle comes from the manufacturer, it
has a stock muffler. A new third party industry has sprung up to build accessories for go-peds
turning them from stock vehicles into competition-level racing vehicles. One of the most sought-
after modification changes is the expansion chamber where the muffler is replaced along with
certain engine modifications making the go-ped louder, faster and more competitive.

VICE-MAYOR WESTBROOKS asked if the expansion chambers could be added to both gas and
electric scooters? Mr. Dutton responded that they are only on gas-powered scooters. According
to a go-ped retailer, at least 50% of the go-peds on the streets have been modified. VICE-
MAYOR WESTBROOKS asked if Mr. Dutton is suggesting an ordinance to ban the gas-powered
scooters only? Mr. Dutton said yes; either ban them or raise the operator age to 16. He cannot
recommend banning electric go-peds, but a number of petition signers disagree.

COUNCILMEMBER WALLACE asked if any modifications could be made to the electric go-peds
to make them faster? Mr. Dutton said that the City of Phoenix decided to ban the electric
scooters because it would not be long before modifications could also be made to electric
scooters

Javier Rodriguez – Motorized Play Vehicles (Go-Peds)

JAVIER RODRIGUEZ, 2669 E. Firestone Drive, commented on safety and noise compliance of
go-peds. He currently owns 3 electric scooters. Is this issue about noise or safety? He feels it is
a combination of both. Because he has electric scooters, it would be easy for him to say ban the
gas-powered ones, but that would not be appropriate. The current ordinance stipulates that
riders must be at least 13 years old. Children riding “Barbie Scooters” or those from toy stores
have to be 8. What about the in-between ages? He has an 8 year-old daughter picks up from
school on his scooter and she enjoys riding back. He is asking for rules allowing electric scooters
on the sidewalk, giving right-of-way to pedestrians, if the operator is under 13. It is not safe for
children under 13 to be on the street. Children on bicycles are allowed on the streets. Electric
scooters are sold in wattage. His daughter has a low 280 which does not go more than 7 mph.
There are speed modifications, but not after-market based on wattage and battery. If the issue is
noise, designate times when gas-powered scooters have to be off the street. He suggested
amending the ordinance so that those under 13 can ride gas or electric scooters if a parent is
within 50 feet.

VICE-MAYOR WESTBOOKS asked how fast an electric scooter could go? Mr. Rodriguez said
that 15 mph is the top speed.

COUNCILMEMBER HUGGINS asked how an electric scooter compares to a bicycle in terms of
speed. Mr. Rodriguez said that a bicycle could pass most electric scooters. There needs to be
safety regulations for eye protection and also wearing open-toed shoes.
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Chandler City Council
Thursday, January 13, 2005
Page 6


MAYOR DUNN complimented Mr. Rodriguez for being a responsible parent by ensuring his
daughter wears a helmet and encouraging safety. It would be very difficult for a police officer to
patrol checking for eye protection and open-toed shoes.

COUNCILMEMBER SEPULVEDA commented that the average scooter rider is not an adult. In
many cases, the older you get, the more responsible you get by having more life experiences to
draw from. In looking at the accident statistics, there is not a distinction between those riding
electric scooters versus those riding gas-powered. Mr. Rodriguez said that a 16 or 17-year old
with a license will not be driving a scooter, but will be driving a car. Specify in the ordinance that
those under 13 must have a parent near. He wants to protect the rights of those who want to ride
as a family.

Brian Perkins – Motorized Play Vehicles (Go-Peds)

BRIAN PERKINS, P.O. Box 1211, Tempe, said that he was nearly run down on a Chandler
sidewalk by two boys on motorized scooters who passed him from behind without slowing down.
He did contact the police. He heard the noise, but could not tell where it was coming from. It
sounded like a larger vehicle farther away. It creates a safety hazard because of the surprise
factor of the scooter being so close. The City of Chandler currently allows children as young as
13 the responsibility of operating motorized vehicles when the State of Arizona has determined
that older teens should have graduated licenses to drive a car. Bad driving habits learned on a
motorized scooter likely become bad habits behind the wheel of a car. Bad habits of automobile
drivers also impact scooters. People often are not paying attention, fail to see motorcycles and
are often less likely to see teens on a small, motorized scooter. Chandler’s ordinance requires a
bike-industry approved helmet that states they are not for use on a motorized vehicle. Helmets
do not protect the neck, arms or legs and do not prevent internal injuries to the body. Head
injuries are the primary known cause of epilepsy or seizure disorders. Cost to society from these
injuries is devastating. Kids can make better and quieter time on a bicycle while getting exercise.
Bicycles can also be taken on a city bus. Responsibility with a motor vehicle comes with age.
Teenagers well under 18 are too immature and irresponsible to operate motorized scooters
safely. He has been a motorcycle operator for over 10 years and is grateful that his parents did
not entrust him with a go-ped at the age of 15.

MAYOR DUNN mentioned that we encourage kids to wear helmets while riding bicycles and
there have been numerous deaths and injuries from bicycles. The issue seems to be that the
speed of go-peds increases the danger. MR. PERKINS said that people do not see motorcycles
when they are looking for a car. Sometimes they do not see a car because they do not actually
stop at a stop sign. People who almost stop do not see a moving scooter because they are not
stopped. When you stop, you detect movement. You do not notice a motorcycle or mo-ped.

Rob Sanchez – Motorized Play Vehicles (Go-Peds)

ROB SANCHEZ, 3642 W. Barcelona Drive, said that he called the Chandler Police Department
about a scooter rider who went up and down his street numerous times. He was told that it is
almost impossible to enforce laws regarding go-ped noise because a special monitoring station
would have to be set up to check the sound levels and few officers have the equipment or training
to do this. Going to Desert Breeze Park brings no respite because the go-peds are in the parking
lot in numbers. Adults have to comply with noise and emission standards when they drive cars or
motorcycles; kids on go-peds do not. Chandler Police have more pressing issues than
monitoring the noise level of kid toys and cities have the right to have quiet neighborhoods
without the threat of children riding pesky machines. There is also a pollution issue with the go-
                                                                            Minutes of the Regular Meeting
                                                                                     Chandler City Council
                                                                               Thursday, January 13, 2005
                                                                                                   Page 7


peds. According to the California Air Resource Board, a single go-ped emits as much pollution as
75 cars because go-peds use similar engines to leaf blowers. Leaf blowers have been ruled
unacceptable in California and go-peds are not allowed on streets unless they meet emissions
standards. In Arizona, the Governor’s Brown Cloud Commission also concluded that leaf blowers
should be banned in Arizona to comply with EPA demands that air pollution be reduced. He
called the Arizona Department of Economic Quality to see why go-peds were not also banned.
He was told that at that time, go-peds “weren’t on the radar screen”. If they had known about the
study done in California, they may have considered a ban. There is no doubt that the exhaust
systems from gas-powered motorized scooters are unacceptable in areas having difficulty
meeting EPA pollution standards. Considering the Governor’s Brown Cloud Commission
recommendations, it makes sense to ban go-peds because they serve no useful purpose.
Banning go-peds sends a message to the public that our city officials are serious about cleaning
the brown cloud in the valley and will send a message to our children that we all have an
obligation to live in harmony with our neighbors.

STEVE CORMAN, 3361 W. Drake Street, spoke in support of a ban or further regulation on gas-
powered go-peds. Safety issues have been noted; his issues are quality of life. He lives on the
corner of Drake and Harrison which seems to be the “super highway” for go-peds. The daily
noise is very disturbing. Unmodified go-peds produce an unacceptable amount of noise, but
lately they have been getting louder and faster. Mr. Corman described some of the modifications
available for these go-peds to increase their speed and power. He agrees that people should be
left alone by government and should be allowed to ride go-peds as long as it does not infringe on
the quality of life of others.

EDWARD SEILER, 4909 W. Joshua Boulevard, said that he walks frequently and sees many
dangerous abuses by go-peds. The go-peds drive on sidewalks pushing pedestrians into the
street. All go-peds should be banned. Even though go-peds are banned in Phoenix and may be
banned in other cities, they will be sold to residents in our city.

MICHAEL MILLS, 630 N. Elm, spoke in support of a ban or restriction on go-peds. He spoke
specifically to the noise and provided some data. He used to live in the Stellar Airpark area and
had to actually run kids with go-peds off of the airplane taxiway. Speeds of approximately 40-45
mph were estimated. Some of the modified scooters run at about 96 decibels. In comparison, a
freight train 45 feet away runs about 95 decibels while a jet taking off at 1500 feet produces about
100 decibels. Experts say that any noise level above 85 decibels for an extended period of time
will cause loss of hearing. He witnessed a mother covering an infant’s ears when these go-peds
were approaching. He encouraged a total ban of any type of gas, motorized scooters on city
streets.

BARB HASTINGS, 1060 E. Vaughn, general manager of Engine Tricks in Gilbert, said that there
are a lot of misconceptions in her industry both through the news media and the general public.
They have been trying to address noise issues for some time. There are a lot of retail stores in
the valley that are California Go-Ped authorized factory dealers. Everything else is known as a
scooter. California Go-Ped is a registered trademark and has been in business since 1985 and is
a very responsible company. They donate trees for every scooter sold and donate to breast
cancer foundation research. She offered her services and that of the industry to address any
questions in the future. She is aware of community issues. She had a Chandler police officer
visit her store and give her a copy of the city’s ordinance which she passes out to Chandler
customers. They have also published a pamphlet of the rules regarding scooters and safe
operation that is distributed to parents and children. One of the problems in the industry is the
influx of scooters from other countries that are sold on street corners, auto stores and wholesale
Minutes of the Regular Meeting
Chandler City Council
Thursday, January 13, 2005
Page 8


clubs where no education is provided. Ms. Hastings also expressed concern with whether or not
Mr. Dutton’s petition was a legal and binding document. The industry has been misrepresented
by the media and she would like to clear up the misconceptions.

COUNCILMEMBER CACCAMO asked how the imported scooters compare with California Go-
Peds. Ms. Hastings responded that there are no regulations on the imports. The California Go-
Peds are regulated in the factory to make sure they are not pollutants, not noisy and do not
recommend any alterations. What is happening in the general public with the increase in noise is
the expansion chamber, which she no longer sells. There is no regulation on the imports. The
expansion chamber was originally designed for closed course racing, but can be used for other
means. The engines on the imported scooters are comparable to those of the California Go-
Peds.

COUNCILMEMBER ORLANDO asked how many California scooters and go-peds are sold in
Arizona? She does not have specific figures. She would like to invite the owner of California Go-
Peds to speak in the future and clear up some of the misconceptions.

COUNCILMEMBER SEPULVEDA said that the issues of safety and noise are the same whether
the scooter is a California Go-Ped or an import. Even though Ms. Hastings is a responsible
retailer, there is no control after the scooter leaves the shop. He asked Ms. Hastings for her
suggestion on safety and quality of life. Ms. Hastings replied that as far as the number of
scooters being used, it doesn’t matter if it is a California Go-Ped or an import. Most dealerships
see their customers on a regular basis. They talk about different issues, safety factors, do’s and
don’ts. If a child is given the option of not being able to ride a scooter if it has a pipe, they will
choose to not have the pipe because they want to be able to ride. In regards to the safety issues,
Ms. Hastings said that Gilbert announced they would offer a safety class through their Crime
Prevention Unit.       She has been waiting since 2000 to see that class be offered.
COUNCILMEMBER SEPULVEDA asked Ms. Hastings if she felt there is a safety issue with these
scooters? Ms. Hastings responded that she does. Riders can be taught safety techniques
through educational programs.

GREG DUTTON showed the webpage for Engine Tricks which states that they are in the
business of creating the best high-performance products for go-peds including engine
modifications and high-performance tuning. They custom–make accessories and are in the
business of third-party accessories.

MAYOR DUNN said that our ordinance needs to be reviewed and possibly updated because it is
7 years old. There have been more citizens in support of a total ban or increase the age of the
operator.

COMMANDER DAVE NEUMAN reviewed the current ordinance. Basics of the ordinance are that
the operator must comply with all traffic laws and must obey traffic control devices; operate at
speeds that are reasonable and prudent; must yield the right-of-way to users on bike lanes and
paths; no riding on sidewalks; no passengers; no attaching to another vehicle or another
motorized scooter; no towing other objects; no operating on roads that have a maximum speed
limit of more than 35 mph; no child under the age of 13 shall operate the vehicle and no operating
on a public or private property that restricts the use of skateboards. The altering of motorized
scooters from the original factory design is also prohibited. Operators must keep both hands on
the steering mechanism at all times, must use eye protection, must wear a bike-industry
approved helmet and must wear shoes that have a sole and cover the entire foot if under the age
of 18. No transporting of any extra fuel on the device. No riding of more than two abreast and
                                                                           Minutes of the Regular Meeting
                                                                                    Chandler City Council
                                                                              Thursday, January 13, 2005
                                                                                                  Page 9


the brake must be capable of producing a skid. During night hours, a white light is required in
the front visible for 500 feet and a red light in the rear visible 300 feet.

Cmndr. Neuman gave the following statistics for the City of Chandler regarding the number of
calls for service in relation to scooters:

1999 - 40                    2000 - 74                     2001 - 159
2002 – 258                   2003 - 135                    2004 - 117

The majority of the complaints were due to noise with some for erratic driving. Over the past 6
years there are 5 documented reports where scooter operators were involved in traffic incidents.
Four of the accidents involved injury and none in a death. One did result in a severe head injury.
During the same time frame, 152 pedestrian accidents were documented and 409 involving
bicyclists of which 83% resulted in injury. Four bicyclists and three pedestrians were killed.

MAYOR DUNN clarified that enforcement of the ordinance is complaint-based. There are no
officers actually assigned to a specific area watching for go-peds. Cmndr. Neuman said that
officers would respond to the complaint and see if there are any violations when they arrive. The
beat officers will site a rider for violation of the ordinance. Between 1999 and 2002, 94 citations
were issued. In 2003, 11 citations were issued while 70 were issued in 2004. MAYOR DUNN
asked if the parents were also involved. Cmndr. Neuman said the operator is cited and if the
opportunity presents itself, they will try to contact the parent.

COUNCILMEMBER SEPULVEDA confirmed with Cmndr. Neuman that the ordinance restricts
modification from the original equipment. Police Public Information Officer ROB KRAUTHEIM
said there are no specifics in the ordinance relating to speed.

COUNCILMEMBER HUGGINS asked what impact it would have on the department if officers
issued citations for expansion chambers which they “on-view”. Cmnder. Neuman responded that
enforcement questions came up when the expansion chambers were first used in order to have a
case before the court. Initially, the courts wanted the go-ped confiscated and be available for
court.

VICE-MAYOR WESTBROOKS asked if there were statistics available regarding accidents
involving motorized play vehicles. Cmndr. Neuman said that since 1999, there have been 5 with
4 resulting in injury to the operator.

In response to MAYOR DUNN’S request, City Manager MARK PENTZ suggested forming a staff
taskforce and asked Assistant City Manager RICH DLUGAS to head the taskforce. Staff will
meet with citizens for their input and come back to the Mayor and Council with recommendations
in approximately 8 weeks.

COUNCILMEMBER ORLANDO asked how the taskforce process would work. Mr. Pentz said
that in the past, “a handful” of interested citizens have been invited to participate; however, the
meetings will be open to the public. When it comes back to the Mayor and Council, it will be in a
public forum giving anyone the opportunity to comment. COUNCILMEMBER ORLANDO clarified
that there will be a good cross representation of those wanting a complete ban, those wanting
stricter stipulations and the industry.

VICE-MAYOR WESTBROOKS encouraged Staff and citizens to research the issue. One thing
that needs to be defined early in the process is the definition of a scooter versus a go-ped. There
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are people in the community who are afraid the go-peds will be banned which, in some cases, is
a major means of transportation. We need to be specific in the definition of a motorized play
vehicle. There is a lot of education needed for the general public so they understand exactly
what is being done.

COUNCILMEMBER WALLACE commented that Council has received inquiries as to whether or
not motorized vehicles would include motorized wheelchairs. This is an example of why an
extensive education process needs to be put in place.

JIM TUNNEY, 4783 W. Folley, suggested that an example of the vehicles should be made
available to Council so they know what the citizens have had to put up with the last few years.

RICHARD SANTA CRUZ, 1583 W. Linda Lane, said that his son has a go-ped and the noise
annoys him at times. However, it is something that some of the children need to do. He
suggested consideration be given to establish a place for them to ride. There are skate parks
and BMX courses in other cities. By having a designated place to ride, they can still ride but not
on the streets. His children wear full-face helmets, gloves and eye protection.

DAVID ROMERO, ESSA ABDALLAH and JOE KINYON said that pipe do not make the go-peds
go 40-45 mph. They only make them go 2-3 miles over stock which is about 25 mph. They are
responsible riders and stop at stop signs. They ride around the neighborhood and are respectful
of others. One rider has worked out a time period with his neighbors when it is appropriate for
him to ride his go-ped. They also said that silencers are sold to make them sound like the regular
stock engine. They encouraged all riders to be responsible.

MAYOR DUNN suggested to the City Manager that some of the go-ped users be involved in the
taskforce.

UNSCHEDULED PUBLIC APPEARANCES:

There were no unscheduled public appearances.

CONSENT:

MOVED BY COUNCILMEMBER ORLANDO, SECONDED BY COUNCILMEMBER HUGGINS, to
approve the Consent Agenda as presented. Motion carried unanimously 7-0.

1.       MINUTES:

APPROVED, as presented, the minutes of the Chandler City Council Special Meeting of
December 13, 2004 and Regular Meetings of December 13 & 16, 2004.

2.       EASEMENT: SRP                                                                Ord. #3604

ADOPTED Ordinance No. 3604 granting an easement to Salt River Project for 69kv electrical
facilities over city-owned property at Espee Park on Warner Road between Arizona Avenue and
McQueen Road.

3.       RIGHT-OF-WAY VACATION/PUBLIC UTILITY EASEMENT: Fulton Ranch                  Ord. #3634
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WITHDREW, as recommended by Staff, Ordinance No. 3634 authorizing the vacation of road
right-of-way and public utility easement within the proposed Fulton Ranch subdivision located in
the area bounded by Ocotillo Road, Arizona Avenue, Chandler Heights Road and Alma School
Road.

4.       INITIAL ZONING: Whispering Heights                                              Ord. #3635

ADOPTED Ordinance No. 3635, DVR04-0004, Whispering Heights, initial City zoning of PAD for
the subdivision layout and housing product at the SEC of Lindsay and Chandler Heights Roads.

5.       REZONING: Pollack Business Park North – Suites 8, 9 & 10                        Ord. #3637

ADOPTED Ordinance No. 3637, DVR04-0052, Pollack Business Park North – Suites 8, 9. & 10,
rezoning existing Planned Industrial District/Planned Area Development (I-1/PAD) to I-1/PAD
amended to allow for motorcycle sales and repair within Suites 8, 9 and 10 of Building E at 3245
North Arizona Avenue.

6.       REZONING: The Castle at Ashley Manor                                            Ord. #3638

ADOPTED Ordinance No. 3638, DVR04-0040, The Castle at Ashley Manor, rezoning from PAD
to PAD Amended for a meeting/reception facility on approximately 2.87 acres located north of the
NWC of Price and Willis Road.

7.       ZONING CODE AMENDMENT: Expanded Notification Requirements                      Ord. #3640

ADOPTED Ordinance No. 3640, ZCA04-0002, Expanded Notification Requirements, amending
the Zoning Code to require a six hundred (600) foot notification area for public hearings, Area
Plans and Preliminary Development Plans increased from three hundred (300) feet. Notices
would also be mailed to Registered Neighborhood Organizations within one-quarter (1/4) mile of
the subject property.

8.       REZONING: Tre' Vicino                                                           Ord. #3641

ADOPTED Ordinance No. 3641, DVR04-0005, Tre Vicino, rezoning from General Industrial
District (I-2) and Regional Commercial District (C-3) to PAD for a low-medium density residential
development on approximately 49.4 acres south and east of the SEC of Knox Road and Arizona
Avenue.

9.       REZONING: Mercedes-Benz & Lexus of Chandler                                     Ord. #3642

ADOPTED Ordinance No. 3642, DVR04-0056, Mercedes-Benz & Lexus of Chandler, rezoning
from General Industrial District (I-2) to PAD and PAD auto park for an automobile dealership
complex on approximately 22.6 acres at the NEC of Orchid Lane and Interstate 10.

10.      CITY CODE AMENDMENT: Chapter 29                                                 Ord. #3610

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3610 amending Chapter 20 of
the City Code, Sections 29-2, 29-3, 29-4, 29-5, 29-10 and 29-11, relating to the 2003 International
Code Updates. The codes to be adopted are as follows:

      1) 2003 International Building Code with amendments
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      2)   2003 International Residential Code with amendments
      3)   2003 International Mechanical Code with amendments
      4)   2003 International Plumbing Code with amendments
      5)   2003 International Fuel Gas Code with amendments
      6)   2002 National Electric Code with no amendments.
      7)   1994 Uniform Swimming Pool and Spa Code with amendments

The 1994 Uniform Administrative Code will be retained with no amendments.

Other issues for consideration include:

1)    There will be no changes at this time to the permit fee structure. Fees are listed in the
      administrative code which is remaining unchanged at this time.
2)    The use of plastic pipe has also been raised. A presentation was made to the Council on
      March 27, 2003 by the plastic pipe industry. At that time, new code adoption was being
      considered and a decision was made to consider plastic pipe with this code adoption. The
      Construction Board of Appeals considered this during their review of the new codes and
      determined the use of plastic pipe as permitted by the proposed code was appropriate.
      Note that the use of plastic pipe as a plumbing material is mooted by the fact that all new
      residential zoning contains a stipulation that only copper piping is permitted. Therefore,
      regardless of the provisions of the code, plastic piping is not permitted nor has it been
      permitted since the stipulation of copper has been in place. With the adoption of this
      code, the prohibition of polybutylene remains in place, but the Board case that prohibited
      all plastic piping is considered vacated. Still, plastic pipe of any kind will not be permitted
      until the stipulation is removed from each zoning action. Though plastic piping will become
      an approved material in the building code, it may not be used until Council addresses the
      zoning stipulations through other actions.
   3) The changes to the Swimming Pool and Spa code were done to accommodate life/safety
      needs as well as certain desires of the development community for view walls and fences.
      The intent is to enhance the life/safety aspects of the building code by raising the height
      from 5 feet to 6 feet for perimeter fences while at the same time allowing for certain
      appearance issues as regulated by the zoning ordinance. Generally, the body of the
      codes remains as written by the national code writers. The local amendments are
      generally the same amendments that have been approved with past code adoptions and
      in several instances, the same code will continue to be used because there are no
      substantial changes.

11.        ANNEXATION: NEC Ocotillo Road / Pinelake Way                                 Ord. #3639

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3639 annexing approximately
20 acres of property east of the NEC of Ocotillo Road and Pinelake Way. (Applicant: Bob
Kerley, Hogan and Associates; Owners: Reed and Julia Kerby.) The annexation incorporates
into the City property required for a proposed mini-warehouse and is currently zoned in the
County as Rural-43 (R-43).

The City’s General Plan Land Use Element designates this property for employment and as a
part of the Airpark Area Plan. Within the Airpark Area Plan, the property is designated for Light
Industrial. The property is not within a flood plane and the north half is within the 55 DNL noise
contour. Required improvements to the roadway and utility infrastructure will be constructed as
part of this development. The property is now farmed, as is property to the south, west and north.
To the east is vacant.
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12.    ANNEXATION: NEC Pinelake Way and Ocotillo Road                                    Ord. #3644

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3644 annexing approximately
12 acres at the NEC of Pinelake Way and Ocotillo Road. (Applicant: Jerry Torr, JB Commercial:
Owners: Jamie and Sandra Rabago, Gene and Jackie Minchuk.) The annexation incorporates
into the City property required for a proposed multiple-building industrial park under single
ownership. The property’s current County zoning is Light Industrial (Ind-2).

The City’s General Plan Land Use Element designates this property for employment uses and as
part of the Airpark Area Plan. Within the Airpark Area Plan, the property is designated for
Industrial Uses. The property’s northern portion is within the 55 DNL noise contour. The property
is not within a flood plain. Required improvement to the roadway and utility infrastructure will be
constructed as part of this development. The property is now vacant. To the west is rural
residential and a palm nursery. North, east and south are farmed.

13.    ANNEXATION: NWC Riggs and Lindsay Roads                                           Ord. #3645

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3645 annexing approximately
15 acres west of the NWC of Riggs and Lindsay Roads. (Applicant: ETICO Investment Group
LLC.) The annexation incorporates into the City property required for a proposed single-family
residential subdivision. The property’s current County zoning is Rural-43 (R-43). The property
currently has a Special Use Permit for a Cellular Communications Tower.

The City’s General Plan Land Use Elements designates this property for very low density
residential and as a part of the Southeast Chandler Area Plan. The property is not within a flood
plain nor a noise contour. Required improvements to the roadway and utility infrastructure will be
constructed as part of this development. The property’s western part is now a dairy and a home
facing Riggs Road while the eastern part is vacant. The NWC includes a cellular communications
tower. South is a golf course and the Solera single-family subdivision. East is vacant; north are
homes on acre lots; west is farmed and an outdoor storage yard.

14.    REZONING: Cedar Professional Center                                               Ord. #3647

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3647, DVR04-0044, Cedar
Professional Center, rezoning from AG-1 to PAD along with a Preliminary Development Plan for
the construction of a medical/general office building on approximately 1.5 acres south of the SEC
of Ray and McQueen Roads. (Applicant: Gilbert Assaker, Tycoon Construction, Inc.)

The site is bordered to the north and east by the existing residential subdivision Superstition
Ranch. To the south is a city park and to the west is residential property zoned AG-1. The
application also includes a comprehensive sign package.

This request was noticed according to the provisions of the City of Chandler Zoning Code with a
neighborhood meeting being held on September 22, 2004, attended by 4 neighbors in support of
the project. Staff has received no phone calls or letters in opposition.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to conditions as listed in the ordinance.
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15.      CITY CODE AMENDMENT: Chapter 36                                                   Ord. #3649

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3649 amending Chapter 36,
Section 36-1, of the City Code relating to the Housing and Human Services Commission.

Council approved establishment of a Human Services Commission on November 18, 2004, and
directed staff to evaluate how best to accommodate this commission. Staff presented the
following recommendations at the December 13, 2004 Study Session:

1)       Change the Housing and Redevelopment Committee to the Housing and Human Services
         Commission
2)       Increase the size of the commission to 11 members with members being citizens of
         Chandler and not from local social service agencies that may be requesting funding
3)       Utilize the funds that the City currently pays to United Way to administer the funding
         process for Social Service Funds, Youth Enhancement Funds and Acts of Kindness
         Funds to provide Staff assistance to the Housing and Human Services Commission.
4)       Expand the duties and responsibilities of the Commission to include meeting with the
         various stakeholders, determining current service levels, assessing the gaps in service
         that may exist, developing priorities for funding and service as the final allocation panel for
         the City’s social service funds.

Council had recommended that the Valley of the Sun United Way serve as an ex-officio member
on the Commission. United Way would prefer not to be an ex-officio member but rather provide
support to the commission on an as-needed basis.

The new roles will enhance the coordination between the CDBG program and social service
funding provided by the City. The City currently pays the United Way $34,400.00 to administer
the funding process for Social Service Funds, Youth Enhancement Funds and Acts of Kindness
Funds. Staff recommends that those funds be set-aside for the Planning and Development
Department to utilize for Staff support to the Commission.

16.      REZONING/PRELIMINARY PLAT: Hamilton Park                                          Ord. #3650

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3650, DVR04-0033, Hamilton
Park, rezoning from PAD for commerce park to pad for single-family residential along with a
Preliminary Development Plan for the subdivision layout and housing product on approximately
22 acres and APPROVED a Preliminary Plat, PPT03-0013 for an 84 lot single-family residential
subdivision on the SWC of Pecos and Hamilton Roads. (Applicant: Whitneybell Architects Inc./
Magee Homes.)

The subject site is bordered to the east, south, southeast and northwest by existing single-family
subdivisions of comparable density. The Santan Loop 202 is currently under construction to the
south and southwest of the site. The Arizona Department of Transportation maintains a large
retention basin along the subject site’s southern boundary. Along the west side of the sit are the
Union Pacific Railroad tracks; north is vacant land zoned PAD for industrial/employment-based
development.

Hamilton Park is proposed as a Medium-Density neighborhood with 83 lots proposed on
approximately 22.7 acres resulting in a density of 3.39 dwelling units per acre. The site lies within
a flood plain. The proposed development has designed two large retention areas to provide
buffering from the adjacent railroad and future Santan Loop 202, complement the existing
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retention basins to the south of the site as well as provide approximately 37% open space for the
subdivision while satisfying the site’s retention needs.

A sound study addressing the freeway impacts on the property was submitted and reviewed after
the Planning Commission hearing resulting in a minor modification to the development’s platting
pattern in the southwest corner. Had the sound study been submitted prior to the planning
commission hearing, these platting changes would have been incorporated into the plan. The
final platting pattern and noise abatement techniques recommended by the sound study are now
incorporated into the development requirements resulting in an improved plan. The development
request conforms to the ADOT Noise Abatement Policy and a zoning stipulation requiring
conformance is included.

The Airpark Area Plan and Santan Freeway Corridor Plan affect the subject site. The Airpark
Area Plan designates the property as Low-Medium Density Residential allowing 3.6-8.0 dwelling
units per acres. The Santan Freeway Corridor Plan allows for Low/Medium Density Residential,
allowing 2.5-8.0 dwelling units per acre. Hamilton Park’s density is well within both the ranges at
3.70 dwelling units per acre.

The site is currently zoned PAD for Commerce Park development which conflicts with both Area
Plans. Residential use would be compatible with the existing adjacent residential uses. Hamilton
Park is appropriate for the area in that it is surrounded by subdivisions of similar density. Being
that the proposed development lies just outside Chandler’ historic downtown area, Staff finds the
proposed subdivision strengthens the area’s revitalization potential with its infill qualities and
innovative housing product.

The Subdivision Diversity Guidelines dictate that if any lots within a multi-parcel PAD are less
than 7,000 square feet, all of the diversity elements are required for the entire project. This plan
does propose lots that are less than 7,000 square feet; however, all the diversity elements are not
met. The Medium-Density subdivision is not able to comply with all the elements such as
vehicular access to the rear yard or providing deeper rear yard setbacks. The product and
standard lot sizes do not accommodate this. However, Staff supports this deviation, finding it
provides diverse housing opportunities within a quality development.

This request was noticed according to the provisions of the City of Chandler Zoning Code with a
neighborhood meeting being held on August 19, 2004 with one neighbor in attendance. Staff has
not received any inquiries regarding this proposal.

Upon finding this request to be consistent with the General Plan, the Planning Commission and
Staff recommend approval subject to conditions as listed in the ordinance.

17.    PUBLIC ROADWAY VACATION: Fulton Ranch                                              Ord. #3652

ADOPTED Ordinance No. 3652 vacating certain existing public roadways within and adjacent to
the proposed Fulton Ranch development located in the area bounded by Ocotillo Road, Arizona
Avenue, Chandler Heights and Alma School Roads, extinguishing a related public utility
easement and declaring an emergency.

The zoning, preliminary plat and final plat have previously been approved for Fulton Ranch. An
exchange of property for park purposes has also been approved and is in escrow pending Fulton
Homes closing on its purchase of the Fulton Ranch site from the current owner. The final plat for
Fulton Ranch, through which the City of Chandler will be dedicated certain roadway in fee and
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related easements, will not record until the engineering plans for the development have been
reviewed and approved, which will take at least sixty days and possibly longer. However, Fulton
Homes needs to complete the purchase of the Fulton Ranch site and certain related escrowed
transactions, including the park property exchange, by January 14, 2005, in order for the
development to proceed, and existing roadways and a related easement held by Chandler need
to be removed form the public record by that date for the transactions to close.

This ordinance authorizes the vacating of the existing roadways and extinguishment of the related
easement. The roadways and easement are no longer necessary for any public purpose, so long
as the required consideration is provided to the City by Fulton Homes. The consideration will be
a new permanent roadway and utility easement, which will ultimately be superceded by the
dedications made on the plat when it is ready to record and a temporary roadway easement to
allow continued use of existing Basha Road until the new alignment with Alma School Road
anticipated by the plat for Fulton Ranch is completed.

Because the closings must occur by January 14, 2005, and because they are critical to the timely
development of a major new master planned community in south Chandler, and critical to the
park property exchange, the ordinance is adopted with an emergency clause.

18.      PROPERTY PURCHASE: McQueen / Chandler Heights Roads                           Res. #3809

ADOPTED Resolution No. 3809 authorizing the purchase of 2.5 acres of land for a future fire
station and City well site on McQueen Road just south of Chandler Heights Road in the amount of
$402,021.00 including closing and associated costs. This site was chosen based on the fire
Department’s city-wide response time goal of 4 minutes 75% of the time. To facilitate this goal in
southeast Chandler, the Fire Department has determined that an additional station near the
Chandler Heights and McQueen Roads intersection is necessary. As part of their water master
plan, Municipal Utilities required additional well sites in southeast Chandler. Staff has determined
that the combined Fire and Utilities issues can be accommodated by the acquisition of 2.5 acres.

The property owner has agreed to sell approximately 2.5 acres for $400,000.00 and will be
dedicating additional land for road right-of-way. Staff has determined that the combined right-of-
way and land acquisition is below market value. As part of the consideration, the property owner
will provide the City with an ALTA survey prior to closing. Estimated closing costs are $2,021.00.

19.      INTERGOVERNMENTAL AGREEMENT: Maricopa HOME Consortium

APPROVED an Intergovernmental Agreement with the Cities of Glendale, Mesa, Peoria,
Scottsdale, Tempe, the Town of Gilbert and Maricopa County to provide for continued
participation in the Maricopa HOME Consortium through FY 2008/2009.     The purpose of the
Consortium is to receive, distribute and administer Federal HOME Investment Partnership Act
funds. The Consortium, through an IGA between its members, has agreed to cooperate to
undertake housing activities allowed under federal regulations.

The Federal HOME Investment Partnership Program provides funding to undertake specific
housing activities limited to Housing Rehabilitation, Rental Housing Acquisition and
Rehabilitation, First Time Homebuyer Assistance and Tenant Based Rental Assistance. In the
past, the City of Chandler has used the majority of its HOME Program receipts to provide for the
rehabilitation of owner occupied housing in the City’s designated Redevelopment Area. In
addition, the City has also used these funds for the acquisition and rehabilitation of 44 units of
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affordable housing operated by Community Services of Arizona as well as rehabilitation of My
Sister’s Place, a local domestic violence shelter.

Because Chandler’s population is not sufficient to directly receive federal HOME Program funds,
the City has entered into a Consortium with Gilbert, Glendale, Mesa, Peoria, Scottsdale, Tempe
and Maricopa County to receive these funds. Distribution of funding among Consortium members
is based upon each entity’s Community Development Block Grant entitlement. The Consortium’s
current IGA will expire in 2006. Continued participation is contingent on entering into an
agreement with the member cities. Because the participating jurisdiction’s fiscal year differs from
the Federal fiscal year, it is necessary to execute this agreement at this time.

All costs associated with the HOME Program and Maricopa HOME Consortium will be paid by the
U.S. Department of Housing and Urban Development and do not require repayment on the part of
the City of Chandler. Should the City of Chandler not enter into an IGA with members of the
Maricopa HOME Consortium, approximately $452,000.00 of Federal funds will not be received by
the City.

20.    FEDERAL HOME FUNDS APPLICATION                                                    Res. #3810

ADOPTED Resolution No. 3810 supporting an application for Federal HOME Funds by Housing
for Mesa to the Maricopa HOME Consortium to provide funds for homebuyer assistance.

The City of Chandler, along with six other local municipalities and Maricopa County, formed the
Maricopa HOME Consortium for purposes of administrating the Federal HOME Investment
Partnerships Program (HOME). Of the total funds allocated to each jurisdiction under the HOME
program, 15% must be reserved for specific types of nonprofit organizations known as
Community Housing Development Organizations (CHDO’s). Participants in the Consortium have
pooled their 15% set aside funding for eligible CHDO applicants.

An East Valley-based nonprofit organization, Housing for Mesa, has applied to the Maricopa
HOME Consortium for funding as a CHDO agency under the FY 2005/2006 HOME Program. As
part of their application, Housing for Mesa must submit a resolution of support from the
governmental jurisdiction where the project is to be located. At a minimum, the resolution must
include community support for the project and an indication that the proposed project is in
compliance with the Consolidated Plan of that locality.

Housing for Mesa’s application for CHDO funding is to purchase single-family homes, rehabilitate
them and resell the properties to moderate income, first-time homebuyers. The agency has not
identified specific homes at this time but as they will be looking throughout the East Valley for
properties, a resolution of support from the cities in which the properties may be located is
necessary.

21.    PUBLIC ROADWAY DEDICATION: Snedigar Park                                          Res. #3812

ADOPTED Resolution No. 3812 declaring and dedicating portions of Snedigar Park for use as
public roadway.

The final plat for Fulton Ranch has previously been approved. It provides for a new main
collector road or “loop road” within the subdivision. The portion of Basha Road near the loop road
needs to be realigned to allow safe ingress and egress for vehicles going to or coming from Alma
School Road. The realignment requires that certain portions of park land owned by the City that
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are along Basha Road be dedicated and used for a new public use, i.e. public roadway. This
dedication will eliminate the current direct connection of Basha Road to Alma School Road in
exchange for an indirect connection via the loop road, tentatively named Fulton Ranch Boulevard.

22.      COMMERCIAL REINVESTMENT PROGRAM AGREEMENT                                      Res. #3813

ADOPTED Resolution No. 3813 authorizing an Agreement with L & G Elliot, L.L.C., to provide
commercial reinvestment program funding for improvements to the former First American Plaza
at 2950 N. Dobson Road in the amount not to exceed $43,427.00.

The former First American Plaza at the southwest corner of Elliot and Dobson Roads is the oldest
shopping center at this intersection. As new retail developments such as Chandler Fashion
Center have become major magnets for new tenants and other ancillary uses, older existing
shopping centers have begun to experience rising vacancy rates caused by increased
competition, tenant relocations, small business closures and greater costs to upgrade older
building facilities to meet market standards. The intent of the Commercial Reinvestment Program
is to encourage private reinvestment in older existing retail centers within designated areas of the
City that exhibit greater vacancy rates higher than City-wide averages and/or buildings that were
constructed at least 15 years ago. The proposed improvements to the former First American
Plaza are compatible with the intent of the Commercial Reinvestment Program. This project will
dramatically change the appearance of the development and help ensure its long-term viability. L
& G Elliot, L.L.C. will invest approximately $400,000.00 in the renovation.

23.      PRELIMINARY DEVELOPMENT PLAN: Milgard Manufacturing, Inc.

APPROVED a Preliminary Development Plan, PDP04-0022, Milgard Manufacturing, Inc. for the
site layout and building architecture for a glass manufacturing facility at the SWC of Nevada
Street and Palomino Drive. (Applicant: Archicon, Michael Monroe.)

The property lies within the Westech Corporate Center and is currently vacant and maintained in
a clean, weed-free condition. The site is bordered on all four sides by industrial zoned property.
It is proposed for an industrial building with office and warehouse components. Truck doors are
located along the building’s north, south and west sides. Site landscaping exceeds the
requirements of the Zoning Code and provides a screen from both Nevada Street and Palomino
Drive. The building’s design quality and architectural treatments are comparable with recently
constructed industrial buildings in Chandler.

The property’s west side is planned for future parking and will be for water detention during and
after construction. If the applicant constructs parking spaces in this area, the water detention will
need to be placed underground. The project is required by code to provide 444 parking spaces
due to the proposed buildings’ size. Staff has review these requirements and the required
number of parking spaces can be provided on site; however, the application requests a reduction
in spaces required.

The site plans how 367 spaces provided on site at this time with an additional 78 that can be
provided in the future if needed. Staff recommends allowing the reduction. Additional
landscaping would be planted in the areas that would be used for parking that would largely be
unused. This will enhance the aesthetics of the site and minimize as much as possible the
amount of asphalt that would be visible on the site.
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Upon finding consistency with the General Plan and PAD zoning, the Planning Commission and
Staff recommend approval subject to the following conditions:

1.     Compliance with original stipulations adopted by the City council as Ordinance No. 2858
       in case PL98-0020 Westech PAD.
2.     Development shall be in substantial conformance with the Development Booklet entitled
       “MILGARD MANUFACTURING, INC.” kept on file in the City of Chandler Current Planning
       Division, in file number PDP04-0022, except as modified by condition herein.
3.     The landscaping in all open spaces and rights-of-way shall be maintained by the adjacent
       property owner or property owners’ association.
4.     Approval by the Director of Planning and Development of plans for landscaping (open
       spaces and rights-of-way) and perimeter walls.
5.     Sign packages, including free-standing signs as well as wall-mounted signs, shall be
       designed in coordination with landscape plans, planting materials, storm water retention
       requirements, and utility pedestals, so as not to create problems with sign visibility or
       prompt the removal of required landscape materials.
6.     The applicant will work with Staff to add more variety to the perimeter wall located along
       the Nevada Street and Palomino Drive frontages to include additional materials and shall
       vary the wall height.

24.    PRELIMINARY DEVELOPMENT PLAN: Costco Wholesale

APPROVED a Preliminary Development Plan, PDP04-0024, Costco Wholesale, for a warehouse
style retail store and gas station and freestanding PADs located at the SEC of Chandler Village
Drive South and Galleria Way. (Applicant: Peter Clement, Costco.)

This property is part of the Chandler Fashion Center regional mall master plan. It was zoned
Planned Area Development (PAD) in February 2000 allowing for commercial uses (C-1 and C-2).
This part of the regional mall master plan (Parcel G) encompassed approximately 84 acres
bounded on two sides by freeways and the other two sides by collector streets. Parcel G
development rights, granted under the PAD zoning, expected intense building coverages or
increased building heights in comparison with the balance of the regional mall master plan.

The property is located at the intersection of two collector streets. North of Galleria Way is a
portion of Parcel G that includes other retail stores. West of the property is the Hearthstone
single-family home neighborhood, which is separated from the mall property by a 100-foot
greenbelt retention basin. Unique landscape contouring, plantings, and screen walls are
incorporated into the greenbelt to further buffer the site’s impacts from the neighborhood.

The Costco building is located in the parcel’s southeast corner with the loading docks along the
eastern building façade. The store entrance is in the northwest corner oriented toward the
adjacent streets. The primary parking field is visually screened by the freestanding pads. The
gas station is located in the northeast corner, furthest away from the adjacent neighborhood.
Access points on Galleria Way are coordinated with the adjacent shopping center and a cross
access connection is provided to the vacant property to the east.

A neighborhood meeting was held on October 27, 2004, attended by a group of residents from
the Hearthstone neighborhood supportive of the development and suggesting some modifications
to improve the project. These included further enhancement of the architectural design and
specific landscaping placement.
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Thursday, January 13, 2005
Page 20


The Planning Commission and Staff recommend approval of the Preliminary Development Plan
subject to the following stipulations:

1.       Development shall be in substantial conformance with the Development Booklet entitled
         “Costco Wholesale”, kept on file in the City of Chandler Planning Services Division in File
         No. PDP04-0024 Costco Wholesale, except as modified by condition herein.
2.       Aleppo Pines shall be used along the Galleria Way streetscape at 15-foot on center
         adjacent to the gas station parcel to provide additional screening from the west.
3.       The landscaping in all open spaces and rights-of-way shall be maintained by the adjacent
         property owner.
4.       The parking lot lighting illumination standards (light intensity and pole heights) shall not
         exceed those illumination standards used at the mall and Target parking lots.
5.       The applicant shall work with Staff to address the enhancement of the pedestrian walkway
         in front of the tire center overhead.

25.      AGREEMENT: Taylor Woodrow/Arizona, Inc.

APPROVED an agreement with Taylor Woodrow/Arizona, Inc., requiring application of surface
treatment and reimbursement to the City for additional maintenance costs for certain streets in
the Sun Groves Phase 2 subdivision and accepting a lump sum payment of $59,659.00.

Taylor Woodrow/Arizona, Inc., is constructing a residential subdivision in the area immediately
north of Hunt Highway between Lindsay Road and Val Vista Drive. As part of this project, the
developer has an obligation for completing pavement improvements along Hunt Highway and Val
Vista Drive as well as the interior streets within the subdivision.

As work on this subdivision proceeded, these required pavement improvements were completed
by the developer. However, when the required materials tests were performed on the roadways,
it was found that the pavement on Hunt Highway and Val Vista Drive and the interior streets in
Parcels 15, 16 and 17 did not comply with the City’s standards for compaction.

An outside consultant was hired by the City to evaluate the pavement and make
recommendations for a course of action. This evaluation determined that the deficiencies in the
pavement compaction did not warrant removal but would reduce the expected life of the
pavement. The reduction in pavement life would mean that the City could expect additional
maintenance costs for the pavement in the future. The assessment determined that there was a
2% to 10% reduction in the overall life of the pavement in these sections. The projected
additional maintenance costs were calculated at $59,659.00 based on the Maricopa Association
of Governments Standard Details and Specifications and the cost of new pavement. The
developer has also agreed to pay the outside consultant’s fees for the evaluation.

Under this agreement, the developer is also required to provide surface treatment in the spring of
2005 to all of the streets included in the agreement with the exception of the interior streets in
Parcel 17 in order to release the warranty bond and to make a lump sum payment to the City in
the amount of $59,659.00. In exchange for meeting these conditions and in the event no further
defects or deficiencies are found, the City will accept the streets.

26.      AGREEMENT: ESRI

APPROVED an agreement with ESRI for the purchase of software maintenance, utilizing the
State of Arizona contract, in an amount not to exceed $47,000.00. The City’s GIS system is
                                                                             Minutes of the Regular Meeting
                                                                                      Chandler City Council
                                                                                Thursday, January 13, 2005
                                                                                                   Page 21


based on ESRI GIS products. Continued support of the GIS system to meet City needs requires
the purchase of software product upgrades and support services. There are no other products by
other vendors that could be used without significant added costs.

27.    CLAIMS:

APPROVED the claims report for Accounts Payable checks for the quarter ending December 31,
2004.

28.    ASSIGNMENT OF CONTRACT: Rick Giardina and Associates, Inc.

APPROVED a Contract Amendment assigning a current contract with Rick Giardina and
Associates, Inc. to Malcolm Pirnie, Inc. for Utility System Development Charge Study. The City
Council approved a contract with Rick Giardina and Associates for $41,350.00 on November 18,
2004, to study system development charges. The contractor has informed the City that they have
joined Malcolm Pirnie, Inc. and are requesting assignment of the contract to Malcolm Pirnie, Inc.
No other contractual changes will take place and Rick Giardina will continue to serve as the lead
consultant.

29.    DESIGN CONTRACT: Robert Polcar Architects, Inc.

APPROVED Design Contract #PR0212-202 to Robert Polcar Architects, Inc. for the Price House
Renovation Design in an amount of $35,900.00. The Price House, located west of the Chandler
Fashion Center, was constructed in 1930 and is an example of the Pueblo Revival architectural
style. It was owned by Arthur Price, one of Chandler’s original pioneers, and was given to the
City of Chandler by the Price family. There is a potential for the house to be listed on the National
Register of Historic Places. This contract will complete the design to restore and stabilize the
structure for use as a cultural center with a multi-purpose room, galleries, offices and meeting
facilities.

30.    ENGINEERING DESIGN CONTRACT AMENDMENT: Kirkham Michael Consulting Eng.

APPROVED Engineering Design Contract #ST0301-201, Amendment No. 2, to Kirkham Michael
Consulting Engineers for Chandler Boulevard Improvements, California Street to Colorado Street,
in an amount not to exceed $110,518.00.

31.    ENGINEERING DESIGN CONTRACT AMENDMENT: Entranco

APPROVED Engineering Design Contract #ST0134-201, Amendment No. 4, to Entranco for
Alma School/Warner Roads Intersection Improvements, in an amount not to exceed $20,150.00.
City Staff has requested that Entranco revise the legal descriptions to reduce the right-of-way
acquisition.

32.    ENGINEERING DESIGN CONTRACT AMENDMENT: Black & Veatch Corporation

APPROVED Engineering Design Contract #WA0320-201, Amendment No. 1, with Black &
Veatch Corporation for a 15 million gallon per day Surface Water Treatment Plant Expansion at
1475 E. Pecos Road, in an amount not to exceed $84,162.00.

The Water Master Plan identifies the need to expand water treatment capacity of the existing
surface water treatment plant near Pecos and McQueen Roads. The engineering work will be
Minutes of the Regular Meeting
Chandler City Council
Thursday, January 13, 2005
Page 22


performed in three phases consisting of the study, design and construction management. During
the design portion of the project, the engineer, contractor and City staff identified significant
benefits for the replacement of specialized equipment called Variable Frequency Drive (VFD).
This equipment operates the finish water pumps, which pump the treated water from the Surface
Water Treatment Plant to the citizens. The timing of the replacement has been accelerated
ahead of the expansion construction due to the existing equipment age, expense of on-going
repairs, difficulty of procuring replacement parts and the opportunity to have this portion complete
by the start of other work. The equipment will be designed for the same location as the existing
equipment at the facility. A construction operation plan will be written to assure the plant will
maintain maximum pumping capabilities and operation throughout the replacement.

33.        USE PERMIT: Costco Wholesale

APPROVED a Use Permit, UP04-0050, Costco Wholesale, Series 9, for the sale of liquor in a
new store to be located at the SEC of Chandler Village Drive and Galleria Way. (Applicant:
Costco.)

Costco will be located next to the Chandler Fashion Center. The sale of alcohol as a retail
commodity ancillary or incidental to the sale of other retail products occurring in a commercially
zoned area does not establish a land use conflict. The sale of alcohol from land use compatibility
is a typical retail transaction in commercial districts throughout the City.

This request was noticed in accordance with the requirements of the Chandler Zoning Code. The
Police Department has been informed of the application and has responded with no issues or
concerns. Staff has received no telephone calls or letters in opposition.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to the following conditions:

      1.      The Use Permit is for a Series 9 liquor license only and any change in type of license
              shall require reapplication and new Use Permit approval.
      2.      Expansion beyond the approved floor plan shall void the Use Permit and require new
              Use Permit application and approval.
      3.      The Use Permit is non-transferable to any other store location.

34.        USE PERMIT: Valley Sliver Bullet Equestrians

APPROVED Use Permit, UP04-0026, Valley Silver Bullet Equestrians, to allow additional horses
to be kept in conjunction with a therapeutic and recreational horse-riding clinic on AG-1 property
at 1991 S. Tumbleweed Lane. (Applicant: Terri Chambers.)

The approximate 2.5-acre site north of the northeast corner of Tumbleweed Lane and Germann
Road contains a singe-family home, a barn, a number of pens, an arena and two pastures.
Rural residential properties border the site on all sides except to the east where it is bordered by
the Sienna Heights single-family subdivision.

The Tumbleweed Lane neighborhood includes 12 homes with pastures, barns, livestock and
homes of various styles and ages. It was annexed into the City in 1982. Tumbleweed Lane has
remained an unimproved dirt road since annexation, is a private roadway with each property
owner fronting onto it owns half of the right-of-way for the length that is adjacent to the property.
                                                                           Minutes of the Regular Meeting
                                                                                    Chandler City Council
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In 2000, a Use Permit for Valley Silver Bullet was approved to allow a non-profit organization to
provide free therapeutic and recreational horseback riding lessons to physically and/or mentally
challenged individuals of all ages. Previously, horseback riding lessons were given either
individually or to groups of individuals at one time. Groups were typically around 6 individuals
and lessons, if scheduled, were in the early evening on Mondays or Saturday morning. The
organization has been operating with a Use Permit for approximately four years, but has added
additional horses and classes to the program triggering the need for a new Use Permit.

Classes have a maximum of 14 individuals with an average class size of 8 to 10 students. The
2004 fall class schedule had classes on Tuesday and Thursday evenings. The upcoming 2005
schedule shows classes scheduled on Tuesdays from 8 a.m. to 10 a.m. and 6 p.m. to 8 p.m.
Volunteers man the organization and any vehicles associated with the program are parked within
the subject property.

Currently, approximately 18 to 24 horses associated with Valley Silver Bullet rotate over various
neighborhood pastures. The applicant has indicated rotating horses over additional acreage is
healthier for the horses and helps with class sizes and irrigation.

The subject site and surrounding neighborhood are designated as low density residential in the
General Plan. The previous Use Permit was consistent with the General Plan designation
because it is compatible with the existing character of the rural residential neighborhood;
however, Staff believes increasing the number of horses to between 18 and 24 horses and an
increase in the number of classes offered is no longer compatible with the rural residential
neighborhood. Also, the impacts (dust, traffic, hours of operation, additional horses) created from
the use are no longer compatible with the area.

This request was noticed in accordance with the requirements of the Chandler Zoning Code with
a neighborhood meeting being held on September 23, 2004 attended by 14 neighbors. Several
property owners indicated dust and traffic are concerns on Tumbleweed Lane. The applicant
indicated all vehicles associated with the organization would be parked on site and out of the
private roadway. The number of horses on the subject property and transporting the horses
between properties are also concerns. The applicant agreed to have all loading or unloading of
horses occur on site and out of the roadway. Residents at the neighborhood meeting also
indicated Maricopa County had sent out letters to alert them of an anonymous complaint about
dust. Staff has received two telephone calls and one letter in opposition to the request.

Upon finding the use to be compatible with the General Plan, the Planning Commission and Staff
recommend approval subject to the following conditions:

1.     The Use Permit is valid for one year and may be extended upon application of new Use
       Permit subject to review by the Planning and Zoning Commission and approval by the City
       Council.
2.     Expansion beyond the Site Plan shall void the Use Permit and require new Use Permit
       application and approval.
3.     The number of horses kept on the subject property may not exceed 14 on site at class
       time.
4.     All parking for equestrian classes must be on-site and out of the private roadway.
5.     The property shall practice dust control measures.
6.     Classes are limited to Tuesdays from 6 p.m. to 8 p.m. and Thursdays from 6 p.m. to 7
       p.m.
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Chandler City Council
Thursday, January 13, 2005
Page 24


35.      USE PERMIT: Target

APPROVED Use Permit, UP04-0060, Target, Series 10, for the sale of liquor for off-premise
consumption only at a general retail store at 2880 S. Alma School Road. (Applicant: Target
Corporation.)

This is the second request for a Use Permit at this location. In May 2004, a similar application for
a Series 10 license was denied by the City Council. This application has been amended by
removing the wine display areas from the cash registers. The proposed site will be the second
Target store to sell wine in the City of Chandler. A Use Permit was approved in September 2004
for the store located at 3425 W. Frye Road. Alcohol display areas will be located in aisles
towards the front of the store to the south of the checkout area. The anticipated percentage of
alcohol sales will be approximately three to five percent of gross sales.

It is the Planning Commission and Staff’s opinion that the addition of a Series 10 License will not
adversely affect the neighborhood. There are 10 current Liquor Licenses within a half-mile radius
of Target’s property; two grocery stores hold Series 9 Licenses, seven Series 12 Licenses and
one Series 6 held by the Ocotillo Golf Club.

This request was noticed in accordance with the requirements of the Chandler Zoning Code. The
Police Department has been informed of the application and has responded with no issues or
concerns. Staff has received no telephone calls or letters in opposition.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to the following conditions:

      1. The Use Permit is for a Series 10 Liquor License only and any change in type of license
         shall require reapplication and new Use Permit approval.
      2. Expansion beyond the approved Floor Plan shall void the Use Permit and require new
         Use Permit application and approval.
      3. The Use Permit is non-transferable to any other store location.
      4. Alcohol display shall be prohibited at the checkout lanes.

36.      LIQUOR LICENSE: Target

APPROVED a Series 10 Beer and Wine Store Liquor License (Chandler #300000690) for Robert
Jeffery Benton, Agent, Target Corporation, dba Target Stores, Inc., dba Target #1240 at 2880 S.
Alma School Road. A recommendation for approval of State Liquor License #10074947 will be
forwarded to the State Liquor Department. The Police Department reports no objections to the
issuance of this license and no written protests have been received. All licenses, permits and
fees have been paid and the applicant is in compliance with the City’s Tax Code.

37.      LIQUOR LICENSE: Cantinas

CONTINUED to JANUARY 27, 2005, an application for a Series 6 Bar Liquor License for Amalia
Feria Dickerson, Agent, Cantinas, Inc., dba Famous Sam’s at 940 N. Alma School Road, Suite
106, to allow the applicant time to complete the requirements for a new Use Permit.

38.      LIQUOR LICENSE: San Marcos Conference Center and Resort
                                                                            Minutes of the Regular Meeting
                                                                                     Chandler City Council
                                                                               Thursday, January 13, 2005
                                                                                                  Page 25


APPROVED a Series 6 Bar Liquor License (Chandler #300000694) for Frank Paul Heavlin,
Agent, San Marcos Capital Partners, LP, dba San Marcos Conference Center and Resort at One
San Marcos Place. A recommendation for approval of State Liquor License #06070720 will be
forwarded to the State Liquor Department. The Police Department reports no objections to the
issuance of this license and no written protests have been received. All licenses, permits and
fees have been paid and the applicant is in compliance with the City’s Tax Code.

39.    SPECIAL EVENT LIQUOR LICENSE: American Red Cross

APPROVED a Special Event Liquor License for the American Red Cross for the Redfish Mardi
Gras Celebration, February 8-9, 2005, at 2530 W. Chandler Boulevard. A recommendation for
approval will be forwarded to the State Department of Liquor Licenses and Control. The Police
Department reports no objections to the issuance of this license. As this applicant is a non-profit
organization, no sales tax license is required; however, the special event liquor fee has been
paid.

40.    SPECIAL EVENT LIQUOR LICENSE: St. Katherine Greek Orthodox Church

APPROVED a Special Event Liquor License for St. Katherine’s Greek Orthodox Church for a
Greek Festival Church Fundraiser, February 11-13, 2005, at 125 E. Commonwealth Avenue. A
recommendation for approval will be forwarded to the State Department of Liquor Licenses and
Control. The Police Department reports no objections to the issuance of this license. As this
applicant is a non-profit organization, no sales tax license is required; however, the special event
liquor fee has been paid.

41.    SPECIAL EVENT LIQUOR LICENSE: Planned Parenthood of Central & Northern AZ

APPROVED a Special Event Liquor License for Planned Parenthood of Central & Northern AZ for
a fundraiser, January 14-23, 2005, at Wild Bill’s BBQ and Internet Sports, 1361 N. Alma School
Road. A recommendation for approval will be forwarded to the State Department of Liquor
Licenses and Control. The Police Department reports no objections to the issuance of this
license. As this applicant is a non-profit organization, no sales tax license is required; however,
the special event liquor fee has been paid.

42.    FINAL PLAT: Crescent Falls at Fulton Ranch

APPROVED a Final Plat, FPT04-0047, Crescent Falls at Fulton Ranch, for 90 multi-family
townhome lots on 17.56 acres east of the NEC of Alma School Road and Fulton Ranch
Boulevard. (Applicant: Cachet-Crescent Falls, L.L.C.) The plat creates the lots and tracts,
construction phasing lines, establishes the necessary easements and dedicates the required
rights-of-way.

43.    FINAL PLAT: Chandler Heights Marketplace

APPROVED a Final Plat, FPT04-0051, Chandler Heights Marketplace, for 5 commercial lots on
18.8 acres at the NWC of Chandler Heights and Gilbert Roads. (Applicant: Chandler Heights
Marketplace, L.L.C.) The center includes a grocery store. The plat creates the lots and tracts,
establishes the necessary easements and dedicates the required rights-of-way.

44.    FINAL PLAT: Vintage Villas
Minutes of the Regular Meeting
Chandler City Council
Thursday, January 13, 2005
Page 26


APPROVED a Final Plat, FPT04-0056, Vintage Villas, for a gated subdivision with 59 single-
family lots on approximately 23 net acres. (Applicant: Troy Peterson, CMX Group, Inc.) The
development includes common open space and private streets. The plat creates the lots and
tracts, establishes the necessary easements and dedicates the required rights-of-way.

45.      FINAL PLAT: Cardinal Health

APPROVED a Final Plat, FPT04-0053, Cardinal Health, for a warehouse distribution building for
a medical supplies company on 21 acres at the NWC of Ryan Road and Stearman Drive.
(Applicant: Cardinal Health.) The plat creates the lots and tracts, establishes the necessary
easements and dedicates the required rights-of-way.

46.      PROPERTY ACQUISITION: Queen Creek Rd./Emmett Drive                            Res. #3799

ADOPTED Resolution No. 3799 authorizing the purchase of property for a neighborhood park on
2.77 acres one half mile south of Queen Creek Road on Emmett Drive, not to exceed a cost of
$240,718.00, including closing and associated costs.

The Parks and Recreation Master Plan recommends the acquisition and development of one
neighborhood park site within each square mile of residential development. This site will be
included with two other parcels to create a park site consisting of approximately 10 acres and will
serve the needs of the area bounded by Gilbert Road to the east, Ocotillo Road to the south,
Cooper Road to the west and Queen Creek Road to the north.

47.      PROPERTY ACQUISITION: 130 N. Arizona Avenue                                   Res. #3808

ADOPTED Resolution No. 3808 authorizing the purchase of property located at 130 N. Arizona
Avenue for the sum of $399,000.00 plus closing costs, and $41,000.00 in additional funds to
offset costs of relocating to a new facility. The purchase agreement also provides for the seller to
lease back the property for a nominal sum of $1.00 until mid-May of 2005. The purchase will aid
in the redevelopment of the Downtown Gateway area and provide land for adjacent roadway.

48.      PROPERTY ACQUISITION: 2 W. Buffalo Street                                     Res. #3811

ADOPTED Resolution No. 3811 authorizing the purchase of property located at 2 W. Buffalo
Street for the sum of $195,000.00, plus closing costs of approximately $1,340.00. This
acquisition will eliminate the time and expense associated with the condemnation process.

The parcel contains approximately 9,000 total square feet of land. Public Works requires 1,518
square feet for the widening of Arizona Avenue as part of the Chandler Boulevard Improvement
Project (California to Colorado) previously approved by Council in Resolution No. 3712. This
acquisition impacts the restaurant building requiring it to be demolished. The remaining portion of
this parcel is being acquired for Downtown Redevelopment.

SPECIAL ORDERS OF THE DAY

A.       Mayor's Announcements:

MAYOR DUNN encouraged everyone to attend the Celebration of Unity events this weekend.
There is a unity luncheon on Friday and the Multicultural Festival on Friday and Saturday.
                                                                           Minutes of the Regular Meeting
                                                                                    Chandler City Council
                                                                              Thursday, January 13, 2005
                                                                                                 Page 27


MAYOR DUNN announced that the groundbreaking was held today for 123 Washington in the
downtown area.

MAYOR DUNN invited everyone to attend the Neighborhood Congress on Saturday, January
29th, at the San Marcos Resort in Historic Downtown Chandler. The event will give neighbors the
opportunity to provide input as to what is important for the City’s future growth and development.

MAYOR DUNN announced the passing of Gene Hagerty, a long-time member of the Parks and
Recreation Board. He has had a true impact on the way the community has evolved in terms of
recreational amenities and programs over the past decade. There will be an Irish wake in his
honor, Friday, at 4:30 p.m. at the Hagerty residence.

B.     Councilmembers' Announcements:

COUNCILMEMBER CACCAMO also invited everyone to participate in the Multicultural Festival
and said that the Kiwanis Club will be selling peanuts for a fundraiser.

COUNCILMEMBER HUGGINS suggested a monument be erected in one of the City parks in
memory or Mr. Hagerty.

C.     City Manager's Announcement:

There were no City Manager announcements at this time.


Adjournment: The meeting was adjourned at approximately 9:20 p.m.



ATTEST: __________________________                 ______________________________
            City Clerk                                  MAYOR


Approved: _________________________




                                     CERTIFICATION

I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the
regular meeting of the City Council of Chandler, Arizona, held on the 13th day of January 2005. I
further certify that the meeting was duly called and held and that a quorum was present.



DATED this __________ day of _____________, 2005.


                                                         __________________________
                                                          City Clerk
MINUTES OF THE REGULAR MEETING OF THE HONORABLE MAYOR AND CITY COUNCIL
OF THE CITY OF CHANDLER, ARIZONA, held in the Council Chambers in the Chandler Library,
22 S. Delaware, on Thursday, January 27, 2005 at 7:00 p.m.

THE MEETING WAS CALLED TO ORDER BY MAYOR BOYD DUNN.

The following members answered roll call:   Boyd W. Dunn         Mayor
                                            Phillip Westbrooks   Vice Mayor
                                            Bob Caccamo          Councilmember
                                            Lowell Huggins       Councilmember
                                            Matt Orlando         Councilmember
                                            Martin Sepulveda     Councilmember
                                            Donna Wallace        Councilmember

Also in attendance:   W. Mark Pentz         City Manager
                      Pat McDermott         Assistant City Manager
                      Rich Dlugas           Assistant City Manager
                      Dennis O’Neill        City Attorney
                      Marla Paddock         City Clerk

Staff present: Nachie Marquez, Dave McDowell, O. D. Burr, Dave Siegel, Glen Van Nimwegen,
Chief Kiyler, Bryan Patterson

INVOCATION:     The invocation was given by Reverend Ray De Lang – Christ’s Community
Church

PLEDGE OF ALLEGIANCE: Councilmember Wallace led the Pledge of Allegiance.

SCHEDULED PUBLIC APPEARANCES:

1.     Service Recognitions

MAYOR DUNN was joined by Chief SHERRY KIYLER in recognizing Police Lieutenant Shawn
Hawkins’ for 15 years of service with the Police Department. Lt. Hawkins began his career with
the Chandler Police Department in 1989 as a patrol officer. He has served as a Field-Training
Officer, a Recruit Training Officer at the Phoenix Regional Academy, Traffic Officer, member of
Chandler’s Accident Investigation Team, Housing Officer, Public Information Officer and
Volunteer Coordinator. Shawn also served on the Special Assignment Unit as a Crisis
Negotiator. He was responsible for coordinating the Photo Red Light Enforcement Program and
the Child Safety Seat Program. Shawn currently serves as a Watch Commander in the Field
Operations Division. Additional duties include supervising the K-9 Program and Mobile Field
Force. Shawn continued his education during his career with the Chandler Police Department
and earned his Bachelor of Science Degree in Business Management from the University
Phoenix and a Masters of Education Degree in Educational Leadership from Northern Arizona
University. Shawn is a very dedicated and conscientious member of the management team.

MAYOR DUNN was joined by Assistant Community Services Director DAVE MCDOWELL in
recognizing MILDRED HIGGINS for 15 years of service in the Community Services Department.
Millie has been affiliated with the library since 1983 when she served as an intern. .One of the
first things she learned was how to give a book a bath. She worked on-call until a fulltime
Minutes of the Regular Meeting
Chandler City Council
Thursday, January 27, 2005
Page 2


position opened in 1990. Millie has seen the library outgrow the museum building and the Rocky
Mountain building. She was in on the ground floor of working with computers and has learned
many vendors’ software programs in her primary responsibility of ordering materials for the
library’s collections.

MAYOR DUNN was joined by Assistant Community Services Director DAVE MCDOWELL in
recognizing LAURIE OAKES for 10 years of service in the Community Services Department. She
began her employment with the Recreation Division in 1994 as a temporary Recreation Leader,
then a year later, she was hired as a fulltime Recreation Coordinator. In 1998, Laurie was
promoted to a Recreation Coordinator II where she was responsible for day-to-day operation of
the Community Center. During her tenure as a Recreation Coordinator II, the Community
Recreation classes reached the highest success rate to date of 90%. In 2001, Laurie made a
career change to her current position of Management Assistant for the Recreation Division. As
Management Assistant, Laurie’s responsibilities include assisting the Recreation Manager and
Recreation Division. Laurie recently received an Exceptional Performance Award for promoting
the Chandler Unitown Camp, an interactive summer leadership program for high school aged
youth. This resulted in Qwest awarding a $10,000 sponsorship check to the Mayor’s Youth
Commission, which enabled 65 high school-aged youth to attend Unitown Camp free. Laurie is
also the host of the award winning Parks and Recreation “Come Out and Play, Chandler” cable
show on Channel 11 and records the City’s on-hold telephone messages. Her years of
experience, dedication and working knowledge of the department makes Laurie a valued member
of the Community Services Department.

2.       Proclamation – Kiwanis International Week

MAYOR DUNN was joined by Video Production Coordinator BOB LEISTER, President of the
Chandler Kiwanis Club, and COUNCILMEMBER CACCAMO as he read a proclamation
proclaiming January 24-30, 2005 as Kiwanis Week.

MR. LEISTER invited everyone to join a service club of their choice.

3.       Tony Dibonito – Save Planet Earth

Mr. Dibonito was not present.

UNSCHEDULED PUBLIC APPEARANCES:

There were no unscheduled public appearances.

CONSENT:

MOVED BY COUNCILMEMBER ORLANDO, SECONDED BY COUNCILMEMBER HUGGINS to
approve the Consent Agenda as presented. Motion carried unanimously 7-0.

1.       MINUTES:

APPROVED, as presented, the minutes of the Chandler City Council Special Meeting of January
10, 2005 and the Regular Meeting of January 13, 2005.
                                                                            Minutes of the Regular Meeting
                                                                                     Chandler City Council
                                                                               Thursday, January 27, 2005
                                                                                                   Page 3


2.     CITY CODE AMENDMENT: Chapter 29                                                    Ord. #3610

ADOPTED Ordinance No. 3610 amending subsection 29-1.1(A) of Section 29-1; amending
Sections 29-2, 29-3, 29-4, 29-5, 29-6, 29-10 and 29-11 of Chapter 29 relating to the 2003
International Code updates.


3.     ANNEXATION: NEC Ocotillo Road / Pinelake Way                                       Ord. #3639

ADOPTED Ordinance No. 3639 annexing approximately 20 acres of property east of the NEC of
Ocotillo Road and Pinelake Way.

4.     ANNEXATION: NEC Pinelake Way and Ocotillo Road                                     Ord. #3644

ADOPTED Ordinance No. 3644 annexing approximately 12 acres at the NEC of Pinelake Way
and Ocotillo Road.

5.     ANNEXATION: NWC Riggs and Lindsay Roads                                            Ord. #3645

ADOPTED Ordinance No. 3645 annexing approximately 15 acres west of the NWC of Riggs and
Lindsay Roads.

6.     REZONING: Cedar Professional Center                                                Ord. #3647

ADOPTED Ordinance No. 3647, DVR04-0044, Cedar Professional Center, rezoning from AG-1 to
PAD for the construction of a medical/general office building on approximately 1.5 acres south of
the SEC of Ray and McQueen Roads. .

7.     CITY CODE AMENDMENT: Chapter 36 - Housing and Human Services Commission
                                                                       Ord. #3649

ADOPTED Ordinance No. 3649 amending Chapter 36, Section 36-1, of the City Code
establishing the Housing and Human Services Commission.

8.     REZONING/PRELIMINARY PLAT: Hamilton Park                                           Ord. #3650

ADOPTED Ordinance No. 3650, DVR04-0033, Hamilton Park, rezoning from PAD for Commerce
Park to PAD for single-family residential on approximately 22 acres on the SWC of Pecos and
Hamilton Roads.

9.     REZONING: South Chandler Business Park                                             Ord. #3651

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3651, DVR04-0031, South
Chandler Business Center, rezoning from Agricultural District (AG-1) to PAD along with a
Preliminary Development Plan for an industrial park located on approximately 12 acres at the
NEC of Ocotillo Road and Pinelake Way. (Applicant: Jerry Torr, JB Commercial; Owners: Gene
Minchuk and Jamie Rabago.)

The General Plan designates this property as Employment as part of the Chandler Airpark Area
Plan. The Chandler Airpark Area Plan designates the property as industrial and the proposed
use is consistent with that designation. A portion of the site lies within the 55 DNL noise contour,
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Chandler City Council
Thursday, January 27, 2005
Page 4


however, due to the nature of the project and uses, it does not present a conflict with the airport
operations.

The property is now vacant and currently being annexed. It is located along the north side of
Ocotillo Road, halfway between the Union Pacific railroad and the Consolidated Canal. West is a
rural residence and palm nursery. North, east and south are now farmed. East and southwest
are the proposed locations of mini-warehouses.

Uses proposed under the Planned Area Development (PAD) zoning include a selection of
industrial uses distilled from the Planned Industrial (I-1) used found in the City of Chandler Zoning
code. The developer/owner expects the tenants to be small industrial businesses including
building contractors, equipment repair and machine shops. Uses permitted only in the General
Industrial (I-2) district will be prohibited.

Parking is provided according to code for office and warehouse uses with 14 extra spaces
provided. Accessed from a central internal drive, parking lots are designed to the adjacent to
individual buildings and utilized by each particular building’s tenants.

As part of the development, the project will be improving Pinelake Way along and within the
property’s west side. This improvement conforms to the plan for collector street circulation, water
lines and sewer lines agreed to by the three adjacent potential development projects along the
north side of Ocotillo Road. The proposed street layout is in conformance with the plan for the
collector street layout coordinated between the three applicants developing property on the north
side of Ocotillo Road between the Union Pacific railroad and the Consolidated Canal, including
providing access to the properties to the north and east.

This request was noticed in accordance with the requirements of the Chandler Zoning Code.
Because the site is not located within 300 feet of any residential neighborhood, no neighborhood
meeting was held. The applicant contacted all property owners within 300 feet of the property
and invited their comments. The applicant also invited all neighbors within 300 feet to attend the
Airport Conflicts evaluation hearing; none attended. The applicant contacted all residents in the
Pinelake Estates subdivision who have commented concerning a proposed development on the
south side of Ocotillo Road. Staff has received one phone call from a Pinelake Estates resident
seeking an explanation of the project and its location.

Upon finding consistency with the General Plan and Chandler Airpark Area Plan, the Planning
Commission and Staff recommend approval subject to conditions listed in the ordinance.

10.      REZONING: Warner Commerce Park                                                 Ord. # 3653

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3653, DVR04-0036, Warner
Commerce Park, rezoning from AG-1 to PAD along with a Preliminary Development Plan for a
business park development with commercial and industrial uses that include 8 buildings on
approximately 16 acres on the SEC of Warner Road and Delaware Street. (Applicant: Nathan
Anderson, Burch & Cracchiolo, P.A.)

The General Plan designates this parcel as Employment for Major Employers, Industrial/Business
Parks and Industrial Support uses. The proposed development is consistent with the General
Plan.
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                                                                                       Chandler City Council
                                                                                 Thursday, January 27, 2005
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The property is surrounded to the north by the Biscayne Bay apartment complex and vacant land
planned for industrial land uses as part of the Westech Corporate Center. To the west are
existing industrial uses on property zoned General Industrial District (I-2) and to the east, across
the railroad tracks, is an existing self-storage facility. Adjacent to the proposed site on the south
is property zoned PAD for a modular trailer storage, service and sales facilities. Uses permitted
within the proposed development will include Planned Industrial District uses, as well as office
and showroom uses. Additional uses include building material companies, medical/hospital
suppliers, furniture manufacturing/repair, distribution services and office equipment suppliers.
General Industrial District (I-2) uses are not permitted within this zoning district.

This request was noticed according to the provisions of the City of Chandler Zoning Code with a
neighborhood meeting being held on November 23, 2004. Staff has received no opposition to
this proposal.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to conditions as listed in the ordinance.

11.    REZONING: Elliot & 101 Professional Village                                          Ord. #3654

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3654, DVR04-0045, Elliot & 101
Professional Village, rezoning from Community Commercial District (C-2) to PAD along with a
Preliminary Development Plan for the construction of a Medical/General Office development with
6 single story office buildings on approximately 4 acres on the SEC of Elliot Road and the Loop
101 Price Freeway. (Applicant: Arch Ratliff, UTAZ Development Corporation.)

The subject site is bordered to the north by an existing mini storage development. To the south
and east is the existing residential subdivision, Marlborough Estates. Adjacent to the property on
the west is the Loop 101 Price Freeway. West of the Loop 101 is the Arizona State University
Research Park.

The subject site was originally zoned C-2 in 1981, together with the 19.3-acre parcel which was
zoned PAD. In 1997, a development plan including a Diamond Shamrock gasoline station and a
conceptual 2-story office building was approved with a 2-year timing condition. Development
never occurred and the property’s zoning reverted to the previous C-2 designation.

Discussions occurred during the neighborhood meeting regarding the potential for traffic exiting
the site to turn into the adjacent neighborhood to make a u-turn to head westbound on Elliot Road
or cut through the neighborhood to return to the northbound frontage road. The site is limited to a
single left/right-in and right-out only vehicular access point at the eastern edge of the site. Due to
the site’s size and location, the Arizona Department of Transportation (ADOT) has restricted
access to the site to not allow a right-out only exit onto the frontage road to eliminate possible
conflicts with the freeway off ramp. This requires all traffic exiting the site to head eastbound on
Elliot Road away from the Price Freeway.

Staff supports the rezoning request finding it to represent a quality office development. The
single-story only office use and variety of building designs and material/color palettes will provide
an attractive transition to the adjacent neighborhood. In addition, the hours of operation and
traffic generation normally associated with an office development will provide a complementary
land-use with residential homes.
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Chandler City Council
Thursday, January 27, 2005
Page 6


This request was noticed according to the provisions of the City of Chandler Zoning Code with a
neighborhood meeting held on November 5, 2004 attended by nine neighbors. During the
neighborhood meeting, concerns were raised regarding the height of the perimeter fence, site
lighting, construction impact upon existing trees in back yards, locations of covered parking, the
hours of operation, and the potential for traffic exiting the development and turning into the
residential neighborhood cutting through to return to the northbound frontage road. The applicant
presented information that satisfied the neighbor’s concerns with the exception of the traffic issue.
The site is limited to only one access point by the Arizona Department of Transportation. The
proposed office use has a lower traffic generation than other similar sized commercial uses.
Additionally, Staff anticipates not all traffic exiting the site want to head northbound. For persons
wanting to go north on the Price Freeway, alternatives exist that provide the ability to travel east
on Elliot and make a u-turn to head back to the freeway without the need to impact the adjacent
neighborhoods.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to conditions as listed in the ordinance.

12.      TEMPORARY CONSTRUCTION EASEMENT: Cachet-Crescent Falls                           Ord. 3656

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3656 authorizing the grant of a
temporary construction access easement to Cachet-Crescent Falls, L.L.C., over a portion of
undeveloped City park property east of Basha Road and north of Chandler Heights Road.

The easement is for a one-year period, but allows the Community Services Director to extend the
easement period if there is no conflict with the City’s development of the park property. The
easement will allow access to the Crescent Falls at Fulton Ranch subdivision while it is under
construction. The subdivision is located immediately east of the park site. The City park property
is currently undeveloped and is not likely to be developed for at least one year. If park
development occurs while the easement is in effect, the easement document provides that the
parties will coordinate their use of the easement property during the remaining term of the
easement.

The easement is limited in its scope and term and should not interfere with City plans for the park
site. The benefit to the City of not overburdening the public infrastructure within Fulton Ranch,
including the bridge, together with a nominal monetary contribution, is believed to be adequate
consideration for the easement.

13.      NON-EXCLUSIVE LICENSE AMENDMENT: Chandler Airport                              Res. #3814

ADOPTED Resolution No. 3814 authorizing an amendment to the non-exclusive license with
Chandler Air Service to conduct fueling operations at the Chandler Municipal Airport for a period
of three months ending April 30, 2005.

The City of Chandler granted a non-exclusive license to Chandler Air Service to conduct fueling
operations on the Chandler Municipal airport on September 29, 1995. This fueling provides an
essential service to tenants and users of the airport and generates significant revenue to the
airport through fuel flowage fees paid to the City of Chandler Airport Division.

Council approved three extensions to the license with the last expiring January 31, 2005.
Negotiations for a new license are ongoing between Staff and Chandler Air Service. A new
license will not be ready for Council action before January 31, 2005.
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Pursuant to the license, Chandler Air Service pays the City of Chandler a fee for each gallon of
fuel pumped in a month. In FY 2003/2004, this amounted to $38,485.00.

14.    CONTINUED REZONING: Quiktrip-Arizona Avenue & Germann Road

CONTINUED to APRIL 14, 2005, a request for rezoning, DVR04-0046, Quicktrip-Arizona Avenue
and Germann Road, from PAD for Community Commercial District (C-2) to PAD amended to
include a gas station along with a Preliminary Development Plan for approximately 2 acres on the
SWC of Arizona Avenue and Germann Road. (Applicant: Dennis Archuleta, QuickTrip Corp.)
This request was continued to the March 16, 2005 Planning Commission meeting.

15.    PRELIMINARY DEVELOPMENT PLAN: Cooper Crossing

APPROVED a Preliminary Development Plan, PDP04-0017, Cooper Crossing, for a commercial
office and retail center on 14 acres at the NWC of Ray and Cooper Roads. (Applicant: Patrick
Hayes Architecture.)

The site is part of the overall Provinces Master Plan Area and is bound by single-family
residential to the north and west and commercial development to the south and east. This
intersection along Cooper Road is located in the Chandler City limits, with the Town of Gilbert to
the east, and serves as a gateway entrance to the City.

The subject site was zoned PAD for commercial C-1 type uses as part of the 1984 Provinces
Master Plan. A conceptual site plan was originally represented as a grocery anchored center with
freestanding pads but never developed. A Preliminary Development Plan was approved in 2000
that included a retail and office development. The 2000 plan included stipulations to include river
rock features on the site screen walls and building architecture as a way to integrate the
development with the Provinces theme. The proposed amended site layout and uses are similar
to the 2000 approved PDP retail and office project, with the architecture for the current application
being much more contemporary in character.

The Cooper Crossing development will include a mixture of one and two-story garden offices and
retail shops. The office buildings are placed adjacent to the existing residential neighborhoods
that flank the site to the north and west. The future retail shops lie east of the office cluster with
one retail pad proposed at the intersection corner. Construction of the project will be in two
phases.

This request was noticed according to the provisions of the City of Chandler Zoning Code with a
neighborhood meeting being held on October 19, 2004 attended by five neighbors.            The
Provinces Master Community Association Review Board approved the proposal at their
December 20, 2004 meeting with conditional stipulations.

The buffering between the proposed commercial development and the existing residential
subdivision includes raising the perimeter wall height to 7’8” and providing a dissimilar use
landscape buffer. There will also be a wrought iron fence and landscaping along the existing
greenbelt at the northwest corner of the site.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to the following conditions:
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Chandler City Council
Thursday, January 27, 2005
Page 8


1.       Development shall be in substantial conformance with the Development Booklet entitled
         “Cooper Crossing” kept on file in the City of Chandler Planning Services Division, in File
         No. PDP04-0017, except as modified by condition herein.
2.       Completion of the construction of all required off-site street improvements including but
         not limited to paving, landscaping, curb, gutter and sidewalks, median improvements and
         street lighting to achieve conformance with City codes, standard details and design
         manuals.
3.       The developer shall be required to install landscaping in the arterial street median
         adjoining this project. In the event that the landscaping already exists within such
         median(s), the developer shall be required to upgrade such landscaping to meet current
         City standards.
4.       Approval by the Director of Planning and Development of plans for landscaping (open
         spaces and rights-of-way) and perimeter walls.
5.       All trees planted along the west and north property wall adjacent to the residential
         development shall be 12’ tall at the time of planting and spaced at 20’ on center.
6.       All perimeter and arterial street landscaping shall be installed during the first phase of
         construction.
7.       River rock elements shall be incorporated in the enhanced paving treatments, parking
         screen walls, monument signage, and intersection wall treatment.
8.       The Provinces logo shall be included on all monument signs.
9.       All site lighting fixtures shall be designed to be compatible with the Provinces character
         theme.
10.      The applicant shall work with staff to provide additional pedestrian amenities such as
         seating areas and pergolas at the pedestrian entrances to the office and retail
         developments.

16.      AGREEMENT EXTENSION: Piper Jaffray

APPROVED an Agreement Extension for one year with Piper Jaffray for financial advisory
services. In 2002, the City Council approved an agreement for financial advisory services to U.
S. Bancorp Piper Jaffray for a one-year term contract with the option to renew up to four (4)
years. A spin-off of Piper Jaffray from U. S. Bancorp was completed as of December 31, 2003,
which has no effect on performance of this contract or pricing. The City renewed the contract in
2003 and 2004 and this will be the third renewal.

Financial advisory fees associated with bond sales and incidental expenses related to bond
issues would be paid from bond proceeds. Advisory fees for special projects that are not related
to a specified bond transaction will be charged an hourly fee set in the agreement if the project
requires four (4) or more hours of work/research.

17.      PROJECT AGREEMENT: Sun Eagle Corporation

APPROVED Project Agreement #WA0413-401, Job Order Contract 03-01, to Sun Eagle
Corporation for the Price Road Reservoir well site demolition in an amount not to exceed
$78,266.00.

The Price Road Reservoir is a 30-year old, 1-million gallon tank at the end of its useful life. The
tank has been out of service since 1997 due to its inability to meet the needs of the water system
at the existing location. Poor water quality issues necessitated the abandonment of a well that
was on-site in August 2001. Future expansion of the Fire Support Services facility at this site
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requires the demolition of the booster pumps and reservoir and abandonment of a storm water
dry well.

18.    PROJECT AGREEMENT: SDB, Inc.

APPROVED Project Agreement #WA0517-401, Job Order Contract 03-12, to SDB, Inc. for water
treatment plant chiller replacement in an amount not to exceed $67,285.00.

As part of the ongoing maintenance at the City’s surface water treatment plant, the existing chiller
in the main control building will be replaced with a new, more efficient unit. The current chiller,
which is a part of the climate control system, is becoming maintenance-intensive. The installation
of the new unit needs to be completed before the outside temperatures rise and place a higher
cooling load on the system.

19.    AGREEMENT EXTENSION: Triadvocates

APPROVED an Agreement Extension with Triadvocates for federal lobbying services in an
amount not to exceed $78,000.00 for FY 2005 and an amount not to exceed $84,000.00 for FY
2006.

In 2004, the City of Chandler retained Triadvocates to assist in securing targeted appropriations
for the relocation of the heliport at the Chandler Municipal Airport and to offset the costs related to
meeting the new federal arsenic standards. Triadvocates was successful in securing $1.3 million
for the heliport project and $150,000.00 for arsenic mitigation. This extension will also expand
their scope of services to include general representation of the City in federal matters.

20.    AGREEMENT/AGREEMENT EXTENSION:                   PFM Asset Management & Wells Capital
       Management

APPROVED a one-year agreement with PFM Asset Management, LLC, and a one-year
Agreement Extension with Wells Capital Management for investment management services.

21.    CONTRACT: Philip Transportation and Remediation, Inc.

APPROVED a one-year contract with provisions for four one-year extensions with Philip
Transportation and Remediation, Inc. for dry well cleaning and repair in an amount not to exceed
$73,000.00.

Every three years, as part of the ongoing storm water management plan, the City of Chandler
contracts to clean dry wells. Cleaning the dry wells aids in the drainage of storm water from
retention basins and City facilities. Regular cleaning of the drywells is cited as a Best
Management Practice in the City’s Arizona Pollutant Discharge Elimination System Permit. There
are 205 drywells registered in the City of Chandler. Twelve are less than 6 months old or were
determined not to need cleaning and the remaining have exceeded their three to four-year
cleaning and repair cycle. The cost to clean each drywell is $295. Part of the contract calls for
the contractor to provide services other than routine cleaning which would include removal of
large rocks and debris and repair of frames/grates on a time and material basis.

22.    PURCHASE: Chalum, Inc.
Minutes of the Regular Meeting
Chandler City Council
Thursday, January 27, 2005
Page 10


APPROVED the purchase of liquid aluminum sulfate that is used at the City’s Surface Water
Treatment Plant and Airport Water Reclamation Facility from Chalum, Inc., utilizing the City of
Tempe contract, in an amount not to exceed $409,000.00. Aluminum sulfate is a chemical that is
used at the City’s Surface Water Treatment Plant and Airport Water Reclamation Facility that
assists in the removal of suspended solids in the “raw” water that enters each plant. This is an
initial step in the water/wastewater treatment process.

23.      USE PERMIT: Rinchem Company

APPROVED Use Permit, UP04-0052, Rinchem Company, for chemical bulk storage and
distribution in a General Industrial Zoning District (I-2) at 6838 and 6888 West Frye Road.
(Applicant: Brad Moore, Rinchem Company, Inc.)

These buildings are within the Williamsfield Business Park and are bounded to the east by a sign
company, Ashland Chemical to the north, railroad tracks to the west and separated from the 202
freeway by a vacant lot zoned for an industrial business park to the south. It was zoned General
Industrial (I-2) in 1974.

The Rinchem Company has been leasing space in the building at 6838 W. Frye Road since 2001
to operate a chemical warehouse and distribution facility. Rinchem purchases chemicals from
third party producers and stores them on site for delivery to local companies, mainly semi-
conductor manufacturers. Rinchem shares a warehouse with North American Composites, also a
chemical distributor. Each business has separate offices within this building.

Rinchem wishes to expand their storage and office operations and proposes expansion next door
to the eastern two thirds of the recently constructed shell building at 6888 W. Frye. The rest of
the building is currently occupied by Orbital Sciences. The expansion would include office space
and chemical warehouse in an existing shell building.

A Use Permit has never been obtained for either company to operate as a bulk storage and
distribution facility within a General Industrial (I-2) zoning district at 6838 W. Frye Road. The
Chandler Fire Department maintains a Hazardous Materials Inventory Statement for both
Rinchem Company and North American Composites and notes that there have been no incidents
at the present location. Rinchem is not proposing to store anything in the adjacent building that is
not currently stored at the existing location. Rinchem will not change the nature of the chemicals
at their current location as covered in the current Hazardous Materials Management Plan on file
with the Chandler Fire Department.

The Planning Commission and Staff feel the use is compatible with other uses in the Williamsfield
Business Park. The chemical and bulk storage facilities’ expansion or current operation does not
negatively impact the area.

This request was noticed in accordance with the requirements of the Chandler Zoning Code. Staff
has received no opposition to this Use Permit.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to the following conditions:

1.       Compliance with the City of Chandler’s Fire Department provisions with regard to the
         Hazardous Material Management Plan.
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2.     Development shall be in substantial conformance with all exhibits, except as modified by
       condition herein.
3.     Any enlargement of the building or modification of the floor plan shall require a new Use
       Permit.
4.     There shall be no outdoor storage in conjunction with this Use Permit.

24.    USE PERMIT EXTENSION: Gibides Gourmet Hot Dogs and Hamburgers

APPROVED a Use Permit Extension, UP04-0051, Gibides Gourmet Hot Dogs and Hamburgers,
Series 12, for the sale of liquor for on-premise consumption only within an existing restaurant at
1940 S. Alma School Road, Suite 5. (Applicant: Vega Gibides.)

Gibides has been operating with a liquor Use Permit for over a year. In that time, no complaints
were filed until the day after the Planning Commission recommended Use Permit extension
approval. Staff received a phone call from a resident complaining about the noise generated by
the business. Staff had earlier asked if any change to the business had occurred and was told
that nothing had changed. After the complaint was received, Staff again called and discovered
that the restaurant began recently holding an open mike on Thursdays until approximately 11:00
p.m., and Karaoke on Friday nights until approximately at 1:00 a.m. Staff believes this use is still
compatible within the shopping center and recommends approval of the Use Permit extension.

This request was noticed in accordance with the requirements of the Chandler Zoning Code. The
Police Department has been informed of the application and has responded with no issues or
concerns.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to the following conditions:

1.     The Use Permit is for a Series 12 license only and any change in type of license shall
       require reapplication and new Use Permit approval.
2.     The Use Permit is not transferable to any other store location.
3.     Expansion beyond the approved Floor Plan shall void the Use Permit and require new
       Use Permit application and approval.
4.     Changes to the hours of operation shall require new Use Permit application and approval.
5.     Any substantial change in the floor plan to include such items as, but not limited to,
       additional bar serving area or the addition of entertainment related uses shall require
       reapplication and approval of the Use Permit.
6.     That the Use Permit be granted for a period of three (3) years, at which time reapplication
       shall be required.

25.    USE PERMIT: Famous Sam’s #25

APPROVED Use Permit, UP04-0059, Famous Sam’s #25, Series 6, for the sale of beer wine and
liquor for on-premise and off-premise consumption at an existing restaurant at 940 N. Alma
School Road, Suites 106-109. (Applicant: Amalia Dickerson.) No business remodeling or
expansion is proposed in conjunction with this Use Permit.

A Use Permit was approved in 1995 for Famous Sam’s permitting all types of liquor sales in
conjunction with a restaurant (Series 12). The applicant has operated the business continuously
since that time. Following a sales audit by the State, the business was found to have insufficient
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Chandler City Council
Thursday, January 27, 2005
Page 12


food sales as a percentage of total sales to qualify for a Series 12 license. The State is requiring
the Series 12 license be surrendered and a Series 6 obtained.

Existing residences within 300 feet of this business are located across Ray Road and Alma
School Road, and west behind the shopping center’s south end. Immediately west of the
shopping center’s north portion is the Skateland Chandler roller-skating rink. The applicant noted
that at the Ray Road curb, the music heard is from the Skateland Chandler skating rink.

This request was noticed in accordance with the requirements of the Chandler Zoning Code with
a neighborhood meeting being held on December 29, 2004 attended by one business owner.
The Police Department has been informed and has responded with no issues or concerns. Staff
has received no opposition to this application.

Upon finding consistency with the General Plan and Council adopted Community Commercial (C-
2) zoning, the Planning Commission and Staff recommend approval subject to the following
conditions:

1.       The sale of alcohol for off-premise consumption is prohibited.
2.       The Use Permit is for a Series 6 license only and any change in type of license shall
         require reapplication and new Use Permit approval.
3.       Expansion of the sales area beyond the approved floor plan shall void the Use Permit and
         require new Use Permit application and approval.
4.       Outdoor music or outdoor live entertainment shall be prohibited.
5.       Any substantial change in the floor plan to include such items as, but not limited to,
         additional bar serving area or the addition of entertainment related uses shall require
         reapplication and approval of the Use Permit.
6.       Access to the suite’s south exterior door at the kitchen shall be restricted to emergency
         egress or employee use only. Customer access to this door shall be prohibited. This
         door is to remain closed during business hours to mitigate potential noise adjacent to
         residences.
7.       Decibel levels of music shall be controlled so as not to present a nuisance to residential
         properties beyond the boundaries of the Alma Ray Plaza shopping center.
8.       The Use Permit shall be granted for a period of two (2) years, at which time reapplication
         shall be required.

26.      LIQUOR LICENSE: Famous Sam’s

APPROVED a Series 6 Bar Liquor License (Chandler #300000692) for Amalia Feria Dickerson,
Agent, Cantinas, Inc., dba Famous Sam’s, 940 N. Alma School Road, Suite 106. A
recommendation for approval of State Liquor License #06070517 will be forwarded to the State
Liquor Department. The Police Department reports no objections to the issuance of this license
and no written protests have been received. All licenses, permits and fees have been paid and
the applicant is in compliance with the City’s Tax Code.

27.      SPECIAL EVENT LIQUOR LICENSE: Paz de Cristo Community Center

APPROVED a Special Event Liquor License for Paz de Cristo Community Center for a
Fundraiser, January 30 – February 8, 2005, at Wild Bill’s BBQ and Internet Sports Bar, 1361 N.
Alma School Road. A recommendation for approval will be forwarded to the State Department of
Liquor License and Control. The Police Department reports no objections to the issuance of this
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                                                                                    Chandler City Council
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license. As this applicant is a non-profit organization, no sales tax license is required; however,
the special event liquor fee has been paid.

28.    PRELIMINARY PLAT: Fulton Ranch Towne Center

APPROVED a Preliminary Plat, PPT04-0031, Fulton Ranch Towne Center, for a commercial
retail development on approximately 41 acres at the SWC of Arizona Avenue and Ocotillo Road.
(Applicant: Norman Engineering Group, Inc.) The plat creates the lots and tracts, construction
phasing lines, establishes the necessary easements and dedicates the required rights-of-way.

29.    CONDOMINIUM PLAT: Chandler Executive hangar Leasehold Condominium Phase I

APPROVED a Condominium Plat, CPT05-0001, Chandler Executive Hangar Leasehold
Condominium Phase I, for hangar buildings at the Municipal Airport to be sold as condominium
spaces at the south side of Airport Boulevard between Queen Creek and Germann Roads. The
plat creates the units and establishes the necessary easements. (Applicant: HU, Inc. dba
Hangars Unlimited.)

ACTION AGENDA:

30.    GENERAL PLAN AMENDMENT: Chandler 202 Auto Park Phase II                           Res. #3806

RESOLUTION No. 3806, GPA04-003, Chandler 202 Auto Park Phase II, amending the General
Plan by re-designating 16 acres from low density residential to regional commercial at the NWC
of Pecos and Gilbert Roads. (Applicant: Mike Withey, Withey Anderson & Morris PLC.)

MAYOR DUNN announced that he had a conflict of interest and left the room. VICE-MAYOR
WESTBROOKS chaired the meeting for this item.

VICE-MAYOR WESTBROOKS explained how the proceedings would be conducted. He
reminded the audience that the item for action is a land use amendment and comments should
address that issue only.

General Plan Coordinator DAVID DE LA TORRE explained that the City has a 3-tier planning
system with the General Plan being the first tier. The General Plan is a strategic, broad
document including policies and objectives regarding development of the City covering the entire
City. The Specific Area Plan is the second tier, which typically covers a square mile, but in some
cases covers more as with the Airpark Area Plan which covers 9 miles. The third tier is the
zoning, which regulates specific land uses and development standards for each property in the
City.

The General Plan designates the subject site as low-density residential which also allows for
shopping centers to be located at the intersection of major arterials. The College Area Plan also
specifies this site as planned for neighborhood commercial, which is consistent with the low-
density residential General Plan designation. Current zoning on the site is AG-1, agricultural
district. Upon General Plan approval, it would not approve the auto park expansion. If approved,
only subsequent consideration for the zoning for the auto park expansion would be allowed.

On July 22, 2004, the City Council approved Phase I of the auto park on the west side of Gilbert
Road between Pecos Road and the San Tan Freeway, on approximately 98 acres. Phase II will
expand the auto park by approximately 16% from Phase I. A Staff analysis of planned land uses
Minutes of the Regular Meeting
Chandler City Council
Thursday, January 27, 2005
Page 14


in the area shows an area with regional activity primarily due to the development of the San Tan
freeway scheduled for completion by the end of 2005.

In reviewing the site, MR. DE LA TORRE said that abutting the south side of the freeway is
Crossroads Towne Center, currently under construction, which will contain 1.3 million square feet
of major retail. Seven-hundred thousand square feet of this development is in Chandler with the
remaining in Gilbert. Directly west of the Crossroads Towne Center is approximately 80 acres
planned by the Chandler Airpark Area Plan for a commercial/office and business park. A zoning
application for the site has been submitted and is currently being reviewed by Staff. East of the
Towne Center are 150 acres planned by the Town of Gilbert’s General Plan for light industrial
with an additional 80 acres further east planned for business park.

East of the site is the San Tan Warner Plex, which is Gilbert’s auto mall consisting of
approximately 150 acres. Between the Chandler auto mall and the Gilbert auto mall is
approximately 300 acres proposed for business park by the Town of Gilbert’s General Plan. On
the immediate southeast corner of Pecos and Gilbert Roads are 20 acres zoned for a commercial
shopping center and 5 acres on the northeast corner. Approximately 20 acres wrapped around
the southeast corner of Chandler Boulevard and Gilbert Road are zoned for commercial
development in the Town of Gilbert.

Immediately to the north and west of the proposed site is Chandler Gilbert Community College.
During the 2003/2004 fiscal year, approximately 12,400 students were enrolled and projections
increase to 20,000 by 2010. Staff has met with the College who acknowledged that they would
have more room to grow beyond 2010 if a demand existed. There is a potential for Chandler
Gilbert Community College to eventually be the size of Mesa Community College. Last fiscal
year, Mesa Community College had approximately 44,000 students enrolled. Chandler Gilbert
Community College indicated they drew students mainly from a 6-mile radius but it is not
uncommon for students from across the valley to enroll in classes there.

The northeast and southeast corners of Pecos and Cooper Roads are zoned PAD for shopping
center development.

In summary, MR. DE LA TORRE stated that Staff’s analysis reveals approximately 1.7 square
miles of non-residential, regional land uses planned in the area which will follow the development
of the freeway and mix with existing residential.

Staff has identified the following 4 conclusions:

1.       The proposed 16-acre extension of regional/commercial is not out of context with the
         area. The proposed extension is a small portion of the regional land uses currently
         planned in the area.
2.       A community college is a regional land use itself.                 Because of this, the
         regional/commercial proposal on the site is a logical location being between the
         community college and the freeway.
3.       The site does not adjoin any residential properties. It is surrounded and buffered by non-
         residential uses. Immediately north and west of the site is owned by the community
         college and their future expansion plans call for the development of parking lots and ball
         fields in that immediate area.
4.       There is an overabundance of neighborhood/commercial in the area. The northeast and
         southeast corners of Pecos and Gilbert Roads are zoned for neighborhood commercial as
         well as the northeast and southeast corners of Pecos and Cooper Roads. In addition,
                                                                           Minutes of the Regular Meeting
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       there are 20 acres wrapped around the southeast corner of Chandler Boulevard and
       Chandler Boulevard zoned for commercial development.

Staff also finds that the site is not on a “going home corner” which means that as people come
home from work driving north getting off of the freeway, it would be easier to make a right turn
into the property and then a right turn out. This would not be possible on the subject site on the
west side of Gilbert Road. The northeast and southeast corners of that intersection would be
more likely to develop as neighborhood/commercial for this reason.

This request was noticed according to Chandler City Code with notice being sent to all property
owners within ¼ mile of the subject property. Signs were posted on the property for the
neighborhood meeting and public hearings. There was a neighborhood meeting held on
December 9, 2004, attended by approximately 100 neighbors opposed to the expansion. Staff
has received numerous e-mails and calls with the majority being in opposition.             Two
correspondences have been received in support of the expansion.

MR. DE LA TORRE addressed each issue as presented by the neighbors:

1.     Concern that the proposed auto mall expansion will lower residential property values.
       Staff feels property values are primarily affected by individual and neighborhood home
       maintenance. Staff also acknowledges that development occurring in the surrounding
       areas of a neighborhood also have an influence on property values, but the proposed auto
       mall expansion will have less of an impact than a typical neighborhood shopping center.
2.     Concern with test-driving through neighborhoods. When the first phase of the auto mall
       was approved, a stipulation was included requiring each dealership to have a test-drive
       policy informing each employee that test drives shall not be permitted within the adjacent
       neighborhoods. If the subject amendment is approved, the same stipulation can be
       considered as part of the zoning when it comes forward.
3.     Designation of a neighborhood contact with each dealership to report any test-driving that
       may occur through a neighborhood. Typically, dealerships do have test-driving policies.
       The employee will drive the vehicle off of the property to a public area such as a park and
       allow the customer to drive back to the lot. If an employee is not back within a certain
       time, the dealership will send another employee in search. This not only provides security,
       but also provides a control for where test-driving is done. The dealerships visited by staff
       also share a boundary with a residential subdivision. One did have initial problems with
       test-driving through neighborhoods, but it ceased with the implementation of a test drive
       policy.
4.     Concern with traffic congestion. Staff has found that a neighborhood shopping center will
       generate as much as 3 ½ times more afternoon traffic than an auto park. This information
       was gathered with the use of the Institute of Traffic Engineer’s manual. The development
       of a general/office project on the site would produce approximately twice as much traffic
       during the afternoon peak time. Developments planned for the area such as the business
       parks, major retail and college will generate much more traffic than the proposed project.

COUNCILMEMBER ORLANDO asked Mr. De La Torre to define an industrial park, commercial
corner and business park and compare their generation of traffic. MR. DE LA TORRE responded
that industrial parks are defined as having warehousing, technological buildings with high industry
and manufacturing. Business parks are similar but include offices or research and development
buildings. Commercial corners typically have a grocery store as a major anchor with outlying
pads and services that serve the adjacent neighborhoods. These uses would have more trips
generated per afternoon peak hour when compared to the auto park.
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Thursday, January 27, 2005
Page 16



COUNCILMEMBER ORLANDO asked if the trips generated are calculated on a full day basis or
certain period of time? Public Works Director BRYAN PATTERSON said that it is both peak hour
and 24-hour traffic. With an auto mall, much less of the site is devoted to building space with
employees and customer activity. A business park or retail devotes more of the site to buildings
for customers.

COUNCILMEMBER SEPULVEDA asked if there were numbers to quantify 16 acres of campus
versus business park or commercial. MR. DE LA TORRE said that the numbers generated by
staff and reflected in the staff report, were for uses currently allowed under the low-density
residential General Plan designation. If an auto park were to be developed on this site, 174 trips
would be generated during the p.m. peak hours. General office would generate 395 during the
same time frame in comparison to 626 for a shopping center and 141 for multi-family. The only
land use that would generate less traffic than an auto mall currently allowed under the low-density
residential zoning would be multi-family.

COUNCILMEMBER HUGGINS asked what the pros and cons of traffic would be if the site were
used to expand the college campus? MR. DE LA TORRE stated that according to the Institute of
Traffic Engineer’s manual, the college generates approximately 1500 to 2000 trips during peak
hours as compared with 174 trips from the auto park.

5.       Concern with hazardous materials. Auto parks contain less hazardous materials than gas
         stations. A typical auto dealer would contain a 1000 fuel tank in comparison to a gas
         station containing 3 10,000-gallon tanks. The dealerships contacted by Staff stated that
         they have a hazardous material agency visit their property on a regular basis to pick up
         hazardous materials such as transmission fluids and oil. Chandler has one of the most
         up-to-date reporting systems in the nation. Every fire truck in the City has information
         regarding hazardous material locations, quantity and type on all properties in the City.
         Hazardous materials are strictly regulated by the City, County, State and Federal
         governments. The City of Chandler inspects auto dealerships at least once a year for
         compliance with the hazardous materials regulations.

COUNCILMEMBER ORLANDO asked if any dealers have been cited?                         Mr. De La Torre
responded that he did not believe any citation has been issued.

6.       Concern with proposed auto park would encourage auto-related developments in areas
         that are outside the auto park. Staff found, when meeting with dealerships, that they
         typically contain their own service bays and car wash tunnels negating the demand for
         these types of uses. None of the surrounding areas of the auto mall allow for body shop
         uses. They would have to rezone and go through some type of public hearing process.
7.       Concern with noise. The first phase of the auto dealership included a stipulation denying
         the use of outdoor loudspeaker P.A. systems. If the proposed General Plan amendment
         is approved, the same stipulation can be included as part of the zoning when it comes
         before City Council. Staff feels that noise generated from Gilbert Road, Pecos Road and
         ambient noise from adjacent uses such as the college and neighborhood commercial
         corners would buffer any noise generated from the auto park.
8.       Concern with lighting. All lighting would be required to comply with City regulations which
         states that no rays will be allowed to be directed off of the property. Auto dealers typically
         switch to security lighting between 9 and 10:00 p.m., which is half of normal lighting.
         Proposed light poles for this project are 30’ in comparison to City streetlights at a height of
         42’. Future college ball field lighting could be anywhere from 60-70’ high. The college
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       indicated to Staff that there are plans to install ball field lighting within the next couple of
       years.
9.     Concern with auto mall being open after hours. Staff feels it is unlikely for auto
       dealerships to be open after hours on a regular basis. If this amendment were approved,
       it would subsequently have to go before the Council for preliminary development approval
       where mitigation measures can be considered such as re-orienting the building and
       installing light shields to minimize the after-hours impact. Typically, auto dealership sales
       offices close at 9:00 with service and parts departments closing earlier.

COUNCILMEMBER SEPULVEDA asked how the hours of operation compare to a neighborhood
commercial center? MR. DE LA TORRE said that a neighborhood shopping could technically be
open 24 hours per day such as a grocery store.

10.    Concern with aesthetics and building heights. If this general plan amendment is
       approved, the preliminary development plan will be required to go through a public
       hearing process to allow for neighborhood input. During their research, Staff found that
       dealership buildings are typically 28-30 feet high in comparison to neighborhood shopping
       centers at 25-30 feet high. Typical lot coverage at a shopping center is 22-25% in
       comparison to 10% for a dealership. A neighborhood shopping center would likely have
       more building area than an auto dealership. Chandler has an outstanding “track record” in
       urban design and development standards and will apply the same standards and high
       level of expectation to the auto dealership.
11.    Concern with crime. The Chandler Police Department does not consider auto dealerships
       to be a significant crime generator. They typically have more security measures such as
       cameras, infrared lighting and 24-hour security guards in comparison to a neighborhood
       shopping center which would not have these security measures.

COUNCILMEMBER ORLANDO asked if Chandler Police Department was the only City not
considering auto dealerships to be significant crime generators or if this was valley-wide. MR. DE
LA TORRE responded that other agencies contacted by Staff confirmed the same consideration.

12.    Concern with unsightly advertising which could include electronic billboards, blow up
       figures, balloons, banners, and flags. Upon General Plan amendment approval, the auto
       park Phase II would have the same privileges as a neighborhood shopping center to hold
       special events requiring a special events license from the City. Also upon approval of the
       General Plan amendment, it would allow for subsequent preliminary development plan
       consideration, which would review permanent signage at the proposed auto buildings.

Staff believes that the proposed regional/commercial extension is an appropriate use for the
regional context of the area and is compatible with the adjoining properties.

COUNCILMEMBER SEPULVEDA asked if there are any statistics regarding safety issues at auto
dealerships. MR. DE LA TORRE said that auto dealerships are relatively safe because of the
measures they take. COUNCILMEMBER SEPULVEDA asked if there was any correlation to the
number of traffic accidents going into auto dealerships and as opposed going into an industrial or
business park? MR. DE LA TORRE said that he does not have those specific numbers.
COUNCILMEMBER SEPULVEDA requested that that information be included in any future
reports regarding this site.

MIKE WITHEY, representing the property owner, stated that the area being discussed along
Gilbert Road is currently designated as the major north-south commercial corridor for this area by
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Chandler City Council
Thursday, January 27, 2005
Page 18


Gilbert and Chandler and will be changing dramatically over the next four years, similar to the
Price Corridor. The site is ideally located for this use being at the corner of two major arterials,
near the freeway and not adjacent to residential uses. There are many auto dealerships backing
directly on to single-family/residential uses causing many site plan issues to buffer the uses as
was addressed with Phase I of the Chandler auto mall.

COUNCILMEMBER ORLANDO asked why the additional 16 acres is needed? MR. WITHEY
replied that even though auto dealers are competitors, they prefer to be located in close proximity
to each other. They believe that if there are a large number of dealers located in a smaller area,
it will be healthier for long-term benefits of the auto mall. They also feel it is a good land use. In
response to a question from COUNCILMEMBER ORLANDO, MR. WITHEY said that the Gilbert
Auto Mall is approximately 140 acres.

COUNCILMEMBER ORLANDO commented that, based on Mr. Withey’s comments, it would
potentially be more feasible for an auto dealer to locate in a larger complex for the customer
base. MR. WITHEY said that most dealers do not want to be segregated from other dealers.
That is obvious when you review the history of auto dealerships throughout the valley.

COUNCILMEMBER ORLANDO asked if they felt they could be more competitive with the
additional 16 acres and what the City will be giving up if the 16 acres is not approved for the
expansion? MR. WITHEY responded that Staff would be better qualified to answer what the
community would be giving up, but the expansion would mean additional tax revenue for the City.
They would not have proposed the expansion if they did not feel it was an asset to Phase I or
appropriate land use. Staff and the Planning Commission also agree that it is an appropriate use.

COUNCILMEMBER ORLANDO asked about the significance of the shift in transportation
corridors. MR. WITHEY replied that the freeway system has changed how regional uses are
determined. Historically, auto dealerships have been located nearer to city centers. With the
addition of the freeway system, the dealerships are relocating closer to the freeways. There is
more visibility, transportation corridors, less of an impact on residential neighborhoods and easier
access.

VICE-MAYOR WESTBROOKS said that there are several speaker cards from those not wishing
to speak but would like to express their support or opposition to the request. There are 42 in
opposition and 1 in favor.

PUBLIC COMMENT:

MS. CHRIS FERGUSON, 86 E. Phelps, Gilbert, spoke in opposition to the request and expressed
disappointment the current zoning can be changed through a planning and zoning action.

MS. WENDY WILSON, 556 E. Elgin Ct., Gilbert, spoke in opposition. The area was zoned low-
density residential by the voter-approved General Plan. An auto mall does not fit within the
regional context and refuted comments made by Staff regarding why this request is a good “fit”
for the site.

COUNCILMEMBER SEPULVEDA asked about the location of the proposed buffer with Gilbert
Road expanding to 6 lanes? MR. DE LA TORRE said that the east half of Gilbert Road is
completed and will remain as it is. The west half will be expanded into the subject site and
college property. The buffer is a retention basin designated for storm water retention in the
subdivision. There will be no additional roads built in the buffer area.
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COUNCILMEMBER WALLACE asked if the Chandler Police Department patrols the auto
dealerships within the City of Chandler along the I-10? Police Commander BRZUCHALSKI
responded that Chandler does patrol those areas within the City of Chandler. There has not been
a significant increase in associated crime to the neighborhoods in the proximity of these
dealerships.

KAREN CUPPS, speaking on behalf of the Chandler Chamber of Commerce, stated that the
Chamber supports all businesses in the City of Chandler and believe it is in the best interest of
the City and community to support the General Plan Amendment.

AL WISNIEWSKI, 2393 E. Morelos St., Chandler, spoke in opposition to the request. The
purpose of having a General Plan is to let the residents have input on how the properties are
developed in their town and serves to protect interests of citizens in Chandler and adjacent cities.
Those who have elected Council are asking for a “no” vote on this request. It will set a precedent
that no property is safe from unwanted development.

LOUIS DEPALMA, 124 E. Mary Lane, Gilbert, said that the report submitted to Council does not
address all of the issues such as the lack of service areas on the college campus. The buffering
represented in the report does not address all of the homes in the area. The traffic study was
taken from statistics gathered in 1990.

COUNCILMEMBER SEPULVEDA asked who owns the 16 acres in question? MR. DEPALMA
responded that it is privately owned. COUNCILMEMBER SEPULVEDA said that the College
Master Plan referred to by Mr. DePalma was initiated in 1985 and completed in 1987. The first
phase of the college was built shortly thereafter on approximately 80 acres. The second
acquisition was approximately 60 acres, which did not include this site. COUNCILMEMBER
SEPULVEDA also clarified that General Plans are not site-specific.

CINDY MARTIN, 2730 S. Palm Court, Gilbert, said that Marty De Rito, the property owner, will
receive approximately $4 million for the original 100-acre parcel and does not include any
additional incentives. The only open dialogue that took place regarding the General Plan
amendment did not include the residents.

DIANE RYMER-BAK, 2413 E. Nathan Way, Chandler, commented that staff said they had
contacted other dealerships regarding their test-driving policy, but asked if they contacted
residents in close proximity to these dealerships as she felt that dealerships would give a biased
response. There is a north-south orientation for the homes because of air conditioning, not
because of the location of a dealership. People who live in the surrounding neighborhoods will
not be accessing this corner from the freeway.

COUNCILMEMBER SEPULVEDA asked what kind and how many 24-hour uses there are in
Chandler. MR. DE LA TORRE said that there are several retail/commercial uses in the City.
Fry’s on Dobson and Ray is open 24. The majority are 24-hour pharmacies located in shopping
centers through out the City. Convenience stores and gas stations are also open 24 hours and
are allowed commercial uses for this site.

COUNCILMEMBER WALLACE clarified that a Super Wal Mart was approved on Gilbert Road
and the Santan Freeway currently under construction.
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Chandler City Council
Thursday, January 27, 2005
Page 20


VICE-MAYOR WESTBROOKS also clarified that there are 48 speaker cards in opposition to the
request and one in support. Approximately 120 e-mails have been received with all but 2 in
opposition.

MR. TERRY LALLI, currently residing at 779 E. Kesler Lane, Chandler, and in the process of
building a home at 2557 E. Remington Place, Rancho Del Ray, expressed opposition to all
phases of the auto mall due to excessive lighting, noise and crime, traffic and pollution. The
future homes in Rancho Del Ray should not be overlooked simply because they are not built at
this time. It is not safe to have an auto mall directly across the street from a new City park that
will be built in Ranch Del Ray.

WILL JACKSON, 169 E. Canyon Creek Drive, Gilbert, spoke in opposition to the request due to a
lack services to the college. With the projected growth of the college, there needs to be services
available. There are currently virtually none. Students would go to restaurants and bookstores
within 700 feet of the campus.

COUNCILMEMBER SEPULVEDA commented that the main campus of Mesa Community
College is built-out. There are services adjacent to the college utilized by the students. The
college has an obligation to serve the needs of the community. Mesa Community College is at
capacity and they are looking at different locations for other campuses.

COUNCILMEMBER WALLACE asked if Staff was aware of what the Town of Gilbert may be
planning for the southeast and northeast corners of Pecos and Gilbert Roads? MR. DE LA
TORRE said that nothing has gone for Design Review approval and no applications have been
submitted. There are plans for a pharmacy on the northeast corner and plans for rezoning the
shopping center on the southeast corner to regional/commercial which would include more of a
power center; however, no plans have been formally submitted. By definition, a power center
typically includes big boxes such as Lowe’s or Wal Mart Supercenter as well as other major
commercial retail stores.

LAURA SMALLWOOD, 133 E. Frances Lane, Gilbert, said that she is an employee of Chandler
Gilbert Community College, but is not speaking as a representative of the college. At various
staff meetings at the college, they were always told that the site would include something that
would compliment the college.

SCOTT WALL, 1805 W. Raven Dr., Chandler, President of the Chandler Firefighter’s Association,
spoke in favor of this amendment citing the additional tax revenues.

DAVE LEVOY, President of the Chandler Law Enforcement Association speaking on behalf of the
association, said that they appreciate the diligence management and elected officials have given
to this process. Projected budget cuts could affect the quality of service provided to Chandler
citizens and Mr. LeVoy urged Council to ensure there are sufficient revenues to maintain these
services.

COUNCILMEMBER SEPULVEDA commented that city services are funded by sales tax revenue
and will continue to do so until the State Legislature changes the formula allowing more funds to
be funneled to the cities.

The meeting recessed at 9:05 p.m. and reconvened at 9:15 p.m.
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                                                                                     Chandler City Council
                                                                               Thursday, January 27, 2005
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MIRIELLE KAPLAN, 285 E. Benrich Dr., Allen Ranch, Gilbert, expressed concern with safety, not
from customers test driving cars through the neighborhood, but rather with mechanics who are
testing cars being repaired. Ms. Kaplan also addressed the effects of quality of life in areas
adjacent to auto malls.

MICHAEL DEMELLO, 2899 S. Larkspur St., Gilbert, said that there are already 98 acres
approved for an auto mall that will generate revenue. Since residents are opposed to the
additional 16 acres being amended, he felt that Council should act in favor of those residents and
both sides will be happy.

MARGARET DE MELLO, 2899 S. Larkspur St., Gilbert, a student at Chandler Gilbert Community
College stated this site should be developed to support the college and not be developed as an
auto mall.

PAUL JACUSIS, 2300 E. Derringer Way, Chandler, spoke in opposition to the amendment.

BARRY SOUTHWICK, 40 E Mary Lane, Gilbert, also has a business in Chandler, said that the
majority of residents in the area are against the amendment, but the City continues to move
forward with the proposal. He does not feel taxpayer money should be used to subsidize private
enterprise. Mr. Southwick said that Representative Ben Miranda commented that the legislature
might need to remind City Councils that land use plans should not be changed in mid-stream.

COUNCILMEMBER SEPULVEDA clarified that Representative Miranda’s comments referred to
the system not being changed with respect to services provided based on the revenue stream.

JOHN JARZAB, 168 E. Benrich Ct., Gilbert, said that the main concern is safety. People go to
dealerships to get rid of a vehicle that is unsafe or not operating properly. By having a dealership
in close proximity to a neighborhood, dangerous vehicles are being invited into the area. The
parking lot at the college will be used for test-driving.

CAL BOWLER, 2925 S. Palm Ct., Gilbert, said that he lived ½ mile from car dealerships in the
Glendale area.      Speaking from experience, Mr. Bowler said that dealerships are not
neighborhood friendly as they bring crime into the area. Test drivers including customers and
mechanics, will drive through the neighborhood bringing on a concern for student safety.

LEIGH RIVERS, 3737 W. Geronimo St., Chandler, said that the Chandler Community College
Area Plan designates the northwest corner of Pecos and Gilbert as neighborhood commercial
development. Only the acreage south of Pecos is designated for regional commercial. The intent
of past councils was to create a student-friendly atmosphere within walking distance. Why
consider changing a plan approved by a public vote.

COUNCILMEMBER ORLANDO commented that if the adopted plan could not be changed, there
would be no development in the community. Council makes decisions based on the information
available and facts presented.

COUNCILMEMBER SEPULVEDA reiterated that it is a General Plan and not a specific plan.

SUSAN PEART, 2423 E. Kesler Lane, Chandler, adjacent to the west entrance to the college,
said that the northeast and southeast corners of Pecos and Cooper and northeast corner of
Gilbert and Pecos have been approved for commercial. The northwest corner of Pecos and
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Chandler City Council
Thursday, January 27, 2005
Page 22


Gilbert was zoned neighborhood/commercial to provide services for students and surrounding
neighborhoods.

FRANK PEAKE, 2693 E. Birchwood Pl., Chandler, Chair of the Transportation Commission, said
that an issue frequently discussed by the commission is the corridors of regional significance and
adjacent development. The proposed auto park expansion is an appropriate use for the corridor.
The overall welfare of Chandler citizens needs to be reviewed when considering such issues.
Chandler is quickly approaching build-out and continued economic development and financial
viability is important to be able to provide the best services to the citizens. With the projected
growth, there is a potential for revenue shortfalls unless quality revenue producing projects are
brought in.

COUNCILMEMBER SEPULVEDA asked about the number of roads of regional significance in
the City of Chandler. MR. PEAKE said that there are a number in Chandler including Arizona
Avenue, Chandler Boulevard, Gilbert Road and Riggs Road. Three are along the Santan 202 –
Arizona Avenue, Gilbert Road and Rural Road. COUNCILMEMBER SEPULVEDA asked about
economic uses along the roads of regional significance and transportation corridors. MR. PEAKE
responded that high-volume, high-impact, large big box (in compliance with our big box
ordinance) and high-traffic businesses are encouraged in these areas.

COUNCILMEMBER CACCAMO asked Staff if there is any data showing revenue generation for a
“college friendly” shopping center as compared to an auto dealership. Economic Development
Director GARRETT NEWLAND replied that it depends on the types of uses in the neighborhood
shopping center and the type of dealership. In general, 16 acres of auto development would
possibly generate approximately three or four times the amount of revenue generated by a
neighborhood commercial center.

COUNCILMEMBER SEPULVEDA asked about the types of jobs generated in a neighborhood
commercial use versus an auto mall. MR. NEWLAND responded that jobs created in the
neighborhood commercial center would be primarily retail, lower end sales, cashier, stockers, etc.
There are typically a greater number of jobs created at those types of centers. An auto
dealership would create higher paying jobs.

INA HANCOCK, 46 E. Hopkins Road, Gilbert, commented that the interest appears to be with
making money and not what the “little people” want. The current plan should be kept.

SUSAN BOGUMILL, 13315 E. Cindy Street, Chandler, said that it is not appropriate for an auto
mall to back up to a ball field. It is not congruent with a neighborhood and there is also a
psychological impact of having an auto mall in a back yard.

MARK BOGUMILL, 13315 E. Cindy Street, Chandler, thanked Council for allowing residents the
opportunity to provide input in this case. The current plan does not need to be modified because
whatever goes on that site will generate tax revenue and jobs for the City. The needs of the
college should be considered because of the close proximity to the college. If student services
are not provided at this site, the college will have to bear the burden of providing services. Types
of jobs provided at an auto dealership are not student friendly while service type jobs generated
in a commercial center are. He has submitted alternative plans for the site.

COUNCILMEMBER SEPULVEDA said that he has spoken with representatives of the college
regarding job training and development. Auto mechanics is taught at Chandler Gilbert
                                                                          Minutes of the Regular Meeting
                                                                                   Chandler City Council
                                                                             Thursday, January 27, 2005
                                                                                                Page 23


Community College and those jobs would be available. The college’s charter does look at the
needs of surrounding businesses to partner to create jobs.

COUNCILMEMBER ORLANDO asked to review the plans Mr. Bogumill referred to for alternative
plans.

ANGELINA NEAVES, 2433 E. Morelos St., Chandler, spoke in opposition to the expansion due to
traffic, decrease in property values and proliferation of dealerships in the area.

JOHN BOGUMILL, 13335 E. Cindy Street, Chandler, spoke about the political process and gave
the opinion that money was a driving factor in this project and felt that Councilmembers had
predetermined their decision. He stated that people would be organizing to stop the process.

VICE-MAYOR WESTBROOKS said that Council is effectively listening and Councilmembers are
asking questions of speakers to make sure they understand the speaker’s point.

COUNCILMEMBER SEPULVEDA said that Mr. Bogumill made some serious accusations
regarding someone being “bought off” and should not make such comments unless specific
information can be provided to warrant such an accusation.

LAURIE SOUTHWICK, 247 E. Julian Drive, Gilbert, also owns a small business in Chandler,
commented that she does not feel Council is listening to those who were elected to represent the
citizens.

SHARI MELTON, 2400 E. Geronimo St., Chandler, spoke in opposition due to quality of life
issues.      She currently has to go to Gilbert for services such as restaurants and dry cleaning
because there is no place near her home in Chandler. These services could be provided on this
site if the use is not changed.

KATE KAHLER, 192 E. Benrich Drive, Gilbert, said they bought their home in Allen Ranch
because of its proximity to the college and with the understanding that the development on this
site would be complimentary to the college.

GREGG MALACHOWSKI, 2467 E. Winchester Pl., Chandler, said that he has been in the
automobile business for 18 years. In response to a question from Council to Staff regarding
dealerships being patrolled by the appropriate City police, Mr. Malachowski said they are not.
Most have their own private security companies. Dealerships do store hazardous materials on
their site. Mr. Malachowski presented figures showing how much tax is paid on vehicles to the
City. Based on his calculations, it would take the City approximately 47 years to recover the $40
million of tax savings given to Lund and the developer.

COUNCILMEMBER SEPULVEDA reiterated that the issue is land use and added that the City did
not write a check to Lund for $40 million as alluded to by Mr. Malachowski.

VICE-MAYOR WESTBROOKS said that when or if this item goes through zoning and
development plan review, information regarding the development agreement would be presented
at that time. This hearing is strictly for land use issues.

JIM KAHLER, 192 E. Benrich, Gilbert, spoke in opposition due to college compatibility. Mr.
Kahler also referred to conflicts of interest declared by the Mayor and a Planning Commissioner.
Minutes of the Regular Meeting
Chandler City Council
Thursday, January 27, 2005
Page 24


SHARON BARCLAY, 2810 E. San Tan Street, Chandler, said that because she is a mile away
from the site she received no notification of this request. Placing an auto mall next to a college is
not a good strategic decision and an auto mall does not support community values.

FIDELIS GARCIA, 184 E. Benrich Ct., Gilbert, requested that he be put under oath. VICE-
MAYOR WESTBROOKS said that was not necessary. MR. GARCIA said that everything he says
would be true. He clarified that he is not affiliated with Conley Wolfswinkle, Jeff Grosscost or Bill
Lund. At least 20 years of planning have gone into the specific area surrounding Chandler Gilbert
Community College. No one disputes the fact that plans change, but there are very specific plans
that have been outlined by this and previous Councils relating to the development of the
community college. One of the goals of the upcoming Congress of Neighborhoods is for future
planning and development of a plan regarding Chandler’s build-out. This property is already
zoned commercial. If commercial were that simple, there would be a one-size-fits-all solution.
There would be no distinction between neighborhood commercial, regional commercial or
industrial. There would be no reason to specify the zoning. The City has zoning to protect what
Chandler promotes as its greatest asset, which is its quality of life. He added that there are
safety issues and no one asked what the neighbors wanted. They are frustrated with the fast-
track process. He mentioned that over 1000 people have signed petitions in opposition to this
amendment. (Petitions were submitted to the City Clerk).

COUNCILMEMBER ORLANDO asked Mr. Withey how many dealerships could be on a 16-acre
property. Mr. WITHEY responded it could be one large dealership or two or three dealerships.
COUINCILMEMBER ORLANDO asked for an example of a large dealership so he could get a
perspective of what this project may look like. MR. WITHEY said that the majority of large
dealerships run approximately 12-16 acres and he could provide a list for Councilmember
Orlando. COUNCILMEMBER ORLANDO asked how many cars could be on a large dealership,
and what part of the land is service area and what part is for car sales. MR. WITHEY said that a
site plan is not being processed and he is unable to provide specifics at this time. Typically, a
shopping center will have approximately 25% lot coverage as compared to dealerships with
approximately 13% coverage. COUNCILMEMBER ORLANDO asked how big Chapman
Chevrolet is on Ray Road and I-10. GARRETT NEWLAND responded that it is approximately 12
acres.

MR. WITHEY acknowledged that this is a very emotional issue however, the issue is a relatively
straightforward land use case. Staff and the Planning Commission have both recommended
approval. Many issues brought up this evening have been regarding site plan, economics,
development agreements and have reflected incorrect numbers. Many changes will be taking
place in this area. The impact of the auto mall will be minimal in comparison to the freeway and
other commercial developments.

COUNCILMEMBER ORLANDO commended everyone for participating in the process. These
proceedings are normal for these types of cases with citizens and Council having the opportunity
to ask questions. He assured everyone that there have been no “shady deals” and Council has
been truthful to the best of their knowledge. There have been negotiations with the college and
State laws have been followed. No money has changed hands. If this project progressed it
would increase revenue for Chandler and the valley. Whatever is done is for the benefit of the
community and the college.

A MOTION WAS MADE BY COUNCILMEMBER ORLANDO TO ADOPT Resolution No. 3806,
GPA04-0003, Chandler 202 auto Park Phase II, amending the General Plan by re-designating 16
                                                                          Minutes of the Regular Meeting
                                                                                   Chandler City Council
                                                                             Thursday, January 27, 2005
                                                                                                Page 25


acres from low density residential to regional commercial located at the NWC of Pecos and
Gilbert Roads. SECONDED BY COUNCILMEMBER SEPULVEDA.

COUNCILMEMBER SEPULVEDA asked the City Attorney to clarify what is being voted on. MR.
O’NEILL said that Council is voting on a General Plan Amendment changing the use to C-3. Any
zoning or development agreement will have to come forward at a later date.

COUNCILMEMBER SEPULVEDA expressed his appreciation for the discussions that have taken
place. He also commended Vice-Mayor Westbrooks on keeping the meeting running smoothly.

VICE-MAYOR WESTBROOKS explained that if the motion passes, it would then go through the
zoning process and a development agreement would be approved. As this item is referable by
the citizens, the VICE-MAYOR asked the City Attorney to further explain what would occur next.

DENNIS O’NEILL said that if the General Plan Amendment passes tonight, the zoning and
development agreement would come before Council in February. If both of those were approved,
all three items would be referable. If a group of citizens so choose, they could go through the
referendum process and bring one or all three items to the voters.

VICE-MAYOR WESTBROOKS asked about the referendum procedure. MR. O’NEILL explained
that after an item is approved, signed and distributed, the public has 30 days after that date to
complete a referendum. Nine hundred and seventeen signatures are required based on the last
election.

VICE-MAYOR WESTBROOKS asked what would happen if the General Plan Amendment was
not approved. MR. O’NEILL said the zoning could not proceed without a General Plan
Amendment.

COUNCILMEMBER WALLACE clarified that if the amendment is approved and the zoning and
development agreement come forward, they will be discussed in public meetings like this one.

VICE-MAYOR WESTBROOKS thanked the audience for being respectful of everyone’s
comments.

THE MOTION TO ADOPT RESOLUTION NO. 3806 AMENDING THE GENERAL PLAN
CARRIED BY MAJORITY (5-1) WITH COUNCILMEMBER HUGGINS VOTING NO. MAYOR
DUNN PREVIOUSLY DECLARED A CONFLICT OF INTEREST AND DID NOT PARTICIPATE
IN THE DISCUSSION OR VOTE.

The meeting recessed at 11:05 p.m. and reconvened at 11:08 p.m. MAYOR DUNN rejoined the
meeting at this time.

SPECIAL ORDERS OF THE DAY

A.     Mayor's Announcements:

MAYOR DUNN announced that Glendale Mayor Scruggs served lunch at Hamilton High School
honoring a bet regarding who would win the 5A football championship.
Minutes of the Regular Meeting
Chandler City Council
Thursday, January 27, 2005
Page 26


MAYOR DUNN announced that the first Neighborhood Congress would be held Saturday,
January 29th, to discuss the formation of neighborhood partnerships in the City and assure long-
term development success and build out strategy.

MAYOR DUNN announced the next Citizen’s Academy would begin February 8th and openings
were still available.

THE MAYOR announced that the library has recently become wireless. He asked Staff to
explore the possibility of making the entire downtown area wireless and submit a report to
Council.

MAYOR DUNN announced the State of the City Address would be given on Thursday, February
17, in the Center for the Arts. Council reception will begin at 6:00 p.m. and the State of the City
Address will follow at 6:30 p.m.

B.       Councilmembers' Announcements:

COUNCILMEMBER ORLANDO congratulated Councilmember Caccamo and his wife on their
41st anniversary and Councilmember Wallace and her husband on their 31st anniversary. He
also announced that former Mayor Richard Dugan’s son Darren left for Marine Corps boot camp
in San Diego.

COUNCILMEMBER CACCAMO thanked Councilmember Orlando for the recognition and wished
him a happy birthday. He congratulated the Council on the discussions at this meeting.

VICE-MAYOR WESTBROOKS announced that Sara Woods, mother-in-law of former Mayor Coy
Payne, recently passed away. She was a pioneer in the community and was a member of one of
the first African-American families to settle in Chandler.

COUNCILMEMBER WALLACE said that she would miss the State of the City Address. She and
Councilmember Sepulveda attended a ceremony at ASU where Eddie Basha received an MLK
award for outstanding community service and leadership.

MAYOR DUNN and COUNCILMEMBER ORLANDO attended the State of the Chamber breakfast
this morning.

C.       City Manager's Announcement:

There were no City Manager announcements at this time.


Adjournment: The meeting was adjourned at approximately 11:15 p.m.



ATTEST: __________________________                  ______________________________
            City Clerk                                   MAYOR


Approved: _________________________
                                                                          Minutes of the Regular Meeting
                                                                                   Chandler City Council
                                                                             Thursday, January 27, 2005
                                                                                                Page 27




                                    CERTIFICATION

I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the
regular meeting of the City Council of Chandler, Arizona, held on the 27th day of January 2005. I
further certify that the meeting was duly called and held and that a quorum was present.



DATED this __________ day of _____________, 2005.


                                                         __________________________
                                                          City Clerk
MINUTES OF THE SPECIAL MEETING OF THE HONORABLE MAYOR AND CITY COUNCIL
OF THE CITY OF CHANDLER, ARIZONA, held in the Council Chambers in the Chandler Library,
22 S. Delaware, on Monday, February 7, 2005 at 7:05 p.m.

THE MEETING WAS CALLED TO ORDER BY MAYOR BOYD W. DUNN.

The following members answered roll call:   Boyd W. Dunn         Mayor
                                            Phillip Westbrooks   Vice Mayor
                                            Matt Orlando         Councilmember
                                            Bob Caccamo          Councilmember
                                            Donna Wallace        Councilmember
                                            Phillip Westbrooks   Councilmember
                                            Martin Sepulveda     Councilmember

Also in attendance:   W. Mark Pentz         City Manager
                      Pat McDermott         Assistant City Manager
                      Rich Dlugas           Assistant City Manager
                      Dennis O’Neill        City Attorney
                      Marla Paddock         City Clerk

Staff Present: Nachie Marquez, Mark Eynatten, Garrett Newland, Patricia Walker, Dave Siegel,
Doug Ballard, Cmdr. Neuman, Bryan Patterson, Dan Cook

AGENDA:

1.     CONTINUED REZONING: Chandler 202 Auto Park-Phase II

REQUEST continuance to June 23, 2005, of REZONING, DVR04-0054, Chandler 202 Auto Park-
Phase II, from AG-1 to PAD along with a Preliminary Development Plan for an automobile
dealership complex at the NWC of Pecos and Gilbert Roads to allow the applicant additional time
for continued neighborhood dialogue.

MAYOR DUNN declared a conflict of interest and would not be voting on this item.         VICE-
MAYOR WESTBROOKS presided over the remainder of the Special Meeting.

A MOTION was made by COUNCILMEMBER WALLACE to CONTINUE TO JUNE 23, 2005,
Rezoning from AG-1 to PAD for Chandler 202 Auto Park-Phase II along with a Preliminary
Development Plan for an automobile dealership complex at the NWC of Pecos and Gilbert Roads
to allow the applicant additional time for continued neighborhood dialogue. The motion was
SECONDED by COUNCILMEMBER CACCAMO.

There was no staff presentation and no public comment. COUNCILMEMBER CACCAMO
commented that this continuance is in the best interest of the neighbors and developer to work
towards an equitable solution.

MOTION CARRIED UNANIMOUSLY (6-0).

Adjournment: The meeting was adjourned at approximately 7:10 p.m.
Minutes of the Special Meeting
Chandler City Council
Monday, February 7, 2005
Page 2



ATTEST: __________________________                 ______________________________
            City Clerk                                  MAYOR


Approved: _________________________




                                    CERTIFICATION

I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the
special meeting of the City Council of Chandler, Arizona, held on the 7th day of February 2005. I
further certify that the meeting was duly called and held and that a quorum was present.



DATED this __________ day of _____________, 2005.


                                                         __________________________
                                                          City Clerk
MINUTES OF THE REGULAR MEETING OF THE HONORABLE MAYOR AND CITY COUNCIL
OF THE CITY OF CHANDLER, ARIZONA, held in the Council Chambers in the Chandler Library,
22 S. Delaware, on Thursday, February 10, 2005 at 7:05 p.m.

THE MEETING WAS CALLED TO ORDER BY MAYOR BOYD DUNN.

The following members answered roll call:   Boyd W. Dunn         Mayor
                                            Phillip Westbrooks   Vice Mayor
                                            Bob Caccamo          Councilmember
                                            Lowell Huggins       Councilmember
                                            Matt Orlando         Councilmember
                                            Martin Sepulveda     Councilmember
                                            Donna Wallace        Councilmember


Also in attendance:   W. Mark Pentz         City Manager
                      Pat McDermott         Assistant City Manager
                      Rich Dlugas           Assistant City Manager
                      Dennis O’Neill        City Attorney
                      Marla Paddock         City Clerk

Staff present: Nachie Marquez, Mark Eynatten, Garrett Newland, Patricia Walker, Dave Siegel,
Doug Ballard, Chief Kiyler, Bryan Patterson

INVOCATION: The invocation was given by Kevin Hartke, Trinity Christian Fellowship

PLEDGE OF ALLEGIANCE: Councilmember Orlando led the Pledge of Allegiance.

SCHEDULED PUBLIC APPEARANCES:

1.     Presentation of the Bicycle Friendly Community Designation – Andy Clarke, League of
       American Bicyclists

MAYOR DUNN was joined by ANDY CLARKE, Executive Director of the League of American
Bicyclists. THE MAYOR thanked the League for recognizing Chandler’s efforts in the bike
element in the Transportation Plan, 100 miles of bike lanes in Chandler, the Paseo Project and
community education. MR. CLARKE gave a brief history of the league whose mission is to
promote bicycling for fun, fitness and transportation. Chandler presented the bronze award for
being a Bicycle Friendly Community to the Mayor. Chandler is one of 44 communities out of 98
who have applied to receive an award. MR. CLARKE thanked the Council for their support and
Staff for their work in creating a bicycle friendly community.

COUNCILMEMBER WALLACE thanked Mr. Bob Bogle who has worked for many years to insure
that bicyclists are taken into consideration as roads are being widened and new projects come
forward.

2.     Tony Dibonito – Save Planet Earth

MR. DIBONITO spoke about the effects of gasoline on global warming.
Minutes of the Regular Meeting
Chandler City Council
Thursday, February 10, 2005
Page 2



UNSCHEDULED PUBLIC APPEARANCES:

TONY DIBONITO spoke about ecology.

CONSENT:


MOVED BY COUNCILMEMBER ORLANDO, SECONDED BY COUNCILMEMBER WALLACE, to
approve the Consent Agenda as presented. Motion carried unanimously 7-0.

1.       MINUTES:

APPROVED, as presented, minutes of the Chandler City Council Special and Regular meetings
of January 27, 2005.

2.       REZONING: South Chandler Business Park                                         Ord. #3651

ADOPTED Ordinance No. 3651, DVR04-0031, South Chandler Business Park, rezoning from
AG-1 to PAD for an industrial park on approximately 12 acres at the NEC of Ocotillo Road and
Pinelake Way.

3.       REZONING: Warner Commerce Park                                                 Ord. #3653

ADOPTED Ordinance No. 3653, DVR04-0036, Warner Commerce Park, rezoning from AG-1 to
PAD for a business park development with commercial and industrial uses on approximately 16
acres on the SEC of Warner Road and Delaware Street.

4.       REZONING: Elliot & 101 Professional Village

ADOPTED Ordinance No. 3654, DVR04-0045, Elliot & 101 Professional Village, rezoning from
Community Commercial District (C-2) to PAD for the construction of a Medical/General Office
development on approximately 4 acres on the SEC of Elliot Road and the Loop 101 Price
Freeway.

5.       TEMPORARY CONSTRUCTION EASEMENT: Cachet-Crescent Falls                         Ord. #3656

ADOPTED Ordinance No. 3656 authorizing the grant of a temporary construction access
easement to Cachet-Crescent Falls, L.L.C., over a portion of undeveloped City park property east
of Basha Road and north of Chandler Heights Road.

6.       IRRIGATION EASEMENT:          Salt River Project                              Ord. #3660

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3660 granting a no-cost
irrigation easement to Salt River Project in conjunction with the Ray Ranch Professional Plaza
Development.

On January 28, 2005, a minor land division map was recorded for Ray Ranch Professional Plaza.
The plat requires the relocation of Salt River Project irrigation facilities. The relocation of these
facilities necessitates the granting of new easement in portions of City right-of-way adjoining the
Ray Ranch Professional Plaza development. The proposed easement encompasses an area of
                                                                           Minutes of the Regular Meeting
                                                                                    Chandler City Council
                                                                             Thursday, February 10, 2005
                                                                                                  Page 3


approximately 6,674 square feet. Because Salt River Project has established prior rights in this
area, there are no costs for the irrigation easement.

7.     TRANSIT SERVICE AGREEMENT AMENDMENT: RPTA                                         Res. #3756

ADOPTED Resolution No. 3756 authorizing an amendment to the Transit Service Agreement for
fixed route bus service with the Regional Public Transportation Authority (RPTA) for FY
2004/2005 in the amount of $931,240.00.

In 2004, Council approved a five-year agreement with the RPTA (Valley Metro) for fixed route and
express bus service through June 2008. The agreement is amended annually to adjust for cost
and service levels. This amendment covers the City of Chandler’s share of operating costs for
fixed route and express bus service and RPTA regional customer service costs. No changes to
existing bus service levels are proposed. A total of 444,213 service miles are provided through
the FY 04/05 agreement.

In June 2004, the RPTA Board of Directors awarded an eight-year service contract to MV
Transportation, Inc. The operation of most of Chandler’s fixed route and express bus service will
transition to the new contractor by April 2005. Route 108 (Elliot Road) will continue to be
operated by the City of Tempe under the agreement with Valley Metro. Based on Valley Metro
cost estimates, overall costs for fixed route and express service will decrease under the new
contract.

The total cost of operating fixed-route and express bus service in Chandler for FY 04/05 is
estimated at $1,874,000.00 including administrative overhead, maintenance facility costs and
regional customer service costs. Approximately 50% of the total gross operating costs are
covered by fare box revenues, RPTA regional funding and funding by the City of Phoenix and the
Town of Gilbert. The total net cost to the City of Chandler is $931,240.00.

In January 2002, the RPTA Board of Directors adopted a plan by which RPTA subsidies for bus
service would be incrementally reduced and eliminated over a four-year period in anticipation of
the Regional Area Road Fund (1/2 cent transportation sales tax) sunset in 2005. However, due
to the plan’s effectiveness over the past two years, RPTA restored the subsidy to the FY 02/03
level of $391,911.00. With passage of Proposition 400 in November 2004, the RPTA subsidy will
be restored to $435,456.00 in FY 05/06.

In addition to the fare box revenues and subsidies, the City uses several other sources to fund
transit service in Chandler. LTAF (State Lottery) and General Fund monies account for 84% of
the City’s transit funding. The balance is being made up from one-time funds that will not be
available after this year.     These one-time funding sources include Community Funded
Transportation (CFT) and LTAF II funds.

Currently, the City of Chandler has a Community Funded Transportation (CFT) account balance
of $112,970.00 with RPTA. The remaining CFT account funds will be used to offset the City’s
share of transit service costs for FY 2004/ 2005. The City is also eligible to receive $499,847.00
in LTAF II funds this year. However, it is uncertain whether additional LTAF II funds will be
available in FY 05/06. While Proposition 400 will substantially increase the amount of transit
service provided in Chandler, funding will be phased in over a twenty-year period beginning in
mid-2006.
Minutes of the Regular Meeting
Chandler City Council
Thursday, February 10, 2005
Page 4


Depletion of CFT funds, uncertainty regarding future LTAF II disbursements and the phasing of
Proposition 400 funding will require approximately $133,000.00 in additional City funds to
maintain existing transit service levels in FY 05/06. Intel also reimburses the City $10,000.00 per
year for bus service operated on the campus at Chandler Boulevard and Rural Road.

8.       INTERGOVERNMENTAL AGREEMENT: RPTA                                            Res. #3757

ADOPTED Resolution No. 3757 authorizing an Intergovernmental Agreement with the Regional
Public Transportation Authority (RPTA) to provide regional dial-a-ride service for senior citizens
and persons with disabilities through June 30, 2012, and authorized East Valley Dial-A-Ride
services for FY 2004/2005, in the amount of $556,680.00.

The East Valley Dial-A-Ride (EVDAR) provides door-to-door, shared-ride public transportation
service for senior citizens and persons with disabilities. Council approved an Intergovernmental
Agreement with the RPTA in 1999 to provide dial-a-ride service for five years to the City of
Chandler in partnership with the Cities of Mesa, Tempe, Scottsdale and the Town of Gilbert
through EVDAR. The proposed IGA would cover a new eight-year term through June 30, 2012
with annual amendments to adjust costs for changes in service levels, replacement vehicles and
equipment purchases and inflation.

RPTA recently consolidated East Valley Dial-A-Ride service and fixed route transit service under
one contract and awarded the contract to a new provider. MV Transportation was the selected
provider and began fixed-route transit operations in August 2004 and assumed operations of the
East Valley Dial-A-Ride on January 1, 2005. Under the new contract, dial-a-ride costs have
increased by 13% to $48.61 per service hour.

At the August 5, 2004 Public Works committee meeting, Council requested Staff to investigate
alternatives for meeting current demand for dial-a-ride service. The following alternatives were
considered:

Alternative 1: Fund the proposed agreement for 11,452 service hours at a cost of $556,680.00
using funds already appropriated in the transit budget and one-time funds in the amount of
$51,410.00 with the fiscal year 2004/05 distribution of Local Transportation Assistance Fund II
(LTAF) monies. Additional funds would need to be appropriated in the FY 05/06 budget to
replace the one-time funds with on-going operating funds. Under this proposal, dial-a-ride service
would still need to be limited to seventy-five trips per day. Use of un-appropriated LTAF II funds
in this fiscal year would also require a budget amendment.

Alternative 2: Fund the agreement for 12,508 service hours at a cost of $608,000.00 using
funds already appropriated in the transit budget and one-time funds in the amount of $102,730.00
from the fiscal year 2004/05 distribution of Local Transportation Assistance Fund II (LTAF II)
monies without any limit on the number of trips per day. Additional funds would need to be
appropriated in the FY 05/06 budget to replace the one-time funds with on-going operating funds.
Use of unappropriated LTAF II funds in this fiscal year would also require a budget amendment.

Alternative 3: Approve the agreement using only the funds available in the current transit
budget, $505,270.00. This will provide a total of 10,400 service hours and will limit service to 68
trips per weekday. This alternative would provide adequate capacity to meet existing ADA and
subscription service demand, but leaves little or no room for senior citizen and non-ADA demand
service.
                                                                            Minutes of the Regular Meeting
                                                                                     Chandler City Council
                                                                              Thursday, February 10, 2005
                                                                                                   Page 5


Alternative 4: Phase out all non-ADA service through East Valley Dial-A-Ride for fiscal year
2005/06. Contract with other providers such as private taxicabs and Maricopa County Special
Transportation Services and implement a mileage reimbursement program to serve senior
citizens and persons with disabilities who are not eligible for ADA dial-a-ride service. These
alternative transportation services could meet the current need in Chandler by accommodating up
to 20 senior citizen and non-ADA disabled trips per weekday. The estimated budget required to
implement this alternative is $555,000.00 ($455,000.00 for ADA service, plus $100,000.00 for
non-ADA alternative services). Additional staff time would be required to administer the cab
voucher and mileage reimbursement programs.

Alternative 5: Change dial-a-ride service to only accept subscription rides for ADA eligible trips.
Currently, about half of the subscription trips are booked as non-ADA even though the
passengers may be ADA eligible. Non-ADA subscription rides are $1.00 per trip (plus $.50 for
each additional zone), and ADA subscription rides are $2.00 per trip. This change would shift
approximately 20 non-ADA rides per day to ADA rides; and approximately 13 non-ADA
subscription rides per day to on-demand rides. The City currently funds all dial-a-ride service with
local funds. The Regional Transportation Plan (Proposition 400), approved by Maricopa County
voters in November 2004 will fund all ADA related trips beginning in 2006.

Staff recommends Alternative 1 and Alternative 5 for this fiscal year (FY2004/05). Alternative 4
should be further explored and considered for funding as part of the FY 2005/06 budget process.

The City currently funds the entire cost of dial-a-ride service with STAF (State Lottery) and
General Fund monies. Fare revenues comprise approximately 7% of he gross operating costs.
One-time and contingency funds have been used to supplement the dial-a-ride budget in order to
meet demand for ADA and medical related dial-a-ride trips in FY 04/05. Approval of the
recommended service levels will require an additional $192,000.00 from the General Fund in FY
2005/06 to replace one-time funds used in FY 2004/05 and accommodate projected demand due
to growth. Beginning in FY 2006/07, Proposition 400 will begin funding all regional ADA dial-a-
ride service, which will reduce the amount the City funding required by approximately
$430,000.00.

9.     GENERAL OBLIGATION BONDS: $24,800,000.00                                           Res. #3815

ADOPTED Resolution No. 3815 authorizing the issuance and sale of $24,800,000.00 General
Obligation Bonds, Series 2005, and authorizing the change of the series date on the General
Obligation Refunding Bonds authorized by Resolution No. 3730.

On April 22, 2004, Resolution No. 3730 was adopted. The Refunding Resolution is in full force
and effect in accordance with its provisions; however, the Series designation needs to be
changed from 2004 to 2005 to reflect the proper year of issuance. Due to market conditions in
2004, we were unable to realize our minimum threshold requirements. Depending upon the final
issue size, this refunding is expected to generate net debt service savings to the City of
approximately $700,000.00 - $940,000.00 in present value dollars. The savings are net of all
costs of issuance.

10.    WATER AND SEWER REVENUE BONDS                                                      Res. #3816

ADOPTED Resolution No. 3816 authorizing the issuance and sale of $10,000,000.00 water and
sewer revenue bonds, Series 2005.
Minutes of the Regular Meeting
Chandler City Council
Thursday, February 10, 2005
Page 6


11.      WATER AND SEWER REVENUE REFUNDING BONDS                                         Res. #3817

ADOPTED Resolution No. 3817 authorizing and providing for the issuance and sale of not to
exceed $20,000,000.00 City of Chandler, Arizona, Water and Sewer Revenue Refunding Bonds,
Series 2005, and declaring an emergency.

Current interest rates offer an opportunity to refinance a portion of the City’s debt by refunding
bonds previously issued and outstanding. Refinancing the bonds will allow the City to realize
substantial debt service savings. The final interest rates will affect the principal amount needed
to refund the prior bonds, thus the resolution authorizes the maximum principal amount that may
be sold. The final principal amount will be determined when the actual interest rates are
established.

The Water and Sewer Revenue Refunding Bonds, Series 2005, are projected to be sold at an
interest rate not to exceed 6% to refinance a portion of the City’s outstanding water and sewer
revenue bonds bearing higher interest rates. The resolution authorizes refunding if the savings
are at least 3% of the principal amount of the bonds being refunded. Depending upon the final
issue size, this refunding is expected to generate net debt service savings to the City of
approximately $300,000.00 - $500,000.00 in present value dollars. The savings are net of all
costs of issuance. The Series 2005 Refunding Bonds will not extend the debt service payments
longer than the last payment on the refunded bonds.

Peacock, Hislop, Staley and Given will act as senior underwriter and will be joined in the
underwriting by UBS Financial Services, Inc. as co-underwriter. Two underwriters should provide
the City with a broad distribution, thus possibly lowering interest rates and giving the City a safety
factor with the additional underwriter. Each underwriter will engage in intensive pre-marketing
before the actual sale. The City’s Financial Advisor, Bill Davis of Piper Jaffrey, will provide the
City with direct market knowledge and independently review the rates and commissions
associated with each refunding sale.

12.      PRELIMINARY DEVELOPMENT PLAN: Lindsay 1, 2 LDS Meeting House

APPROVED a Preliminary Development Plan, PDP04-0026, Lindsay 1, 2 LDS Meeting House,
for site, layout, landscaping and building architecture for a 16,558 square foot church building on
a 4.12-acre site at 6345 South Lindsay Road. (Applicant: Colton Taylor, Taylor Architecture.)

This site is south of Riggs Road on the east side of Lindsay and is part of the Sun Groves
Development. Sun Groves received PAD zoning in 1999 for a mix of uses including residential
and commercial with school, park and church sites. This parcel has been designated as a church
site with the original zoning and is now seeking Preliminary Development Plan for the
construction of an LDS church. The property is bounded on the south by existing residences, a
future subdivision to the north and east and the Springfield Lakes subdivision across Lindsay
Road to the west.

The multipurpose building contains a sanctuary, cultural center/gymnasium, classrooms and
offices. The church will be primarily used on Sundays with less concentrated use during the
week. It is oriented towards the Lindsay Road frontage and is adequately separated from
residences. The parking lot contains 252 spaces while only 68 are required. Storm water
retention will be diverted to underground storage pipes underneath the parking lot. The 27-foot
high building is one story with a steeple extending to 67 feet in height. There are no monument
signs proposed for the site.
                                                                            Minutes of the Regular Meeting
                                                                                     Chandler City Council
                                                                              Thursday, February 10, 2005
                                                                                                   Page 7



Upon finding consistency with the General Plan and PAD zoning, the Planning Commission and
Staff recommend approval subject to the following conditions:

1.     Compliance with original stipulations adopted by the City Council as Ordinance No. 2943,
       in case PL98-0158 Sun Groves, except as modified by condition herein.
2.     Development shall be in substantial conformance with the Development Booklet entitled
       “Lindsay 1,2 Wards Meetinghouse” kept on file in the City of Chandler Current Planning
       Division, in file number PDP04-0026, except as modified by condition here in.
3.     The landscaping in all open spaces and rights-of-way shall be maintained by the adjacent
       property owner or property owners association.
4.     Approval by the Director of Planning and Development of plans for landscaping (open
       spaces and rights-of-way) and perimeter walls.
5.     Sign packages, including free-standing signs as well as wall-mounted signs, shall be
       designed in coordination with landscape plans, planting materials, storm water retention
       requirements, and utility pedestals, so as not to create problems with sign visibility or
       prompt the removal of required landscape materials.
6.     Applicant to work with Staff to modify the building colors and materials to better
       incorporate the architecture into the existing neighborhood.

13.    DOWNTOWN IMPROVEMENT FUND GRANT: PSCI Investments, L.L.C.

AUTHORIZED a Downtown Improvement Fund matching grant to PSCI Investments, L.L.C., for
the purpose of construction of tenant improvements for property at 81 West Boston Street, in an
amount not to exceed $35,000.00.

PSCI Investments, LLC, has purchased the historic Rowena Theatre building and intends to
construct tenant improvements to open di Sciacca a specialty retail store that will feature uniquely
designed mouth-blown glassware and home décor accent pieces from China. Due to the
demand by individual customers of these companies for retail products, PSCI Investments has
chosen to expand and open its retail shop in Historic Downtown Chandler. PSCI Investments has
requested City participation in the construction of tenant improvements using existing DIF
matching grant funds. Total costs for the tenant improvements are estimated at $200,000.00.
The space will undergo significant tenant improvements including installation of fire sprinklers,
bathrooms, walls, ceiling, flooring, plumbing and electrical upgrades among the major
improvements.

14.    LICENSE AGREEMENT: CONOCOPHILLIPS

APPROVED a License Agreement with CONOCOPHILLIPS for groundwater monitoring in the
vicinity of 203 North Arizona Avenue.

CONOCOPHILLIPS is the successor in interest to TOSCO who has conducted groundwater
monitoring in the vicinity of its former gas station at 203 N. Arizona Avenue. This agreement
allows CONOCOPHILLIPS to utilize a groundwater monitoring well previously installed by
TOSCO on City property, in order to measure the migration of groundwater contamination beyond
the boundaries of the former TOSCO property at 203 N. Arizona Avenue.                   Although
CONOCOPHILLIPS is not the property owner, they retained the responsibility for investigation
and remediation of the underground storage tank leakage as operator of the facility. The City has
executed license agreements with TOSCO and other predecessor companies for this purpose
Minutes of the Regular Meeting
Chandler City Council
Thursday, February 10, 2005
Page 8


since September 13, 1996. CONOCOPHILLIPS wishes to continue this agreement in all material
respects with the City of Chandler.

The agreement will expire January 1, 2007, and includes the following:

1.       Indemnification provisions that cover any liability associated with the monitoring well,
         unless such liability arises out of the sole negligence of the City.
2.       Insurance coverage wherein the City is named as an additional insured.
3.       Provisions specifying both the limited nature of the license and when activities associated
         with the well (monitoring, maintenance, etc.) will be conducted to ensure the lease amount
         of disruption.
4.       Provisions relating to the City’s ability to terminate the license and require the closure of
         the well.
5.       Provisions for the posting of a bond to ensure funds for proper closure of the well and for
         liquidated damages for failure to timely close the wells.
6.       Provisions relating to the City’s access to information derived from the wells.

15.      AGREEMENT AMENDMENT:              Design Business Communications, Inc. dba American
         Telephone

APPROVED an Agreement Amendment for NEC telephone system maintenance with Design
Business Communications, Inc. dba American Telephone, in an amount not to exceed
$58,536.00. The contract provides the necessary service to support the system and has a
provision to purchase any additional equipment required for upgrades and additions.

In December 2002, Council approved a one-year agreement for NEC telephone system
maintenance to Design Business Communications, Inc., dba American Telephone, with four one-
year optional extensions. The maintenance cost is $3,628.00 per month and includes support
and maintenance on any problems that might occur with the telephone system and related
components, including all parts and labor. Service is provided seven days a week, twenty-four
hours a day, with a maximum two hour response time for any emergency outage and twenty-four
hour response time for non-emergency outages. Staff estimates 200 hours of unforeseen repairs
at a cost of $75.00 per hour. The cost includes $43,536.00 for the maintenance contract and
approximately $15,000.00 for unforeseen repairs.

16.      PROJECT AGREEMENT: Brown and Caldwell

APPROVED Project Agreement #WA0520-201 to Brown and Caldwell for hydrogeological design
services for the Norman Way Well, in an amount not to exceed $103,200.00. The proposed well
site is on Ocotillo Road, west of Gilbert Road and north of the Alamosa Water Production Facility
currently under construction.

17.      PROJECT AGREEMENT: Brown and Caldwell

APPROVED Project Agreement #WA0520-202 to Brown and Caldwell for equipping design for
the Norman Way Well, in an amount not to exceed $104,900.00. This agreement provides for the
equipment outfitting design for a new water production well at this site. Construction of the
equipment outfitting will be completed under a separate contract. If treatment is needed to bring
the water quality of this new well into compliance with water quality standards, the design and
construction of the treatment system will also be provided under separate contracts.
                                                                            Minutes of the Regular Meeting
                                                                                     Chandler City Council
                                                                              Thursday, February 10, 2005
                                                                                                   Page 9



18.    PROJECT AGREEMENT: Layne Christensen

APPROVED Project Agreement #WA0520-401, Job Order Contract 03-15 to Layne Christensen
for drilling of the Norman Way diagnostic and water production well, in an amount not to exceed
$729,700.00. The proposed well site is located on Ocotillo Road, west of Gilbert Road and north
of the Alamosa Water Production Facility currently under construction. This agreement provides
for the drilling of a new water production well at this site.

19.    PROFESSIONAL SERVICES CONTRACTS: Brown and Caldwell, Wilson and Company
       and Carollo Engineers

APPROVED Professional Services Contracts #EN0406-101, #EN0407-101 & #EN0408-101, one
year extensions to Brown and Caldwell in an amount not to exceed $1,220,000.00, Wilson and
Company in an amount not to exceed $1,220,000.00 and Carollo Engineers in an amount not to
exceed $1,220,000.00, for equipment design and construction management services for water
production wells and aquifer storage and recovery (ASR) wells. Under these contracts, individual
project agreements will be prepared for execution and approval for each specific project. Project
agreements over $30,000.00 will be submitted for Council approval up to the annual aggregate of
$1,220,000.00 for each contract. This action will result in saving the cost of the selection process
and the time to bring individual projects forward.

20.    PURCHASE: 3M Library Systems

APPROVED Purchase of digital tags for on-going collection at the Downtown Library, Sunset and
Basha branches from 3M Library Systems, utilizing the Maricopa County contract, in an amount
not to exceed $48,198.00. This will continue the Radio Frequency Identification (RFID)
implementation for the on-going collection and allows the City to increase the efficiency of the
charging and discharging processes related to circulation of materials. The City can then
continue to keep up with the increased usage by reallocating staff rather than adding a
proportionate number of positions to meet the growth. By purchasing these tags through the
Maricopa County Contract with 3M for Digital Library Materials Flow Management System, the
City can take advantage of a 31% savings.

21.    USE PERMIT EXTENSION: Utility Vault

CONTINUED TO APRIL 14, 2005 a Use Permit Extension, UP04-0038, for Utility Vault to allow
the continued storage of utility vaults at 411 E. Frye Road to allow the applicant to submit plans
for the wall’s design and landscaping long Pecos Road. (Applicant: Old Castle Precast, Inc.,
David Wadlington.)

22.    USE PERMIT EXTENSION: Tri-City Baptist Church

APPROVED a Use Permit Extension, UP04-0055, Tri-City Baptist Church, for a student
residence hall within an AG-1 district at 821 West Warner Road. (Applicant: Walter Baines, Tri-
City Baptist Church.)

The church has operated this student residence hall with an approved Use Permit since 1990.
This is the fourth request to extend the Use Permit. Previous approvals were for three-, three-
and five-year time periods. The current Use Permit was approved in 1999. Because of the
Minutes of the Regular Meeting
Chandler City Council
Thursday, February 10, 2005
Page 10


successful residence hall’s operation through two previous Use Permit renewals, the Planning
Commission and Staff recommend the Use Permit be renewed without a timing condition.

The home provides living space for approximately 15 to 22 students. The students, between the
ages of 18 and 25 years, are bussed back and forth to the International Baptist College located
on East Southern Avenue in Tempe, as few own cars. An on-site dorm supervisor provides
supervision. Uses around the property include single-family residential to the south and east,
office to the west, and retail across Warner Road to the north. The single-family residential
subdivision is separated from the home by landscaping, two block walls, and an alley.

Tri-City Baptist Church intends to replace this residence hall with a new one as part of the
church’s approved relocation to the southwest corner of Dobson and Germann Roads
(Chuparosas development) within the next few years, but no construction on that site is currently
taking place.

This request was noticed according to the provisions of the City of Chandler Zoning Code and
Staff has received no comments regarding this request.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to the following conditions:

1.       Expansion or modification beyond the approved exhibits shall void the Use Permit and
         require new Use Permit application and approval.
2.       The Use Permit is non-transferable to any other location.
3.       Substantial conformance with the representations contained within the Applicant’s
         Narrative.

23.      SPECIAL EVENT LIQUOR LICENSE: St. Mary Basha Catholic School

APPROVED a Special Event Liquor License for St. Mary Basha Catholic School for A Night In
The Tropics Fundraiser, April 2, 2005, at Seton High School, 1150 N. Dobson Road. A
recommendation for approval will be forwarded to the State Department of Liquor Licenses and
Control. The Police Department reports no objections to the issuance of this license. As this
applicant is a non-profit organization, no sales tax license is required; however, the special event
liquor fee has been paid.

24.      SPECIAL EVENT LIQUOR LICENSE: Harvest for Humanity

APPROVED a Special Event Liquor License for Harvest for Humanity for a Fundraiser, February
11 - 20, 2005, at Wild Bill’s BBQ & Internet Sports Bar, 1361 N. Alma School Road. A
recommendation for approval will be forwarded to the State Department of Liquor Licenses and
Control. The Police Department reports no objections to the issuance of this license. As this
applicant is a non-profit organization, no sales tax license is required; however, the special event
liquor fee has been paid.

25.      FINAL PLAT: Avian Trails

APPROVED a Final Plat, FPT04-0054, Avian Trails, for a 34-acre, 92-lot single-family home
development south of the SEC of Lindsay and Brooks Farm Roads. (Applicant: Chandler 33,
L.L.C.) The property is bounded by the City’s wetlands recharge facility on two sides. The plat
                                                                              Minutes of the Regular Meeting
                                                                                       Chandler City Council
                                                                                Thursday, February 10, 2005
                                                                                                    Page 11


creates the lots and tracts, establishes the necessary easements, and dedicates the required
rights-of-way.

26.    FINAL PLAT: Anatolian Country Estates

APPROVED a Final Plat, FPT04-0059, Anatolian Country Estates, for a 20-acre, 28-lot single-
family home development at the NWC of Cloud Road and 122nd Street. (Applicant: Gemcor
Homes, Inc.) The development includes a private street and gated entry. The plat creates the
lots and tracts, establishes the necessary easements, and dedicates the required rights-of-way.

27.    PROFESSIONAL SERVICES CONTRACTS: Well Design and Construction

APPROVED Professional Services Contracts #EN0501-101 and EN0502-101 for a period of one
year with two one-year renewals, to Southwest Ground-water Consultants, Inc., in an amount not
to exceed $750,000.00 and Clear Creek Associates for well design and construction
management, as well as groundwater study services, in an amount not to exceed $750,000.00.
Work will be rotated among the firms based on their availability and expertise.

28.     On the Action Agenda.

29.    HOUSING AND HUMAN SERVICES COMMISSION                                                Ord. #3663

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3663 amending Ordinance No.
3649 establishing the effective date for the Housing & Human Services Commission.

On January 27, 2005, the Housing & Human Services Commission was established making
February 26th the effective date of the new commission. The size of the commission will change
at this time meaning the new members would need to be appointed by that date. Since the
Housing and Redevelopment Committee is in the process of allocating Community Development
Block Grant funds, it would be advantageous to extend the effective date of the new commission
to May 1, 2005.      It would also allow time for a full recruitment allowing interested citizens to
submit applications.

ACTION AGENDA:

28.    USE PERMIT: Youth Center & Artistic Land Management, Inc.

USE PERMIT, UP04-0031, Youth Center & Artistic Land Management, Inc. to operate a teen
center and business office for a landscaping company within an existing home in a single-family
zoning district at 388 North Washington Street. (Applicant: Jose and Rachel Hernandez.)

Planner KIM CLARK explained that this request is for a property located in the historic “Silk
Stocking” district, which is currently seeking historic designation. It is within the boundaries of the
Chandler Area Redevelopment Plan, which was drafted to improve and protect the integrity of
neighborhoods. The home was purchased with the intention of operating a teen center and the
offices for Artistic Land Management. It is not occupied as a residence and the buyer does not
intend to reside at this location.

The bedrooms have been configured as offices where up to three employees will perform clerical
work. The company’s main facility is in Mesa where the landscapers report to work and the
equipment is stored.
Minutes of the Regular Meeting
Chandler City Council
Thursday, February 10, 2005
Page 12



The applicant plans to operate a youth ministry connected with the Latin American Church of the
Nazarene. It will be open to high school students during lunch hour 1 to 3 days per week. The
applicant also requests the ability to host up to 29 students during lunch hours with occasional
evening meetings.

The exterior has been modified to include an 8’ tall fountain, rock waterfalls various benches and
a window sign making the property appear more commercial. The applicant also wishes to
enclose the carport for a larger assembly area for the youth center and build a detached garage
in the backyard.

Staff feels the requested use is incompatible with the single-family residential zoning designation.
The home was not built to accommodate the number of people or type of uses proposed and the
conversion does not reinforce the residential qualities of the property.

Some of the concerns include inadequate parking for a business use, the youth center will
generate additional pedestrian traffic and noise and the parking for evening uses has not yet
been addressed. On-street parking is currently a problem along Washington Street and this use
will add to the problem.

Six phone calls and one letter have been received from neighbors in opposition to this request.
The Planning Commission and Staff recommend denial.

COUNCILMEMBER HUGGINS asked if the waterfalls displayed in front of the property were for
sale? MS. CLARK responded that they are meant to be examples of the landscaping work the
company does. It is not the intent of the applicant to have customers come to this property.

COUNCILMEMBER SEPULVEDA asked what the boundaries of the Silk Stocking district are.
MS. CLARK said she did not have the specific boundaries but this property is in the Silk Stocking
district. In response to a question from Councilmember Sepulveda, MS. CLARK said that clerical
functions would be performed in the converted bedrooms. It is a landscape maintenance
company with operations conducted out of a Mesa location. Only paperwork will be done at this
location. COUNCILMEMER SEPULVEDA asked how it would be enforced? MS. CLARK replied
that it would be based on neighborhood complaints and diligence of inspectors.
COUNCILMEMBER SEPULVEDA asked how the youth center would operate. MS. CLARK
explained that high school students would be invited for lunch during business hours.

COUNCILMEMBER CACCAMO asked if the applicant is an ordained minister or trained youth
counselor? MS. CLARK responded that she does not know what their training is but it is
associated with the Latin American Church of the Nazarene and there is a pastor working with
their staff but would not be present during the lunch meetings. COUNCILMEMBER CACCAMO
commented that he has been told that there are 4 or 5 cars parked in the driveway and along the
street while there are only two employees working at the location. MS. CLARK responded that
Staff has observed the same situation.

ERNIE SERRANO, 599 W. Toledo Street, spoke in opposition to this application as his parents
live on Washington Street. He expressed concern about declining conditions of the neighborhood
and asked that the request be denied.

COUNCILMEMBER HUGGINS commented that the entire block Mr. Serrano is speaking of
should remain a historic site, as it once was the main street in Chandler.
                                                                         Minutes of the Regular Meeting
                                                                                  Chandler City Council
                                                                           Thursday, February 10, 2005
                                                                                               Page 13


MAYOR DUNN agreed with Councilmember Huggins’ comments that this is one of the few
historic neighborhoods in Chandler and should be retained as such. He suggested that the City
of Tempe regarding their permit-parking program.

STEPHANIE SERRANO commented that students do park along Washington Street.

MAYOR DUNN asked Staff to explore a solution.

A MOTION was made by COUNCILMEMBER CACCAMO to DENY Use Permit #UP04-0031,
Youth Center & Artistic Land Management, Inc. to operate a teen center and a business office for
a landscaping company with an existing home in a single-family zoning district at 388 N.
Washington Street. SECONDED by COUNCILMEMBER HUGGINS.

VICE-MAYOR WESTBROOKS and COUNCILMEMBERS WALLACE AND SEPULVEDA all
expressed concern of the compatibility with the neighborhood.

THE MOTION FOR DENIAL CARRIED UNANIMOUSLY 7-0.


SPECIAL ORDERS OF THE DAY

A.     Mayor's Announcements:

MAYOR DUNN invited the public to attend the State of the City Address on February 17th at the
Center for the Arts.

MAYOR DUNN thanked Staff for a successful Neighborhood Congress held two weeks ago.
Input received during this event will be reviewed to determine future events and workshops to
continue to build on this dialogue.

B.     Councilmembers' Announcements:

COUNCILMEMBER WALLACE said that she attended Many Hands Make a Home at the Arizona
Science Center sponsored by the Homebuilders Association. It is an interactive display that
incorporates AIMS objectives.

COUNCILMEMBER WALLACE expressed appreciation for the thank you notes received for
reading at Tarwater Elementary.

COUNCILMEMBER CACCAMO noted the Greek Festival would be held this weekend as well as
a car show.

MAYOR DUNN said there would also be an Irish Dance event at the San Marcos this weekend.

MAYOR DUNN also announced that he, Councilmember Wallace and Mark Pentz participated in
the Unity Walk to Tempe Beach Park where there was a Unity celebration.

COUNCILMEMBER SEPULVEDA commented that he, along with other Councilmembers and
Staff, attended the Annual Economic Outlook where a report was given showing Chandler to be
one of the development hubs in the area.
Minutes of the Regular Meeting
Chandler City Council
Thursday, February 10, 2005
Page 14


COUNCILMEMBER SEPULVEDA commented on the success of the Neighborhood Congress
and a groundbreaking for Habitat. He added the importance of the partnership with Habitat to
insure affordable housing is available.


C.       City Manager's Announcement:

There were no City Manager announcements at this time.


Adjournment: The meeting was adjourned at approximately 7:45 p.m.



ATTEST: __________________________                ______________________________
            City Clerk                                 MAYOR


Approved: _________________________




                                    CERTIFICATION

I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the
regular meeting of the City Council of Chandler, Arizona, held on the 10th day of February
2005. I further certify that the meeting was duly called and held and that a quorum was present.



DATED this __________ day of _____________, 2005.


                                                        __________________________
                                                         City Clerk
MINUTES OF THE REGULAR MEETING OF THE HONORABLE MAYOR AND CITY COUNCIL
OF THE CITY OF CHANDLER, ARIZONA, held in the Council Chambers in the Chandler Library,
22 S. Delaware, on Thursday, February 24, 2005 at 7:05 p.m.

THE MEETING WAS CALLED TO ORDER BY MAYOR BOYD DUNN.

The following members answered roll call:    Boyd W. Dunn           Mayor
                                             Phillip Westbrooks     Vice Mayor
                                             Bob Caccamo            Councilmember
                                             Lowell Huggins         Councilmember
                                             Matt Orlando           Councilmember
                                             Martin Sepulveda       Councilmember
                                             Donna Wallace          Councilmember


Also in attendance:   W. Mark Pentz          City Manager
                      Pat McDermott          Assistant City Manager
                      Rich Dlugas            Assistant City Manager
                      Dennis O’Neill         City Attorney
                      Marla Paddock          City Clerk

Staff present: Nachie Marquez, Mark Eynatten, Garrett Newland, Chief Roxburgh, Patricia
Walker, Dave Siegel, Bob Mulvey, Doug Ballard, Chief Kiyler, Bryan Patterson

INVOCATION: The invocation was given by Esther O’Rona – Chandler Baha’i Faith

PLEDGE OF ALLEGIANCE: Councilmember Huggins led the Pledge of Allegiance.

SCHEDULED PUBLIC APPEARANCES:

1.     Service Recognitions

MAYOR DUNN was joined by Community Services Director MARK EYNATTEN in recognizing
MICHAEL QUIHUIS for 15 years of service in the Community Services Department. Mike started
his career as a groundskeeper in the downtown campus. He stood out as one that took great
pride in his work. Because of his excellent work ethic, Mike was transferred out to the Chandler
Sports Complex to help maintain the ball fields for the Milwaukee Brewers. Mike soon became
the gardener supervisor of the crew at the Sportsplex. He learned many skills in this position,
which led him to his current position as a park maintenance supervisor with the Parks division.
Mike is responsible for the maintenance in the downtown area as well as parks in the east side of
town. He is a great teacher, often leading by example and is dedicated and committed to provide
the highest level of service.

MAYOR DUNN was joined by Management Services Director PATRICIA                            WALKER in
recognizing SANDRA RODENBECK for 15 years in the Management Services Department.
Sandi began working for the City of Chandler in 1990 as a tax auditor. Due to her skills and
abilities, she was soon promoted to senior tax auditor and in 1998 she was promoted to her
current position of customer service manager. Sandi’s responsibilities not only include overseeing
the City’s tax audit function, but also tax licensing, tax collections and tax return processing. She
is also responsible for the collection of over $65 million in general fund revenue each year.
Minutes of the Regular Meeting
Chandler City Council
Thursday, February 24, 2005
Page 2


Sandi’s professionalism and dedication to the job is unparalleled, as is her ability to remain calm
in any situation.

2.       Exceptional Merit Award

MAYOR DUNN was joined by Municipal Utilities Director DAVE SIEGEL in presenting an
Exceptional Merit Award to KATHLEEN TOWNSEND for her dedication and professionalism
while assisting with the City of Chandler’s 2004 Make a Splash Water Festival. Kathy played an
integral part in ensuring and assisting the water conservation coordinator with preparing for the
festival. Kathy also assisted with the organization of two workshops that provided the teachers
with information needed to prepare for the festival. She tirelessly put together 1,000 goodie bags
for all the students. On the day of the festival, Kathy helped to coordinate the volunteers. Kathy
helped make the festival a success and made the difference to 1,000 students who attended the
event.

3.       Proclamation - Chandler Ostrich Festival Week

MAYOR DUNN was joined by Chamber of Commerce President Becky Jackson, Ostrich Festival
Chairman John Prescott, Chamber Board Chairman Karen Bredeson and the Ostrich Festival
Vice-Chair Karen Cupps as he read a proclamation proclaiming March 6-13, 2005 as Ostrich
Festival Week. This will be the 17th year for this signature event in the City of Chandler.

4.       Proclamation – Race Unity Week

MAYOR DUNN was joined by Susan Stevens-Clarke from the Baha’i Faith as he read a
proclamation proclaiming February 28 – March 6, 2005 as Race Unity Week.

5.       Race Unity Poster Contest Winners

MAYOR DUNN was assisted by Susan Stevens-Clarke in recognizing the Race Unity Poster
Contest Winners. Ms. Stevens-Clark introduced Dr. Joel Arona representing the Local Spiritual
Assembly of the Baha’i of Chandler, sponsor of the poster contest. Children in grades K-6 within
the city limits of Chandler were invited to participate in the 8th annual contest with a theme of
“Color Me Human”. Dr. Arona thanked those who sponsored this event.

The winners in each category were:

K-                 1st Place     Claudia Eribes             St. Mary-Basha
                   2nd Place     Danielle McEntire          Pathways Learning Center
                   3rd Place     Joey Sullivan              St. Mary- Basha
                   Hon Men       Alex Barcello              St. Mary -Basha
                   Hon Men       Lauren Peake               St. Mary- Basha

1-3                1st Place     Paige Fitzgerald           Bright Beginnings
                   2nd Place     Sarah Walker               Navarrete
                   3rd Place     Zurisadai Gonzalez         Hartford
                   Hon Men       Janthavy N. Norton         Sanborn
                   Hon Men       Chris Crowe                Bright Beginnings

4-6                1st Place     Emmaline Gates             Shumway
                   2nd Place     Gabby Bruggeman            St. Mary-Basha
                                                                            Minutes of the Regular Meeting
                                                                                     Chandler City Council
                                                                              Thursday, February 24, 2005
                                                                                                   Page 3


               3rd Place      Nasim Eshani                   Hull
               Hon Men        Jessica Torres                 Knox
               Hon Men        Ban-Suk Seo                    Conley

6.     Proclamation – Disabilities Awareness Month

MAYOR DUNN was joined by JANET ROSEN, Chair of the committee, as he read a proclamation
proclaiming the month of March 2005 as Disabilities Awareness Month.

7.     Mayor’s Committee for People With Disabilities Annual Recognition Awards

MAYOR DUNN was assisted by JANET ROSEN, Chair of The Mayor’s Committee for People
with Disabilities, in presenting the Disability Awareness Recognition awards.

The Employer of the Year award was presented to Thomas Bermudez, store manager of Food
City at Ray Road and Arizona Avenue. As part of the Basha’s chain, Food City maintains a high
level of commitment to the community. Thomas exemplifies this commitment in his continuing
efforts to provide employment opportunities to the developmentally disabled in our community.
The uniqueness of his store provides much needed opportunity to Spanish speaking individuals
with disabilities. Mr. Bermudez is an example of what can be accomplished when the community
works together.

The Employee of the Year award was presented to Donald Best. Donald was nominated by Ms.
Sandi Lopez from the Chandler Gilbert ARC who wrote that Donald is a soft-spoken gentleman
who is well liked, has a great sense of humor and a gentle nature. He works at Intel Corporation
where he and his co-workers disassemble electronics components as they are prepared for
recycling. The department is a high tech, high security area that demands a high degree of
productivity and quality and Donald’s performance is at the top of this department.

The Student of the Year award was presented to Melanie Circa and Alfredo Martinez. Melanie is
a student at Basha High School and was nominated by her adaptive P.E. teacher Mr. Travis
Anderson. He wrote that Melanie has touched the hearts of her peers and teachers since coming
to the Chandler School District in 2003. She has many ways to get her point across and because
of her strong will, makes sure she is understood. No matter what the activity or challenge,
Melanie always finds a way to succeed.

Alfredo Martinez is a student at Hamilton High School and was nominated by Ms. Susan Cable.
She wrote that Alfredo has an outstanding positive attitude and awesome manners. He brightens
the room when he walks through the door with his big smile and warm brown eyes and is willing
to take on any responsibility even if it initially appears beyond his physical abilities. He is well
liked by his peers and serves as a positive role model for others. He is very involved in the
school-wide recycling program at Hamilton and exhibits responsibility and dependability as he
interacts with the classroom teachers.

The Volunteer of the Year award was presented to Gary Letcher. Gary was nominated by Travis
Anderson through the City’s Therapeutic Recreation Department. Gary became involved with the
Special Olympics in 2003. He has coached basketball, golf, track and field and is an energetic,
responsible and passionate leader. His services are valuable and appreciated by both athletes
and their families as well as other coaches.

8.     Tony Dibonito – Gone with the water or with ice
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Chandler City Council
Thursday, February 24, 2005
Page 4



Mr. Dibonito spoke about the effects of global warming.

UNSCHEDULED PUBLIC APPEARANCES:

There were no unscheduled public appearances.

CONSENT:

COUNCILMEMBER WALLACE declared a conflict of interest on agenda item #14 as her family’s
business abuts the area.

MOVED BY COUNCILMEMBER ORLANDO, SECONDED BY COUNCILMEMBER CACCAMO,
to approve the Consent Agenda as presented. Motion carried unanimously 7-0.

1.       MINUTES:

APPROVED, as presented, City Council Special Meeting minutes of February 7 (2) & February
10, 2005, and Regular Meeting minutes of February 10, 2005.

2.       REZONING: South Chandler Business Park                                      Ord. #3651

ADOPTED Ordinance No. 3651, DVR04-0031, South Chandler Business Park, rezoning from
AG-1 to PAD for an industrial park on approximately 12 acres at the NEC of Ocotillo Road and
Pinelake Way.

**NOTE: The City of Chandler is required by Charter to publish a Notice of Consideration prior to
final adoption of any ordinance by the City Council. While a notice was sent to the Tribune for
publication, the notice for final adoption of Ordinance Nos. 3651, 3653, 3654 and 3656 was not
published for final adoption at the February 10th Council meeting. Therefore, it was necessary to
bring forth this item for final adoption again.

3.       REZONING: Warner Commerce Park                                              Ord. #3653

ADOPTED Ordinance No. 3653, DVR04-0036, Warner Commerce Park, rezoning from AG-1 to
PAD for a business park development with commercial and industrial uses on approximately 16
acres on the SEC of Warner Road and Delaware Street.

**NOTE: The City of Chandler is required by Charter to publish a Notice of Consideration prior to
final adoption of any ordinance by the City Council. While a notice was sent to the Tribune for
publication, the notice for final adoption of Ordinance Nos. 3651, 3653, 3654 and 3656 was not
published for final adoption at the February 10th Council meeting. Therefore, it was necessary to
bring forth this item for final adoption again.


4.       REZONING: Elliot & 101 Professional Village                                 Ord. #3654

ADOPTED Ordinance No. 3654, DVR04-0045, Elliot & 101 Professional Village, rezoning from
Community Commercial District (C-2) to PAD for the construction of a Medical/General Office
development on approximately 4 acres on the SEC of Elliot Road and the Loop 101 Price
Freeway.
                                                                          Minutes of the Regular Meeting
                                                                                   Chandler City Council
                                                                            Thursday, February 24, 2005
                                                                                                 Page 5



**NOTE: The City of Chandler is required by Charter to publish a Notice of Consideration prior to
final adoption of any ordinance by the City Council. While a notice was sent to the Tribune for
publication, the notice for final adoption of Ordinance Nos. 3651, 3653, 3654 and 3656 was not
published for final adoption at the February 10th Council meeting. Therefore, it was necessary to
bring forth this item for final adoption again.

5.     TEMPORARY CONSTRUCTION EASEMENT: Cachet-Crescent Falls                           Ord. #3656

ADOPTED Ordinance No. 3656 authorizing the grant of a temporary construction access
easement to Cachet-Crescent Falls, L.L.C., over a portion of undeveloped City park property east
of Basha Road and north of Chandler Heights Road.

**NOTE: The City of Chandler is required by Charter to publish a Notice of Consideration prior to
final adoption of any ordinance by the City Council. While a notice was sent to the Tribune for
publication, the notice for final adoption of Ordinance Nos. 3651, 3653, 3654 and 3656 was not
published for final adoption at the February 10th Council meeting. Therefore, it was necessary to
bring forth this item for final adoption again.

6.     IRRIGATION EASEMENT: Salt River Project                                          Ord. #3660

ADOPTED Ordinance No. 3660 granting a no cost irrigation easement to Salt River Project in
conjunction with the Ray Ranch Professional Plaza Development.

7.     HOUSING & HUMAN SERVICES COMMISSION                                              Ord. #3663

ADOPTED Ordinance No. 3663 amending Ordinance No. 3649 by establishing May 1, 2005 as
the effective date for the Housing & Human Services Commission.

8.     PROPERTY VACATION: Alamosa Drive                                                 Ord. #3603

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3603 vacating a portion of
Alamosa Drive east of Jesse Street containing approximately 0.2258 acres, extinguishing an
adjacent 8’ wide public utility easement containing approximately 0.065 acres, and extinguishing
a 5’ wide roadway easement along the north centerline of Alamosa Drive east of Jesse Street
containing approximately 0.0395 acres.

Council approved a Map of Dedication for Geneva Estates by Fulton Homes at its November 18,
2004 meeting that required a portion of Alamosa Drive to be vacated and two easements be
extinguished by a separate document. The proposed layout for Geneva Estates allows Jesse
Street to the south of Alamosa Drive to be extended to the north and a new cul-de-sac roadway
to be provided on Bedford Drive in Geneva Estates. A 10’ wide Public Utility and Irrigation
Easement running east and west along the south side of Alamosa Drive, per the Alamosa Estates
Final Plat, shall remain.

Title to the vacated property would be transferred to Fulton Homes who is developing the Geneva
Estates subdivision located north of Alamosa Drive east of McQueen Road. Fulton Homes also
owns the adjacent property on the north and south sides of Alamosa Drive east of Jesse Street.
Fulton Homes has agreed to remove a waterline, hydrant and existing streetlights that are located
within the areas to be vacated and extinguished at their expense. The waterline will no longer be
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Chandler City Council
Thursday, February 24, 2005
Page 6


needed to serve this area since the area will be converted to open space. The public will benefit,
as the street, streetlights and waterlines will no longer need to be maintained by the City.

9.       IRRIGATION EASEMENT: Salt River Project                                           Ord. #3655

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3655 granting a no-cost 16’
wide non-exclusive irrigation easement to Salt River Project in the easterly right of way of
McQueen Road south of Ray Road.

Glenwood Development Company is developing Cobblestone Square at the southeast corner of
Ray and McQueen Roads. A portion of the property has been dedicated to the City for road right
of way and the widening of McQueen Road pursuant to the Plat for Cobblestone Square. As a
result, it is necessary for Salt River Project to relocate some of their existing irrigation facilities.
The developer is paying for the relocation cost.


10.      IRRIGATION EASEMENT: Salt River Project                                           Ord. #3658

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3658 granting a no-cost 16’
wide non-exclusive irrigation easement to Salt River Project in the north right of way to Warner
Road west of Arizona Avenue.

The Arizona Avenue – Warner Road intersection improvement project requires the relocation of
an irrigation line in the north right of way of Warner Road just west of Arizona Avenue.

11.      REZONING: Bank One at Kyrene Crossings                                            Ord. #3661

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3661, DVR04-0047, Bank One
at Kyrene Crossings, rezoning from PAD to PAD amended to allow for a drive-through use along
with a Preliminary Development Plan for a freestanding bank facility on approximately 1.2 acres
at 5915 W. Chandler Boulevard. (Applicant: Architekton.)

The site is located within the Kyrene Crossings commercial center at the southeast corner of
Kyrene Road and Chandler Boulevard and bounded on the south and east by the Sorrento
single-family residential subdivision. Kyrene Village shopping center is located to the west and a
commercial center at the northwest corner of the intersection. A McDonalds restaurant and
Hawthorn Suites hotel is located to the north across Chandler Boulevard. The 12.5-acre Kyrene
Crossings site currently includes the development of a CVS Pharmacy, Wendy’s restaurant, and
arterial street and main boulevard driveway improvements. The Bank One site is a vacant parcel
(Building 3) located directly east of the Wendy’s restaurant within the Kyrene Crossings
development along Chandler Boulevard.

This property was zoned in 2000 for a mixed-use commercial development and later amended in
2001 to allow a CVS Pharmacy and Wendy’s restaurant. An existing zoning condition prohibited
fast food/drive through uses, other than Building 2. The site was originally represented as being
without a drive through use; however, Staff supports the amendment. The Bank One building is
consistent with the other approved buildings at Kyrene Crossing.

This request was noticed in accordance with the requirements of the Chandler Zoning Code with
a neighborhood meeting being held on January 20, 2005, with no one in attendance. Staff has
not been contacted regarding this proposal.
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                                                                                    Chandler City Council
                                                                             Thursday, February 24, 2005
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Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to conditions as listed in the ordinance.

12.    INTERGOVERNMENTAL AGREEMENT: ADOT                                                 Res. #3819

APPROVED Resolution No. 3819 authorizing an Intergovernmental Agreement with the Arizona
Department of Transportation (ADOT) for the construction of Alma School and Warner Roads
intersection improvements in the estimated total amount of $4,967,613.00 with federal
participation capped at $3,369,000.00.

COUNCILMEMBER ORLANDO requested a presentation informing the citizens of the nature of
this project and the time frame. Assistant Public Works Director DAN COOK explained that as
part of the continuing program of intersection improvements, the City has received a Congestion
Mitigation and Air Quality (CMAQ) grant to construct the Alma School Road/Warner Road
intersection improvements similar to those at Alma School and Elliot Roads. Improvements will
include dual left turn lanes, a third auxiliary through lane, right turn lanes, bus pullouts, paved
concrete medians, street lighting, storm drainage, landscaping and some traffic signal
adjustment. The grant funds are held by ADOT, and the project will be bid and awarded by
ADOT. The City is responsible for all construction costs in excess of the $3,369,000.00 Federal
grant. The City will be responsible for construction management on this project. There have
been three public meetings and also stakeholder meetings with the businesses in the area.

Staff’s goal is to begin construction in May or June of this year with completion before
Thanksgiving of this year.

COUNCILMEMBER ORLANDO asked if any of the funding would be coming from the half-cent
sales tax. MR. COOK responded that it would not.

VICE-MAYOR WESTBROOKS complimented Staff on their ability to complete street projects in a
minimal amount of time avoiding disruptions for businesses and residents in the area and
allowing traffic to flow more smoothly.

MAYOR DUNN commented that improving the intersections is less costly than widening the
entire arterial street and having the road moved closer to residences. He commented on the
importance of forming stakeholder committees as they can suggest ways to limit business
disruptions during construction.

13.    CONTRACT FOR LEGAL SERVICES: Central AZ Water Conservation Dist. Res. #3820

APPROVED Resolution No. 3820 authorizing the Contract for Legal Services and Ninth
Intergovernmental Agreement among the cities of Chandler, Glendale, Goodyear, Mesa,
Scottsdale and Peoria relating to their joint representation by outside counsel in Central Arizona
Water Conservation District v. United States et al. by Engelman Berger, P.C., in an amount not to
exceed $16,666.00.

Upon Notice of Completion of the Central Arizona Project (CAP) system which was issued by the
United States on September 30, 1993, the total capital repayment which the Central Arizona
Water Conservation District (CAWCD) is required to pay back to the United States for the CAP
system was to be determined. The United States asserted that CAWCD is required to pay back
$2 billion in these capital costs, while CAWCD asserted that its obligation does not exceed
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Chandler City Council
Thursday, February 24, 2005
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$1.8195 billion. In July, 1995, CAWCD filed suit against the U.S. requesting that the court issue a
judicial declaration that CAWCD’s capital repayment obligation does not exceed $1.8195 billion.
CAWCD’s complaint also requested that the court issue a judicial declaration that the federal
government was obligated to reimburse CAWCD for operation, maintenance and replacement
costs associated with water delivered and reserved for federal purposes. The federal
government refused to acknowledge its obligation for these costs, which had, to that date, been
paid by Arizona taxpayers’ dollars.

CAWCD’s capital costs and the operation, maintenance and replacement costs which it is
required to pay, directly impact Chandler through the water rates and tax assessments which are
used to pay for CAP water. If CAWCD had been unsuccessful in this action, Chandler’s costs of
its various sources of CAP water could increase by hundreds of thousands of dollars annually.

In November 1995, the City Council authorized a contract for joint representation with the cities of
Glendale, Goodyear, Mesa, Scottsdale and Peoria by the law firm of Ulrich, Kessler & Anger,
P.C. The contract has been extended several times, with the last extension occurring on June
26, 2003.

Over the last several years, extensive settlement negotiations have been undertaken to resolve
the CAP litigation. On May 3, 2000, CAWCD and the United States submitted a stipulation for a
stay of litigation and for ultimate judgment upon the satisfaction of stipulated conditions of U.S.
District Court. One of those stated conditions was resolution of the water rights claims of the Gila
River Indian Community. Mr. Anger and representatives of the six cities have participated in
extensive negotiations regarding the Gila River Indian Community Water Rights Settlement
Agreement, the related required congressional legislation and related agreements. CAWCD and
the United States amended their stipulation on April 28, 2003 to extend the due date for
completion of all conditions to May 3, 2012.

Under the terms of the stipulation, the United States and CAWCD agreed upon a reduced
payment ceiling of $1.65 billion for the Central Arizona Project system, and certain reallocations
of CAP water. This amount was $700 million less than the United States had asserted. As a
result of the stipulation, CAWCD lowered the capital charges for CAP M&I water. The City of
Chandler pays approximately $73,000.00 less for these capital charges per year. We expect that
even greater savings may be achieved in the capital repayment charges when all of the
conditions required for final settlement are completed and final judgment is entered by the Court.

On December 10, 2004, President Bush signed Senate Bill 437 and the Arizona Water
Settlement Act became law. That Act authorizes the CAP water reallocations and certain
financial obligations required under the CAP settlement agreement and it also authorizes the Gila
River Indian Community Water Rights Settlement Agreement. The Act requires that numerous
actions be completed before the Gila River Indian Community settlement becomes enforceable.

In order to limit the total cost to no more than $100,000.00 and divide the cost equally among the
six cities, each city’s percentage of cost was rounded to 16.666% resulting in a cost to Chandler
of no more than $16,666.00.

14.      COMMERCIAL REINVESTMENT AGREEMENT: Plaza Gomez                                Res. #3823

APPROVED Resolution No. 3823 authorizing an Agreement with Mercedes Gomez, L.L.C., to
provide commercial reinvestment program funding for improvements to the building and property
at 347 S. Arizona Avenue, in an amount not to exceed $39,779.00.
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                                                                                     Chandler City Council
                                                                              Thursday, February 24, 2005
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The proposed improvements to Plaza Gomez are compatible with the intent of the Commercial
Reinvestment Program. The project will dramatically change the appearance of the property,
improve the entrance to Historic Downtown Chandler and help encourage reinvestment in
surrounding properties.

MAYOR DUNN commented that this item demonstrates how the City partners with downtown
businesses to help improve their businesses. He asked if Staff is trying to get more businesses
south of downtown involved in this process. Economic Development Director GARRETT
NEWLAND replied that this area is one of the target areas for the program including the area
down to Pecos. The objective of the program is to take the older commercial centers and
businesses at least 15 years old and assist in upgrading the façade, landscape and signage.
This is a smaller project that can act as an example for some of the other businesses in the area.

COUNCILMEMBER ORLANDO asked if other small projects have been done in the area or if this
was the first. MR. NEWLAND responded that this is the 5th grant awarded. COUNCILMEMBER
ORLANDO commented that with these improvements, there should be an increase in sales tax in
these areas by bringing back customers.

COUNCILMEMBER WALLACE refrained from voting on this item by declaring a conflict of
interest as her family’s business abuts this property.

15.    CONTINUED REZONING: The Ranch Super Storage

CONTINUED TO MARCH 24, 2005 rezoning, DVR04-0042, The Ranch Super Storage, from
PAD for business park uses to PAD amended to allow a self-storage facility as an additional
permitted use along with a Preliminary Development Plan for a 4-building facility on
approximately 5 acres at the SEC of Ocotillo Road and the Union Pacific Railroad. The applicant
is requesting continuance to revise plans as a result of discussions at a recent neighborhood
meeting and allow for additional neighborhood correspondence.

16.    QUARTERLY BONUSES: Allied Waste Companies

APPROVED quarterly bonuses to Allied Waste Companies for achieving additional compaction
per cubic yard above the base amount required as part of the Landfill Operating Contract for a
total amount of $27,376.00.

Under the current landfill operations contract, Allied Waste Companies is required to achieve a
base compaction density of 1,800 pounds per cubic yard. The contract includes a penalty/bonus
section for compaction density. For every 100 pounds per cubic yard compaction less that the
base compaction density achieved during a quarter, a $.50 per ton penalty is assessed to the
contractor. For every 100 pounds per cubic yard of additional compaction greater than the base,
up to a maximum of 2,000 pounds per cubic yard, the contractor receives a $.50 per ton bonus.
During the last quarter (October, November and December 2004), Allied Waste Companies
achieved 2,153 pounds per cubic yard of compaction. The compaction program, along with other
recycling programs, has extended the life of the landfill by approximately eight years.

COUNCILMEMBER WALLACE asked if this item would extend the closure of the landfill beyond
October and what the City is receiving for the compaction bonuses. Municipal Utilities Director
DAVE SIEGEL explained that the compaction bonus program has been in effect since the 1990’s.
An engineering firm, working with staff, measures the density of the trash in the landfill. There is
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Thursday, February 24, 2005
Page 10


a benchmark of 1,800 pounds per cubic yard. The City pays a bonus for over that amount to
entice the contractor to further compact the material to allow longer use of the landfill. The landfill
has been open an additional 7-8 years due to this program and recycling. A citizen’s committee
reviews the findings of the engineering firm and Staff before the request goes to Council.
Savings are calculated by estimating what it would cost the City to take the same amount of
material to Butterfield.     In this instance, the savings are $168,000.00 for our payment of
$27,376.00.

MR. SIEGEL also explained that this extra compaction would not extend the life of the landfill past
the proposed closing date of October 1, 2005. If the same rate of hauling continues, the landfill
will be full in July. Depending on the recommendation brought forward to Council by the Solid
Waste Committee, some small amounts of waste may be diverted early so the last load can be
hauled in to the landfill October 1st.

COUNCILMEMBER SEPULVEDA commented that it would be beneficial to know how much
savings the City has realized on October 1st when the landfill closes.

VICE-MAYOR WESTBROOKS asked for clarification on whether or not the landfill would be
closing earlier than October 1st. MR. SIEGEL said the last load would be hauled on October 1st.
Before that time, the landfill closure design needs to be completed and permits obtained from
ADEQ. To assist with that, there may need to be some diversion of waste to Butterfield before
the last load is hauled to the landfill on approximately October 1st. The last load will start the
timing on the closure.

VICE-MAYOR WESTBROOKS asked if the City would have begun transferring waste to another
site regardless or because of capacity. MR. SIEGEL explained that it is only an estimation on
how much air-space is remaining. Staff has been closely monitoring it to help determine capacity.
It was determined several months ago that there would be a need to start diverting or that the
landfill would be full prior to October 1st.

VICE-MAYOR WESTBROOKS asked if the contract with Allied had been reviewed and
considered for renegotiation since we have been paying these bonuses each quarter. DAN
COOK responded that before Municipal Utilities took over operation of the landfill, there was a
contract with Allied Waste to do compaction of the landfill. Their contract was renegotiated in
1999 and the compaction rates were adjusted from 1400 pounds per cubic yard to 1800 pounds.
That rate has been in effect since that contract was negotiated.

17.      SETTLEMENT: 448 E. Tulsa Street

APPROVED settlement and preparation of release and re-conveyance documents for property at
448 E. Tulsa Street for $21,000.00.

The owners of the property were awarded a Housing and Rehabilitation Loan in March 2000.
The original loan amount was $38,044.00 and under the terms of the loan, the owners were
required to pay back $9,511.00 over 12 years. At the end of this term, the remaining balance of
$28,533.00 would have been forgiven.

The owners are delinquent on the primary mortgage and the City’s rehab loan and mortgage
lender have ordered a trustee sale of the property. Under this scenario, it is unlikely the City
would receive any of the funds because of our second place position.
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                                                                                       Chandler City Council
                                                                                Thursday, February 24, 2005
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18.    PROJECT AGREEMENT AMENDMENT: Wilson and Company

APPROVED Project Agreement #WW0406-201, Amendment No. 1, to Wilson and Company for
the Ocotillo Recharge Facility Expansion, in an amount not to exceed $24,891.00 for a revised
total contract amount not to exceed $224,821.00. This amendment will provide additional survey,
mapping, and design services to expand the existing effluent pump station wet well and electrical
service in order to accommodate the increase in recharge and recovery capacity from the facility
expansion.

19.    PROJECT AGREEMENT: Layne Christensen

APPROVED Project Agreement #WW0407-401, Job Order Contract 03-15, to Layne Christensen
for drilling of the Tumbleweed Aquifer Storage and Recovery (ASR) Wells 6 and 7, in an amount
not to exceed $549,090.00 and AUTHORIZED the increase in the expenditure limit from
$1,500,000.00 to $2,500,000.00.

Two well drilling Job Order Contracts were originally awarded, each in the amount of
$1,500,000.00 for a total annual limit of $3,000,000.00. However, Layne Christensen has since
bought the company to whom the second Job Order Contract was awarded thereby voiding that
contract. To date, Layne Christensen has been awarded projects totaling more than
$1,259,000.00. Since we no longer have a second Job Order Contract, this project agreement
will push the amount of Layne Christensen’s awards over their $1,500,000.00 limit. In addition,
Staff anticipates the award of a number of projects to Layne Christensen that will total
approximately $2,500,000.00.

Staff is currently in the process of advertising for a second well drilling and rehabilitation services
Job Order Contract to replace the voided contract. It will have an annual limit of $2,500,000.00
because of the number and value of projects anticipated to be awarded.

COUNCILMEMBER ORLANDO asked for a description of the project and why this contract is
necessary. Assistant Municipal Utilities Director BOB MULVEY explained that this contract is for
2 additional aquifer storage and recovery wells. These wells are used to recharge reclaimed
water to the aquifer when there is excess and to recover it in the summer when there is more
demand. There are currently 5 ASR wells at Tumbleweed producing approximately 11 million
gallons per day of recharge capacity. These additional wells will produce approximately 6 million
gallons more per day. As part of the master plan, enough ASR wells will eventually be drilled to
provide 100% disposal of reclaimed water or approximately 30 million gallons per day.

COUNCILMEMBER ORLANDO asked if we are currently not disposing all of our recharge water
because of the lack of wells. MR. MULVEY responded that we currently supply reclaimed water
for reuse for irrigation of golf courses and green belts with the remainder being recharged giving
us a credit. We recharge approximately 100% of reclaimed water at this time of year. That
number decreases during the summer months.

COUNCILMEMBER ORLANDO asked how many addendums there are on this contract. Mr.
Mulvey said that he believes this is the first.

MAYOR DUNN commented that this is a “double edged sword” where we’re doing a good job
reclaiming Intel’s water, but we have to have a place to put it. Tumbleweed Park is designed to
be a major recharge area with numerous wells that are not visible. MR. MULVEY said that there
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Thursday, February 24, 2005
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are currently 5 ASR wells at Tumbleweed and this contract will increase the number to 7. The
total number of wells needed is still to be determined based on the soil properties when drilling.

20.      PROJECT AGREEMENT: Wilson and Company

APPROVED Project Agreement #WW0407-451 to Wilson and Company for construction
management of the drilling of the Tumbleweed Aquifer Storage and Recovery (ASR) Wells 6 and
7 in an amount not to exceed $73,227.00.

21.      PROFESSIONAL SERVICES CONTRACT EXTENSION: Engineering and Environmental
         Consultants, Inc.

APPROVED a Professional Services Contract Extension #EN0411-101 for one year with
Engineering and Environmental Consultants, Inc. for potable and reclaimed water transmission
main design services in an amount not to exceed $1,000,000.00.

The City’s Water Master Plan and Reclaimed Water Master Plan identifies the need for increased
service capabilities in the west and southeast portions of the City and recommend the
construction of transmission mains at regular intervals to handle growth in those areas. This
annual contract includes engineering design services for potable water and reclaimed water
transmission mains. Construction management services may also be included for individual
projects. The Capital Improvement Program provides a budget for design and construction of two
potable water and two reclaimed water transmission mains per fiscal year.

Under this contract, individual project agreements will be prepared for execution and approval for
each specific project. Project agreements over $30,000.00 will be submitted for Council approval
up to the annual aggregate of $1,000,000.00. This action will result in saving the cost of the
selection process and the time to bring individual projects forward.

22.      PROFESSIONAL SERVICES AGREEMENT: Carollo Engineers

APPROVED Professional Services Agreement #WW0504-101 to Carollo Engineers for the sewer
assessment and rehabilitation project in an amount not to exceed $304,500.00.

The Wastewater Master Plan identified an on-going need to evaluate, prioritize and repair sewer
lines and manholes within the City’s collection system. A Sewer Evaluation Study was conducted
as part of the Master Plan Project, which resulted in a multi-year sewer management program.
This is the first project to be completed under that program.

This project provides for an update of the existing sewer system model and the sewer system
maintenance database, conducting sewer system and manhole inspections as well as identifying,
evaluating and prioritizing future rehabilitation and repair projects.

23.      CONSTRUCTION CONTRACT: Desert Glen, Inc.

APPROVED Construction Contract #SW0101-401 to Desert Glen, Inc. for the City’s landfill
landscape project in an amount of $387,493.92.

The landfill landscape project will enhance the landscaping along the west side of McQueen
Road from the Salt River Project Consolidated Canal south to Ocotillo Road and along the north
side of Ocotillo Road from the McQueen Road intersection to the Salt River Project Consolidated
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                                                                                      Chandler City Council
                                                                               Thursday, February 24, 2005
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Canal. The plantings will create a 50 to 100 foot buffer along the arterial streets at the base of
the City of Chandler Landfill, which is expected to close later this year. Also included in this
project is a booster pump station, reclaimed water tie-in and decorative walls to surround the
equipment compound.

MAYOR DUNN asked if the landscaping would be affected by the future street improvements.
MR. SIEGEL said that they have worked closely with the Public Works staff to ensure that when
McQueen Road is completed, this project will not be impacted. MAYOR DUNN asked if the
Citizen’s Landfill Task Force and residents in the area have seen these landscaping plans and
have been supportive.

COUNCILMEMBER SEPULVEDA asked if this area had been landscaped previously. MR.
SIEGEL replied not to his knowledge. COUNCILMEMBER SEPULVEDA asked if this project met
the same standards as a private developer would have to adhere to. MR. SIEGEL responded
that the plans were reviewed by the same staff that review private projects. The City was not
asking for any variances. COUNCILMEMBER SEPULVEDA commented that the development
community has expressed concern that the City does not impose the same strict rules on City
projects as are imposed on private development.

In response to a clarification from VICE-MAYOR WESTBROOKS, MR. SIEGEL responded that
the project is anticipated to start in mid-March and be completed in 150 days.

24.    CONSTRUCTION CONTRACTS: S.J.L. Construction of Arizona

APPROVED Construction Contracts #WA9903-401 & #WA0102-401 to S.J.L. Construction of
Arizona for Cooper Rede Waterlines Phase 3 and 4 in an amount of $930,506.50.

The Cooper Rede Waterline Project is generally bounded by McQueen Road, Cooper Road,
Chandler Heights Road and Riggs Road. The water lines were originally part of a private county
water system that the City acquired several years ago. The water lines in this area are being
replaced to bring the system up to current City of Chandler standards. A Public Information
Meeting was held on December 15, 2004 to inform the property owners of the design and
schedule of this project.

COUNCILMEMBER ORLANDO asked about the work and reputation of the low bidder because
of the big difference between their bid and that of the second low bidder. MR. MULVEY said that
we have used this contractor previously on the Erie and Ivanhoe Storm Drain Phase II Project. It
was a $1 million project and they performed in a timely manner. Staff and construction inspectors
considered workmanship to be very good.

25.    CONTRACT: Pool Chemicals

APPROVED Contract to LA Chemical Company, Commercial Pool Repair and Occidental
Chemical Corporation for one year with option for four one-year extensions to provide solid
chlorine tablets for a combined amount not to exceed $409,000.00.

Several years ago, in order to address safety concerns associated with water disinfection using
gaseous chlorine, the City began using solid chlorine tablets for water disinfection. City facilities
that must disinfect water prior to use include 25 water production facilities located throughout the
City, the Airport Water Reclamation Facility and all City-owned swimming pools.
Minutes of the Regular Meeting
Chandler City Council
Thursday, February 24, 2005
Page 14


26.      CONTRACT EXTENSION: Southwest Slurry Seal, Inc.

APPROVED a one-year contract extension with Southwest Slurry Seal, Inc. for asphalt emulsion
slurry seal/micro surface in an amount not to exceed $1,323,341.00.

In January 2001, Council awarded a one-year contract to Southwest Slurry Seal, Inc. with
provision for four additional one-year extensions upon mutual agreement between the City and
the Contractor. The current contract extension expires March 31, 2005 and the contractor has
agreed to extend the contract for the fourth of the four one-year extensions with a price increase
of 14% for slurry seal and 10% for micro surface.

27.      CONTRACT EXTENSION: Vulcan Materials and Mesa Materials

APPROVED a one-year contract extension with Vulcan Materials and Mesa Materials to provide
hot mix asphalt material in an amount not to exceed $70,000.00.

Council approved a one-year contract with four one-year extensions in February 2002 to Vulcan
Materials, Mesa Materials and New West Materials. New West Materials withdrew from inclusion
in this contract extension. To ensure that the City can meet daily requirements with a minimum of
delay, contract extensions to both vendors are recommended. Vulcan Materials and Mesa
Materials have held prices at original bid pricing for three years and are requesting price
increases of 10% to 11% respectively due to rising fuel and environmental costs.

28.      CONTRACT EXTENSION: NES Traffic Safety

APPROVED a one-year contract extension with NES Traffic Safety for barricade rental in an
amount not to exceed $55,000.00.

Council awarded a one-year contract for barricade rental to Barricade & Light (who recently
changed their name to NES Traffic Safety) in April 2002 with provisions for four one-year
extensions upon mutual agreement between the City and contractor. The contractor has agreed
to extend their prices for the third one-year term for the period May 2, 2005 through April 30, 2006
without a price increase.

29.      CONTRACT EXTENSION: Scott Reprographics

APPROVED a one-year contract extension to Scott Reprographics for blueprinting services in an
amount not to exceed $50,000.00.

In February 2003, Council awarded a one-year contract to Scott Reprographics for blueprinting
services in an amount not to exceed $90,000.00. The contract included the option for two
additional one-year extensions with the approval of the City and the contractor. In February
2004, the contract was extended for the first year for $100,000.00. The contractor has agreed to
extend the contract with no changes to the contract.

30.      PURCHASE: Storm Drain Video Inspection Service

APPROVED the purchase of storm drain video inspection service from Pipeline Video Inspection
for one year with options to renew for four one-year periods in an amount not to exceed
$55,400.00.
                                                                           Minutes of the Regular Meeting
                                                                                    Chandler City Council
                                                                             Thursday, February 24, 2005
                                                                                                 Page 15


As part of the City’s Arizona Pollutant Discharge Elimination System (AZPDES) Permit, the City is
required to inspect the storm drainage system for illicit connections and discharges. Additionally,
these inspections help determine the need for replacement and repair of damaged storm drains.
The most effective way to complete this work is by videoing the storm drains. The City has
approximately 90,000 feet of storm drain that will be videoed.

31.    PURCHASE: Modular Furniture

APPROVED the purchase of modular furniture for the new Streets Division offices at 975 E.
Armstrong Way from Goodman’s, Inc., utilizing the State of Arizona contract, in the amount of
$51,860.02.

32.    REJECT PURCHASE: Metal Refuse Containers

REJECTED bids received for the purchase of metal refuse containers due to a 78% increase
above the previous contract.

COUNCILMEMBER WALLACE asked about warranties on the refuse containers. MR. SIEGEL
said that warranties are typically on plastic containers and are anywhere from 5 to 10 years.
When we buy the containers, they last from 2 to 3 years and then have to be refurbished. This
would have been our “stockpile”. However, the bids came in so high that Staff went before the
Public Works Committee to request permission to convert to plastic containers.

COUNCILMEMBER SEPULVEDA asked for a savings estimate in converting from metal to
plastic containers. MR. SIEGEL said that approximately $500,000.00 is spent annually on metal
containers. The cost for plastic containers would be between $300,000.00 - $400,000.00
annually for the conversion and anticipate spending approximately $90,000 for the next 6 years
for maintenance and upkeep.

COUNCILMEMBER HUGGINS asked how much less capacity each household would give to
achieve the savings. MR. SIEGEL said that they are anticipating a gallon for gallon exchange.

COUNCILMEMBER ORLANDO asked about the reasons for the increase in price for metal
containers. MR. SIEGEL responded that not many major cities are using the metal containers.
They have either converted to front-roll off or plastic alley containers.

33.    PURCHASE: CADMine

APPROVED the purchase of CADMine, an on-line reporting and crime analysis service, from
Corona Solutions, sole source purchase, in the amount of $45,066.24.

The Police Department is requesting to continue service of CADMine and Public Access
CADMine, an on-line reporting and crime analysis tool. This service is specific to law
enforcement and is available only through Corona Software.

CADMine allows police personnel to analyze the types of calls coming into the Chandler Police
Department. If it detects a pattern of crime occurring, it has been programmed to automatically
notify designated police employees of the pattern so that patrol officers can be alerted of
emerging crime trends. These notifications may occur within hours of the criminal occurrence.
Public Access CADMine allows citizens to monitor police activity levels for their neighborhoods
through the Chandler Police Department website. This service harnesses the large amounts of
Minutes of the Regular Meeting
Chandler City Council
Thursday, February 24, 2005
Page 16


data acquired through the Police Department’s computer-aided-dispatch (CAD) system. This
data can be used to conduct useful and timely analysis of officer activity as well as criminal
activity throughout the City.

34.        PURCHASE: Communication Equipment for Police Patrol Cars

APPROVED the purchase of communication equipment for police patrol cars from CLH
International, Inc., in the amount of $798,312.00 and data air time from Sprint Communications,
Inc., utilizing the State of Arizona contracts, in the amount of $32,950.00 for a combined total of
$831,262.00.

The present mobile data computers in the patrol cars were purchased in 1998. These computers
were originally used to receive dispatched calls and other supplementary public safety
information. Since then, we have added full report writing, GPS location information, mapping,
and other sources of information. This has exceeded the original design requirements.
Technology advances have made the computers obsolete and the current software operating
systems are no longer supported by the vendors. The majority of the information used with these
units is transferred to the patrol field units using data, which is done at a significant cost saving to
the City. The replacement computers will provide data faster and more efficiently than is
presently possible. These units are also designed for improvements when new technologies
become available and will meet the Police Department’s needs for the next several years.

35.        USE PERMIT: Wild Bill’s Barbecue and Internet Sports Bar

APPROVED a Use Permit, UP04-0062, Wild Bill’s Barbecue and Internet Sports Bar, for the sale
of liquor, Series 12, at 1361 North Alma School Road. (Applicant: Bill Washington.)

The restaurant is located at the southeast corner of Knox and Alma School Roads within an
existing commercial center. A Use Permit to serve liquor in this building was approved in 1997
for Memphis BBQ. The Spaghetti Company restaurant occupied this building after Memphis
BBQ’s departure and operated under the Use Permit issued in 1997. The applicant would like to
request a new Use Permit to expand the hours of operation. The hours of operation that are
permitted under the existing Use Permit are 11:00 a.m. to 10:00 p.m. Sunday through Thursday
and 11:00 a.m. to 11:00 p.m. Friday and Saturday. The current proposed hours of operation are
11:00 a.m. to 12:00 a.m. Sunday through Thursday with closing extended to 2:00 a.m. on Friday
and Saturday. The applicant plans to remain open until 2:00 a.m. on occasion during the week in
conjunction with special events and in the future open at 7:00 a.m. for breakfast. Ultimately, the
applicant would like to request hours of operation between 7:00 a.m. and 2:00 a.m.

This request was noticed in accordance with the requirements of the Chandler Zoning Code. The
Police Department has been informed of the application and has responded with no issues or
concerns. Staff has not received any correspondence regarding this proposal.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to the following conditions:

      1.      The Use Permit is for a Series 12 license only and any change in type of license shall
              require reapplication and new Use Permit approval.
      2.      Expansion beyond the approved Floor Plan shall void the Use Permit and require new
              Use Permit application and approval.
      3.      The Use Permit is non-transferable to any other store location.
                                                                             Minutes of the Regular Meeting
                                                                                      Chandler City Council
                                                                               Thursday, February 24, 2005
                                                                                                   Page 17


      4.      Hours of operation are limited to 7:00 a.m. to 2:00 a.m. seven days a week.
      5.      Any substantial change in the floor plan to include such items as, but not limited to,
              additional bar serving area or expansion of the entertainment area shall require
              reapplication and approval of the Use Permit.
      6.      Decibel levels of music shall be controlled so as not to present a nuisance to
              properties beyond the boundaries of the restaurant.
      7.      The Use Permit shall remain in effect for one (1) year from the effective date of City
              Council approval. Continuation of the Use Permit beyond the expiration date shall
              require reapplication to and approval by the City of Chandler.
      8.      Alcohol sales can occur between the hours of 11:00 a.m. and 2:00 a.m. seven days a
              week.

36.        LIQUOR LICENSE: Wild Bill’s BBQ & Internet Sports Bar

APPROVED a Series 12 Restaurant Liquor License (Chandler #300000697) for William Taylor
Washington, Agent, CYBERDINER.ORG, LLC dba Wild Bill’s BBQ & Internet Sports Bar at 1361
N. Alma School Road. A recommendation for approval of State Liquor License #12076125 will be
forwarded to the State Liquor Department. The Police Department reports no objections to the
issuance of this license and no written protests have been received. All licenses, permits and
fees have been paid and the applicant is in compliance with the City’s Tax Code.

37.        LIQUOR LICENSE: Even Par Sports Bar

APPROVED a Series 12 Restaurant Liquor License (Chandler #300000699) for Gary Russell
Klein, Agent, G & R Under Par LLC, dba Even Par Sports Bar at 7200 W. Chandler Blvd., Ste.
#14. A recommendation for approval of State Liquor License #12076131 will be forwarded to the
State Liquor Department. The Police Department reports no objections to the issuance of this
license and no written protests have been received. All licenses, permits and fees have been
paid and the applicant is in compliance with the City’s Tax Code.

38.        TEMPORARY EXTENSION OF PREMISES: Fibber Magees

APPROVED a temporary extension of premises for a Series 12 liquor license (Chandler
#300000538) held by TW Steves, L.L.C., dba Fibber Magees at 1989 West Elliot Road, Suite 19,
for a St. Patrick’s Day Celebration to be held on March 17, 2005. The extension is for 8:00 a.m.
to 10:00 p.m. Recommendation for approval of temporary extension of premises for State Liquor
License #12075317 will be forwarded to the State Liquor Department. The Police Department
has no objections to this extension and the applicant has applied for a Temporary Sales and
Promotional Event Permit through Neighborhood Services.

39.        SPECIAL EVENT LIQUOR LICENSE: Chandler Cultural Foundation

APPROVED a Special Event Liquor License for the Chandler Cultural Foundation for the 3rd
Annual Endowment Benefit Concert Raffle Reception on March 19, 2005 at the Chandler Center
for the Arts, 250 N. Arizona Avenue. The Police Department reports no objections to the
issuance of this license. As this applicant is a non-profit organization, no sales tax license is
required; however, the special event liquor fee has been paid.

40.        SPECIAL EVENT LIQUOR LICENSE: Chandler Cultural Foundation
Minutes of the Regular Meeting
Chandler City Council
Thursday, February 24, 2005
Page 18



APPROVED a Special Event Liquor License for the Chandler Cultural Foundation for a
Fundraiser to be held February 25 – March 5, 2005 at Wild Bill’s BBQ & Internet Sports Bar, 1361
N. Alma School Road. The Police Department reports no objections to the issuance of this
license. As this applicant is a non-profit organization, no sales tax license is required; however,
the special event liquor fee has been paid.

41.      SPECIAL EVENT LIQUOR LICENSE: Chandler Chamber of Commerce

APPROVED a Special Event Liquor License for the Chandler Chamber of Commerce for the 17th
Annual Ostrich Festival to be held March 11 – 13, 2005 at Tumbleweed Park, 2250 S. McQueen
Road. The Police Department reports no objections to the issuance of this license. As this
applicant is a non-profit organization, no sales tax license is required; however, the special event
liquor fee has been paid.

42.      SPECIAL EVENT LIQUOR LICENSE: Chandler Chamber of Commerce

APPROVED a Special Event Liquor License for the Chandler Chamber of Commerce for a
Chamber Mixer and Ostrich Festival Kickoff to be held on March 10, 2005 at Thorobred Chevrolet
at 2121 North Arizona Avenue. The Police Department reports no objections to the issuance of
this license. As this applicant is a non-profit organization, no sales tax license is required;
however, the special event liquor fee has been paid.

43.      FINAL PLAT: Santan Dobson Business Park

APPROVED a Final Plat, FPT05-0007, Santan Dobson Business Park, for an 11.2-acre industrial
subdivision located west of the SWC of Pecos and Dobson Roads. (Applicant: VP Commercial.)
The plat creates the lots and tracts, establishes the necessary easement and dedicates the
required rights-of-way.

44.      On the Action Agenda.

45.      PROPERTY PURCHASE: 150 North Arizona Avenue                                   Res. #3821

APPROVED Resolution No. 3821 authorizing the purchase of property at 150 North Arizona
Avenue for $480,000.00 plus closing costs of approximately $1,800.00.

The owners of the property have agreed to sell their property to the City of Chandler eliminating
the need for the condemnation process. The parcel contains approximately 11,250 total square
feet of land. Public Works requires 1,899 square feet for the widening of Arizona Avenue as part
of the Chandler Boulevard Improvement Project (California to Colorado) previously approved by
Council in Resolution No. 3712 on February 12, 2004. This acquisition impacts the apartment
buildings requiring a portion of them to be demolished. The remaining portion of this parcel and
apartment units are being acquired for Downtown Redevelopment.

ACTION AGENDA:

44.      USE PERMIT: Happy World Daycare

Use Permit, UP04-0045, Happy World Daycare, for a childcare facility within a single-family
residence at 5758 W. Mercury Way. (Applicant: Saba Al-Bayati.)
                                                                             Minutes of the Regular Meeting
                                                                                      Chandler City Council
                                                                               Thursday, February 24, 2005
                                                                                                   Page 19



Planner JOSHUA COOK reviewed the application. The application requests approval to provide
childcare for up to ten children in this single-family residence under the supervision of two adults.
The Zoning Code requires a Use Permit to operate a childcare facility with more than four
children for compensation and limits the total number of children to ten for compensation. The
childcare facility owner’s children are not included in the calculation for the total number allowed.

The daycare center is located within the Crestview Court subdivision, south and east of Chandler
Boulevard and Kyrene Road. The house was built in 1987 and is approximately 1,400 square
feet. It contains three bedrooms and two bathrooms. The backyard is approximately 42 feet x
20 feet and is turfed. There is no swimming pool at this residence. There is a two-car garage
and two parking spaces are provided in the driveway. The children spend most of the time in the
living room area and take naps in the bedrooms.

Hours of operation vary during the month. The majority of the children are at the home between 5
a.m. and 5 p.m. However, there are times when, due to parents’ schedules, children are dropped
off after 8 p.m. and picked up at midnight. Approximately once per month, some children are at
the home between 5 p.m. and 8 a.m. the following day.

The business has been operating for approximately three months with five children. An
application was filed with the State for a residential childcare license. The applicant is not
requesting any building modifications or property expansions.

During the Planning Commission meeting, it was discovered that there is no management plan
for the business which creates the potential for all of the parents to arrive and drop off their
children at the same time which could create a negative traffic impact. There is also no activity
plan. One of the neighbors testified that they worked at night and slept during the day and was
impacted negatively by the children playing outside.

Staff and the Planning Commission recommend denial of the application.

MAYOR DUNN asked about the neighborhood HOA. MR. COOK said that he has been in
contact with them and the CC&R’s prohibit operation of a daycare in the neighborhood; however
there are daycare centers operating in the neighborhood. He advised the applicant to contact the
HOA management company for clarification.

COUNCILMEMBER ORLANDO asked what the current City policy is for single-family homes.
MR. COOK replied that an establishment could care for no more than four children without a
permit. A Use Permit must be issued for anything over four. There have been a few applications
over the past few years that have been approved by Council. The criteria for approval was, in
one instance, that the lot was approximately 10,000 square feet, the house was roughly twice the
size of this home, there were large setbacks and the applicant had a management plan
staggering drop-off times. The maximum capacity in that instance was 15 children.

Planning and Development Director DOUG BALLARD said that these applications are reviewed
on a case-by-case basis. MAYOR DUNN commented that Use Permits are not typically
requested unless neighbors bring it to the attention of the City that a business is operating without
a Use Permit. Then the City will contact them to see if it is necessary to apply for a Use Permit.
MR. BALLARD confirmed the Mayor’s comments. Because of that, the neighborhood daycare
policy was drafted outlining basic criteria.
Minutes of the Regular Meeting
Chandler City Council
Thursday, February 24, 2005
Page 20


COUNCILMEMBER CACCAMO asked if the City requires a State license before an applicant
could apply for a Use Permit with the City. MR. COOK responded that a State license is required,
but it is not issued until they receive City approval through the Council.

COUNCILMEMBER WALLACE clarified that a Use Permit is not required for four children in
addition to the children of the daycare provider. MR. COOK said that it is four or less for
compensation. MR. BALLARD said that the State was previously not providing information to the
applicants informing them that they had to go through the City before going to the State. That
has since been rectified.

COUNCILMEMBER CACCAMO asked if there are any contingencies with the Use Permit
revoking the permit if the State does not issue a license. MR. COOK said that it could be
included as a stipulation. It is implied that a State license is needed and if it is not obtained, the
Use Permit could be revoked. COUNCILMEMBER CACCAMO asked if that stipulation was
included in the ordinance or does it have to be specified on a case-by-case basis. MR.
BALLARD said that it is currently stipulated in the ordinance. If a Use Permit were granted, it
would not become effective until the State license was received.

SABA AL-BAYATI, 5758 W. Mercury Way, applicant, stated that in June 2004 she applied for a
contract through Child Care Referral and Resources to be a registered babysitter. She has
completed the fingerprinting, background check, and home inspections. She is trying to get a
State license for a maximum of ten children. Sometimes, due to an overlap, she has one too
many children for approximately an hour. She wants a State license for ten so she will not be
cited for having too many children during that overlap period. In order to get a State license, she
has to have local Council approval. There are many requirements to be met in order to get a
State license and even if she receives approval from the City, it doesn’t mean she will be
approved by the State. She reported no complaints from her neighbors nor had she been
contacted about any problems.

Regarding the size of her home, the State requires 30 square feet per child. Using her living
room and two bedrooms, the square footage is 660 which would technically allow 22 children.
Her name and address is listed in the Arizona Childcare Resource as being a “more than 22
facility”. There is also another facility on her street that is State licensed with smaller square
footage, but is only approved for 7.

COUNCILMEMBER ORLANDO asked the City Attorney if the City is in compliance with State law
in our criteria for childcare facilities. MR. O’NEILL said that the State wants to make sure that the
applicant is in compliance with City requirements. There is no conflict, but more of a compatibility
requirement.

COUNCILMEMBER SEPULVEDA asked the applicant if she was aware of any HOA restrictions
that would prohibit the operation of a daycare facility. Ms. Al-Bayati did not know.

ARLENE CONNELLY, 255. S. Kyrene #202, Chandler, said that her daughter attends Ms. Al-
Bayati’s daycare. The process seems to be a little confusing with the State’s approval pending
the City’s approval that, in part, is based on some State requirements. There is a regular
schedule set up for the parents and Ms. Al-Bayati has been very clear about the regulations if
someone goes off schedule. Ms. Connelly occasionally changes her days, but has never seen
more than one car, besides hers, in the driveway. Regarding the neighbor who works at night
and sleeps during the day, that would be a problem in any neighborhood as there would always
be children, noise and traffic.
                                                                             Minutes of the Regular Meeting
                                                                                      Chandler City Council
                                                                               Thursday, February 24, 2005
                                                                                                   Page 21



AMANDA BRUDEMAN, 881 N. Albert Drive, Chandler, said that her son attends Ms. Al-Bayati’s
daycare and feels the community has a need for this daycare center. She works nights so her
son is dropped off at 10:30 p.m. and she picks him up at 8:15 a.m. She has not seen a time
when there has been traffic at the residence. She had difficulty finding someone to provide
Saturday day care and was referred to Ms. Al-Bayati by Arizona Childcare Resource and
Referral. Ms. Al-Bayati is very flexible making it easier for parents to work.

COUNCILMEMBER ORLANDO clarified that there is no regulation in our ordinance regarding
times that daycare can be provided.

COUNCILMEMBER CACCAMO asked Staff what the CC&R’s for this neighborhood specify for
daycare centers. JOSHUA COOK reiterated that CC&R’s could not be considered in Staff’s
decision for a recommendation. The CC&R’s specify that the lots shall be used for residential
use and no gainful occupation, profession, trade or other non-residential use shall be conducted
on any lot.

JOAN WYATT, 5734 W. Mercury Way, Chandler, three doors east of the applicant, relayed an
instance last year when a toddler from Ms. Al-Bayati’s address ran in front of her car in the middle
of the afternoon and she had to slam on the brakes. She has seen children playing in the street
in front of the house and expressed concern that Mercury is a through street with quite a bit of
traffic at times.

MAUREEN MULLIGAN, 5750 W. Mercury Way, Chandler, lives next door to the applicant. She
reported no problems with noise or traffic. She said the yard is small, but has been made more
“child friendly”. She does not have a problem with the daycare next to her house. MAYOR
DUNN asked Ms. Mulligan if it would be a problem in the Use Permit were to be issued for up to
10 children at one time. Ms. MULLIGAN responded that it could be a problem having 10 children
playing in the backyard. She asked if the number could be more than 4 but less than 10. DOUG
BALLARD said that the number could be restricted as such with a Use Permit.

COUNCILMEMBER ORLANDO clarified with the applicant how many children she currently has.
She responded that the maximum she has is six including her own two children. She does not
want to care for 10 children but wants the flexibility to be able to have more than 4 children if the
occasion arises without having to worry about breaking the rules.

MR. BALLARD explained that the application was for a Use Permit to care for ten children in her
home and treated the application as such. He was not aware that the applicant did not intend to
actually care for that number of children. For the purpose of the ordinance, the applicant’s
children are not counted. When it was discussed at Planning and Zoning that the applicant may
have to have an employee, it was based on the assumption that there would be 10 children.

COUNCILMEMBER WALLACE commented that if Council were to grant the Use Permit as
requested, the applicant is being given the opportunity to care for up to ten children and the City
would have no control. The main reason for the request is because of an overlap of one child
which makes a total of five children. If the Use Permit were to be approved for five children, the
City has put the limit on the number of children allowed both for the applicant and the
neighborhood. She expressed her appreciation for Ms. Al-Bayali wanting to operate by the letter
of the law and not violate the current ordinance. The State could not overrule or supercede what
the City has approved by increasing the number. MR. BALLARD said that if the applicant were to
have more than five children, it would be a zoning violation and up to the City to enforce.
Minutes of the Regular Meeting
Chandler City Council
Thursday, February 24, 2005
Page 22



A MOTION WAS MADE BY COUNCILMEMBER WALLACE TO APPROVE the Use Permit
limiting the number of children to five at any one time. SECONDED BY COUNCILMEMBER
ORLANDO.

MAYOR DUNN informed the applicant that this does not dismiss her requirement to abide by the
neighborhood CC&R’s. In response to questions, MR. O’NEILL said that the CC&R is a private
contract between parties and would take priority over the City’s Use Permit.

COUNCILMEMBER ORLANDO asked if the City were to put a time limit on the Use Permit,
would it prohibit the applicant from getting a State license. MR. O’NEILL said that he is not aware
of any problem, but does not know for a fact.

MOTION CARRIED UNANIMOUSLY (7-0) INCLUDING THE STIPULATION TO LIMIT THE
NUMBER OF CHILDREN PRESENT AT ONE TIME TO FIVE.

The meeting recessed at 9:15 p.m. and reconvened at 9:25 p.m.

46.      DOWNTOWN CHANDLER DAY LABOR ISSUES

Assistant to the City Manager LEAH POWELL provided a background on the status of day labor
issues in the downtown area. Staff has been working on the issue since 2000 when they went to
California to visit a number of day labor centers. At the same time, the Human Relations
Commission (HRC) formed a day labor subcommittee which reviewed the issue in other valley
cities.

In 2001, Pastor Gonzalez began meeting with the City to create a day labor center in his facility.
The HRC subcommittee decided to monitor the situation based on discussions with the INS.
During 2001, Pastor Gonzalez and other organizations came together and offered a lunch
program to the laborers along Arizona Avenue.

In 2002, Pastor Gonzalez began meeting with private corporations and solicited for private
contributions and volunteers. Construction of the day labor center also began at this time.
Councilmember’s Bruno and Westbrooks met with the committee, which consisted of business
owners, churches, social service agencies and community residents. The HRC continued to
monitor the situation and receive monthly updates.

In 2003, Staff visited Phoenix and Cave Creek day labor centers prior to Chandler’s center
opening. In May, 2003, the Light and Life Day Labor Center opened in Chandler. The City
helped by promoting the center to contractors and residents. Fliers were handed out at the Solid
Waste Facility and public message signs were put up along Arizona Avenue. Follow-up meetings
were held after the center had been opened for approximately 2-3 months. Pastor Gonzalez
provided updates on how the center was operating and problems he may have been having.
There were updates from the committee formed at that time, with HRC and downtown businesses
to try to identify the remaining issues since the center opened.

In 2004, there was another committee convened consisting mainly of Staff to review anti-loitering
and anti-solicitation ordinances across the country. They also helped promote the one-year
anniversary of the day labor center. A number of representatives from various City departments
met with the DCCP and the Hispanic community. Staff also attended an ICMA Hispanic
conference to discuss the situation with California cities to learn what issues they continued to
                                                                             Minutes of the Regular Meeting
                                                                                      Chandler City Council
                                                                               Thursday, February 24, 2005
                                                                                                   Page 23


deal with. The regional HRC committee began addressing the issue in June of 2004. In
November of the same year, the regional HRC committee included this item on an agenda and
formed a subcommittee.     The subcommittee met in January 2005 when it was decided to
sponsor a community forum. The latest HRC meeting was held February 23, 2005, to reconfirm
that the communities are on board. Some communities still need to formally approve it in their
HRC meetings. Direction from the regional meeting was to proceed with the planning of the
forum.

Some of the issues to be addressed are to identify a timeframe; identifying who the experts are in
the field both locally and nationally and discussing the feasibility of bringing the experts to a
community forum; trying to have representation from various areas such as business, contractors
using day labors. (Tempe held a community forum a year ago on the City level. They had
difficulty getting a contractor to come to the table. The contractor who participated did so via
telephone to remain anonymous.) They would also like to have someone representing the legal
sector to attend the forum. Many people from Chandler and outside of Chandler have contacted
her wishing to participate including ASU who would like to share their research findings. There is
a great interest across the metropolitan area to be involved in the forum.

The regional HRC currently includes the cities of Phoenix, Tempe, Scottsdale, Mesa, Gilbert and
Chandler. The communities of Queen Creek and Guadalupe will also come to the table.

VICE-MAYOR WESTBROOKS said that he asked that this issue be put on the agenda for
discussion. Apparently this is not a unique situation to Chandler or cities in Arizona, but is
nationwide. He asked if there were any models in other cities that provide a safe, organized
place for day laborers to go for contractors to pick them up that are not on city streets causing
safety issues. He stated the goal is to have a day labor center that is used by the laborers and
contractors. Chandler is known for coming up with innovative effective solutions by involving the
entire community and stakeholders by bringing them to the table and putting it into action.

VICE-MAYOR WESTBROOKS continued that the stakeholders group that was meeting needs to
reconvene. MS. POWELL said the last time the group met was approximately May of 2004.
They gave recommendations to Staff regarding looking at ordinances and loitering. She stated
there are some misconceptions about these ordinances that although they are on the books in
California cities, they are not enforced. Some cities have been sued for violation of civil rights
when these ordinances were enforced. Other recommendations included continued publicity,
which has been done by distributing fliers to contractors and landscapers at the landfill to
encourage them to hire day laborers. The market drives where the laborers go and the
effectiveness of the day labor centers.

VICE-MAYOR WESTBROOKS commented that this is a supply and demand economic issue.
There is a large demand for labor which the laborers are supplying that demand. We need to
help the situation so that it is done in a fair and organized manner and the laborers are paid fairly
for their work. Often, the contractors will pick up a laborer and either pay them a very low wage
or not pay them at all. These are the types if issues that need to be monitored. There will not be
an easy solution, but if we get the stakeholders together, an equitable solution can be reached.

COUNCILMEMBER ORLANDO asked for an update on what is being done at the current center.
PASTOR GONZALEZ, through an interpreter, said that the workers who come to the center
benefit from their services. Currently, there is an 80% rate of employment through the center, but
laborers feel they have a better opportunity to get employment on the streets. They do not want
to abide by a set of rules, however basic. The way the center operates is that the workers sign
Minutes of the Regular Meeting
Chandler City Council
Thursday, February 24, 2005
Page 24


up when they come in and are assigned jobs according to when they signed in. The only time
this would vary is if a contractor requests a specific worker or one with specific skills. If the worker
who is up does not know how to do the job, they will go down the list until a worker with those
specific skills is found. This process was implemented by the workers themselves. The workers
along Arizona Avenue are aware that they may be asked to leave the street and move to the
center, but no one with authority has told the workers that they have to move to the center.

COUNCILMEMBER ORLANDO thanked Pastor Gonzalez for the work that he is doing. He
asked how many workers are served daily. PASTOR GONZALEZ said that he serves
approximately 25 per day inside the center. Of those 25, approximately 20 would be given a job
for that day. Contractors do not typically come to the center. The majority are people within the
community needing help. Contractors do not come to the facility because they are looking for
“cheaper labor”. The laborers are in such need that they are willing to risk not being paid by not
coming to the center. There are daily instances where a contractor will work a laborer for 10
hours and pay them $40 for the days work. The center does not set a pay scale, but only asks
that laborers be paid at least minimum wage. PASTOR GONZALEZ continued that they could
not guarantee more contractors coming to the center if more workers were there. The center was
opened to not only help the workers, but to help create order in the City and create respect
among the laborers themselves.

MAYOR DUNN asked if Pastor Gonzalez or members of his congregation have gone out to the
street and asked the workers to come to the center. PASTOR GONZALEZ responded the he
drives by the laborers along Arizona Avenue on a daily basis. Lunches are provided to the
workers on the street. The invitation is extended to them daily and they reply that they will not
move until someone tells them they have to move. Until then, they will continue to try to “win”
the job.

COUNCILMEMBER WALLACE thanked Pastor Gonzalez for his work. She asked what is
required from an employer who comes to the center to hire a day laborer. PASTOR GONZALEZ
responded that they ask how many workers they require, what the job entails and their name or
where they would be working. This information is only requested so the worker can be contacted
in case of an emergency. COUNCILMEMBER WALLACE said that with the explosive growth in
our area, many homeowners are using this labor force to do their landscaping which makes this a
much broader issue than just working with contractors. PASTOR GONZALEZ estimated that at
least 60% of those using day laborers are homeowners. COUNCILMEMBER WALLACE asked
how the center insures that the laborer is paid. PASTOR GONZALEZ said that they couldn’t
insure the laborer gets paid. By coming into a structured environment, there is more honesty and
more accountability. During the time the center has been open, there has only been one
contractor that did not want to pay. By speaking with the contractor, those at the center were
able to persuade them to pay the workers.

COUNCILMEMBER SEPULVEDA asked if Pastor Gonzalez felt the center has been utilized to its
capacity. PASTOR GONZALEZ responded that he does not. COUNCILMEMBER SEPULVEDA
asked Staff what other cities do, including Chandler, with respect to enforcement of the day labor
issue. MS. POWELL responded that what typically has been done is to enact anti-solicitation in
the right-of-way ordinances. These ordinances have not always been supported in court. At this
point, Chandler does not have this type of ordinance on the books, so there is nothing that can be
enforced. COUNCILMEMBER SEPULVEDA commented that from what he has seen, there are
any number of traffic violations being committed when someone stops to pickup day laborers.
Has this been discussed by the committee. MS. POWELL responded that there was monitoring
of traffic situations along Arizona Avenue. During that time, there was no increase in violations.
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                                                                                    Chandler City Council
                                                                             Thursday, February 24, 2005
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Because there is public parking along Arizona Avenue, if a contractor were to pull over into one of
those spaces to pick up a laborer, there would be no traffic violations. COUNCILMAN
SEPULVEDA asked if a pilot program could be implemented to look at enforcement of moving
violations and stopping on private property. By enforcing these laws and working to change the
habits of the contractor, it could force them to go to the centers. With construction beginning
soon at Arizona Avenue and Chandler Boulevard, there is the potential for disaster with
construction vehicles, school students, day laborers and contractors picking up day laborers all at
one location. MS. POWELL said that when Phoenix first opened their day labor center, they had
some police enforcement, which has since stopped. The gentleman who runs the Phoenix Day
Labor Center provided statistics similar to those of Pastor Gonzalez’ with an 80% rate.
COUNCILMAN SEPULVEDA asked if the enforcement was toward loitering or contractors picking
up the day laborers. MS. POWELL felt both were being enforced, but she would do further
research. When the Phoenix Day Labor Center was first opened, contractor information was
requested. They are currently not involved with obtaining any information or wage discussion.
The center is merely a “safe haven” for the day laborers. Other models have an organized board
of workers where the laborers themselves have agreed to what a minimum wage would be.
There are still workers on the streets looking for work.

COUNCILMEMBER ORLANDO commented that the focus of this discussion is on the committee
and what they have done or not done and what suggestions or solutions have been tried or not
tried. Mesa has spent considerable time studying this issue. MS. POWELL said that because of
the complexity of the issue, communities have been studying it for a number of years. Mesa
started their process before Chandler; however, Chandler has come farther than Mesa because
of Pastor Gonzalez and private contributions. The purpose of the community forum is education.
There have been three various committees who have met throughout the years. In 2001, there
was an HRC subcommittee. There was a committee working with Councilmember Bruno and
Councilmember Westbrooks representing private sector businesses and churches. There was
also a committee formed in 2004 to review the anti-solicitation and anti-loitering ordinances who
met with DCCP and the Hispanic community.

COUNCILMEMBER ORLANDO asked Ms. Powell if she was prepared to bring recommendations
from these committees forward to Council or do these committees need to be re-formed to revisit
these issues and present timelines. MS. POWELL said that it is important the Human Relations
Commissions “push” the issue because it is a different approach. Bringing regional experts and
those out of state together has not been tried. Moving forward with a regional HRC forum is a
recommendation from the HRC. Other recommendations from the previous committees have
been reviewed and some, such as advertising, have been implemented.

COUNCILMEMBER ORLANDO asked what the make-up of the committees was. MS. POWELL
said that City staff (City Manager’s staff and Police), Councilmembers, DCCP members,
community members, members of the HRC, members of social service agencies and churches.
Ms. Powell said that she felt it is an issue best suited for the HRC. With the changing members, it
has added momentum to the issue because of different perspectives.

MAYOR DUNN commented that the regional forum shows the leadership capabilities of the
Chandler Human Relations Commission. If Council wishes to reconvene the committee, there
needs to be a broader base committee including all of the parties involved. If all parties are not
included, whatever comes before Council could be criticized. He also suggested that if it is
decided to form a committee, perhaps Vice-Mayor Westbrooks and Councilmember Sepulveda
could be a part of the committee and take the lead.
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Chandler City Council
Thursday, February 24, 2005
Page 26


COUNCILMEMBER WALLACE agreed that a regional forum would be advantageous and should
include all stakeholders. She also suggested that it is very important to get the information out to
our citizens and business people that day laborers are available.

COUNCILMEMBER ORLANDO reiterated that the issue is whether or not to put together another
committee and have the Human Relations Committee form a list of stakeholders that should be
included on the committee. He also suggested that labor organizations could possibly be
included. Council needs to give Staff guidance on what they want the composition of the
committee.

COUNCILMEMBER WALLACE asked if another committee is necessary or simply allow the
Human Relations Committee to hold a regional forum involving everyone who wants to come.
The intent of the forum is to be very inclusive. MS. POWELL said that it is the HRC’s intent that
it is a community forum open to the community, but specific stakeholders will be targeted and
strongly encouraged to attend.

City Manager MARK PENTZ commented that the HRC is a resource to take the lead on the
forum. As other stakeholders are identified, they would be included. It is logical for the HRC to
take the lead on this issue.

COUNCILMEMBER SEPULVEDA said that a resolution would only be reached by Council
making the issue a priority. He would serve any way he could to bring this to fruition, but all of
Council must make it a priority.

Police Chief SHERRY KIYLER said that the Department has been involved in a number of day
labor and enforcement issues. In monitoring the problem from a traffic enforcement standpoint,
they found that because there is public parking on the streets and in public parking lots, there is
not an abundance of moving traffic violations allowing citation. There is no enforcement action
available prohibiting the day laborers from standing on the sidewalks. The Department is more
than willing to be involved in any action Council deems appropriate, but there has not been one
appropriate for law enforcement from an enforcement standpoint.

COUNCILMEMBER SEPULVEDA asked Chief Kiyler if she could foresee any issues arising with
the potential activity from construction on the corner of Arizona Avenue and Chandler Boulevard.
CHIEF KIYLER responded that with more traffic and construction vehicles, there is a potential for
violations. However, the day laborers are looking for work and if that intersection is not
accessible, they will move to another location possibly eliminating some of the congestion.

COUNCILMEMBER ORLANDO asked Ms. Powell how much time would be needed to come up
with some recommendations for Council. MS. POWELL responded that the regional HRC
committee studying this issue would be meeting within the next two weeks. At that time, a
timeline will be established. Research has begun looking at other models and who the experts
are. She can provide updates to Council as they progress. She will have an idea within the next
two weeks as to when the community forum will be held.

A MOTION WAS MADE BY COUNCILMEMBER ORLANDO that the Human Relations
Committee be the focal point of the day labor issue, invite all the stakeholders, hold regional
meetings and bring forth a plan to the Council within a month.               SECONDED BY
COUNCILMEMBER WALLACE.
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                                                                                    Chandler City Council
                                                                             Thursday, February 24, 2005
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VICE-MAYOR WESTBROOKS commented that he did not want to see another study or
education process. He wants it to become an action process to include education. The end
result will be action to be taken to try to alleviate the problem. As Pastor Gonzalez said, the
laborers want someone with authority to tell them to use the day labor center.

VICE-MAYOR WESTBROOKS continued that he is willing to work with a committee and invited
any other Councilmembers to attend. He clarified that the term “contractor” refers to anyone who
wants to employ a day laborer. He also asked that Ms. Powell share the information she
presented with the entire community. MS. POWELL said that she would be providing Council a
more concise timeline than what was presented at this meeting.

COUNCILMEMBER WALLACE asked Mr. O’Neill if information relating to the day labor center
could be put on Channel 11 and in the City Scope. MR. O’NEILL said that it would be appropriate
to do so at this time. COUNCILMEMBER WALLACE suggested that information be disseminated
immediately.

MAYOR DUNN thanked Pastor Gonzalez for approaching this issue in such a unique manner.
He added the one missing party in this equation seems to be the Federal government as he felt
there needed to be definition what the immigration law is and who is enforcing it and what is the
definition of a day laborer.

VICE-MAYOR WESTBROOKS said that the cities are dealing with this issue because the Federal
government has not dealt with it and it will probably not be changing any time soon.

COUNCILMEMBER SEPULVEDA commented that we should not presuppose that there are a lot
of undocumented workers. There may be some, but we may not have the issue of documented
or undocumented workers from a legal aspect.

JOSE A. GARCIA, 23011 S. 132nd Street, Chandler, representing the Chandler Coalition for Civil
and Human Rights, said he had written two letters to the City which he felt addressed some
solutions. The City of Mesa has been studying the issue since at least 1989. He felt it would be
continued to be studied until the Mayor and Council took action. In summarizing the letter sent to
Council, he recommended no parking along Arizona Avenue from Chandler Boulevard to Pecos
Road with enforcement. He said that half of the day laborers are legal citizens. Everyone,
including the contractors, workers and business people, needs to be educated on a continuing
basis because of the high turnover of the laborers. In response to a question from Mayor Dunn,
MR. GARCIA stated that he does not support anti-loitering ordinances. He felt the parking
restriction would be the way to deal with it because no loitering would cause legal issues. He
suggested the laborers be told on a weekly or monthly basis to go to the labor center and
suggested it be by someone with authority.

COUNCILMEMBER ORLANDO said that he agrees with Mr. Garcia’s comments. MR. GARCIA
said that he does feel that the Human Relations Commission should be dealing with this issue.

COUNCILMEMBER SEPULVEDA asked Mr. Garcia to provide some of his professional
background. MR. GARCIA said that he is a retired Lieutenant from the Mesa Police Department.
He was in charge of the traffic division where they dealt with low-riders and cruising. It was
studied for five years and “no parking” was recommended at the first meeting, but it took five
years to be implemented. He owned a video rental store and much of their clientele were the
laborers which gave him a chance to speak to many of them. He is not aware of a loitering law
that is constitutional.   Any ordinance that is enacted must be enforced for everyone.
Minutes of the Regular Meeting
Chandler City Council
Thursday, February 24, 2005
Page 28


COUNCILMEMBER SEPULVEDA thanked Mr. Garcia for his work in the community and
suggested he consider participating in future discussions.

When the vote was taken, THE MOTION CARRIED UNANIMOUSLY (7-0).

PUBLIC HEARING:

PH 1.              2005 Edward Byrne Memorial Justice Assistance Grant

The Mayor opened the public hearing at 10:50 p.m.

Police Planning and Research Manager RANDALL GREELEY said that the City has been
awarded an Edward Byrne Memorial Justice Assistance Grant for 2005. It is a new program
through the Bureau of Justice Assistance (BJA) and this is the first year it has been available.
Local government must assure that the proposed application information was made public and an
opportunity to comment was provided to citizens and neighborhood or community organizations.
The amount of the grant is $58,107.00 and a local match is not required.

The department proposes to use the grant under the Law Enforcement and Prevention and
Education Program Purpose Areas. The department also proposes to purchase equipment for
law enforcement use in the areas of crime prevention, community awareness and education,
investigative and surveillance equipment, special assignment unit equipment and forensic lab
equipment.

COUNCILMEMBER ORLANDO asked if there are other funds available. MR. GREELEY
explained that the grant is formula driven based on Uniform Crime Reporting Part I violent crimes
rate over the past three years. It is a fixed amount depending on the activity level. The grant will
be used to purchase what we can with the funds available. The amount of the grant changes
yearly. Under Local Law Enforcement Block Grants, Chandler had received as much as
$100,000.00 in past years. However, a lot of those monies were shifted to homeland security
programs offered by the Federal government.

COUNCILMEMBER WALLACE expressed her thanks to Mr. Greeley for the work done in
securing these grants.

There being no further comments on this item, the Mayor closed the public hearing at 10:55 p.m.

BRIEFING:

1.       FAMILY ADVOCACY CENTER:

Mayor & Council Assistant BRIAN BOSSHARDT, provided a brief history of the issue of the
Family Advocacy Center (FAC). In May of 2002, Vice-Mayor Westbrooks introduced the concept
of a FAC in Chandler. A FAC serves as a one-stop location for the treatment of victims, the
investigation of their cases and referral to other needed services. The goal is to decrease victim
trauma by providing a friendly environment for victims of child abuse, domestic violence, elder
abuse and sexual assault. Currently, the cities of Glendale, Mesa, Phoenix and Scottsdale have
similar facilities that serve the metropolitan region. The Mayor and Council referred the idea to
the Community Services subcommittee to research the issue and provide recommendations on
how to move forward on this concept. A staff committee was formed that presented options to
the Mayor and Council in February of 2003. During the May 2003 Mayor and Council budget
                                                                              Minutes of the Regular Meeting
                                                                                       Chandler City Council
                                                                                Thursday, February 24, 2005
                                                                                                    Page 29


briefing, Staff presented seven alternatives for how to implement a FAC in the City of Chandler.
Both temporary and permanent alternatives were submitted. The Mayor and Council approved
$252,800.00 for the development of a temporary FAC in the existing modular buildings at 99 N.
Delaware Street and also approved $10,000.00 for ongoing expenses.

In August 2003, Staff began to move forward with implementation of this concept encountering
some challenges along the way including the availability of medical services and functionality of
the buildings. As originally envisioned, this facility would include the services of both sexual
assault nurse examiners and forensic pediatricians. Currently there are only 3.5 forensic
pediatricians in the valley to meet the needs of all FAC’s. Costs for their services at each facility,
including the necessary medical equipment, are paid by the Maricopa County Attorney’s Office.
Discussions were held with both the County Attorney’s Office and the sexual assault nurse
program regarding the potential for providing services in a Chandler FAC. Both entities
expressed an unwillingness to do so because of Chandler’s relatively low volume of calls. He
noted that not all calls for service need the services of a FAC.

It was also determined that the proximity of the modular buildings next to the railroad tracks would
compromise the interview process due to the need for secure and soundproof interview rooms
and it was Staff’s opinion that this change would be a step backward from the intended service
delivery.

The City contracted with O’Neil Associates in March 2004 to conduct a social service needs
assessment to better understand the greatest unmet needs in the community. An assessment
was conducted of domestic violence victims specifically utilizing services in the City of Chandler.
Because domestic violence victims can be difficult to identify and interview, only sixteen women
were interviewed. Despite this small number, O’Neil Associates was able to highlight known
problems in dealing with domestic violence. The availability of emergency shelter and transitional
housing are two of the more pressing needs identified. A reassessment was conducted in
November 2004.

Police Chief SHERRY KIYLER stated that she has had an opportunity to assess what the Police
Department is providing in services and has participated in some of the meetings held regarding
the implementation of a family advocacy center or a way to provide enhanced services to the
community. From a Police Department perspective, the most important provision is an
environment in which a victim can feel comfortable and the appropriate law enforcement services
can be provided. She said she had toured the modular buildings and agrees that it is not
conducive to providing services to victims.

The Department looked at ways to increase service to victims of family crimes including domestic
violence, elder abuse, child abuse, etc. The criminal investigation section has been restructured
so there is now a dedicated unit to deal with family crimes. From the perspective of medical and
other services, Chandler currently uses the Mesa FAC primarily to serve medical/forensic needs.
The forensic nurses are available to respond to any hospital where there is a victim. Those
services are appropriate for Chandler’s needs and excellent services are provided at the Mesa
FAC.

CHIEF KIYLER continued that the Department does not feel that the number of crimes occurring
in Chandler requiring those types of services could support a full-time service from a medical
facility. In terms of the social service aspect, the Department has an excellent victim service unit
consisting of approximately 100 volunteers available to respond to the scene of family crime and
to deal with some immediate issues of victims and provide resource information for follow-up and
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Chandler City Council
Thursday, February 24, 2005
Page 30


after care services. The Department provides all that a family advocacy should provide, just not
in one facility.

Battalion Chief PAUL NIES reported that the Fire Department’s involvement in the FAC has
grown over the past year. He introduced Citizen Support Coordinator Jennifer Malara who has
begun implementing strategic planning to support the Victim’s Assistance Program and aid
victims not only of crime, but those who come through the 911 system for fire assistance.

COUNCILMEMBER CACCAMO asked if any regional solutions had been investigated to combine
with other cities. MR. BOSSHARDT responded that the Town of Gilbert had previously been
contacted but with no interest. The Mesa facility is currently serving as a regional facility.

COUNCILMEMBER WALLACE commented that the she had toured the Mesa facility and was
impressed with their program. She expressed her appreciation for Staff’s research in meeting the
needs of Chandler residents.

MR. BOSSHARDT said that Staff began researching various alternatives with the existing
resources approved by the Mayor and Council. Planning and Development staff is working to be
able to meet some of the transitional housing needs. There is a lack of shelter space valley-wide.
There are 17,000 women and children yearly being turned away from emergency shelter space.
Staff’s recommendation is to improve the availability of existing emergency shelters within the
City of Chandler by using existing resources to partner with an existing social service provider
and solicit proposals through an RFP process.

MAYOR DUNN commented that most shelters, regardless of location, would serve other cities. If
we want to use Chandler taxpayer money, victims from other cities will also be benefiting. The
City may be able to get contributions from other jurisdictions for transitional housing.

COUNCILMEMBER WALLACE said that for safety reasons, victims are frequently taken out of
Chandler. She thanked Vice-Mayor Westbrooks for bringing this forward. She also thanked Chief
Kiyler for focusing on meeting the needs of victims of family crime.

VICE-MAYOR WESTBROOKS thanked everyone who has participated in this process. There
are community members, The Local Coordinating Council On Domestic Violence, who meet on a
monthly basis. These are volunteers willing to give them time to work on this important issue.
They make recommendations to Staff and Council. The impetus that started the formation of the
MAG committee was the death of a woman and her children because there was no shelter
available in the county and she had to return to her home where she and her children were killed.

YVONNE TAYLOR, 943 E. Waterview Place, Chandler, said that there are 8 shelters in the
Phoenix area with fewer than 200 beds total according to the Arizona Coalition on Domestic
Violence. In the calendar year 2003, there were 22,000 calls in the Phoenix metropolitan area.
Eight thousand people were placed in a shelter, but 17,000 were turned away equating to 64%
being turned away yearly.        According to the Chandler Police Department, there were
approximately 1,100 calls relating to domestic violence. She supports a coordinated effort of a
continuum of care that includes a family advocacy center. Various methods are needed to
address the issue of domestic violence, but the foremost goal is to provide safety for women and
children. In addition to bed nights, all area shelters provide crisis counseling, case management
services, goal setting and information referral, services to children who have witnessed or
experienced abuse in their home. All of those services are needed for women to rebuild their
lives. Ms. Taylor encouraged Council to consider the recommendation of Staff.
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                                                                                    Chandler City Council
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                                                                                                 Page 31



JAMES LOWE, 1404 W. Palomino Dr, Chandler, said that when his family was in a crisis
situation, there was no place for the family to go to stay together. He is a business owner in
Chandler and is an active member of the Chandler Chamber of Commerce. The business
community strongly supports this type of community involvement.

NANCY MARION, Executive Director of the House of Refuge East, located at the former Williams
Air Force Base, spoke about the importance of transitional housing. Shelters are important for
immediate crisis care for a short period of time whereas transitional housing can be used for up to
24 months. She thanked Council and Vice-Mayor Westbrooks for their continuing efforts in
working on this issue.

MAYOR DUNN expressed appreciation to Staff for thinking regionally. He commented that while
he has practiced as an attorney in the area of family law and as a judge in the Superior Court, he
knows what a challenge it is trying to find shelter space for a family. Emergency shelter space is
a key and there is a time when that needs to occur to provide not only safety to the individuals
involved, but to be able to go on with other legal issues.

VICE-MAYOR WESTBROOKS asked Staff how many domestic violence calls the City of
Chandler responds to on a yearly basis. Police Chief KIYLER responded that for the last two
years, there have been approximately 2,100 calls but noted that approximately half are “contact”
calls.


SPECIAL ORDERS OF THE DAY

A.     Mayor's Announcements:

MAYOR DUNN announced that the City’s bond rating from Moody’s has been upgraded from
AA1 to AA2, which is one step away from AAA.

MAYOR DUNN recapped the State of the City Address stating the concentration will continue on
neighborhoods, build-out, amenities and budget.

MAYOR DUNN announced that the Fulton Ranch groundbreaking would be held Friday, February
25th. This will be one of the larger neighborhoods in south Chandler and the last master planned
community in Chandler.

MAYOR DUNN announced that a new interpretive history kiosk would be unveiled on March 5th
at N. J. Harris Park at Colorado and Elgin Streets at 10 a.m.

THE MAYOR announced the Household Hazardous Waste Collection Event to be held March 5th
from 8 a.m. to 2 p.m. at the City of Chandler Fire Training Center, 3550 S. Dobson Road.

MAYOR DUNN announced the open house at the Chandler Airport on Saturday, February 26th,
10 a.m. to noon.

B.     Councilmembers' Announcements:

COUNCILMEMBER ORLANDO commented on a letter his son had received from Darren Dugan
who recently joined the military. Police Officer Paul Baubou also was called to serve which
Minutes of the Regular Meeting
Chandler City Council
Thursday, February 24, 2005
Page 32


creates a vacancy on the Chandler Police force. Councilmember Orlando reiterated the City’s
policy to ensure families of reservists and guardsmen are taken care of when they are called to
active duty.

COUNCILMEMBER ORLANDO announced that at the Police Banquet the Police Department
presented their Unit of the Year Award to the Fire Department showing how closely each
department works together.

COUNCILMEMBER HUGGINS thanked Staff for their preparation on the Mayor’s State of the
City Address.

MAYOR DUNN thanked Linda Hedstrom and Staff for their work in preparing for the Mayor’s
State of the City Address.

C.       City Manager's Announcement:

There were no City Manager announcements at this time.


Adjournment: The meeting was adjourned at approximately 11:38 p.m.



ATTEST: __________________________                ______________________________
            City Clerk                                 MAYOR


Approved: _________________________




                                    CERTIFICATION

I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the
regular meeting of the City Council of Chandler, Arizona, held on the 24th day of February
2005. I further certify that the meeting was duly called and held and that a quorum was present.



DATED this __________ day of _____________, 2005.


                                                        __________________________
                                                         City Clerk
MINUTES OF THE REGULAR MEETING OF THE HONORABLE MAYOR AND CITY COUNCIL
OF THE CITY OF CHANDLER, ARIZONA, held in the Council Chambers in the Chandler Library,
22 S. Delaware, on Thursday, March 10, 2005 at 7:00 p.m.

THE MEETING WAS CALLED TO ORDER BY MAYOR BOYD DUNN.

The following members answered roll call:   Boyd W. Dunn         Mayor
                                            Phillip Westbrooks   Vice Mayor
                                            Bob Caccamo          Councilmember
                                            Lowell Huggins       Councilmember
                                            Matt Orlando         Councilmember
                                            Martin Sepulveda     Councilmember
                                            Donna Wallace        Councilmember


Also in attendance:   W. Mark Pentz         City Manager
                      Pat McDermott         Assistant City Manager
                      Rich Dlugas           Assistant City Manager
                      Dennis O’Neill        City Attorney
                      Marla Paddock         City Clerk

Staff present: Nachie Marquez, Mark Eynatten, Patricia Walker, Dave Siegel, Glen Van
Nimwegen, Cmdr. Gaylord, Bryan Patterson

INVOCATION: The invocation was given by Pastor Jose Doñan – Trinity Christian Fellowship

PLEDGE OF ALLEGIANCE: Councilmember Sepulveda led the Pledge of Allegiance.

SCHEDULED PUBLIC APPEARANCES:

1.     Proclamation – Cesar Chavez Day of Sacrifice for Others

MAYOR DUNN was joined by GREG RODRIGUEZ, Board Member of Si Se Puede, as he read a
proclamation proclaiming March 31, 2005 as Cesar Chavez Day of Sacrifice for Others. Mr.
Rodriguez thanked the Council for their support and announced that the 5th Annual Cesar Chavez
Dinner will be held March 25th at the San Marcos Hotel.

2.     Special Recognition – Veronica Shi

MAYOR DUNN announced that VERONICA SHI, member of the Mayor’s Youth Commission,
recently won first place in the piano competition and the Grand Prize in the Phoenix Symphony
Guild’s Young Musician Competition. Veronica was also given the opportunity to perform with the
Phoenix Symphony.

3.     Presentation – Arizona Department of Commerce & Orbital

MAYOR DUNN was joined by GREG WEINER, Aerospace and Defense Business Development
Manager with the Arizona Department of Commerce. Mr. Weiner, on behalf of Governor
Napolitano and Commerce Department Director Gilbert Jimenez, presented a “ceremonial check”
in the amount of $322,000.00 for the training of new and current employees for the expansion of
Minutes of the Regular Meeting
Chandler City Council
Thursday, March 10, 2005
Page 2


Orbital Sciences Corporation. Accepting on behalf of Orbital Sciences was JIM UTTER who
thanked the State of Arizona for their support.

4.       Dave Barresi – Homey’s Tattoo Parlor

DAVE BARRESI, 911 E. Gary Drive, Chandler, spoke about fliers that were distributed at
Chandler High School offering discounts for students at Homey’s Tattoo Parlor. He said does not
feel it is appropriate to solicit business on school property and to underage kids. He and the
Assistant Principal went to the business and told the owner that he could not solicit business on
high school property. The owner said he was not aware that he could not distribute fliers on the
school campus and would stop. Mr. Barresi did further checking on the owner and discovered
that he was forced to close a business in Phoenix because he was suspected of selling drugs to
customers. He spoke with the owner of Hot Rod’s Tattoos who said there were no governing
guidelines for tattoo parlors other than a certificate of business. It is up to the establishment to
police their own business. OSHA classes are offered on safety and health aspects of operating a
tattoo parlor. Mr. Barresi asked if something could be done to insure the safety and health of
students?

MAYOR DUNN asked the City Attorney to contact Mr. Barresi and let him know if there are any
City or State regulations governing tattoo parlors. MAYOR DUNN also asked the City Manager to
contact the school district regarding distribution of fliers on school campuses. City Manager
MARK PENTZ stated that the Police Department has followed-up on the complaint.

COUNCILMEMER SEPULVEDA also suggested checking to see if the owner of Homey’s has a
valid business license to operate in Chandler.

5.       Tony DiBonito – Women Supremacy

TONY DIBONITO spoke about the supremacy of women.

UNSCHEDULED PUBLIC APPEARANCES:

There were no unscheduled public appearances.

CONSENT:

MAYOR DUNN announced that bids had been received today for the sale of bonds. Due to the
City’s current bond ratings, a savings of approximately $500,000.00 in interest would be realized
for the life of the bonds bringing the total savings by the City to approximately $5.5 million.

COUNCILMEMBERS’ HUGGINS, WALLACE AND CACCAMO commented that they were
excited to see the upcoming improvements at the Alma School and Ray corridor and thanked Mr.
Pollack for encouraging various business owners to become involved.

MOVED BY COUNCILMEMBER ORLANDO, SECONDED BY COUNCILMEMBER WALLACE, to
approve the Consent Agenda as presented. Motion carried unanimously 7-0.

1.       MINUTES:

APPROVED, as presented, minutes of the Council Special and Regular meetings of February 24,
2005.
                                                                           Minutes of the Regular Meeting
                                                                                    Chandler City Council
                                                                               Thursday, March 10, 2005
                                                                                                  Page 3



2.     PROPERTY VACATION: Alamosa Drive                                                  Ord. #3603

ADOPTED Ordinance No. 3603 vacating a portion of Alamosa Drive east of Jesse Street
containing approximately 0.2258 acres, extinguishing an adjacent 8-foot wide public utility
easement containing approximately 0.065 acres, and extinguishing a 5-foot wide roadway
easement along the north centerline of Alamosa Drive east of Jesse Street containing
approximately 0.0395 acres.

3.     IRRIGATION EASEMENT: Salt River Project                                           Ord. #3655

ADOPTED Ordinance No. 3655 granting a no-cost 16-foot wide non-exclusive irrigation
easement to Salt River Project in the easterly right of way of McQueen Road south of Ray Road.

4.     IRRIGATION EASEMENT: Salt River Project                                           Ord. #3658

ADOPTED Ordinance No. 3658 granting a no-cost 16-foot wide non-exclusive irrigation
easement to Salt River Project in the north right-of-way to Warner Road west of Arizona Avenue.

5.     REZONING: Bank One at Kyrene Crossings                                            Ord. #3661

ADOPTED Ordinance No. 3661, DVR04-0047, Bank One at Kyrene Crossings, rezoning from
PAD amended to allow for a drive through use for a freestanding bank facility on approximately
1.2 acres at 5915 W. Chandler Boulevard.

6.     GRANT APPLICATION: Gila River Indian Community                                    Res. #3824

ADOPTED Resolution No. 3824 authorizing a grant application for an educational program
promoting xeriscape to the Gila River Indian Community’s state-share revenue program, for the
amount of $42,500.00.

The Water Conservation Offices of the cities and towns of Avondale, Gilbert, Glendale,
Goodyear, Mesa, Peoria, Phoenix, Queen Creek, Scottsdale and Tempe have expressed interest
in collaborating with Chandler in the development of an interactive CD. The CD will contain a
searchable plant database with a large number or xeriscape landscape examples. The
completed CD will be distributed to residents through workshops, home audits and at special
events. The requested funding will cover the cost of developing the CD plus a supply for each
participating entity. The total cost of developing the CD and providing each collaborating city or
town with a supply of 500 CD’s is estimated at $42,500.00. All costs associated with this project
will be covered by grant funds from the Gila River Indian Community State-Shared Revenue
Program.

7.     GENERAL OBLIGATION BONDS                                                          Res. #3825

ADOPTED Resolution No. 3825 authorizing the issuance and sale of $24,800,000.00 General
Obligation Bonds, Series 2005, and declaring an emergency. The bond proceeds will be used for
parks, storm drainage construction and street improvements.

8.     WATER AND SEWER REVENUE BONDS                                                     Res. #3826
Minutes of the Regular Meeting
Chandler City Council
Thursday, March 10, 2005
Page 4


ADOPTED Resolution No. 3826 authorizing the issuance and sale of $10,000,000.00 Water and
Sewer Revenue bonds, Series 2005, and declaring an emergency. The proceeds will be used for
projects 2004-2009 Capital Improvement Program projects.

9.        AMENDMENT TO ENCROACHMENT PERMIT: El Paso Natural Gas                          Res. #3828

ADOPTED Resolution No. 3828 authorizing a first amendment adding an indemnity clause to the
encroachment permit for the use of public property by El Paso Natural Gas Company.

The City Council approved an encroachment permit and use agreement for public property for El
Paso Natural Gas Company on August 29, 2003. It has been discovered that sometime during
the final preparation of this document, Section 7.4, which includes the language related to liability,
was inadvertently deleted through a clerical error. The language had been in the document from
the time of the first draft agreement and had remained there up to the point of its final preparation
and had not been a point of contention between the company and City.

10.       COMMERCIAL REINVESTMENT PROGRAM AGREEMENT: 940 N. Alma School Res.
          #3829

ADOPTED Resolution No. 3829 authorizing an Agreement with Max Taylor and Company II, to
provide Commercial Reinvestment Program funding for improvements to the building and
property at 940 N. Alma School Road, in the amount not to exceed $113,662.00.

The proposed improvements to the building and property are compatible with the intent of the
Commercial Reinvestment Program. The project will dramatically change the appearance of the
property, help retain existing tenants and encourage reinvestment in surrounding properties.

The basic terms of the Agreement are:

      •   Max Taylor and Company II Limited Partnership will invest approximately $232,000.00 in
          the renovation of the building including the following façade, landscape and signage
          improvement:
             1. Complete renovation of the façade.
             2. Improved landscaping to include new trees, shrubs, ground covers, hedge along
                 Ray Road and landscaped diamond and island planters in the parking lot.
             3. Existing tenant cabinet sign will be replaced with pan channel signs.

The project represents a significant impact in terms of redevelopment on the north Alma School
Road commercial corridor. The City’s investment in the renovation of 940 N. Alma School Road
as a percentage of estimated project costs is 40%.

11.       COMMERCIAL REINVESTMENT PROGRAM AGREEMENT: 910 N. Alma School Res.
          #3830

ADOPTED Resolution No. 3830 authorizing an Agreement with Jeong & Soon Gay Low Trust to
provide Commercial Reinvestment Program funding for improvements to the building and
property at 910 N. Alma School Road (shops between Goodwill and former Osco Buildings), in
the amount not to exceed $63,840.00.
                                                                          Minutes of the Regular Meeting
                                                                                   Chandler City Council
                                                                              Thursday, March 10, 2005
                                                                                                 Page 5


The proposed improvements to the building and property are compatible with the intent of the
Commercial Reinvestment Program. The project will dramatically change the appearance of the
property, help retain existing tenants and encourage reinvestment in surrounding properties.

Basic terms of the agreement are:

      •   The Jeong & Soon Gay Low Trust will invest approximately $130,000.00 in the renovation
          of the building including the following façade, landscape and signage improvement:
              1. Complete renovation of the façade.
              2. Improved landscaping to include new trees, shrubs, ground covers, hedge along
                  Alma School Road and landscaped diamond and island planters in the parking lot.
              3. Existing tenant cabinet sign will be replaced with pan channel signs.

The project represents a significant impact in terms of redevelopment on the north Alma School
Road commercial corridor. The City’s investment in the renovation of 910 N. Alma School Road
as a percentage of estimated project costs is 49%.

12.       COMMERCIAL REINVESTMENT PROGRAM AGREEMENT: 930 N. Alma School Res.
          #3831

ADOPTED Resolution No. 3831 authorizing an Agreement with Alma MPCP, L.L.C. to provide
Commercial Reinvestment Program funding for improvements to the building and property at 930
N. Alma School Road in the amount not to exceed $111, 038.00.

The proposed improvements to the building and property are compatible with the intent of the
Commercial Reinvestment Program. The project will dramatically change the appearance of the
property, help retain existing tenants and encourage reinvestment in surrounding properties.

Basic terms of the agreement are:

      •   Alma MPCP, LLC will invest approximately $230,000.00 in the renovation of the building
          including the following façade, landscape and signage improvement:
              1. Complete renovation of the façade.
              2. Improved landscaping to include new trees, shrubs, ground covers, hedge along
                  Ray Road and landscaped diamond and island planters in the parking lot.
              3. Install monument sign along Alma School Road.

The project represents a significant impact in terms of redevelopment on the north Alma School
Road commercial corridor. The City’s investment in the renovation of 910 N. Alma School Road
as a percentage of estimated project costs is 48%.


13.       COMMERCIAL REINVESTMENT PROGRAM FUNDING: 908 N. Alma School                            Res.
          #3832

ADOPTED Resolution No. 3832 authorizing an Agreement with Howard H. Stone, Trustee of
Howard H. Stone Revocable Trust, to provide Commercial Reinvestment Program funding for
improvements to the building and property at 908 N. Alma School Road in the amount not to
exceed $105,830.00.
Minutes of the Regular Meeting
Chandler City Council
Thursday, March 10, 2005
Page 6


The proposed improvements to the building and property are compatible with the intent of the
Commercial Reinvestment Program. The project will dramatically change the appearance of the
property, help retain existing tenants and encourage reinvestment in surrounding properties.

Basic terms of the agreement are:

      •   Howard H. Stone, Trustee of Howard H. Stone Revocable Trust will invest approximately
          $219,000.00 in the renovation of the building including the following façade, landscape
          and signage improvement:
             1. Complete renovation of the façade.
             2. Improved landscaping to include new trees, shrubs, ground covers, hedge along
                 Alma School Road and landscaped diamond and island planters in the parking lot.

The project represents a significant impact in terms of redevelopment on the north Alma School
Road commercial corridor. The City’s investment in the renovation of 908 N. Alma School Road
as a percentage of estimated project costs is 48%.


14.       PRELIMINARY DEVELOPMENT PLAN: Offices at Kyrene Crossings

APPROVED a Preliminary Development Plan, PDP04-0027, Offices at Kyrene Crossings,
amendment for office and retail buildings located on a 3.7-acre site within the Kyrene Crossings
commercial center on approximately 3.7 acres at the SEC of Kyrene Road and Chandler
Boulevard. (Applicant: Lamb Architects.)

The subject site is bounded on the south and east by the Sorrento single-family residential
subdivision. Kyrene Village shopping center is located to the west. There is a commercial center
at the northwest corner of the intersection. A McDonald’s restaurant and Hawthorn Suites hotel is
located to the north across Chandler Boulevard. This site (Lot 7) is a vacant parcel located at the
southeast portion of the commercial center and is bordered by existing single-family residential
development to the south and east. It is currently improved with parking and perimeter
landscaping.

This application proposes to revise the PDP to allow for six buildings instead of the four buildings
represented in the current approved site plan. The current plan has four single-story buildings
arranged in a semi-circular fashion with a central parking lot along with parking and a landscape
buffer around the site perimeter. The revised scheme proposes seven smaller buildings arranged
in a similar configuration.

Buffering between the site and the adjacent residential neighborhood maintained by an existing
dissimilar use landscape buffer consisting of substantial sized pine trees. The proposed buildings
are consistent with the other approved buildings at Kyrene Crossing.

A neighborhood meeting was held on January 12, 2005 with five residents from the adjacent
Sorrento residential neighborhood in attendance and in support of the application. Staff has not
received any telephone calls from adjacent property owners in regards to this proposal.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to the following conditions:
                                                                              Minutes of the Regular Meeting
                                                                                       Chandler City Council
                                                                                  Thursday, March 10, 2005
                                                                                                     Page 7


      1.     Development shall be in substantial conformance with the Development Booklet
             entitled “Office and Retail at Kyrene Crossings” kept on file in the City of Chandler
             Current Planning Division, in file number PDP04-0027, except as modified by
             condition herein.
      2.     Compliance with original stipulations adopted by the City Council as Ordinance No.
             3306, in case DVR04-0017 Kyrene Crossings, except as modified by conditions
             herein.
      3.     The perimeter walkway along the planned buildings’ north side shall be constructed
             during the first construction phase.
      4.     The individual site amenity features shall be constructed upon completion of the
             adjacent buildings around a given feature.
      5.     The applicant shall work with Staff to provide specialty building light fixtures to match
             the adjacent Bank One Building.
      6.     Safe pedestrian access and sidewalks shall be provided to the site from Chandler
             Boulevard and Kyrene Road.

15.        INTERGOVERNMENTAL AGREEMENT: State of Arizona Emergency Management

APPROVED an Intergovernmental Agreement with the State of Arizona, Division of Emergency
Management related to the U.S. Department of Homeland Security Fiscal Year 2004 State
Homeland Security Program.

The FY 2004 State Homeland Security Program (SHSP) provides funds to enhance the capability
of State and local units of government to prevent, deter, respond to, and recover from incidents of
terrorism involving the use of chemical, biological, radiological, nuclear, and explosive weapons
and cyber attacks. The City of Chandler has already received FY 2002 and FY 2003 funding
under this program. Chandler has been awarded $111,600.00 in FY 2004 SHSP funds to support
the City’s Rapid Response Team, which is being established with funding awarded under the
Urban Area Security Initiative program. $21,600.00 has been awarded for personnel protective
equipment for members of the Rapid Response Team and $90,000.00 has been awarded to
provide additional response equipment for the RRT.

16.        UPDATED FORM AGREEMENTS: Reclaimed Water Use

AUTHORIZED the use of the updated form agreements for reclaimed water use and
AUTHORIZED the Municipal Utilities Director or designee to sign the individual agreements.

The City of Chandler developed a reclaimed water distribution system which allows customers to
receive reclaimed water for various uses including irrigation, dust control, and filling decorative
lakes. Due to a change in the regulations in 2001, the City has decided to require that reclaimed
water end users obtain individual permits.

The proposed agreements update previously approved agreements for the sale of reclaimed
water. The revised form agreements are the mechanism to ensure reclaimed water customers
follow the provisions outlined in Chapter 53 of the Chandler City Code.


These agreements also reflect the new user permit requirements, the change in applicable
regulation and the creation of the Municipal Utilities Department.
Minutes of the Regular Meeting
Chandler City Council
Thursday, March 10, 2005
Page 8


17.      PAYMENT: Arizona Blue Stake

APPROVED payment in an amount not to exceed $39,200.00, to be billed in monthly increments
of approximately $3,267.00, to Arizona Blue Stake for underground utility marking.

The Arizona Blue Stake Center was established as a one-call notification system by underground
utilities to assist contractors with the statutory requirements to notify underground utilities prior to
excavation. This service enables the City to comply with State law, prevent costly damages and
interruptions of utilities, avoid hazards and eliminate costly construction delays.

18.      BOARD / COMMISSION APPOINTMENTS

APPROVED the following board/commission appointments:

Chandler Cultural Foundation Management Board: Ernie Serrano, Steve Haase, Jerry Brooks
Human Relations Commission: Michael Mandell
Mayor’s Committee for People with Disabilities: Raquel Leyva
Mayor’s Youth Commission: Brynn Douglas (alt.), Chaunci Toney (alt.), Juilian Hardy (alt.).
Neighborhood Advisory Committee: Tony Horn

19.      SUBORDINATION: 700 North Colorado Street (Bond)

SUBORDINATED the Housing Rehabilitation lien on Project No. 98-8-3 at 700 North Colorado
Street (Bond).

The single family, owner-occupied home was rehabilitated under the City of Chandler’s Housing
Rehabilitation Program in 1999. The City has placed a lien against the property for $16,419.00 in
the form of a 10-year repayable loan whereby the owner repays 25% of the total and the balance
is forgiven at the end of the term of the loan. The owners’ balance is currently at $14,003.09 and
the forgivable amount is $12,314.25.

The owners have applied for a loan to refinance their current first mortgage in order to reduce
their monthly payments. There will be no cash out to the owners. The approximate total amount
of the new loan would be $70,000.00. In order to obtain the loan, a subordination of the City’s
lien is required by the lending institution.

The City’s lien is currently in second position and would remain in second position after the new
loan. The property is currently valued at approximately $125,000.00, which is more than the
combined encumbrances of the City’s lien and the new first mortgage.

20.      PROJECT AGREEMENT: Engineering and Environmental Consultants, Inc.

APPROVED Project Agreement #WW0502-201 to Engineering and Environmental Consultants,
Inc. for the design of a 24-inch diameter reclaimed water transmission main on Queen Creek
Road from Alma School Road to McQueen Road in an amount not to exceed $164,930.00.

The City’s Reclaimed Water Master Plan identifies a need to use effluent from the City’s
wastewater treatment facilities for irrigation of turf and landscaped areas constructed by
developers. The Master Plan recommends the installation of transmission mains at regular
intervals to deliver reclaimed water to developments in the southeast portion of the City.
                                                                            Minutes of the Regular Meeting
                                                                                     Chandler City Council
                                                                                Thursday, March 10, 2005
                                                                                                   Page 9


21.    CONSTRUCTION CONTRACT: Turner Construction Corporation

APPROVED a Construction Contract, #PD0203-401, for the Construction Manager at Risk project
to Turner Construction Corporation for the Desert Breeze Community Facilities complex at 211
and 251 N. Desert Breeze Parkway in an amount not to exceed $8,200,000.00.
APPROVED a Contingency transfer in the amount of $1,904,027.00 from the general funds
reserve and bond reserve to provide full funding for the Desert Breeze Community Facilities
Complex.

The Community Facilities Complex project consists of a police substation, fire station and a five-
acre expansion to Desert Breeze Park including completion of the east half of Desert Breeze
Boulevard west from Chandler Boulevard north almost to the Park entrance, the addition of a
westbound deceleration lane on Chandler Boulevard and traffic signal improvements at the
intersection.

The design for this project was completed in 2004. Turner Construction prepared a Guaranteed
Maximum Price (GMP) based on these plans. The GMP estimate was $8,081,000.00, which was
in excess of the City’s budget of $6,400,000.00. As a result of this increase, Staff completed an
analysis of the GMP and retained Hanscomb, Faithful and Gould to complete an independent
cost estimate. The independent estimate and staff’s review concluded that the increase in
materials and labor costs the construction market has experienced has affected this project.
Since the August GMP, the construction costs have continued to rise by 6.5% increasing the
GMP to $8,608,624.00.

Due to the increase in project costs, Staff met with the designer and contractor and identified
$580,128.00 in value engineering savings. The incorporation of these changes has incurred
minor re-design and pre-construction amendments, but has allowed the project to progress
forward for an early 2006 construction completion date absorbing some of the construction
inflation costs.

22.    CONTRACT EXTENSION: Aquatic Consulting & Testing, Inc.

APPROVED a one-year Contract Extension with Aquatic Consulting & Testing, Inc. for the control
of midge flies at the reverse osmosis brine evaporation ponds in an amount not to exceed
$63,000.00. A provision is included in the contract to monitor and test mosquitoes for the West
Nile virus if necessary.

23.    CONTRACT EXTENSION: Mountain State Pipe and Supply

APPROVED a one-year Contact Extension with Mountain States Pipe and Supply for meter box
lids in an amount not to exceed $55,000.00. The contract was awarded in March 2001 with
provisions to extend for up to four additional one-year periods. This is the final extension and the
contractor has agreed to renew with no price increase.

24.    CONTRACT: The Groundskeeper

APPROVED a Contract to The Groundskeeper for landscape maintenance at the Price Freeway
frontage road and various City facilities including downtown areas, airport terminal area, city
yards at Chicago Street and McQueen Road and the Police impounding facility in an amount not
to exceed $57,204.00. This contract includes weekly trash pickup, weed control, irrigation repair,
mowing and pruning/trimming as required.
Minutes of the Regular Meeting
Chandler City Council
Thursday, March 10, 2005
Page 10



25.        USE PERMIT: Peter Piper Pizza

APPROVED a Use Permit, UP05-0007, Peter Piper Pizza, Series 12, for the sale of liquor at a
restaurant located at 2965 s. Alma School Road. (Applicant: Peter Piper, Inc. (Applicant: Amy
Warren.)

The restaurant is currently under construction as a part of the Las Tiendas Village Shopping
Center on the northeast corner of Alma School Road and Queen Creek Road. The applicant
wishes to serve beer for on-site consumption only and will not have outdoor dining.

This request was noticed in accordance with the requirements of the Chandler Zoning Code. The
Police Department has been informed of the application and has responded with no issues or
concerns. Staff has received no telephone calls or letters from residents opposed to this Use
Permit.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval of the Use Permits subject to the following conditions:

      1.      The Use Permit is for a Series 12 license only and any change in type of license shall
              require reapplication and new Use Permit approval.
      2.      Expansion beyond the approved Floor Plan shall void the Use Permit and require new
              Use Permit application and approval.
      3.      Any substantial change in the floor plan to include such items as, but not limited to,
              additional bar service area or the addition of entertainment related uses shall require
              reapplication of the Use Permit.
      4.      The Use Permit is non-transferable to any other store location.

26.        LIQUOR LICENSE: Peter Piper Pizza

APPROVED a Series 12 Restaurant Liquor License (Chandler #300000708) for Bradley Michael
Sikes, Agent, Peter Piper Pizza, Inc., dba Peter Piper Pizza #237 at 2965 S. Alma School Road.
A recommendation for approval of State Liquor License #12076140 will be forwarded to the State
Liquor Department. The Police Department reports no objections to the issuance of this license
and no written protests have been received. All licenses, permits and fees have been paid and
the applicant is in compliance with the City’s Tax Code.

27.        LIQUOR LICENSE: Pacific Seafood Buffet

APPROVED a Series 12 Restaurant Liquor License (Chandler #300000706) for Qi He Chen,
Agent, L and Z Enterprises, Inc., dba Pacific Seafood Buffet at 3110 N. Arizona Avenue. A
recommendation for approval of State Liquor License #12076143 will be forwarded to the State
Liquor Department. The Police Department reports no objections to the issuance of this license
and no written protests have been received. All licenses, permits and fees have been paid and
the applicant is in compliance with the City’s Tax Code.

28.        SPECIAL EVENT LIQUOR LICENSE: St. John Bosco Interparish School

APPROVED a Special Event Liquor License for St. John Bosco Interparish School for a 19th Hole
Dinner and Casino Night fundraiser on April 16, 2005, at Seton High School, 1150 N. Dobson
Road. The Police Department reports no objections to the issuance of this license. As this
                                                                         Minutes of the Regular Meeting
                                                                                  Chandler City Council
                                                                             Thursday, March 10, 2005
                                                                                               Page 11


application is a non-profit organization, no sales tax license is required; however, the special
event liquor fee has been paid.

29.    TEMPORARY EXTENSION OF PREMISES: The American Legion

APPROVED a Temporary Extension of Premises for a Series 14 Liquor License (Chandler
#300000090) held by the American Legion, Post 35, at 2240 W. Chandler Boulevard for a District
Picnic on March 13, 2005. The extension is for 1:00 p.m. until 6:00 p.m. Recommendation for
approval of temporary extension of premises for State Liquor License #14070023 will be
forwarded to the State Liquor Department. The Police Department has no objections to the
extension and this business is in compliance with the City Tax Code.

30.    PRELIMINARY PLAT: Chandler 202 Auto Park

APPROVED a Preliminary Plat, PPT04-0040, Chandler 202 Auto Park, for a 100-acre automobile
dealership complex development for property at the NWC of Gilbert Road and the future Santan
Freeway (Loop 202). (Applicant: Mike Withey, Withey Anderson and Morris, PLC.) The plat
creates the lots and tracts, construction phasing lines, establishes the necessary easements and
dedicates the required rights-of-way.

31.    FINAL PLAT: Chandler 202 Auto Park

APPROVED a Final Plat, FPT05-0003, Chandler 202 Auto Park, for a 100-acre automobile
dealership development at the NWC of Gilbert Road and the future Santan Freeway (Loop 202).
(Applicant: Mike B. Withey, Withey Anderson and Morris, PLC.) The plat creates the lots and
tracts, construction phasing lines, establishes the necessary easements and dedicates the
required rights-of-way.

32.    CITY MANAGER CONTRACT:           Mark Pentz

APPROVED the annual contract for the City Manager in the amount of $163,280.


ACTION AGENDA:

None

BRIEFING:

1.     Chandler Boulevard and Arizona Avenue Intersection Design.

Assistant Public Works Director DAN COOK reported the project is approximately 95% designed.
Several stakeholder and public meetings were held over the past year and negotiations are being
conducted on right-of-way acquisitions. The project is funded in the current capital improvement
program for FY 04/05 and, because the design is near completion, Staff chose to do the project
as an alternative delivery project and use the construction manager at risk process. F & F
Construction has been selected as the contractor and is currently reviewing the plans and
compiling their guaranteed maximum price.

Construction is scheduled to begin in the spring of 2005 and be completed at the end of this
calendar year. This schedule was coordinated with the stakeholders group as well as Chandler
Minutes of the Regular Meeting
Chandler City Council
Thursday, March 10, 2005
Page 12


High School for right-of-way acquisitions on school property. Another key factor is the
intersection of California Street where there will be a main entrance to the student parking lot.

He commented that the stakeholders requested the City explore several issues including
enhanced landscaping improvements over what was proposed. Another issue to be reviewed
was shortening the crosswalks. Staff has reviewed the revised the design and by moving them
away from the corner this shortened the crosswalks by approximately 10 feet.

Another stakeholder issue was having wider medians. The design at the time of the meeting had
2 foot-wide medians. Staff proposed 4, 6 or 10-foot medians. Six feet is the minimum needed to
plant trees. Staff also reviewed a slightly wider 10-foot median to allow a better pedestrian refuge
area in the middle of the crosswalk area.

Stakeholders suggested limiting the number of lanes on Chandler Boulevard and Arizona Avenue
by eliminating the bus rapid transit queue jumper lane, which is a combination bike/bus rapid
transit lane. This lane allows the transit vehicle to get to the front of the traffic queue to get a
head start which improves route efficiency. Eliminating the 5th and 6th lanes on Chandler
Boulevard was also suggested.

In reviewing the stakeholder suggestions, Staff looked at several alternatives to address their
issues and to have minimal impact on the current status of the project. Three main questions that
needed to be addressed were 1) 4 or 6 lanes, 2) 6 foot or 10-foot wide medians and 3) allowance
of queue jumper lanes.

MAYOR DUNN commented that this would be the first intersection in Chandler to incorporate
queue jumper lanes and asked if that would be a component in future street designs throughout
the City with the construction of the rapid transit system. MR. COOK responded that it would.
The intersection of Arizona Avenue and Warner Road, currently under construction, does have
queue jumpers on Arizona Avenue. The designs for the intersections of Arizona Avenue at Elliot
and Ray also include queue jumper lanes. These lanes will be used by existing local bus service
until the rapid transit system is on-line. It also serves as a bike-line giving the cyclists a 10-foot
wide area to proceed through the intersection rather than 4 or 5 feet. The lane would never be
intended for general traffic use.

MR. COOK reviewed the current alternatives established by Staff as a result of meetings with the
stakeholders:

    1)        As currently designed
    2)        As designed with 6’ median with date palms
    3)        As designed with 10’ median, bike lanes and no bus rapid transit lanes
    4)        As exists with 10’ median, bike lanes, right turn lanes and bus bays. This type of
              improvement would not be eligible for rapid transit funding that was included in the
              regional plan for this intersection. The funding is specifically for capacity and safety
              improvements, which this alternative does not provide.

MR. COOK displayed drawings depicting the design of the intersection under each alternative.

MAYOR DUNN commented that there would be a bus stop on all four corners of Arizona Avenue
and Chandler Boulevard, which would be a significant benefit for the downtown area. MR. COOK
said that the Regional Transportation Plan has funded enhanced local service and bus rapid
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                                                                                     Chandler City Council
                                                                                Thursday, March 10, 2005
                                                                                                  Page 13


transit. The City is also considering purchasing the vacant lot on the northeast of Arizona Avenue
and Chandler Boulevard for a larger waiting station for transit passengers.

MR. COOK continued that one aspect considered under each scenario was the impact the
median width had on the pedestrian crossing. There is approximately a 6-second difference
between the median designs. The pedestrian crossing cycle length is adjustable to allow all
pedestrians adequate time to cross.

The issue of traffic projects was also reviewed in the aspect of six lanes versus four lanes. In
2004, there was an actual traffic count of 36,900 vehicles per day. When the freeway and Pecos
Road opens, there is predicted to be a decrease of approximately 2,100 before steadily
increasing. There are currently ½ mile backups in the morning and evening which is expected to
lengthen without six lanes.

Another request by the stakeholders is enhanced landscaping. MR. COOK presented photos of
various intersections in the valley similar in design. Staff would like to add grass and turf behind
the sidewalk to make the intersection look complete. Adding trees in the median as it widens is
also being considered.

With respect to traffic calming techniques, Staff reviewed several alternatives. Decorative
crosswalks at California Street and Arizona Avenue are to be installed. Another option is for a
radar speed display sign which points to the middle lane and reports approximately every second
on the speed of the vehicle in that lane. These signs are typically designed for single lane roads.

With respect to Arizona Avenue between Boston and Buffalo Streets, a raised crosswalk can be
designed and curb line modifications near Boston Street would reinforce that there are two lanes
in that area. However, these modifications are not being proposed as a part of the current
project.

He recommended the additional landscaping be added including date palms and turf and also
supports a second pedestrian crosswalk at California Street, providing a pedestrian refuge area in
a 6’ median because it lines up with the opposing left turn lanes. Staff is also recommending six
lanes on Chandler Boulevard. Recommendations include consistency with Transportation and
Transit Plans and Council approval, wide crosswalks, count-down timers and pedestrian lights in
the intersection.

COUNCILMEMBER ORLANDO commended Mr. Cook on his presentation. He asked how
alternative number 3 compared to Staff’s recommendation of alternative 2 in terms of land
acquisition. MR. COOK responded that Staff recommends acquiring the full right-of-way to allow
for possible widenings.

VICE-MAYOR WESTBROOKS said that some of the main concerns include safety issues
because of the high pedestrian use from the high school, downtown and the Center for the Arts in
close proximity. Along with safety, is the issue of speed which could be addressed by some of
the traffic calming proposals reviewed by Mr. Cook for future needs. Staff would like to further
evaluate the radar speed display sign. The decorative crosswalks could be installed regardless
of which alternative is chosen. MR. COOK said that traffic lanes have been narrowed from 12’ to
11’ with a 10 ½’ center lane which also serves to slow traffic because there is not the wider feel.
The large palm trees also add a narrowing effect.
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Chandler City Council
Thursday, March 10, 2005
Page 14


In response to a question from Vice-Mayor Westbrooks, MR. COOK said that the current speed
limit on Arizona Avenue and Chandler Boulevard is 40 mph and consideration could be given to
decrease it to 35 mph. During off-peak hours, the traffic signals will be synchronized at the lower
speed to keep traffic slow. VICE-MAYOR WESTBROOKS asked if signs warning drivers they
are entering into a high volume-pedestrian area have been considered. MR. COOK said Staff
has investigated the issue and auxiliary signs are typically not recommended at signalized
intersections.

COUNCILMEMBER SEPULVEDA addressed the safety aspects of the having the queue jumper
lane. With the timing of the light to allow buses move ahead more quickly, drivers could see
someone move and go themselves. MR. COOK said that Staff has not researched the safety
aspects with cities currently utilizing these lanes. In addressing lane width, MR. COOK said that
Chandler would be using the minimum lane width with the center lane being 10 ½’ and the two
outside lanes next to the curbs would be 11’. That is the narrowest that has been used in
Chandler. Normal lane width is 12’.

JIM PATTERSON, 40 S. Fairway Court, Chandler, said that the intersection examples shown by
Mr. Cook do not depict intersections that have the same type of pedestrian usage as that of
Arizona Avenue and Chandler Boulevard. His concern was the large volume of pedestrian traffic
generated from the high school and the Performing Arts Center. The design seems to be
changing and different alternatives are being discussed from meeting to meeting. He gave the
opinion that three lanes in each direction are not needed on Arizona Avenue or Chandler
Boulevard and that the proposed widening was contrary to what is recommended by urban
design specialists. He commented that when the freeway opens, there will potentially be a 20-
30% drop but did not believe it would increase. He supports improvement, but not to this extent
on this intersection.

COUNCILMEMBER ORLANDO asked what the impact would be on traffic by going from three
lanes down to two on Chandler Boulevard? MR. COOK responded that the design of this
intersection is similar to what was done at Elliot and Alma School. There were four lanes away
from the intersection. By widening the intersection, the bottleneck potential was reduced. The
number of lanes away from the intersection is not as critical as being able to get the capacity
through the intersection. Lane drops are designed for eastbound traffic and can be included for
westbound. There will be a southbound lane drop on Arizona Avenue at Buffalo Street and
northbound at Detroit Street allowing approximately 1000 ‘ from the stop-bar to the lane drop to
merge the third lane back in with the other two without significantly slowing traffic.

NIELS KREIPKE, 22 S. Quarty Circle, Chandler, spoke in support of alternate 4, keeping the
existing design with a 10’ median, but would consider option 3. He pointed out the intersection
was almost doubling from its current size and is not conducive to pedestrians traveling to the
downtown area. They would be more likely to park on the north side of Chandler Boulevard, go
to a show and leave. He said regardless of what option was chosen, it was important to slow the
traffic as much as possible while still moving it through the intersection. He would also like to see
an extensive landscape package to create a grand entrance to the downtown.

FRANK PEAKE, 2693 E. Birchwood Place, Chandler, Chair of the Downtown Chandler
Community Partnership Revitalization Committee, and Chair of the Chandler Transportation
Commission and the County Transportation Advisory Board, said the stakeholders would like to
see more of a destination intersection. They believe that traffic will go north to Ray Road or south
to the Pecos and the Santan with all of those intersections planned for improvements. Expansion
of the current intersection is contrary to the revitalization of the downtown as proposed. The
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                                                                                      Chandler City Council
                                                                                 Thursday, March 10, 2005
                                                                                                   Page 15


expansion of other intersections and additional freeway improvements will alleviate congestion.
Mr. Peake thanked the Mayor and Council on behalf of the downtown stakeholders and City Staff
for their efforts to work towards an amiable compromise throughout the process. The Downtown
Community Partnership could support alternate #3. While they do support transit and increased
use of transit throughout the City, they feel that the queue jumper lanes do not support a
“pedestrian friendly” intersection. Other issues in support of the recommendation that may need
to be addressed, include concerns with removal of parking along Chandler Boulevard, reducing or
eliminating anticipated delays in construction start schedule by including a contract penalty-
benefit clause, selection of traffic signal fixtures to be similar to the period lighting in the
downtown area, continuation of staff communications with the stakeholders and encouraging
speed limit controls.

COUNCILMEMBER WALLACE asked Mr. Peake what recommendation is being made by the
Chandler Transportation Commission? MR. PEAKE said the issue has not come forward for a
recommendation from the Commission.

There was discussion regarding whether or not incentives could be offered to the contractor to
complete the project before the scheduled completion date. City Attorney DENNIS O’NEILL said
that with the new alternate contracting, the City has moved away from the penalty-bonus clause,
but he would investigate incorporating it into this contract.

MAYOR DUNN asked what is being asked of Council at this time? MARK PENTZ explained that
if there were a consensus among Council on a specific alternative, Staff would proceed. If there
is not a consensus, it will come back at the next meeting for formal direction.

COUNCILMEMBER ORLANDO said that if there is consensus among Council and Staff has clear
direction, we have gained two weeks towards completion.

COUNCILMEMBER SEPULVEDA asked if the time line allows for issuance of a pre-construction
contract? MR. COOK responded that it does.

MAYOR DUNN clarified that Staff prefers a 6’ median. If the median were 10’, there would need
to be a dedicated left-turn signal with no left turns on green. Double lefts have also been
advisable in this type of area. MR. COOK said that with one left-turn lane, the left arrow would
need to be increased in length, but it will also cause more of a backup for left turns. Date palms
will be included in alternatives 2 and 3.

MAYOR DUNN commented that other downtown areas have taken away lanes to lessen the
traffic while providing alternative routes around their downtown for traffic flow. The final issue is
whether or not Council wants to include the bus rapid transit lane.

COUNCILMEMBER ORLANDO said that the two issues are flow of traffic for vehicles and flow of
traffic for pedestrians. He supports alternative 3 because of the wider median, shorter
crosswalks, and bike lanes.

COUNCILEMEMBER CACCAMO asked when the bus rapid transit would be operational? MR.
COOK said that the first rapid transit line is scheduled for 2009 for implementation on Arizona
Avenue and 2015 on Chandler Boulevard. However, in 2006, there will be an increase in existing
service to ½ hour for regular service and 15 minutes for peak hours on Arizona Avenue and 2009
on Chandler Boulevard.
Minutes of the Regular Meeting
Chandler City Council
Thursday, March 10, 2005
Page 16


VICE-MAYOR WESTBROOKS asked how much RPT funding would be available? MR. COOK
said that all intersections were designated at $3,060,000.00 as a fixed number in 2002 subject to
inflated to dollar cost for the year of reimbursement.

MAYOR DUNN expressed his support for alternative 3.

MR. PENTZ clarified that it appeared there was a consensus for alternative 3.

VICE-MAYOR WESTBROOKS asked if this would be coming back as an action item at the next
Council meeting? MR. PENTZ said that the contract for the actual work would come back, but not
the discussion on the alternatives. MR. COOK said Staff will come back with a change order to
the design contract, pre-construction services contract for F & F and the first phase of the GMP
with F&F Construction all geared toward alternative 3.

ERNIE SERRANO, 599 W. Toledo, Chandler, thanked Staff for working with the stakeholders to
reach a compromise. He is concerned with going to 3 lanes westbound on Chandler Boulevard.
He asked about accommodations for the parking that will be lost for those residences remaining
along Chandler Boulevard. He expressed concern that some of the businesses in the area
received only initial contact and have not been contacted again.

MR. COOK said that the current plan going westbound on Chandler Boulevard is to have three
lanes until it ties into the existing 3-lane section. It could be reduced to 2 lanes at approximately
Nebraska or California and leave the on-street parking. Staff has talked to all property owners
along Chandler Boulevard with on-street parking. There are two properties with which the City
has not come to agreement.

MAYOR DUNN stated that it is important to keep the citizen stakeholders group involved in the
entire process to offer input.

COUNCILMEMBER WALLACE thanked the business stakeholders and Staff for their work in
coming to an agreeable solution for everyone.

JIM PATTERSON added the suggestion that the traffic signal needs to have a unique design to
tie-in with the downtown theme. MR. COOK said that the plan is for the same type of signal
currently at Boston and Buffalo Streets with the exception of darker green paint.


SPECIAL ORDERS OF THE DAY

A.       Mayor's Announcements:

MAYOR DUNN announced that he participated in the Mayor’s Fun Run along with approximately
100 other participants.

THE MAYOR announced the following upcoming activities:

     •   17th Annual Ostrich Festival would be held over the weekend along with the Ostrich
         Parade on Saturday, at 10:00 a.m. in downtown Chandler. Council would serve as Grand
         Marshalls.
     •   Hamilton Aquatic Center would be open during spring break from Saturday, March 12,
         through Saturday, March 26th.
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                                                                                   Chandler City Council
                                                                              Thursday, March 10, 2005
                                                                                                Page 17


     •   Annual Family Easter Celebration on Saturday, March 19th, at 9:00 a.m. at Snedigar
         Sportsplex in south Chandler
     •   Fire Department Awards Dinner to be held in the upcoming week

MAYOR DUNN announced that the Police Volunteer Appreciation Dinner was recently held as
well as the Senior Expo. The Senior Expo boasted 70 booths with more than 500 attendees.

THE MAYOR announced that Gabriel Martin was named the Compadre Branch Youth of the Year
at the Boys and Girls Club Youth of the Year Dinner.

B.       Councilmembers' Announcements:

COUNCILMEMBER CACCAMO announced that the Classic Car Show would be held in
downtown Chandler this Sunday. In addition there is a Relay for Life fundraiser car show at Joe’s
Crab Shack with proceeds going to cancer research.

C.       City Manager's Announcement:

There were no City Manager announcements at this time.


Adjournment: The meeting was adjourned at approximately 9:00 p.m.



ATTEST: __________________________                 ______________________________
            City Clerk                                  MAYOR


Approved: _______________________




                                    CERTIFICATION

I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the
regular meeting of the City Council of Chandler, Arizona, held on the 10th day of March 2005. I
further certify that the meeting was duly called and held and that a quorum was present.



DATED this __________ day of _____________, 2005.


                                                         __________________________
                                                          City Clerk
MINUTES OF THE REGULAR MEETING OF THE HONORABLE MAYOR AND CITY COUNCIL
OF THE CITY OF CHANDLER, ARIZONA, held in the Council Chambers in the Chandler Library,
22 S. Delaware, on Thursday, March 24, 2005 at 7:05 p.m.

THE MEETING WAS CALLED TO ORDER BY MAYOR BOYD DUNN.

The following members answered roll call:   Boyd W. Dunn          Mayor
                                            Phillip Westbrooks    Vice Mayor
                                            Bob Caccamo           Councilmember
                                            Lowell Huggins        Councilmember
                                            Matt Orlando          Councilmember
                                            Martin Sepulveda      Councilmember
                                            Donna Wallace         Councilmember


Also in attendance:   W. Mark Pentz         City Manager
                      Pat McDermott         Assistant City Manager
                      Rich Dlugas           Assistant City Manager
                      Dennis O’Neill        City Attorney
                      Marla Paddock         City Clerk

Staff present: Patricia Walker, Bryan Patterson, Doug Ballard, Nachie Marquez, Chief Kiyler,
Dave Siegel

INVOCATION: The invocation was given by Vice Mayor Phill Westbrooks

PLEDGE OF ALLEGIANCE: Councilmember Orlando led the Pledge of Allegiance.

SCHEDULED PUBLIC APPEARANCES:

1.     Service Recognitions:

MAYOR DUNN was joined by Public Works Director Bryan Patterson in recognizing JESSIE
RALEY for 35 years of service in Public Works. Jessie’s career started with the City of Chandler
in December of 1967 for the Solid Waste Division. During that time, garbage collection was not
automated and citizen’s put their garbage cans along the curb or alley and the garbage cans
were emptied by hand into the garbage truck. Jessie moved to the Street Division in 1986, and
was promoted to Equipment Operator II and later reclassified to Senior Street Specialist. In 2003,
Jessie retired from the City, but soon came back to work with the right-of-way crew. During the
recent rains, Jessie has worked much overtime to help pump water, patch potholes and put up
warning signs. Mr. Patterson thanked Mr. Raley for his positive outlook and dependability.

MAYOR DUNN was joined by                Planning and Development Director Doug Ballard
in recognizing HANK PLUSTER for 20 years of service. Mr. Ballard described Hank as a
“centerpiece” of the City’s planning efforts as he started his career as the Assisting Zoning
Administrator. He has since been instrumental in guiding the City during a period of exceptional
growth. Some of his major accomplishments include the Residential Diversity Standards, the
Southeast Chandler Area Plan, the Downtown City Center District Zoning, Residential In-fill
Program, the Commercial Reinvestment Program, the “Big Box” Ordinance, “Late Hour”
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Chandler City Council
Thursday, March 24, 2005
Page 2


Ordinance and most recently, the Unified Development Manual. Hank has also managed
innumerable zonings and general plan cases during his career.
COUNCILMEMBER WALLACE noted that both she and her husband Oren, formerly a Chandler
City Councilmember, have been impressed over the years with Mr. Pluster’s commitment and
passion for his career.

2.       Retirement Recognitions:

MAYOR DUNN was joined by Public Works Director Bryan Patterson in recognizing the
retirement of JERRY MANNING after 21 years in Public Works. Jerry began in 1984 as an
Equipment Operator I in the Solid Waste Division. He was the “go to” man for solid waste and did
everything from operating equipment to spraying weeds to landscaping. Jerry transferred to the
Streets Division in 1985 where he is now a Street Supervisor primarily responsible for the right-of-
way and alley crews. Among his accomplishments, Jerry was responsible for the implementation
of the placement of asphalt-milling material in the alleys. Ten years ago, millings were
considered something to throw away. Now, because of Jerry’s efforts, the alley crews cover the
City’s 130 miles of alley with this material giving them a more improved surface. His knowledge
and experience have been invaluable to the Public Works Department He is a team player who
can always be counted on to give 100%.

MAYOR DUNN was joined by Municipal Utilities Director Dave Siegel in recognizing the
retirement of LARRY BOWLES after nine years of service with the City of Chandler. As a Water
Treatment Plant Operator II, Larry takes great pride in assuring the citizens of Chandler are
provided with the highest quality water at all times. Mr. Siegel noted Mr. Bowles’ diligence in
monitoring the plant and distribution system, not only through its computer system, but also by
making physical inspections of the plant during his shift. Larry’s work ethic is outstanding. In
addition to his daily responsibilities, he takes it upon himself to complete minor construction
projects at the plant. For years he has kept track of the plant staff’s paperwork. Larry is a
valuable component of the operations team at the Chandler Water Treatment Plant.

3.       Presentation – Certificate of Appreciation to Curtis McDaniel:

MAYOR DUNN was joined by POLICE CHIEF KIYLER in recognizing Curtis McDaniel with a
Certificate of Appreciation. On February 13, 2005, Mr. Jack Siebler was out walking in his
neighborhood when he heard a “yipping” sound. When Mr. Siebler turned around to the direction
of the noise, two large dogs attacked him. As Mr. Siebler was fighting the dogs off, a car, driven
by Curtis McDaniel, drove up. Mr. McDaniel had witnessed the attack and was quickly able to
offer Mr. Siebler shelter in his car from the attacking dogs. Mr. McDaniel was able to follow the
dogs to where they lived and was able to later provide that information to the Police. Mr. Siebler
did not sustain any major injury or disability due to the attack. Mr. Siebler and his wife Barbara
were also present at the meeting to relay their appreciation to Mr. McDaniel.

4.       Introduction of Brad Segal, Consultant for Downtown Enhancement District Study

Mr. Frank Peake, Downtown Chandler Community Partnership (DCCP) Boardmember,
introduced Mr. Brad Segal, President of Progressive Urban Management Associates who is the
Project Manager for the DCCP Strategic Plan and Organizational Blueprint.

Mr. Segal said that two major objectives would be determining the formation of a Downtown
Improvement District and creation of a business plan for the Downtown Partnership. He
                                                                             Minutes of the Regular Meeting
                                                                                      Chandler City Council
                                                                                 Thursday, March 24, 2005
                                                                                                    Page 3


explained that the process is stakeholder driven and he would be meeting with property owners
and businesses in identifying their priorities and their investment goals.

He reported that he had already noted several existing key factors that include: private sector
champions; support of local government in advancement of downtown development; staffing and
financial resources; and the tradition of public/private partnership. Mr. Segal said he hoped to be
reporting back to Council by the first of fall on his findings.

MAYOR DUNN thanked Mr. Segal and the members of the DCCP for their vision.

COUNCILMEMBER SEPULVEDA asked how many phases the study would consist of and the
time frame. Mr. Segal responded his goal was to be complete by the first of September with two
products: a plan for an improvement district, provided there was support, and a business plan.
He stated the meetings with property and business owners would be held through May and the
drafting would be in June & July with the draft copy being provided to the business owners in
August/September. COUNCILMEMBER SEPULVEDA asked if he had any estimates on financial
resources based on his previous experience. Mr. Segal stated that Improvement District’s vary
based on the services that the stakeholders want. He said the Mesa district raises about
$250,000 a year whereas the Phoenix district raises about $2.5 million a year. The difference
coming from the scale and services provided. He said it would be important to take into
consideration the real estate, rent structure and viability of businesses when making a
recommendation on the district. Due to funding, a complete market analysis would not be
completed, however when looking at Improvement District feasibility in other communities, that is
often not done. However, he felt confident that enough resources would be available to produce
a viable plan. COUNCILMEMBER SEPULVEDA asked Mr. Pentz if he was comfortable with the
scope with respect to the market analysis. Mr. Pentz replied it was his belief that this firm would
come up with a very fine product. A couple of the items that were part of the original proposal
that included the market analysis, are still part of the plan, but the citizen survey and a few other
elements were eliminated.


UNSCHEDULED PUBLIC APPEARANCES:

Mr. Tony DiBonito, 501 E. Ray Road, #167, spoke on the supremacy of women.

CONSENT:


MOVED BY COUNCILMEMBER HUGGINS, SECONDED BY COUNCILMEMBER WALLACE, to
approve the Consent Agenda as presented. Councilmember Orlando voted nay on Item 14.
Motion carried unanimously 7-0.

1.     MINUTES:

APPROVED, as presented, minutes of the Regular City Council meeting of March 10, 2005.

2.     REZONING: Toscana Townhomes                                                         Ord. #3664
Minutes of the Regular Meeting
Chandler City Council
Thursday, March 24, 2005
Page 4


INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3664, DVR04-0061, Toscana
Townhomes rezoning from AG-1 to PAD for a residential subdivision along with a Preliminary
Development Plan for subdivision layout and housing product on approximately 6.5 acres.
APPROVED a Preliminary Plat, PPT04-0003, Toscana Townhomes for a 60-lot townhouse
residential subdivision located west of the NWC of Dobson and Pecos Roads. (Applicant: Don
Sherbondy, Westco Realty Group, Inc.)

The property is surrounded to the north and east by agricultural and residential properties zone
Agricultural District (AG-1). To the west is the existing Stone Oaks Apartments development.
The property is bordered to the south by Pecos Road with the Cantera Apartment development
located on the south side of Pecos Road. The site falls under the Gateway Area Plan and Santan
Freeway Corridor Area Plan. The Gateway Area Plan designates the site for office, multi-family
residential and assisted living. The Santan Freeway Corridor Area Plan designates the site for
special use commercial that permits mixed-use development that can include medium to high-
density residential development as well as adult assisted living. The proposed townhouse project
is consistent with both area plans.

This request was noticed according to the provisions of the City of Chandler Zoning Code with a
neighborhood meeting being held on January 25, 2005. There were no neighbors in attendance.

Upon finding consistency with the General Plan and Gateway Area Plan, the Planning
Commission and Staff recommend approval subject to conditions as listed in the ordinance.

3.       CITY CODE AMENDMENT: Chapter 2                                             Ord. #3669

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3669 amending City Code
Chapter 2, Section 2-12, Subsection 1-12.2 relating to staggering terms for the Economic
Development Advisory Board.

When the ordinance adopting the Economic Development Advisory Board was originally being
considered, a change was made making the board 15 members rather than 11 and changing the
number needed for quorum from six to eight. At that time, the section of the code addressing the
staggering terms should have been changed so that the terms of five members would conclude
each given year. Typically, boards and commissions have staggered terms that allow the
replacement of a proportionate number of members in any given year rather than replacing the
entire board all at once. The Economic Development Advisory Board has three-year terms, so
with the 11-member board, no more than four members would have been replaced in any given
year, but with a 15-member board, five members will need to be replaced each year.

4.       PERSONNEL RULE AMENDMENT: Rule 19 – Employee Council                       Res. #3834

ADOPTED Resolution No. 3834 amending Personnel Rule 19 relating to the Employee Council.

The Employee Council is a group of City employees voted into the Council by employees in their
respective departments. This group meets on a regular basis to discuss mutual concerns among
departments in the City and to make recommendations on personnel rules and procedures. At
the suggestion of one of the members of the Employee Council, a subcommittee was formed to
review, clarify and update the Employee Council Handbook that includes Personnel Rule 19. At
the same time the subcommittee was reviewing the Personnel Rule, the City adopted the Meet
and Confer Ordinance #3619 and soon after, three labor organizations petitioned for and
obtained exclusive representation for a meet and confer process.
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                                                                                      Chandler City Council
                                                                                 Thursday, March 24, 2005
                                                                                                    Page 5



This led to the need to redefine the role of the Employee Council, as some employees would now
be represented by the exclusive employee organization defined under the Meet and Confer
Ordinance. In addition to this change in the Personnel Rule, other changes were made for
clarification purposes.

COUNCILMEMBER CACCAMO asked for clarification on how this interacts with the Meet and
Confer process. HUMAN RESOURCES MANAGER Deb Stapleton stated that main change is to
the makeup of the Employee Council. The Council will now consist of employees that are not
currently represented under a meet and confer organization. She stated that as the meet and
confer agreements come forth, there may be additional need to modify or clarify the Personnel
Rules.

In response to a question from COUNCILMEMBER ORLANDO, Ms. Stapleton said that for
Citywide issues such as retirement health benefits, all constituents are included. If there is a
major personnel rule change that would impact working conditions, then that would probably be
handled by a labor-management committee that would be outlined by the meet & confer
agreement. It is designed to blend the two groups together by ensuring that employees that
don’t have a formalized means of representation are covered under Employee Council, but
anything that affects working conditions, wages or compensation would have to be handled on a
citywide basis or through the management-labor committees that will come out of the contract
agreements. She stated that the meet and confer representatives are aware of these changes.


5.     REAL PROPERTY ACQUISITION: Pecos Road Improvement                                   Res. #3837

ADOPTED Resolution No. 3837 determining that acquisition of real property needed for the
improvement of Pecos Road from Dobson Road to McQueen Road is a matter of public
necessity; authorized the purchase of said real property; authorized condemnation proceedings
as needed to acquire said real property and to obtain immediate possession thereof; and
authorized such relocation assistance as may be required by law.

On December 12, 2002, Council approved the alignment for a road improvement project on
Pecos Road from Dobson Road to McQueen Road. On January 23, 2003, the City Council
authorized acquisition of additional property necessary for the project. Construction of the project
commenced on August 23, 2004 and it was learned that a six-inch petroleum pipeline owned by
SFPP and operated by Kinder Morgan was located in Pecos Road just under the surface. Staff
determined that portions of Pecos Road being occupied by the pipeline are needed and required
for the Pecos Road construction project and requested Kinder Morgan to relocate the pipe.
Kinder Morgan did relocate a portion of the pipeline, but is refusing to relocate the remainder,
claiming that it owns an easement prior in right to Pecos Road.

City Staff, based on pothole information provided to the City by Kinder Morgan, determined that
the pipeline is less than four feet under the surface of the roadway and that in some places, the
road construction equipment will be excavating and scarifying within twelve inches of the pipe.
The City Engineer and Public Works Director determined that it would not be safe to attempt to
construct the road in accordance with the City and County specifications unless the pipe was
relocated out of the construction area.

Therefore, the project required acquisition of any real property rights (license and permit rights or
easements) from SFPP or Kinder Morgan adjacent to, near or related to the roadway being
Minutes of the Regular Meeting
Chandler City Council
Thursday, March 24, 2005
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improved. Construction has already commenced and the real property for the project needs to be
acquired as soon as possible so that the project can proceed on schedule.

This resolution authorizes acquisition of the real property at fair market value either by purchase
or condemnation. Condemnation proceedings will be initiated as authorized by State law to
acquire the real property and to obtain immediate possession. Relocation assistance is
authorized where required by law. The project schedule requires that immediate possession be
obtained by April 30, 2005.

This pipeline was installed pursuant to a permit from Maricopa County which specified that the
permit could be revoked and terminated any time the area occupied by the pipeline was needed
or required. City staff has revoked and terminated the permit and directed Kinder Morgan to
relocate the pipeline. But Kinder Morgan claims a prior easement which claim will be litigated as
part of the condemnation. Only if Kinder Morgan prevails would the City be required to pay for
the relocation of the pipeline which Kinder Morgan claims would cost $1.5 million.


6.       REAL PROPERTY ACQUISITION: Arizona Avenue / Ray Road                         Res. #3838

ADOPTED Resolution No. 3838 determining that acquisition of real property needed for the
improvement of the intersection of Arizona Avenue and Ray Road is a matter of public necessity;
authorized the purchase of said real property; authorized condemnation proceedings as needed
to acquire said real property and to obtain immediate possession thereof; and authorized such
relocation assistance as may be required by law.

On November 18, 2004, Council approved the alignment for a road improvement project at the
intersection of Arizona Avenue and Ray Road. The project requires acquisition of real property
(rights-of-way and easements) from private property adjacent to, near or related to the roadway
being improved. The real property for the project needs to be acquired at this time so that
construction bids can be advertised and awarded on time and the project can otherwise stay on
schedule.

This resolution authorizes acquisition of the real property at fair market value either by purchase
or condemnation. A reasonable negotiation period will be allowed for property purchases, after
which condemnation proceedings will be initiated as needed to acquire the real property and to
obtain immediate possession. Relocation assistance is authorized where required by law.

COUNCILMEMBER CACCAMO asked how much property would be affected by this action. MR.
O’NEILL stated that in both this item and item 7, a small strip would be taken along the adjoining
businesses for the road improvement, but no buildings would be taken, nor would there be any
relocation costs involved.

COUNCILMEMBER ORLANDO asked if this is beyond the original easement area. MR. O’NEILL
responded yes, that the intersection design is wider than the original roadway.

7.       REAL PROPERTY ACQUISITION: Arizona Avenue / Elliot Road                      Res. #3839

ADOPTED Resolution No. 3839 determining that acquisition of real property needed for the
improvement of the intersection of Arizona Avenue and Elliot Road is a matter of public necessity;
authorized the purchase of said real property; authorized condemnation proceedings as needed
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to acquire said real property and to obtain immediate possession thereof; and authorized such
relocation assistance as may be required by law.

On November 18, 2004, Council approved the alignment for a road improvement project at the
intersection of Arizona Avenue and Elliot Road. The project required acquisition of real property
(rights-of-way and easements) from private property adjacent to, near or related to the roadway
being improved. The real property for the project needs to be acquired at this time so that
construction bids can be advertised and awarded on time and the project can otherwise stay on
schedule.

This resolution authorizes acquisition of the real property at fair market value either by purchase
or condemnation. A reasonable negotiation period will be allowed for property purchases, after
which condemnation proceedings will be initiated as needed to acquire the real property and to
obtain immediate possession. Relocation assistance is authorized where required by law.

8.     PRELIMINARY DEVELOPMENT PLAN: Offices at Shadow Ridge

APPROVED Preliminary Development Plan, PDP04-0021, Offices at Shadow Ridge, for a
medical office complex on approximately 4.13 acres at the NWC of Riggs and Lindsay Roads.
(Applicant: Cawley Architects.)

This parcel is located within the Southeast Chandler Area Plan and was zoned PAD specifically
as “C-1 Office” in 2000. This application addresses the Preliminary Development Plan for the
commercial corner. Criteria was established during the rezoning in regards to buffers between
this parcel and the residential property which is reflected in the design of this project.

Five office condominium buildings, oriented towards the street frontages are proposed and will
occur in one phase. It is the intent to sell all buildings to medical professionals for office use;
however, general office use will also be allowed within this complex.

A neighborhood meeting was held on December 8, 2004 with one neighbor in attendance.

Upon finding consistency with the General Plan and PAD zoning, the Planning Commission and
Staff recommend approval subject to the following conditions:

 1. Compliance with original stipulations adopted by the City Council as Ordinance No. 3105, in
    case PL99-0070 Riggs Road Properties, except as modified by condition herein.
 2. Development shall be in substantial conformance with the Development Booklet entitled
    “Offices at Shadow Ridge” kept on file in the City of Chandler Current Planning Division, in
    file number PDP04-0021, except as modified by condition herein.
 3. Approval by the Director of Planning and Development of plans for landscaping (open
    spaces and rights-of-way) and perimeter walls.
 4. Sign packages, including free-standing signs as well as wall-mounted signs, shall be
    designed in coordination with landscape plans, planting materials, storm water retention
    requirements, and utility pedestals, so as not to create problems with sign visibility or
    prompt the removal of required landscape materials.
 5. The existing landscaping along the Pinaleno Place frontage and the northern boundary of
    this property (tract H) shall be maintained by the Owner or Owner’s association of the
    commercial property.
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  6. Berms along 50% of the arterial frontages must be at least 24” above the top of curb
      elevation in order to meet the Commercial Design Standards. Berms are to be located
      behind the right of way and must maintain a four to one slope
  7. Trees planted along arterial frontages are to be comprised of 25%-48” box trees, 25% 36”
      box trees, and 50% 24” box trees as per the Commercial Design Standards.
  8. The eastern driveway on Riggs Road and the driveway on Lindsay Road will be limited to
      right-in/right-out access only.
  9. All building signage oriented toward the adjacent residential development to the north and
      west shall be non-illuminated.
  10. Proposed oak trees shall be replaced with ash trees in the same quantity and size.

9.       REZONING: Summit at Chandler Heights

CONTINUED TO APRIL 28, 2005, Rezoning, DVR04-0059, Summit at Chandler Heights, from
AG-1 to PAD along with a Preliminary Development Plan on approximately 6.7 acres for the
construction of an office and retail development at the SEC of Alma School and Chandler Heights
Roads for the purpose of conducting a Design Review meeting. (Applicant: Kevin South, Summit
at Ocotillo, LLC.)

10.      REZONING: JKM Self Storage

CONTINUED TO APRIL 14, 2005, Rezoning, DVR04-0055, JKM Self Storage, from AG-1 to PAD
along with a Preliminary Development Plan for a storage facility on approximately 20 acres at the
NWC of Ocotillo Road and Center Pointe Parkway following a continuance by the Planning
Commission to their March 16, 2005 meeting. (Applicant: Whitneybell Architects.)

11.      POLICIES EXTENSION: Active Military Reservists’ Benefits

AUTHORIZED policies extension for two years for benefits and pay for employees who are called
to military service as a result of the Presidential call up in response to the September 11, 2001
events.

On November 15, 2001, City Staff proposed, and the Mayor and City Council approved, an
extension of military leave pay to those individuals called to active service under the Presidential
call up. The approved provision allows an employee who exhausts the City’s standard military
pay policy of 30 days in two consecutive years to receive differential military pay for up to 24
months while in active service. This pay makes up the difference between what the employee is
receiving in military pay and their regular gross pay. The City also covers employees and their
dependents for medical, dental and vision insurance at the City of Chandler’s employee
contribution rate for that same period.

Since this provision was approved, 15 employees have been called to military service. Fourteen
of those employees called have received differential military pay. The approximate net cost to the
City for providing this differential military pay is approximately $269,618.00. While this cost does
not include additional costs due to overtime or temporary personnel that may have occurred in
some cases, it remains far below the worse case financial impact that was estimated when this
provision was approved in 2001.

The City’s records indicate that 24 employees have served some type of military duty since
August of 1999. The cost of 24 months at full pay for the 24 employees on record is
$2,937,624.00 including a 3% salary range adjustment in each fiscal year. On the average, the
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City has paid 50% of the employees’ salaries that have been called to service. Since the
employees’ salaries are reduced by what they receive in military pay, the estimated cost to
provide 24 months of differential pay for 24 employees is $1,468,812.00. This estimate is the
worst-case financial impact in that it assumes that all 24 employees are called to duty for 24
months and receive at least 50% of their pay from the City. Currently, the City has two
employees serving active military duty.

The City provides employees benefits as per Arizona State Statute and the Uniformed Services
Employment and Reemployment Rights Act. The extension of this provision will allow employees
called to military duty to continue health, dental and vision benefits at their current cost for
themselves and their families.

COUNCILMEMBER ORLANDO said that often military personnel are sent for 2-3 months in
nation before being shipped overseas so a person maybe gone for 15-17 months. Most
companies are generous and may cover up to 1 year, but there are gaps. He relayed his
appreciation of the generous extension.

In response to a question from the Mayor, Ms. Stapleton said that currently 2 employees are
called up and in past years as many as 15 with many being from the Police Department.

COUNCILMEMBER SEPULVEDA stated that from personal experience, he is happy to see the
insurance portion addressed. He asked if the 24 months was cumulative as many deployments
are past that. Ms. Stapleton responded that the 24 months is a cumulative and not calendar and
Arizona State Statutes also provides a 30-day military leave over a 2-year federal year so the
employee would still be eligible to use the 30 days and then the 24 months.

COUNCILMEMBER WALLACE AND MAYOR DUNN also expressed their appreciation.

12.    ATTORNEY SERVICES: Relocation of Kinder Morgan Pipeline, Pecos Road

APPROVED retaining the firm of Mariscal, Weeks, McIntyre & Friedlander, PA, for litigation
seeking the removal or relocation of the Kinder Morgan pipeline in the Pecos Road right-of-way
and authorized the expenditure of up to $100,000.00 for attorney fees and costs.

The City of Chandler is currently under construction of a road improvement project on Pecos
Road from Dobson Road to McQueen Road. The City and the City’s contractor have determined
that portions of the road construction project cannot be completed without Kinder Morgan
relocating a six-inch petroleum pipeline that is located just under the surface of where the road is
to be expanded. Kinder Morgan is refusing to relocate the pipeline.

The City Attorney’s Office attempted a forcible detainer action, which would have required Kinder
Morgan to remove the old line from the right-of-way and relocate it to a safe location within the
right-of-way, but Kinder Morgan is now asserting an ownership interest in the right-of-way. City
Staff does not believe that Kinder Morgan has any ownership interest in the Pecos Road right-of-
way, but the fact that they are asserting such an interest precludes a forcible detainer action.

On March 16, 2005, Kinder Morgan filed suit in Federal Court against the City of Chandler
seeking a declaratory judgment that the City could not require them to relocate their pipeline.
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Thursday, March 24, 2005
Page 10


The law firm of Mariscal, Weeks, McIntyre & Friedlander has the experience and resources
needed to expedite the litigation in this matter in order to relocate the Kinder Morgan pipeline
before the City incurs substantial delay costs in our construction of Pecos Road.

13.      REJECTED PROPOSALS: Arsenic Water Treatment Systems

REJECTED Proposals for packaged arsenic water treatment systems as recommended by Staff.

COUNCILMEMBER ORLANDO asked why the bids were non-responsive. ASST. MUNICIPAL
UTILITIES DIRECTOR BOB MULVEY responded that one of the vendors was not able to make
the proposals bonding requirements while the other vendor had issues with the financing
structure, warranty issues, and others. He added that the quotes were high because the
exceptions that were taken and staff determined it would not be feasible to pursue this method.
He said the systems would be constructed in a more traditional manner and the vendors who
submitted proposals for the leasing would be submitting prices for outright purchase and
hopefully back to Council within a couple of months.

MAYOR DUNN stated that this is a problem especially with the smaller cities, that are not able to
financially meet the requirements associated with the new arsenic levels.


14.      MEMORANDUM OF AGREEMENT: Otto Logistics, L.L.C.

APPROVED a Memorandum of Agreement for the operation of City owned transfer station and
refuse hauling with Otto Logistics, L.L.C., in an amount not to exceed $377,250.00 for the first
year. The total cost for the entire five-year term of the contract is $2,176,455.00.

The Chandler landfill is scheduled to close in October 2005 and the modified transfer station
unloading area is scheduled to open in July 2005. The transfer station unloading area has been
designed to accept the waste that is brought there by the citizens that self-haul their waste. This
waste amounts to approximately 25,000 tons annually. The contractor will be responsible for
inspection, loading into transfer trailers and hauling the waste to the Butterfield Station landfill.

COUNCILMEMBER CACCAMO asked if this contract affected any city positions at the landfill.
MUNICIPAL UTILITIES DIRECTOR DAVE SIEGEL said that no positions are affected by this
contract. Several open positions were held while the decision was made whether to go with the
20% or the 100% transfer station. A few of the positions have been filled. This contract will only
apply to the loading area and referred to a diagram. The existing staff will check the vehicle
entering. The contractor will have a spotter that will assist in guiding the vehicles and directing
them where to unload while ensuring safety. The loading equipment will be also operated by the
contractor as well as the trucks that go to the Butterfield landfill.

The Recycling and HHW facilities and Customer Service employees will remain.

COUNCILMEMBER ORLANDO asked if there could be a cost breakdown of the contract
between personnel and hauling. MR. SIEGEL replied that the price is determined per tonnage
($15.09) that includes business operations. COUNCILMEMBER ORLANDO asked how this
compared with the City providing this service. MR. SEIGEL said that while the analysis was
being done on the transfer station option, staff reviewed the option of having the same contractor
load and haul for liability and efficiency issues. When the presentation was made on the 20%
plan, a reduction was going to be made in personnel from 24.5 to 23. He said an analysis was
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done with the full transfer station and not the 20% plan. With the full transfer station option it was
determined that this portion would be more cost efficient, however an analysis was not completed
with the 20% plan.

COUNCILMEMBER WALLACE clarified that there were 4 vacancies but two have been filled.
Currently there are currently 2-3 employees there including a checker, a HHW person when
needed, and a person in the recycling area and you are hiring two more positions.

She was concerned with maintaining the value of the employees, and certainly wants them to be
efficient in regards to taxpayer money.

Mr. Siegel clarified that of the two hires one is a Customer Service Rep. and the other is a Field
Inspector. Those positions were not necessarily tied to the 100% or 20% plan. Mr. Siegel stated
he wanted the flexibility of moving staff around once the decision was made.

MR. TONY DIBONITO explained the natural cycle of earth’s recycling system.

Councilmember Orlando voted nay on this item due to concerns on a value analysis on the
options.


15.    PROJECT AGREEMENT: SDB, Inc.

APPROVED Project Agreement #WA0408-401, Job Order Contract 03-12, to SDB, Inc. for the
installation of security monitoring equipment at the Surface Water Treatment Plant in an amount
not to exceed $91,755.00.

 In order to provide more oversight and security at the City’s 33 well sites, a Job Order
Contractor, SDB, was employed to provide study and design services for a comprehensive,
citywide well security system. To date, SDB has completed the study and design phase. The
equipment for the project will be purchased through the Fire Department as part of a federal
homeland security grant.

16.    ARCHITECTURAL SERVICES CONTRACT AMENDMENT: Architekton, Inc.

APPROVED Architectural Services Contract #PD0203-201 Amendment No. 1 with Architekton,
Inc. for the Community Facilities Complex at the NEC of Chandler Boulevard and Desert Breeze
Boulevard in an amount not to exceed $72,877.00.

This contract amendment for additional design services is required to capture $580,128.00 in
value engineering savings to bring the project to the Guaranteed Maximum Price (GMP) of
$8,200,000.00 approved at the March 10, 2005 Council meeting. The additional design services
include value engineering architectural design, additional bidding services, specification revisions,
special inspections and additional mechanical and electrical sub consultant re-designs.

Turner Construction prepared a GMP based on plans completed in 2004. The GMP estimate
was $8,081,000.00, which was in excess of $1,681,000.00 of the City’s budget. Through Staff
analysis and an independent cost estimate, it was concluded that due to increases in material
and labor costs within the construction market, the estimate was accurate. Since the August
GMP, the construction costs have continued to rise by 6.5% increasing the estimate to
$8,608,624.00. In executing the additional design services included in this amendment, the
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Thursday, March 24, 2005
Page 12


project has captured $580,128.00 in value-engineering savings to bring the construction GMP to
$8,200,000.00.

17.      PRE-CONSTRUCTION CONTRACT AMENDMENT: Turner Construction

APPROVED Pre-Construction Contract #PD0203-251, Amendment No. 1, for the Construction
Manager at Risk project with Turner Construction for the Community Facilities Complex at the
NEC of Chandler Boulevard and Desert Breeze Boulevard West in an amount not to exceed
$30,000.00.

This contract amendment for additional pre-construction services is required to capture
$580,128.00 in value engineering savings to bring the project to the Guaranteed Maximum Price
(GMP) of $8,200,000.00 approved at the March 10, 2005 Council meeting. The additional design
services include value engineering architectural design, additional bidding services, specification
revisions, special inspections and additional mechanical and electrical sub consultant re-designs.

Turner Construction prepared at GMP based on plans completed in 2004. The GMP estimate
was $8,081,000.00, which was in excess of $1,681,000.00 of the City’s budget. Through Staff
analysis and an independent cost estimate, it was concluded that due to increases in material
and labor costs within the construction market, the estimate was accurate. Since the August
GMP, the construction costs have continued to rise by 6.5% increasing the estimate to
$8,608,624.00. In executing the additional design services included in this amendment, the
project has captured $580,128.00 in value-engineering savings to bring the construction GMP to
$8,200,000.00.

18.      PRE-CONSTRUCTION SERVICES CONTRACT: FNF Construction, Inc.

APPROVED Pre-Construction Services Contract #ST0301-251 to FNF Construction, Inc for the
Chandler Boulevard Improvements from Hartford Street to Colorado Street in downtown Chandler
in an amount not to exceed $75,360.00.

The pre-construction services contract award is the first step in the Construction Manager at Risk
process for construction. During the pre-construction services phases the contractor will develop
and manage the design schedule, provide value engineering, perform utility investigations and
prepare the guaranteed maximum price. The Chandler Boulevard Improvements project includes
roadway improvements to Chandler Boulevard from Hartford Street to Colorado Street and
Arizona Avenue from Detroit Street to Buffalo Street including full intersection improvements.
Also included in this contract is underground verification of utilities, schedule development, cost
model analysis and review, value engineering and overall project coordination.

19.      ENGINEERING DESIGN CONTRACT AMENDMENT:                     Kirkham Michael Consulting
         Engineers

APPROVED Engineering Design Contract #ST0301-201, Amendment No. 3, to Kirkham Michael
Consulting Engineers for Chandler Boulevard Improvements, California to Colorado Streets in an
amount not to exceed $110,141.00.

The City has requested that Kirkham Michael Consulting Engineers revise and perform additional
design tasks of the Chandler Boulevard improvements from California Street to Colorado Street.
Council recently determined the alignment would be revised to change the 10-foot Bus Rapid
Transit/Bike combination lanes to a 5-foot bike lane only and widen the median to 10 feet to
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accommodate additional landscaping. The additional tasks include revisions to alignment and
striping plans, drainage system, street lighting, additional utility coordination, additional design of
landscaping in medians and behind sidewalks, additional project coordination meetings and
reproducible costs.

20.    REJECT CONSTRUCTION CONTRACT: Bus Pullout Installations

REJECTED Construction Contract #ST0250-401 for bus pullout installations at four locations per
Staff recommendation. The City of Phoenix Public Transit Department, who is the federal transit
grant recipient for the region, reviewed the bids to evaluate compliance with the federal DBE
requirements. Five of the six bids were deemed non-responsive by the City of Phoenix, for failing
to demonstrate a good faith effort to meet the DBE goal. The sixth was deemed non-responsive
by Chandler for failing to use the correct bid schedule and acknowledge all addenda.

21.    MEMORANDUM OF AGREEMENT & CONTRACT AMENDMENTS: Waste Management

APPROVED Memorandum of Agreement Amendment No. 1 for disposal services and Contract
Amendment No. 1 for residential refuse collection with Waste Management of Arizona in an
amount not to exceed $543,546.00 for the first year. The total cost for the entire term of the
amendment is $2,419,080.00.

Amendment No. 1 to the refuse disposal contract reduces the rate to use the contractors transfer
station from $31.35 (95 percent of the posted gate rate) to $23.32 per ton, which consists of the
contracted disposal rate of $18.13 plus a hauling rate of $5.19 per ton, for the loading and hauling
of refuse to Butterfield Station. Amendment No. 1 further specifies the method in which the
hauling rate will be adjusted for changes to the Consumer Price Index and changes to the price of
fuel. The term of the amendment will be through September 30, 2009. The City can terminate
the use of the contractor’s transfer station with 365 days notice. It is estimated that 95,717 tons
will be disposed of the first year through this agreement. Therefore, the estimated annual cost of
hauling refuse to Butterfield Station will be $496,770.00 plus adjustments for fuel and Consumer
Price Index.

During negotiations with Waste Management, two haul rates were agreed upon. The first was
$5.19 per ton based on a collection completion time of 5:00 PM. The second rate was $5.89 per
ton based on a collection completion time of 4:30 PM. The current collection completion time is
4:00 PM to coincide with Allied Waste requirements at the City’s landfill. Once the City’s landfill
closes, the 4:00 PM requirement is no longer applicable. Modifying the collection completion time
from 4:00 PM to 5:00 PM will save the City an estimated $67,000.00 annually. The unanimous
reaction from the Solid Waste Advisory Committee was to allow the contractor to collect until 5:00
PM and Staff concurs.

Amendment No. 1 to the residential refuse collection contract establishes an adjustment in the
collection rate for the increased haul distance from the Chandler Landfill/Transfer Station to waste
Management’s San Tan Transfer Station (approximately $46,776.00).                 Additionally, the
amendment allows Waste Management to move their operations office from Chandler to the San
Tan Transfer Station. Finally, the amendment changes the requirement to complete collection to
5:00 PM (currently 4:00 PM). The term of the amendment is through September 30, 2009, the
collection contract’s expiration date.

COUNCILMEMBER CACCAMO asked if there was a control in this contract for fuel and inflation.
MR. SIEGEL responded the CPI typically used includes fuel, however since these are fuel
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Thursday, March 24, 2005
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intensive uses, staff and the contractor wanted to split that out so a separate fuel escalator is
being used for that.

COUNCILMEMBER SEPULVEDA asked to see a provision that would place the responsibility on
the contractor to show proof or verification of escalation of cost.


22.      CONTRACT: JSA Company

APPROVED a Contract with JSA Company for the landscaping of Alma School, Rural and
Kyrene Roads medians, in an amount not to exceed $287,886.00.

The areas along Alma School are intended to replace mature 18 year old landscaping in need of
updating. Rural Road also has one small 200-foot section of mature median landscaping
requiring updating and the Kyrene Road median landscaping will complete improvements to
Kyrene Road from Chandler Boulevard to the new Loop 202 entrance. The engineer’s estimate
was $449,000.

23.      CONTRACT: Building Materials and Supplies

APPROVED the utilization of the Apache Junction Unified School District #43 contract with
Home Depot, Lowe’s Home Improvement and Ace Hardware for the purchase of building
materials, supplies and equipment, utilizing, in an amount not to exceed $250,000.00.

24.      PURCHASE: Herbicides and Pesticides

APPROVED the purchase of herbicides and pesticides from Verdicon, Target Specialties
Products, Helena Chemical Company and Univar USA for use in City parks, utilizing the Arizona
Department of Transportation (ADOT) contract, in an amount not to exceed $53,484.00.
Utilization of the ADOT contract will provide a savings of 10-15% based on current retail pricing.

25.      PURCHASE: Playground Equipment

APPROVED the purchase and installation of playground equipment at Harter Park from
Professional Playground Installers, in the amount of $39,081.54, utilizing the City of Phoenix
contract. The use of this contract eliminates the cost of going out to bid, reduces the lead-time in
obtaining the products and results in a lower overall cost.

26.      PURCHASE: Traffic Signs and Related Hardware

APPROVED the purchase of traffic signs and related hardware material from Zumar Industries,
Inc. ($72,158), Hall Signs, Inc. ($5,392) and Pacific Products & Services ($33,424), in an amount
not to exceed $110,974.00 for one year with options to renew for four one-year periods. Traffic
Engineering’s preventive maintenance program replaces approximately 1000 traffic signs and
posts. These posts and signs are replaced due to damage, age and new requirements. A term
contract is necessary to compensate for the long lead times by carrying an inventory of and to
establish firm pricing for the historically high use items for the required traffic signs and related
hardware. The equipment will be distributed from Central Supply.

27.      PURCHASE: Traffic Signal Equipment
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APPROVED the purchase of traffic signal equipment from US Traffic Corporation, Traffic Parts,
Inc., Mountain States Traffic, Brown Wholesale Electrical Company, Graybar Electric,
Consolidated Electrical Distributors, Essco Electric and Jerry E. Fondaw & Associates, utilizing
the Arizona Department of Transportation (ADOT) contract, in an amount not to exceed
$195,000.00.

Traffic Engineering requires traffic signal equipment for repair and upgrades to existing traffic
signals. Up to four intersections are typically upgraded by Traffic Engineering each year. Signal
equipment required for repair and upgrades of existing traffic signals including poles, mast arms
signal heads, and junction boxes will be purchased as needed. Traffic signal poles, arms and
signal heads will also be purchased to supply the Alma School/Warner intersection improvement
project. The ADOT contract pricing provides up to a 20% savings over retail.

28         PURCHASE: Patient Airway Advanced Life Support Equipment

APPROVED the purchase of equipment and supplies for establishing and maintaining a patient
airway at the advanced life support level from Henry Schein Company, utilizing 2003 Part II State
Homeland Security Grant funds, in an amount not to exceed $60,000.00.

Protecting the respiratory tract and ventilating seriously ill or injured patients is a primary goal of
emergency medical care. This treatment may require specialized equipment when the patient’s
injuries are difficult to manage because they were caused by a chemical, biological, radiological,
nuclear, or explosion incident.

29.        USE PERMIT EXTENSION: Swaddee Thai Cuisine

APPROVED a Use Permit, UP05-0002, Swaddee Thai Cuisine, for three years, Series 12, for the
sale of liquor at a restaurant at 5055 West Ray Road, Suite B8. (Applicant: Arin Pouenmuang,
Swadee Thai Cuisine.)

The restaurant is located in a shopping center at the southwest corner of Ray and Rural Roads.
There will not be live music, only background music during business hours and there is no
outdoor dining. The applicant has been operating with a liquor Use Permit for one year. In that
time, no complaints have been filed.

This request was noticed in accordance with the requirements of the Chandler Zoning Code. The
Police Department has been informed of the application and has responded with no issues or
concerns. Staff has received no opposition.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to the following conditions:

      1.      The Use Permit is for a Series 12 license only and any change in type of license shall
              require reapplication and new Use Permit approval.
      2.      Expansion beyond the approved Floor Plan shall void the Use Permit and require a
              new Use Permit application and approval.
      3.      Any substantial change in the floor plan to include such items as, but not limited to,
              additional bar serving area or the addition of entertainment related uses shall require
              reapplication of the Use Permit.
      4.      The Use Permit is non-transferable to any other store location.
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Thursday, March 24, 2005
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      5.      The Use Permit shall be extended for a period of three years, at which time re-
              application shall be required. The three-year time period shall begin from the date of
              City Council approval.

30.        USE PERMIT: Mi Linda’s Authentic Mexican Food

APPROVED a Use Permit, UP05-0008, Mi Linda’s Authentic Mexican Food, Series 12, for the
sale of liquor at a restaurant at 2041 N. Arizona Avenue. (Applicant: Arizona Liquor Industry
Consultants, Randy Nations.)

The restaurant is located at the northeast corner of Arizona Avenue and Warner Road in the
building previously occupied by Perkins’ Restaurant. The only modifications to the building are
new paint, flooring and interior decorations. The restaurant will not have outdoor dining, live
music, or entertainment.

This request was noticed in accordance with the requirements of the Chandler Zoning Code. The
Police Department has been informed of the application and has responded with no issues or
concerns. Staff has received no opposition.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval of the Use Permit subject to the following conditions:

      1.      The Use Permit is for a Series 12 license only and any change in type of license shall
              require reapplication and new Use Permit approval.
      2.      Expansion beyond the approved Floor Plan shall void the Use Permit and require new
              Use Permit application and approval.
      3.      Any substantial change in the floor plan to include such items as, but not limited,
              additional bar serving area or the addition of entertainment related uses shall require
              reapplication of the Use Permit.
      4.      The Use Permit is non-transferable to any other store location.

31.        LIQUOR LICENSE: Mi Linda’s Restaurant

APPROVED a Series 12 Restaurant Liquor License (Chandler #53479 L12) for Randy D.
Nations, Agent, Mi Linda’s Restaurant, Inc., dba Mi Linda’s Restaurant, 2041 N. Arizona Avenue.
A recommendation for approval of State Liquor License #12076154 will be forwarded to the State
Liquor Department. The Police Department reports no objections to the issuance of this license
and no written protests have been received. All licenses, permits and fees have been paid and
the applicant is in compliance with the City’s Tax Code.

32.        LIQUOR LICENSE: Costco Wholesale

APPROVED a Series 9 Liquor Store License (Chandler #53394 L09) for Clare Hollie Abel, Agent,
Costco Wholesale Corporation dba Costco Wholesale at the southeast corner of Galleria Way
and South Chandler Village Drive. A recommendation for approval of State Liquor License
#09070712 will be forwarded to the State Liquor Department. The Police Department reports no
objections to the issuance of this license and no written protests have been received. All
licenses, permits and fees have been paid and the applicant is in compliance with the City’s Tax
Code.

33.        PRELIMINARY PLAT: Warner Commerce Park
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APPROVED a Preliminary Plat, PPT04-0032, Warner Commerce Park, for an industrial
subdivision at the SEC of Delaware Street and Warner Road. (Applicant: Nathan Anderson,
Burch & Cracchiolo, P.A.) The plat creates the lots and tracts, construction phasing lines,
establishes the necessary easements and dedicates the required rights-of-way.

34.    PRELIMINARY PLAT: Ocotillo Animal Clinic

APPROVED a Preliminary Plat, PPT05-0001, Ocotillo Animal Clinic, for a commercial subdivision
north of the NEC of Appleby Road and Arizona Avenue. This subdivision is for a two-lot
commercial subdivision. One of the parcels will be developed with an animal clinic. The plat
creates the lots and tracts, establishes the necessary easements and dedicates the required
rights-of-way.

35.    MAP OF DEDICATION: Pennington Gardens

APPROVED a Map of Dedication, FPT04-0026, Pennington Gardens, Pecos Road and
Pennington Drive right-of-way for an existing assisted living facility at the NEC of Pennington
Drive and Pecos Road. (Applicant: Family Healthreach, Inc.)

36.    MAP OF DEDICATION: 84 Lumber

APPROVED a Map of Dedication, FPT04-0049, 84 Lumber, for Hamilton Road right-of-way for a
facility on the south side of Willis Road east of Arizona Avenue. (Applicant: Pierce Hardy Limited
Partnership.)

37.    FINAL PLAT: The Village at Ocotillo

APPROVED a Final Plat, FPT03-0030, The Village at Ocotillo, for an assisted living care facility
on 9.7 acres at the NEC of Alma School and Ocotillo Roads. (Applicant: The Village at Ocotillo,
L.L.C.) The plat creates the lots and tracts, establishes the necessary easements and dedicates
the required rights-of-way.

38.    FINAL PLAT: Southshore Town Center

APPROVED a Final Plat, FPT05-0009, Southshore Town Center, for a 21.8-acre commercial
subdivision at the SEC of Arizona Avenue and Ocotillo Road. (Applicant: Home Depot.) The
plat creates the lots and tracts, establishes the necessary easements and dedicates the required
rights -of-way.

39.    On the Action Agenda.

40.    OFFSITE AGREEMENTS: Twenty Square Holdings (Gold Canyon Candle Company)

APPROVED Off-Site Agreements #OA04-011 & OA04-012, with Twenty Square Holdings, LLC,
deferring installation of a reclaimed water main and sanitary sewer main along Arizona Avenue
south of Riggs Road and accepting a lump sum payment totaling $89,557.00.

Twenty Square Holdings, LLC, is constructing a manufacturing facility identified as Gold Canyon
Candle Company on the east side of Arizona Avenue, approximately 1/8 miles south of Riggs
Road. As part of this project, the developer has an obligation for installation of a 12” reclaimed
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water main and a 12” sanitary sewer main in Arizona Avenue along the frontage of the property
being developed.

The City’s reclaimed water and sanitary sewer systems are not sufficiently extended to provide
points of connection along Arizona Avenue at this time. Rather than have the developer install
dry segments of pipe along Arizona Avenue to fulfill his development obligations, it will be more
efficient to incorporate this work into later projects to be completed by the City. Accordingly, two
separate agreements have been prepared deferring the installation of these two mains. Under
each of the proposed agreements, the developer will make a lump sum payment to the City and
in exchange for the payment, the developer will be relieved of the responsibility of construction
the improvements.

The funds will be received from the developer and held in an interest-bearing account until the
improvements are completed by the City at which time they will be applied to the cost of the work.

ACTION AGENDA:

39.      REZONING: The Ranch Super Storage                                             Ord. #3666

DENIED Ordinance No. 3666, DVR04-0042, The Ranch Super Storage, rezoning from PAD for
Business Park uses to PAD amended along with a Preliminary Development Plan for a self-
storage facility located on approximately 5 acres at the SEC of Ocotillo Road and the Union
Pacific Railroad. (Applicant: Marc Davis, T2 Architecture.)

MAYOR DUNN reported that Councilmember Wallace has declared a conflict of interest.
Councilmember Wallace left the dais. Mr. O’Neill added that a copy of the conflict of interest is on
file with the City Clerk.

PRINCIPAL PLANNER BOB WEWORSKI stated this was a request for a rezoning and
Preliminary Development Plan for a self-storage facility on a 5 acres site comprising of 4 buildings
with no RV or boat storage. To the west of the property is a Southern Pacific Railroad track and
SRP easement and north is planned industrial with the east being the Consolidated Canal/Paseo
Trail and to the south of the site is an SRP substation. The neighborhood to the south is the
Pinelake Estates subdivision. In 1988, this site was zoned as a business park and part of the
Southshore Area Plan. Later, it was planned for industrial with mixed commercial/office with
some multi-family development. That plan was later amended to allow for the Pinelake Estates
subdivision. The nearest property in Pinelake Estates is atleast 500 feet from the proposed site.
There was a petition of protest from the property owner north of this site, but has since been
withdrawn. That would have required a legal protest vote. COUNCILMEMBER SEPULVEDA
asked on what basis he protested. MR. WEWORSKI said the protesting owner originally had
felt the project could devalue his property and was not in support of that type of use.
COUNCILMEMBER SEPULVEDA clarified that there was a similar type of use recently approved
(South Chandler Business Center) just east of the protesting owner. Mr. Weworski pointed out
that it was more typical of contractor storage not mini storage. In response to Councilmember
Sepulveda, Mr. Weworski stated that the legal protest was withdrawn because of the concern that
a similar protest would be made with the development of his property.

MR. WEWORSKI explained that the plan includes potential future office condominiums, not part
of this application, however if that went forward in the future it would require a separate PDP
application and review however, staff wanted the applicant to include that to show the context of
the area and viability of an office project. The applicant has included a large buffer to the south
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side. It has been determined since the Planning and Zoning Commission meeting, that a median
break could be installed so access could be gained going west bound into the site. This is in the
Southeast Chandler Area Plan and staff has included stipulations to address those features.
Significant landscaping has been included. The building is two-story.

There were two neighborhood meetings with turnout from the Pinelake Estates neighborhood.
The neighbors were in opposition citing concerns with the use, changing the office component to
a self-storage facility, and notification of the meetings. After concerns regarding neighborhood
notification were brought to attention, staff directed the applicant to provide additional notification
by the way of door hangars identifying the plans, to each household in Pinelake Estates.

Planning Commission recommends denial unanimously with the basis that this project would be
more appropriate on the north side of Ocotillo Road in the planned industrial area. They also
thought that some of the site development and building architecture could be improved and taking
into consideration the neighborhood concerns. Staff is recommending approval with several
conditions.

COUNCILMEMBER SEPULVEDA clarified that the neighborhood is against the use but clarified
that it was not inconsistent with what is planned within the General Plan. He added that the
development was very nice and expressed his concern with the owner’s property’s rights. He
pointed out the 500 ft buffer that already exists with the SRP site. He asked if there were any
discussions in the neighborhood meetings regarding traffic through the neighborhood. Mr.
Weworski replied that were. The original plan had shown RV and boat storage next to the
Pinelake Way.       After the first neighborhood meeting, the applicant eliminated that.
COUNCILMEMBER SEPULVEDA also clarified that the proposed use would be less of a traffic
generator than an office complex.

In response to a question from COUNCILMEMBER ORLANDO, Mr. Weworski said that any other
additional development for storage would need to come back for rezoning, preliminary
development plan and additional public hearings.

MAYOR DUNN clarified that this was not considered the “main entrance” into the subdivision,
however it was an additional entrance. Mr. Weworski replied the main entrance is off of Chandler
Heights; this was more of a secondary access.          Mayor Dunn asked staff’s opinion on the
architectural features considering it was abutting an entrance and if there were concerns with the
two-story access. Mr. Weworski stated that the applicant did abide by the Southeast Chandler
Area Plan and staff stipulated they would provide additional features.

MR. ANDY MOORE, 3101 N Central, Suite 1000, Phoenix, representing the developer and
property owners. He stated the parcel in question was 5 acres of 8.6 acre parcel. He gave a
background on the roadway (Pinelake Way) that is used as a secondary access into the
subdivision. He stated that his firm also presented the case for the Pinelake Estates subdivision
and explained at the time of zoning, a secondary access was needed into the subdivision. The
subdivision is bordered by the Consolidated Canal to the east and by the railroad tracks to the
west so the solution was to approach the property owner to the north to obtain property for the
Pinelake Way roadway. He stated that this was a buffered project and would be a use that
would be willing to locate next to power lines, railroad tracks and next to an SRP substation and
along an arterial road. He said the east side would be buffered by the office/condo proposal and
would not be seen by residents driving along Pinelake Way. They are proposing 4 buildings. The
height of the parapet on would be 28 feet which is 6 feet higher than the others. An additional
intensity use is not being requested.
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COUNCILMEMBER ORLANDO asked what the normal height was of a single story building. Mr.
Weworski responded 18 feet for a normal commercial building.

Mr. Moore described the architectural features and added landscaping features. There are 16
existing self-storage buildings with 10 being adjacent to residential uses. Their project is 500’ or
more from the residents. Mr. Moore stated they would work further with staff to reduce the scale
of the appearance to more of a residential style. He stated that through the neighborhood
process, they have eliminated the boat and RV storage that was originally shown and have
completely eliminated the access on Pinelake Way from the project. Although some neighbors
simply do not like the use, the applicant felt it would be an improvement with minimal impact.

COUNCILMEMBER ORLANDO asked if the applicant had built any other storage facilities. Mr.
Moore replied no. Mr. Weworski stated that staff believes this is a uniquely designed self-storage
facility.

In response to a question in regards to availability of self-storage buildings, MR. BALLARD stated
that for this part of the City, the argument could be made the area is underserved. Mr. Weworski
also displayed a map showing the existing facilities.             Mr. Weworski also agreed with
Councilmember Orlando that if a facility like this failed, it would be hard to retrofit to another use
as the exterior is permanent.

COUNCILMEMBER SEPULVEDA said that these projects are not easy to finance and a market
analysis would review the comparisons.

KATHY GRISMORE, 519 E. Horseshoe Place, Chandler spoke in opposition to the proposed
change and stated that she has attended other City Council meetings dealing with commercial
projects and it was her understanding that the underlying message was the Southeast Chandler
area would be developed differently. She enjoys the openness of the area and it was her opinion
that this project was not compatible with an entrance into a neighborhood nor did it show a
transition into Pinelake Estates. She felt the use should remain singular and not broken into two
uses. She also cited the need to keep the current zoning in place to support the need for
supporting businesses in the case of the potential Intel expansion. She argued that the entrance
does serve as a main entrance for half of the community and is unable to give an example of
another storage facility locating at the entrance of a community. She also cited additional
proposed storage uses in the area.

COUNCILMEMBER ORLANDO asked if a business park would be more conducive to the area.
MS. GRISMORE responded yes.

MR. STEVE GOSSELIN, 470 E. Canyon Way, Chandler. Current President of the Pinelake
Estates subdivision, but not speaking on behalf of the organization, only himself. He said that no
notification was made until after the second meeting. He stated that this public storage facility
would be visible from three sides. He asked that Council deny this application.

In response to a question from COUNCILMEMBER CACCAMO, Mr. Weworski stated the current
zoning has been in affect since 1988.

In response to a question from COUNCILMEMBER SEPULVEDA, Mr. Weworski clarified that
there were two neighborhood meetings held by the applicant. The applicant is required by law to
notify residents within 300 feet. They did not notify every Pinelake Estates neighbor for those two
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meetings. It was after the second meeting, that the applicant placed the door hangars throughout
the neighborhood.

MS. JULIE GOSSELIN, 470 E. Canyon Way, Chandler. Spoke in opposition to the zoning
request. She confirmed that the neighborhood did not receive any notice for the two
neighborhood meetings. She and Ms. Grismore have petitioned the neighborhood and out of the
77 residents that were home, 73 signed the petition and it was submitted to the City. She stated
the concerns against the use itself and the fact that there would be two separate uses.
COUNCILMEMBER SEPULVEDA clarified that the speaker was in favor of keeping the current
use as all office condominium.

MR. MOORE commented that prior to the Planning and Zoning Commission meeting, the entire
Pinelake Estates neighborhood had door hangars placed on each residence containing the entire
proposal with the hearing date for the Planning Commission meeting at which seven residents
spoke at that meeting. He stated the concern expressed by the neighbors was the use itself and
the need to have a transitional use into the neighborhood. He commented that the parcel is not
part of Pinelake Estates and that the parcel has to satisfy several requirements including an
appropriate land use for this part of the City, be a good project for the bunkered area in between
powerlines and the railroad tracks and be a commercially viable project. He stressed that this
project would be low traffic generating as well as greatly buffered. He addressed the concern of
having a mixed-use parcel and stated that the market determines what sells and mixed-use
projects are extremely popular. He stated that they currently have a letter of intent for the condo
portion.

He stated that he was hesitant to go back through the Planning & Zoning process to time and
funding, but offered that this proposed project be stipulated so that they would not begin the self
storage portion until a PDP had been submitted for the office/condo project (3.6 acres).

MAYOR DUNN asked if the office condo project would be one or two story. Mr. Weworski
responded that it would be staff’s expectation that it would be one story. Mayor Dunn said that
although there are some great elements of design associated with the self-storage, he is
concerned that the two-story aspect would over shadow the office condo project.

MOVED BY COUNCILMEMBER CACCAMO, SECONDED BY COUNCILMEMBER ORLANDO
TO DENY THE INTRODUCTION OF ORDINANCE NO. 3666.

COUNCILMEMBER SEPULVEDA stated he felt this was an appropriate land use and an
appropriate mixed-use project for this parcel while taking into consideration of the rights of the
property owner.

COUNCILMEMBER ORLANDO stated that he does have concerns with the structure and
believes a better use is business condo and acknowledges support of that from the
neighborhood.

When the vote was taken, THE MOTION TO DENY WAS APPROVED BY MAJORITY (5-1) with
Councilmember Sepulveda voting nay.

The meeting was recessed at 9:35 p.m. and reconvened at 9:45 p.m.
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41.      INTERGOVERNMENTAL AGREEMENT                         No Incentive Zone      Res. 3843

MAYOR DUNN said this item would allow the Council to address the issue of incentives and also
help deal with the issue at the legislature. He stated that about a year ago and before the
legislative session, there was an idea that was shared by him with a couple of the neighboring
Mayor’s. This also involves the Cities of Tempe and Phoenix. This issue was brought before the
Council in executive session in October 2004. Staffs in all three cities have worked to reach an
agreement that would be acceptable to all three cities. A draft was sent to the Council in
February and another draft is before Council.

MR. PENTZ stated the agreement relates to an area along the cities borders along I-10. The
current agreement before them has changed from the earlier draft by identifying the term (by
request of City of Tempe) for a three-year term, with two one-year extensions. At the request of
Tempe staff, Section 4.d was included to add a historic exemption. Other exceptions are listed in
the agreement.

MAYOR DUNN stated that the agreement has gone before the cities in various fashions, thru
executive sessions, but also policy committees in both Phoenix and Tempe. Phoenix Mayor
Gordon has indicated they are ready to proceed. The City of Tempe was also aware of this being
on the agenda tonight.

MAYOR DUNN said the concern is having the prospect of legislation before the (Legislative)
House that deals with incentive agreements sponsored by Senator Cheuvront which Mayor Dunn
felt would be extremely detrimental to cities. He stressed the importance of local control and did
not think a viable “one-fit” solution could not be made at the legislature. He stated his belief that
there was a unique opportunity to come up with an agreement between three cities that could
have a convincing affect on the State Legislature.

COUNCILMEMBER ORLANDO asked what assurances have been made that the bill sponsor
would refrain from moving the bill forward. Mayor Dunn responded that there are none, but the
key will be the vote. He stated the information he is given is that the legislature feels the need to
become involved because the cities are not coming to a solution.

In response to Councilmember Orlando, Mr. Pentz reported that the Cheuvront bill would penalize
cities that use tax incentives within a 25-mile radius of Phoenix through the offset of state shared
revenue for a five-year period. Councilmember Orlando commented that while he is not in
support of Cheuvront’s bill, he asked what was wrong with that if the market is equal to all. Mr.
Pentz reiterated it was a matter of opinion of the League of Cities and municipalities that this is a
local issue. Councilmember Orlando questioned the reasoning and strength of moving forward
with this agreement.

Mayor Dunn responded he also felt this bill helped to address the concern of many citizens
regarding the use of incentives.

COUNCILMEMBER WALLACE noted that the agreement extended past the I-10 corridor over to
Rural Road. COUNCILMEMBER SEPULVEDA commented he did not remember that boundary
being that wide. MAYOR DUNN responded that the boundary had never changed.

COUNCILMEMBER ORLANDO asked how much land this affected in each city. Mr. Harry
Paxton, Economic Development Specialist, responded by showing a map of the agreement
boundary and explained that Tempe has the largest at 151 acres. Chandler is next with 137
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acres.     The northern boundary being Guadalupe Road, the western boundary being 32nd Street
in Phoenix; the southern boundary being Pecos Road and the eastern boundary Rural Road. He
pointed out that there is significant area for Chandler at Kyrene and Loop 202 and still significant
potential for Tempe on Warner Road. The City of Phoenix has acreage along Chandler Boulevard
of 25 acres.

MAYOR DUNN clarified that it would be a question of obtaining votes against the Cheuvront bill
and passage of this agreement would be a means to show there is some movement on the part
of the cities to resolve or control this issue. Mayor Dunn reiterated that he has supported
incentives when used for the correct reasons in certain areas.

COUNCILMEMBER SEPULVEDA asked why revenue sharing was not discussed because at the
end of the term of the agreement, the no incentive deal ends and that may add to some of the
skepticism. He referred to the groundbreaking agreement for the Mills Mall with Tempe and
Guadalupe. He stated the ability to say no is already present.

MAYOR DUNN said that this would also be an assurance that the neighboring city was saying
“no” too. Mayor Dunn said he felt that revenue sharing in this area would probably not occur
again. When a certain level of economic development is reached, the revenue sharing aspect
may be replaced by the non-incentive approach. The auto mall development on the border of
Gilbert would have been ideal for revenue sharing, but that did not occur. He felt the idea to
impress upon the legislature was that there will be different solutions at different locations
depending upon the level and status of economic development. The problem is that a revenue
sharing agreement is much more complex. This agreement is simple, direct and can be made
effective immediately.

COUNCILMEMBER SEPULVEDA argued that the agreement, in his opinion, was not realistic. If
a no incentive agreement was done and the legislature becomes preemptive, it does nothing. If
we do a no incentive zone, and the west side does nothing, then it’s a competitive market and we
forego that opportunity. He commented that many site selectors look at a matrix before coming to
town to see what is available. To say no before analyzing what they are bringing to the table
would send mixed messages, in his opinion. He referred to a new dealership looking to locate
near an existing cluster and asked if an economic impact analysis has been done to identify what
would be lost by having this type of agreement in place.

MR. PAXTON said one has not been done necessarily for this area or a specific dealership,
however Tempe has included their auto mall in this zone. It is unlikely that a dealership would
locate in the Phoenix portion.

COUNCILMEMBER SEPULVEDA asked what would be lost if a dealership wanted to locate in
the area. MR. PAXTON said if it were a comparable dealership, it would be significant. Looking
at what dealerships are existing in this area, and taking into consideration the 10 mile rule, there
would be a limited number of dealerships that could locate, but given that and using the lower end
dealerships, it could be $40 million a year in sales upward to $80-100 million in sales.
Councilmember Sepulveda asked what the City would derive from a comparable dealership with
$50 million in sales yearly. Mr. Paxton reported 1.5% ($750,000). Councilmember Sepulveda
reiterated that he believes that the City has not done an economic impact analysis to fully
understand what would be lost. He stated that while it was great that there are strong existing
dealerships located there that have the first right of refusal should they want to expand, but if not,
he believed there would be a potential net loss that needs to be taken into consideration.
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MAYOR DUNN said that the assumption is being made that car dealerships wouldn’t locate in
this particular area with out incentives being made. Mayor Dunn said he did not believe that we
had to continue to incent every car dealership that wants to locate in Chandler. He stated he
believed the message from the taxpayers payers is the same and the expectation is to use it
wisely. The major competition in this particular area is along I-10 and if the incentives are not
there, then they will locate where the market controls it (land pricing, clustering).

COUNCILMEMBER SEPULVEDA said he was using that as an example because of the
numbers. He reiterated that he philosophically opposes it but is concerned with not having the
economic evaluation component.

COUNCILMEMBER ORLANDO stated he didn’t want to send a message that the Council
wouldn’t support incentives again given the right opportunity. He noted that he voted on an item
tonight because he believed a comparison had not been completed against two options.
Councilmember Orlando asked what controls the citizens have if they believed their elected
officials have “run amuck”. Mr. O’Neill said the citizens have the choice of voting the elected
official out of office, submit a referendum against the particular action or recalling the elected
official.

COUNCILMEMBER CACCAMO stated that while those options are being exercised, the
development is being driven over to the neighboring community which is the opposite of what is
trying to be accomplished.

COUNCILMEMBER WALLACE said that the memo mentions that staff was directed to work with
the staff of the other two communities to work out the technical details of the IGA, but stated that
was not her recollection. She also questioned the boundaries of the non-incentive zone, as she
did not believe Rural Road was represented to her. She stated her concerns with learning about
the commitments to this IGA through the paper and press conference. She expressed her
frustration of not being kept apprised and of the economic impact of this given the fact that the
Economic Advisory Committee that has not reviewed it.

MAYOR DUNN responded that there also have been many articles on how irresponsible some of
the incentives have been. Mayor Dunn clarified that even though it is his opinion that as a city,
Chandler has done well by them, there is an impression or belief that cities will pay whatever they
can for economic development to the extent of being irresponsible.

MAYOR DUNN asked City Manager Pentz if the non-incentive area had changed from initial
discussions. Mr. Pentz replied not to his knowledge.

MAYOR DUNN commented that the process has been unique because staffs from three cities
have been pushing this and are in support of the concept. He stated that any time he had seen
an agreement it has also gone out to Council too. He said the concept is critical because it sends
the message that incentives do not need to be played in order to obtain the economic
development in this area. He commented he did not feel the area was too large and noted that
he would not be recommending this be applied to the border with Gilbert as that would be a
different scenario. Mayor Dunn asked Mr. Pentz if staff was supportive of this concept and if they
felt the concept would be detrimental to the City financial. Mr. Pentz replied that staff has been in
support of creating a no incentive zone. He did not feel, in this particular area, that it would be
detrimental fiscally to the City, but agreed that in other areas it could very well have an impact.
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COUNCILMEMBER ORLANDO asked if the City Manager had numbers to support that. Mr.
Pentz replied it would be his professional opinion along with the economic development staff.
Councilmember Orlando stated that there could be a lot of opinions weighing in, but wanted to
see the facts to support this. He agreed with Councilmember Wallace that he did not remember
giving direction to proceed and remembered asking to be kept informed.

COUNCILMEMBER SEPULVEDA stated that while one could argue that revenue sharing is a
solution too, he commented he felt this was a band-aid approach trying to appease a lot of the
outcry, which is not unfounded. He commented that there is a lack of understanding politically, as
professionals in the industry and in the City, and collectively there has been a poor job of
educating the public what incentives are and how they happen. He stated it was unfortunate that
it appeared the legislature didn’t understand the impact to cities, and it is more unfortunate that
there are people in the legislature that have served on this body and on other bodies that are not
championing on behalf of the city. In response to staff support, he gave the opinion that staff
would probably support a directive coming from the Mayor.

MAYOR DUNN reiterated that it came down to the question of remaining status quo or
addressing the issue. He asked the Council to consider the impact of this agreement with the
legislature, the citizens, with other elected bodies and stressed how unfortunate it would be to
lose the opportunity.

COUNCILMEMBER SEPULVEDA said what is also unfortunate is not understanding the impact
moving forward.

COUNCILMEMBER ORLANDO stated that while he believes that the Council feels incentives
should be used with discretion, his unanswered question is what is the impact on applying the
non-incentive zone to this area. He commented he felt it would be more effective to show
legislators the financial analysis. He stated that business would be done differently if it was the
right business decision to make.

COUNCILMEMBER CACCAMO commented that the analysis would be a best guess as to what
would be locating there. He stated that out of the complaints he receives, incentives are one of
the major complaints. He feels that this IGA will stop some of the competition.

COUNCILMEMBER SEPULVEDA               argued that the economic impact is reviewed when
development agreements are made. There still has to be an opportunity cost based on the
historical data and a comparable dealership. Mr. Paxton replied that a best estimate analysis
could be done on potential dealerships. He clarified that part of the philosophy of the no incentive
zone was most of the major dealerships that would be incented had located in this market and
others may come largely without incentives because the anchors are there.

COUNCILMEMBER SEPULVEDA felt that it was still owed to everyone to do an analysis to look
at opportunity costs. Mr. Paxton said that while an analysis could be done, the IGA puts
everyone on the same playing field.

MAYOR DUNN noted that a couple of car dealerships that located in that particular area, located
with the incentives being based on environmental clean up, which was a logical use for
incentives. He stated he remembers Mr. Newland commenting that dealerships would be
locating in this area without necessarily having incentives. Mayor Dunn expressed the need to
move forward with the opportunity.
Minutes of the Regular Meeting
Chandler City Council
Thursday, March 24, 2005
Page 26


COUNCILMEMBER HUGGINS commented that he had listened to the comments made tonight
and believes there is an opportunity before them to be responsible and slow down incentives.

MOVED BY COUNCILMEMBER HUGGINS, SECONDED BY COUNCILMEMBER CACCAMO to
approve the Tri-City Intergovernmental Agreement for a non-incentive zone.

MAYOR DUNN clarified that it would not be effective without the approvals from the Cities of
Phoenix and Tempe.

COUNCILMEMBER ORLANDO MOVED TO AMEND THE MOTION to send the whole package
to the Economic Development Advisory Committee for review, SECONDED BY
COUNCILMEMBER WALLACE.

COUNCILMEMBER ORLANDO said that this would be more prudent to obtain their advice as
well obtaining some financial data.

MAYOR DUNN asked the amendment maker what period of time this entailed. Councilmember
Orlando responded that there was no set time and dependant on how long it would take staff.

COUNCILMEMBER WALLACE clarified that there was a meeting of that committee in April.

VICE MAYOR WESTBROOKS commented that his concern is the process and the
communication. He stated that obviously there are two philosophy’s on this issue, but his
concern is that after the executive session in October, there was communication in January, and
then a draft agreement was distributed in February and now it’s on the agenda which is the only
real public discussion regarding this issue. He stated that issues such as the transfer station and
family advocacy have gone through citizen committees or Council committees. He stressed the
importance of public input and agreed the Economic Development Advisory Board should review
the agreement. He questioned why the other cities have not yet approved the agreement and
while it has been said that their respective staffs support this, he inquired about the positions of
their Mayor and Councilmember’s. He stated the concern that this item was added to the agenda
late and may not have provided for public input. He stated that while this may be a great solution,
there are key pieces of information missing. He noted that page 3 of the agreement needed to
have the Tempe contact inserted. He agreed that it would also be beneficial for the Council
economic subcommittee review this.

MAYOR DUNN said that he believed there have been some public discussions on this concept as
he as read in the paper, but he stressed he believed an opportunity would be missed with the
legislature. He stated that Chandler has a reputation of leading on issues, and expressed his
disappointment that this would not be going forward.

COUNCILMEMBER CACCAMO asked if there couldn’t be an agreement on a timeline as he
welcomed the additional input but also did want to miss the window of opportunity.

COUNCILMEMBER ORLANDO said his intention was to have the Economic Committee as well
as the Council Committee for public input and facts and figures. He did not want to stress a
timeline however, since he did not know when that would be given as this was the first public
discussion on this.

VICE MAYOR WESTBROOKS said that the bigger issue is that if the Legislature did not have
these bills on their table, we wouldn’t be dealing with this. He expressed the concern that these
                                                                          Minutes of the Regular Meeting
                                                                                   Chandler City Council
                                                                              Thursday, March 24, 2005
                                                                                                Page 27


are local issues and relate much like the Legislature did not want to pre-empted by the Federal
Government. He felt the key was to educate on the process of determining incentives.

MAYOR DUNN added that the frustration on the Legislature’s part is the competition that occurs
between the neighboring cities.

COUNCILMEMBER ORLANDO clarified that his amendment included review by the Economic
Committee (Economic Development Advisory Board), the Council Committee for review and
economic analysis and staff, citizens and Council could work out that timeline. He expressed the
opinion that the process could have been further along by now.

COUNCILMEMBER WALLACE said that although there had been discussion by the Mayor out in
the community, the Council has not been kept informed. She agreed with Councilmember
Orlando that communication could have taken place and this item could have been further along
and agreed with having the committee’s review it.

WHEN THE VOTE WAS TAKEN ON THE AMENDED MOTION, THE MOTION CARRIED BY
MAJORITY 4-3 (with Mayor Dunn, Councilmember Huggins and Councilmember Caccamo voting
nay)

MAYOR DUNN asked that Staff keep the Council informed of the process.


SPECIAL ORDERS OF THE DAY:


MAYOR DUNN announced his attendance at the RSVP luncheon held to honor volunteers in the
City of Chandler involving 22,500 volunteer hours. Evelyn Newlands and Art Tuchalski received
the Presidential Award for their donation of 4,000 hours each.

The 5th Annual Cesar Chavez dinner would be held on Friday at the San Marcos. He gave
thanks to Alberto Esparza and his team, as well at the title sponsor APS for their contributions.
The Cesar Chavez Day of Sacrifice will be held Saturday on a landscaping project in downtown
Chandler.

The 6th Annual Minority Workshop is to be held on April 6 at the W.I.U. campus in downtown. It is
presented by the City and the Chamber of Commerce along with the participation of Vice Mayor
Westbrooks.

Mayor Dunn announced the Police Department’s Open House and Car Show on April 9th.

COUNCILMEMBERS’ ANNOUNCEMENTS:


COUNCILMEMBER CACCAMO announced a successful fundraising event for Relay for Life
(Cancer) and thanked Councilmember Huggins for his participation as well as the Chandler
Police Department.

COUNCILMEMBER WALLACE announced the Senior Talent Show was occurring at the Center
for the Arts.
Minutes of the Regular Meeting
Chandler City Council
Thursday, March 24, 2005
Page 28


COUNCILMEMBER SEPULEVDA noted the passing of Alfred Tibshraeny, uncle of former Mayor
Jay Tibshraeny. He was able to attend the service and relayed the history of development within
the Mesa and Chandler area.

CITY MANAGER'S ANNOUNCEMENTS:

There were no City Manager announcements at this time.


Adjournment: The meeting was adjourned at approximately 11:30 p.m.



ATTEST: __________________________                ______________________________
            City Clerk                                 MAYOR


Approved: _________________________




                                   CERTIFICATION

I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the
regular meeting of the City Council of Chandler, Arizona, held on the 24th day of March 2005. I
further certify that the meeting was duly called and held and that a quorum was present.



DATED this __________ day of _____________, 2005.


                                                       __________________________
                                                        City Clerk
MINUTES OF THE REGULAR MEETING OF THE HONORABLE MAYOR AND CITY COUNCIL
OF THE CITY OF CHANDLER, ARIZONA, held in the Council Chambers in the Chandler Library,
22 S. Delaware, on Thursday, April 14, 2005 at 7:00 p.m.

THE MEETING WAS CALLED TO ORDER BY MAYOR BOYD W. DUNN.

The following members answered roll call:   Boyd W. Dunn         Mayor
                                            Phillip Westbrooks   Vice Mayor
                                            Bob Caccamo          Councilmember
                                            Lowell Huggins       Councilmember
                                            Matt Orlando         Councilmember
                                            Martin Sepulveda     Councilmember
                                            Donna Wallace        Councilmember


Also in attendance:   W. Mark Pentz         City Manager
                      Pat McDermott         Assistant City Manager
                      Rich Dlugas           Assistant City Manager
                      Dennis O’Neill        City Attorney
                      Marla Paddock         City Clerk

Staff present: Mark Eynatten, Patricia Walker, Bob Mulvey, Doug Ballard, Chief Kiyler, Bryan
Patterson

INVOCATION: The invocation was given by Kevin Hartke – Trinity Christian Fellowship

PLEDGE OF ALLEGIANCE: Councilmember Caccamo led the Pledge of Allegiance.

SCHEDULED PUBLIC APPEARANCES:

1.     City Services Academy Graduates:

MAYOR DUNN was joined by Management Intern Melanie Sala-Friedrichs in recognizing the
following graduates of the Citizen’s City Services Academy:

Gail Aubel, Thomas Beattie, Randy Davenport, Nancy Eichhorst, Thomas R. Filesi, Gina
Giaramita, Tony Giaramita, Susannah Johnson, Susan Martin, Michele Martin, Pamela Mayfield,
Jason Mork, Nancy Nickerson, Franklin H. Nickerson III, Henry P. Seager, Diane Sosinski, Bill
Staples, Kay Thayer and Michael Thayer.

Those completing the Academy but unable to attend the meeting were Herbert Koeppel, Lynn
Pitzer, Herman Suarez, Gerald Daniels, Cindie Diaz, Andy Trujillo and Adam Faure.

MAYOR DUNN thanked the graduates for their time and dedication in learning more about the
City and encouraged them to continue to be involved in City activities.
Minutes of the Regular Meeting
Chandler City Council
Thursday, April 14, 2005
Page 2


2.       Presentation-Boys & Girls Club, Compadre Branch Youth of the Year Gabriel (Gabe)
         Martin:

MAYOR DUNN asked Boys & Girls Club Compadre Branch Director Vaughn Morris to join him in
recognizing GABRIEL MARTIN for being chosen Youth of the Year for the Boys & Girls Clubs of
America sponsored by the Readers Digest Foundation. The video submitted for the competition
was shown.

Gabe said that he has learned many valuable lessons at the Boys & Girls Club and is now
employed by them. He said he likes being a role model for the kids.

Mr. Morris said that it is good to be able to recognize youth for positive rather than negative
actions and Gabe represents a good example of why the Boys & Girls Club is important.

3.       Recognition – Jerry Biondi of Country Clipper for raising $3,800.00 for My Sister’s Place:

MAYOR DUNN was joined by My Sister’s Place Director Yvonne Taylor and Shelter Supervisor
Gayla Spenney in recognizing JERRY BIONDI for raising $3,800.00 for My Sister’s Place. He
organized Chandler’s 2nd Annual Classic Car and Hot Rod Show in downtown Chandler. Even
though the event was rained out on the originally scheduled day, Jerry did not give up and
worked with the merchants to reschedule it. The amount raised this year is more than triple what
was raised last year.

UNSCHEDULED PUBLIC APPEARANCES:

TOM FILESI, 2454 E. Cloud Drive, said that he was fortunate enough to participate in the
Citizen’s Academy. He commended the Mayor and Council for creating a means by which
residents can find out how great Chandler is. He said that he was impressed with the enthusiasm
of the employees who appeared to enjoy their jobs and commended management staff for
creating such an environment.

CONSENT:

MAYOR DUNN announced that agenda items #7 and 9 would be moved to the action agenda.

MOVED BY COUNCILMEMBER ORLANDO, SECONDED BY COUNCILMEMBER WALLACE, to
approve the Consent Agenda with the exception of items #7 and 9.

WES BROMLEY, 837 W. Kesler Lane, Fairview Meadows, Chandler, spoke regarding agenda
item #5, Yen-Li Chen Ballet School. He said that there are concerns with traffic generated from
the school. They would like to have no parking on Fairview and Emerson and speed bumps
installed to eliminate possible cut through traffic to Pecos Road on Emerson and Pleasant. They
currently are seeing an increase in cut through traffic because of construction on Pecos Road.
They would also like the area to be well lit at night to discourage loitering with some type of gate
installed to keep vehicles from entering after closing.

MAYOR DUNN suggested that this item go on the Action Agenda and that Staff meet with Mr.
Bromley to see if some of his concerns can possibly be resolved before further discussion.

THE MOTION FOR APPROVAL OF THE CONSENT AGENDA WAS AMENDED TO INCLUDE
MOVING AGENDA ITEM #5 TO THE ACTION AGENDA. COUNCILMEMBER HUGGINS stated
                                                                           Minutes of the Regular Meeting
                                                                                    Chandler City Council
                                                                                 Thursday, April 14, 2005
                                                                                                  Page 3


that he would be abstaining on agenda item #15, Resolution No. 3850, due to a conflict of interest
as an owner of property in the area.

Motion carried unanimously 7-0 with the exceptions noted.

1.     MINUTES:

APPROVED, as presented, minutes of the Chandler City Council Special and Regular Meetings
of March 24, 2005.

2.     REZONING: Toscana Townhomes                                                       Ord. #3664

ADOPTED Ordinance No. 3664, DVR04-0061, Toscana Townhomes, rezoning from AG-1 to
PAD for a residential subdivision on approximately 6.5 acres west of the NWC of Dobson and
Pecos Roads.

3.     CITY CODE AMENDMENT: Chapter 2                                                    Ord. #3669

ADOPTED Ordinance No. 3669 amending City Code, Chapter 2, Subsection 2-12.2 relating to
staggering of terms for the Economic Development Advisory Board.

4.     POWER DISTRIBUTION EASEMENT: Salt River Project                                   Ord. #3667

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3667 granting a no cost power
distribution easement to Salt River Project to consolidate equipment locations along Ray Road
between Alma School Road and Arrowhead Drive.

As part of the Ray Road from Alma School Road to Arrowhead Drive Project, Salt River Project
needs to install new electrical equipment and consolidate its equipment locations. Prior to
completion, it is necessary to grant a power distribution easement to Salt River Project to enter
the City’s property to consolidate and install the new equipment.

5.     On the Action Agenda.

6.     REVOCABLE AIRSPACE EASEMENT: PSCI                                                 Ord. #3672

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3672, granting a revocable
airspace easement to PSCI Investments, L.L.C. for a cantilevered canopy overhanging the City’s
right-of-way (alley) at the south property line at 81 West Boston Street. The new canopy will
overhang the City’s right-of-way up to 3’6” and begin 9’5” above the alley for a length of 15’4”.
The revocable airspace easement covers the length of the rear of the building.


PSCI Investments, LLC has purchased the historic Rowena Theatre building at 81 West Boston
Street in Historic Downtown Chandler and plans to make significant improvements to the front
and rear facades of the building. The improvements will enhance the appearance of the building
on the south side and includes a curved cantilevered canopy located above the planned new rear
door entry. The City of Chandler’s Architectural Review Committee approved the façade
improvements on March 17, 2005.
Minutes of the Regular Meeting
Chandler City Council
Thursday, April 14, 2005
Page 4


PSCI plans to open their retail store, di Sciacca, after the façade and tenant improvements are
complete. De Sciacca will be a specialty retail store that will feature uniquely designed mouth
blown glassware and home décor accent pieces from China. PSCI currently manufactures and
supplies proprietary wholesale designs of mouth blown glassware, ceramics and specialty items
for its corporate clients such as Bombay, Red Robin and TGI Friday’s. The specialty retail store
will expand the market and fill the demand for the uniquely designed glassware pieces.

7.       On the Action Agenda.

8.       REZONING: Ritter Building                                                         Ord. #3675

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3675, DVR04-0001, Ritter
Building, rezoning from PAD warehouse/industrial to PAD office on 3.35 acres located at 7155 W.
Detroit Street north of Chandler Boulevard and west of 56th Street. (Applicant: Earl, Curley &
Lagarde, P.C.)

The site has been developed as an infill parcel and is located in the Chandler Technology Center
industrial/commercial subdivision. The existing Planned Area Development zoning is approved
for industrial warehousing and some manufacturing with office as an accessory use. It was once
part of the Chandler Freeway Business Park and was rezoned from I-1 to PAD in 1984 to allow a
mixed-use development. The General Plan identifies this site for employment use of which office
is included. The proposal satisfies the goals of the General Plan.

The site and building received Preliminary Development Plan approval in September 2000.
Approximately two years later, the building construction was completed, but has remained empty
since completion. The current zoning allows for warehouse/office uses, with office allowed as a
secondary or accessory use on the site. The tenant interested in occupying the building, Banner
Health, wishes to use the building primarily for office purposes. There are commercial-type
businesses and restaurants to the south and a private fueling station to the east. To the north is
Novellus a semi-conductor component manufacturer. Directly west is an aviation warehouse and
further west across 54th Street is Banner Health’s warehouse facility.

There is a building currently on the site that is offset from the center of the property slightly to the
east. The north portion (front) of the building is two-story and the south (back) part of the building
is single-story.

This request was noticed according to the provisions of the Chandler Zoning Code with a
neighborhood meeting being held on March 3, 2004. There were no neighbors in attendance.
Staff has received no correspondence regarding this application.

Upon finding the request to be consistent with the General Plan, the Planning Commission and
Staff recommend approval.

9.       On the Action Agenda.

10.      REZONING: JKM Self Storage                                                        Ord. #3677

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3677, DVR04-0055, JKM Self
Storage, rezoning from AG-1 to PAD along with a Preliminary Development Plan for a storage
facility on approximately 20 acres at the NWC of Ocotillo Road and the Centre Point Parkway.
(Applicant: Whitneybell Architects.)
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                                                                                    Chandler City Council
                                                                                 Thursday, April 14, 2005
                                                                                                  Page 5



The site is bound by Ocotillo Road to the south and Centre Point Parkway to the east. A collector
Street (Jerre Lane) bisects the northern third of the property. To the west is the recently
approved South Chandler Business Park and an old palm tree grove. North is a horse breeding
operation in the County. To the east is vacant property with a zoning application for a business
park currently proposed to include a self-storage facility. Further east is the Consolidated Canal
and City landfill. South is the Pinelake Estates neighborhood and property along Ocotillo Road
zoned PAD for business park and a proposed self-storage development.

The proposed self-storage facility is in conformance with both the General Plan and Airpark Area
Plan as an appropriate land use. The General Plan designates the site as Employment, which
can accommodate a variety of light industrial/business parks. The site is also located within the
Airpark Area Plan which designates the land use for light industrial denoting uses for small
manufacturing, warehousing and distribution, back office space and high tech.

This request was noticed in accordance with the requirements of the Chandler Zoning Code with
a neighborhood meeting being held on February 22, 2005. There was one neighbor in
attendance. Staff has received no correspondence regarding this application.

Upon finding consistency with the General Plan and Airpark Area Plan, the Planning Commission
and Staff recommend approval subject to conditions as listed in the ordinance.

11.    INTERGOVERNMENTAL AGREEMENT: ADOT                                                 Res. #3833

ADOPTED Resolution No. 3833 authorizing an Intergovernmental Agreement with the Arizona
Department of Transportation (ADOT) for the construction of three right-turn lanes at the
intersection of 56th Street and Chandler Boulevard, in the estimated total amount of $422,648.00
with Federal participation capped at $196,000.00.

The City has received a Congestion Mitigation and Air Quality (CMAQ) grant to construct three
right-turn lanes at the intersection of 56th Street and Chandler Boulevard. This project will
construct right-turn lanes on the eastbound, northbound and westbound legs of the intersection.
The southbound leg currently has a right-turn lane. The project will also construct a sidewalk
along the southeast corner of Chandler Boulevard and 56th Street. Sidewalk construction is paid
for by Harley Davidson through a reimbursement agreement.

The grant funds will be held by ADOT and the project will be bid and awarded by ADOT. The City
is responsible for all construction costs in excess of the $196,000.00 Federal grant. The City will
also be responsible for construction management on this project.

12.    PROJECT SUBMISSIONS: Arizona’s 2006 Highway Safety Plan                           Res. #3835

ADOPTED Resolution No. 3835 authorizing the submission of projects for consideration in
Arizona’s 2006 Highway Safety Plan. The Governor’s Office of Highway Safety (GOHS) has
notified the Police Department that they are requesting submission of proposals related to all
aspects of highway safety for the 2006 Federal Fiscal Year which commences on October 1,
2005.
Minutes of the Regular Meeting
Chandler City Council
Thursday, April 14, 2005
Page 6


13.      INTERGOVERNMENTAL AGREEMENT: Maricopa County Sheriff’s Office                 Res. #3836

ADOPTED Resolution No. 3836 authorizing an Intergovernmental Agreement with Maricopa
County Sheriff’s Office (MCSO) for coordination of the Bureau of Justice Assistance Arizona
Methamphetamine Program. MCSO currently has $50,000.00 in overtime funds available to
Arizona law enforcement agencies that investigate clandestine methamphetamine lab cases.

14.      INTERGOVERNMENTAL AGREEMENT:                Flood Control District of Maricopa County
         Res. #3841

ADOPTED Resolution No. 3841 authorizing an Intergovernmental Agreement with the Flood
Control District of Maricopa County (FCDMC) for the design, utility relocation, construction,
construction management, operations and maintenance of the Queen Creek Road Basin in an
amount of $1,500,000.00.

The City and FCDMC jointly own approximately 70 acres of land known as the Queen Creek
Road Basin as a result of a 2002 joint-purchase agreement. Following excavation to create a
flood control basin, the site will be developed as a City park.

Resolution No. 3800 was approved in 2004 authorizing the Mayor to sign an agreement with
FCDMC for the design, utility relocation, construction, construction management, operations and
maintenance of the Queen Creek Road Basin. Prior to execution of the agreement, at the City’s
request, the FCDMC and the City agreed to change the timing of the transfer of the FCDMC’s
property rights to the City. This change necessitated a return to Council for approval of the new
agreement.

The agreement approved by the Council in December 2004 called for FCDMC to transfer their
property rights to the City following excavation of the basin. Under the new agreement, the
FCDMC will transfer their property rights to the City of Chandler as soon as the agreement is
recorded. This will give the City ownership of the entire 70-acre parcel sooner and provide the
City flexibility to exchange land with adjacent property owners to provide the best configuration of
a flood control basin, park area, protection of runway protection zone for the Airport and
commercial development. The FCDMC will review the design of the basin to ensure adequate
capacity to accommodate a 100-year storm event.

15.      CHANDLER BOULEVARD IMPROVEMENT:                                               Res. #3850

ADOPTED Resolution No. 3850 reaffirming and clarifying matters determined and approved as
part of the prior adoption of Resolution No. 3712 relating to the road project for the improvement
and realignment of Chandler Boulevard from Nebraska Street to Colorado Street and Arizona
Avenue from Buffalo Street to Detroit Street.

Council previously approved the alignment for Chandler Boulevard from Nebraska Street to
Colorado Street and Arizona Avenue from Buffalo Street to Detroit Street and previously
approved Resolution No. 3712 determining that acquisition of the real property for the project is a
matter of public necessity and authorizing acquisition of such real property by purchase or
condemnation. Recently, Council approved an amendment to the design contract with Kirkham
Michael Consulting Engineers to include design of a parking lot at and near the northwest corner
of the Chandler Boulevard and Arizona Avenue intersection.
                                                                              Minutes of the Regular Meeting
                                                                                       Chandler City Council
                                                                                    Thursday, April 14, 2005
                                                                                                     Page 7


Following approval of Resolution No. 3712, the City tendered a written offer, supported by an
appraisal report, to purchase the entire property located at 218 N. Arizona Avenue, the former
Chamber of Commerce site currently used as a retail shop. At least 20 days after the offer, suit
was filed to condemn the property and to obtain immediate possession. In that suit, the property
owner has argued that the portion of the subject property not being acquired for use as part of
Arizona Avenue is not being condemned for a necessary and public use.

Resolution No. 3712 authorized all real property needed for the project to be acquired and also
determined that the acquisition was a matter of public necessity. The project includes the
aforementioned parking lot as a means of replacing parking lost by the Chandler Center for the
Arts as a result of the project. The record supporting Council’s approval of the road alignment for
the project shows that a portion of the existing Center for the Arts parking will be incorporated into
the Arizona Avenue roadway. It also shows that a portion of the subject property is being
incorporated into the Arizona Avenue roadway, but does not specifically depict the remainder of
the site as being used for replacement parking.

The same statute that authorizes a municipality to use its power of eminent domain to acquire
roads also authorizes use of eminent domain to acquire off-street parking sites. In this case,
condemnation proceedings were begun to acquire all of the subject property because the entire
site had been identified as being needed to further the project, notwithstanding that not all of the
site would actually be made part of the roadway. Council is now requested to adopt Resolution
No. 3850 to clarify what staff understood to be the scope of the authorization to acquire property
for the project when Resolution No. 3712 was adopted and to otherwise make clear Council’s
determination that all of the subject property is needed for a necessary and public use as part of
the project.

16.    REZONING: Chandler Boulevard & McQueen Road

CONTINUED TO MAY 26, 2005 REZONING, DVR04-0049, QuikTrip – Chandler Boulevard &
McQueen Road, from AG-1, Community Commercial District and High-density Residential District
to PAD on approximately 10 acres for a commercial development with retail and office uses,
along with a Preliminary Development Plan for a QuikTrip gas station, convenience store and car
wash on approximately 4 acres at the SEC of Chandler Boulevard and McQueen Road.
Continuance is requested as this item was continued by the Planning and Zoning Commission to
their May 4, 2005 meeting.

17.    No Item.

18.    CLAIMS REPORT

APPROVED the Accounts Payable checks for the quarter ending March 31, 2005.

19.    AGREEMENT: American Express

APPROVED an agreement with American Express to accept the American Express card for fees
and services. The City currently accepts Visa and Mastercard as payment for utility bills,
recreation classes and fees, library fines, police records and airport rentals. Accepting American
Express would provide another payment method option to our customers. The 2.25% fee
charged by American Express is comparable to the 2.20% fee charged by Visa and Mastercard.
The total cost for this program will depend on the dollar volume of payments received using
American Express. The City will begin accepting American Express within four weeks.
Minutes of the Regular Meeting
Chandler City Council
Thursday, April 14, 2005
Page 8



20.      AGREEMENT: Simon Sewer Maintenance

APPROVED an agreement with Simon Sewer Maintenance for emergency sludge dewatering at
the Water Treatment Plant in an amount not to exceed $71,250.00. Due to the recent rains, the
raw water received from Salt River Project is abnormally high in solids resulting in excessive
sludge production at the Surface Water Treatment Plant. Mobile sludge dewatering equipment is
required to keep the plant operational as the Water Treatment Plant begins to increase in
production to meet warm weather demands.

21.      MEMORANDUM OF AGREEMENT: Engineering and Environmental Consultants, Inc.

APPROVED a Memorandum of Agreement with Dennis L. Lopez and Associates, L.L.C., for
appraisal of Arizona Avenue Intersection Improvements at Elliot and Ray Roads, in the amount of
$34,875.00.

On November 18, 2004, Council approved the alignment of Arizona Avenue intersections at Elliot
and Ray Roads. The new alignment requires the acquisition of right-of-way and easements for
an estimated 28 parcels. The current design requires the partial acquisition and possible
relocation of a fueling station that is located south of the southeast corner of Arizona Avenue and
Ray Road. No other buildings within the scope of the project appear to be impacted by the road
widening improvements.

22.      PROJECT AGREEMENT: Engineering and Environmental Consultants, Inc.

APPROVED Project Agreement #WW0509-201, with Engineering and Environmental
Consultants, Inc., for the design of a 12-inch diameter reclaimed water distribution pipe in various
locations throughout the City, in an amount not to exceed $118,060.00. The City’s Reclaimed
Water Master Plan identifies a need to use effluent from the City’s wastewater treatment facilities
for irrigation of turf and landscaped areas constructed by developers.

23.      ARCHITECTURAL DESIGN SERVICES CONTRACT: Deutsch Associates Architects

APPROVED Architectural Design Services Contract #FI0501-201, with Deutsch Associates
Architects for the Fire Mechanical Maintenance Expansion project at 163 S. Price Road in an
amount not to exceed $112,000.00.

24.      PROJECT AGREEMENT: SDB, Inc.

APPROVED Project Agreement #WA0519-401, Job Order Contract 03-12, with SDB, Inc. to
replace the laboratory exhaust system at the Water Treatment Plant in an amount not to exceed
$84,050.00. As part of the on-going maintenance at the City’s surface water treatment plant, the
existing laboratory fume hood will be replaced with corrosion resistant hoods and fans, and will be
connected to a new dedicated exhaust system. The current hoods are not corrosion resistant
and are connected to the general laboratory exhaust.

25.      CONTRACT EXTENSION: G & G Construction

APPROVED a one-year contract extension with G & G Construction for concrete repair and minor
construction in an amount not to exceed $591,000.00. The concrete work will repair damaged
concrete and upgrade existing handicap ramps to current standards.
                                                                          Minutes of the Regular Meeting
                                                                                   Chandler City Council
                                                                                Thursday, April 14, 2005
                                                                                                 Page 9



In April 2004, Council awarded a one-year contract to G& G Construction with provisions for four
one-year extensions. G & G has agreed to extend the contract for the first extension with an
increase of 5.8% as a direct result of price increases in cement, fuel and wages.

26.    CONTRACT EXTENSION: Vulcan Materials Company

APPROVED a one-year Contract Extension for ready-mix concrete to Vulcan Materials Company,
in an amount not to exceed $95,000.00.

In June 2004, Council awarded a one-year contract with options for five one-year extensions for
ready mix concrete to Vulcan Materials Company and Chandler Ready Mix. This is the first of the
five contract extensions. Vulcan Materials Company has agreed to extend the contract for an
additional year at the current pricing. Chandler Ready Mix has declined to extend their contract
due to increased prices of raw materials and fuel.

27.    CONTRACT EXTENSION: G & G Construction

APPROVED a one-year contract extension for miscellaneous storm drain improvements to G & G
Construction, in an amount not to exceed $80,100.00.

In June 2004, Council awarded a one-year contract to G & G Construction with provisions for four
one-year extensions. G & G Construction has agreed to extend the contract for the first
extension with an increase of 6% as a direct result of price increases in cement, materials, fuel
and wages.

28.    PURCHASE: Goodman’s

APPROVED the purchase of modular and miscellaneous furniture for the Fire Training Facility
from Goodman’s Inc., in the amount of $24,593.31 utilizing the State of Arizona and from
Goodman’s Inc., in the amount of $84,209.48 utilizing the Maricopa Community College District
(MCCD) contract, for a combined total of $108,802.79. By using the State of Arizona and MCCD
contracts, bidding costs are eliminated and better pricing obtained due to purchasing discounts
received by the State.

29.    REJECTED BIDS: Sewer Cleaner Truck

REJECTED all bids received, as recommended by Staff, for the purchase of a combination sewer
cleaner truck. Six bids were received and all had a number of exceptions taken. The
specifications will be revised and re-bid.

30.    USE PERMIT EXTENSION: Utility Vault

APPROVED THE WITHDRAWAL of a request for a Use Permit Extension, UP04-0038, Utility
Vault, for an existing outdoor storage of concrete vaults on 4 acres at 411 E. Frye Road as
recommended by the Planning Commission and Staff.

Staff met with the applicant to discuss the Use Permit recommendation of denial. Staff was
assured that plans would be submitted to the City within a few weeks for building permits to
construct the perimeter wall and to install the required landscaping along Pecos Road. The Use
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Chandler City Council
Thursday, April 14, 2005
Page 10


Permit was necessary to allow the outdoor storage of utility vaults without proper on-site
landscaping. If these improvements were completed, a Use Permit would not be necessary.

31.        USE PERMIT: CVS Pharmacy

 APPROVED a Use Permit, UP05-0010, CVS Pharmacy, Series 10, for the sale of beer and wine
for off-site consumption only at a CVS Pharmacy at 990 E. Pecos Road. (Applicant: Withey,
Andersen and Morris.)

The store is currently under construction as the first phase of the Monterey Vista Village shopping
center scheduled to open in May 2005. This site was conceptually zoned PAD commercial in
1993 and received Preliminary Development Plan (PDP) approval in 2003. To the north and west
of the subject site is the Monterey Vista residential development. South of the site is an existing
larger lot residential subdivision zoned single family (SF-33) and to the east is the commercial
development Hamstra Square.

It is the Planning Commission and Staff’s opinion that the addition of a Series 10 license will not
adversely affect the neighborhood. Currently there are two liquor licenses at the intersection of
Pecos and McQueen Roads; Bashas' possesses a series 9 (all spirituous liquor) and Chevron
has been granted a series 10 (beer and wine only).

This request was noticed in accordance with the requirements of the Chandler Zoning Code. The
Police Department has been informed of the application and has no issues or concerns. Staff
has received no correspondence regarding this application.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to the following conditions:

      1.      The Use Permit is for a Series 10 liquor license only and any change in type of license
              shall require reapplication and new Use Permit approval.
      2.      Expansion beyond the approved floor plan shall void the Use Permit and require new
              Use Permit application and approval.
      3.      The Use Permit is non-transferable to any other store location.

32.        CONTINUED LIQUOR LICENSE: Sam’s Club

CONTINUED to APRIL 28, 2005 an application for a Liquor License, Series 9, for Clare Hollie
Abel, Agent, Sam’s West, Inc. dba Sam’s Club #4927 at 1375 S. Arizona Avenue to allow the
applicant time to complete the requirements for a new Use Permit.

33.        LIQUOR LICENSE: CVS Pharmacy

APPROVED a Series 10 Beer and Wine Store Liquor License (Chandler #100209) for Jason
Barclay Morris, Agent, Chandler Dobson CVS, L.L.C., dba CVS Pharmacy #5849 at 990 E. Pecos
Road. A recommendation for approval of State Liquor License #10074993 will be forwarded to
the State Liquor Department. The Police Department reports no objections to the issuance of this
license and no written protests have been received. All licenses, permits and fees have been
paid and the applicant is in compliance with the City’s Tax Code.

34.        CONDOMINIUM PLAT: Serenity Shores at Fulton Ranch
                                                                              Minutes of the Regular Meeting
                                                                                       Chandler City Council
                                                                                    Thursday, April 14, 2005
                                                                                                    Page 11


APPROVED a Condominium Plat, FPT04-0048, Serenity Shores at Fulton Ranch, for a 20.45-
acre single-family subdivision at the SWC of Pleasant Place and Fulton Ranch Boulevard.
(Applicant: Cachet-Serenity Shores, L.L.C.) The development includes 46 individual buildings
with common open space and recreational amenities. The plat creates the lots and tracts,
establishes the necessary easements and dedicates the required rights-of-way.

35.    FINAL PLAT: Fulton Ranch Towne Center

APPROVED a Final Plat, FPT05-0010, Fulton Ranch Towne Center, for a 46-acre commercial
subdivision at the SWC of Arizona Avenue and Ocotillo Road. (Applicant: Lowe’s HIW, Inc.) This
plat is for a commercial retail center featuring a large single use retail building (Lowe’s), inline
stores and freestanding pad buildings. The plat creates the lots and tracts, establishes the
necessary easements and dedicates the required rights-of-way.

ACTION:

7.     REZONING: Chandler Airport Center                                                    Ord. #3673

The request is for rezoning from AG-1 and Planned Area Development Mixed Use Commercial
and Industrial Uses to PAD Light Industrial, Office, Commercial and Airport Uses with a Mid-Rise
Building Overlay on approximately 245 acres located on the south side of the Santan Freeway
(Loop 202) on the east and west sides of Cooper Road. (Applicant: William Lund, Canyon Oak
Estates, L.P.; Paul Gilbert, Beus Gilbert, PLLC; Wesley Balmer, Balmer Architectural Group.)

The industrial uses include those specified within the I-1 (Light Industrial) zoning district. The
office uses may include multi-story buildings exceeding 45 feet in height. The property is located
within the Airpark Area Plan and an Airport conflicts evaluation report was issued by the Airport
Manager indicating that there are no airport conflicts upon the condition that all structures comply
with the FAA restrictions for building height. A neighborhood meeting was held on February 8,
2005 attended by four neighbors representing three properties. There was no opposition
expressed.

Planning Manager JEFF KURTZ reviewed this item and stated that the applicant has raised
concerns with Stipulation 1 addressing the collector street roadway on the eastern most property
line requiring the dedication of a roadway.

COUNCILMEMBER SEPULVEDA asked the reason for the roadway. MR. KURTZ said that it is
a typical half-mile location. The purpose of this particular roadway is for long-term planning and
the anticipation of the possibility of the City needing a road in that location to service the area and
future transportation needs. It is not currently needed for a roadway, but may be in the future
when decisions regarding park and ride lots and HOV lane service in the area are made. This
location is one of five locations being studied for a park and ride lot.

PAUL GILBERT, 4800 N. Scottsdale Road, Scottsdale, representing the applicant, said that the
project is a good fit for the master plan. He requested to have the last sentence of Stipulation 1
deleted that dedicates “a full width collector street along the property’s eastern property line
subject to approval by the City Engineer”. They are dedicating a full street coming into the project
from another location. The stipulation requires that a full street be dedicated all the way to the
freeway because of a potential park and ride lot and the possibility of an overpass over the
freeway connecting with an HOV lane.
Minutes of the Regular Meeting
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Thursday, April 14, 2005
Page 12


He commented that the park and ride lot location had not been selected and the only reason the
City would need a road to this lot, if selected, is if the City were to agree on an overpass with
ADOT. He stated he spoke with ADOT and they relayed they have no plans for an overpass as
of this time. They indicated that if it were to be installed, Chandler would have to pay for it.

Mr. Gilbert commented asked why the other half of the road not dedicated from the adjacent
property. He added that lead to the conclusion that the only reason the City wants this dedication
is because it’s needed for the overpass that is not approved by ADOT and is not part of the
current City plan. Mr. Gilbert continued that they also feel the stipulation is an illegal exaction and
it is needed for something unrelated to this project.

COUNCILMEMBER SEPULVEDA commented that the City would not have done anything that
would have hurt the project or the applicant. If the roadway were to be needed in the future, the
City would have the right of eminent domain. City Attorney O’Neill confirmed Councilmember
Sepulveda’s comments.

MAYOR DUNN noted that there is no certainty that this will be the location of a park and ride lot
and that an analysis by the City of Chandler and MAG is needed. Public Works Director Bryan
Patterson said that five sites have been identified in a preliminary analysis. Within the next two
months, three sites will be chosen for a more detailed evaluation with a final selection made by
the end of the summer. If this site were to be selected, construction would begin within the next
two to five years. The Loop 202 would need to be completed, but the HOV lanes would not need
to be completed before this park and ride lot could be built.

MOVED BY COUNCILMEMBER SEPULVEDA, SECONDED BY COUNCILMEMBER HUGGINS
to approve the INTRODUCTION of Ordinance No. 3673, DVR04-0037, Chandler Airport Center,
rezoning from AG-1 to PAD mixed-use commercial and industrial uses to PAD light industrial,
office, commercial and airport uses with a mid-rise building overlay on approximately 245 acres
located on the south side of the Santan Freeway (Loop 202) on the east and west sides of
Cooper Road and modifying Stipulation No. 1 by deleting the second sentence “Dedication of a
full width collector street along the property’s eastern property line subject to approval by the City
Engineer.”

In response to a question from VICE-MAYOR WESTBROOKS, Mr. Kurtz said that if this property
were needed in the future, the City would enter into negotiations for purchase. It will be sized to
accommodate the need. Should there be a building on the portion needed, that will be included
in the negotiations. Since this is a conceptual plan, it is not known what or where buildings will be
located although the applicant has intimated that they will work towards keeping that portion of
the property free of buildings.

MR. GILBERT said that the City retains control over the site plan having the ability to ensure that
no buildings are placed on that portion of the site. The applicant does understand that that
portion may be needed in the future and commits to negotiate in good faith to work with the City
to resolve those issues.

COUNCILMEMBER CACCAMO asked if an overpass would be needed over the freeway if this
location is chosen for the park and ride lot and if so, will it be the City’s responsibility to build it?
Mr. Patterson responded that the park and ride lot is an independent feature not connected to any
future overpass or HOV connection. Staff felt the HOV connection may be beneficial at this
location, but it is not part of the regional plan. If it were to become part of the regional plan, it
would be expected to be funded regionally and not through City funds.
                                                                              Minutes of the Regular Meeting
                                                                                       Chandler City Council
                                                                                    Thursday, April 14, 2005
                                                                                                    Page 13



MR. GILBERT said that the only reason the City would need the road dedication would be if the
overpass were to be put in. Since it is not in any plans, it is simply a possibility for the future.

COUNCILMEMBER WALLACE asked if regional funds would be available to purchase the
property if it were needed in the future? Mr. Patterson said that no funds have been reserved for
that purpose but it would be part of the regional system. The City would lobby to have it funded
through the regional program.

THE MOTION CARRIED UNANIMOUSLY (7-0) TO INTRODUCE ORDINANCE NO. 3673 WITH
THE DELETION OF THE SECOND SENTENCE OF STIPULATION NO. 1.

5.     REZONING: Yen-Li Chen Ballet School                                                  Ord. #3671

INTRODUCTION of Ordinance No. 3671, DVR04-0060, Yen-Li Chen Ballet School, rezoning
from single-family district to PAD along with a Preliminary Development Plan for the construction
of a dance school and real estate office building on approximately 0.82 acre at the NEC of Alma
School Road and Fairview Street. (Applicant: Douglas B. Sydnor, Douglas Sydnor Architect and
Associates, Inc.) The site is bordered to the north and east by the residential subdivision Campo
Verde, currently under construction. To the south is the existing subdivision, Fairview Meadows.
The site is bordered to the west by Alma School Road with the subdivisions Blakeman Ranch and
Fairfax Park west of Alma School Road.

The ballet school and small real estate office have separate entrances and are positioned the
farthest distance away from the residential properties. The ballet school will be open Monday
through Friday 3:30 p.m. to 8:30 p.m. and Saturday from 9 a.m. to noon with 60 and 90-minute
classes offered. Class sizes are limited to a maximum of 15 students in each of the two dance
studios, with ages ranging from 4 to 17 years of age. Due to the age range, very few students will
drive with the majority of parents dropping off the students returning to pick them up. Class start
times are staggered by ½ hour to minimize the potential for overloading the parking lot. It is
anticipated the school will have a maximum enrollment of 200 students.

The real estate office will include a meeting space, computer room and workstation, small
reception area and storage room for files. While the majority of real estate work is done off site,
the applicant represents the need to occasionally meet with clients at the office to write up
contracts. The office will be open Monday through Friday 9:00 a.m. to 5:00 p.m. and Saturday
by appointment only.

The application requests various deviations from the Code. Based upon the adjacent residential
properties to the north, the required setback would be 49 feet. Based on the narrow configuration
of the lot, the proposal requests a 25-foot setback along Fairview Street in lieu of the required 30-
foot setback. Staff supports this deviation because of the residential scale of the building, stylized
architectural level and that the only windows facing the residential properties to the north are
frosted. The request also includes a parking code variance based on the narrow configuration of
the site. Only 24 spaces are provided, less than the 27 spaces required. Staff supports this
variance based upon the applicant’s representation regarding the functions of the ballet school
and real estate office. The applicant and her husband own property within the Fairview Meadows
subdivision directly adjacent to the south.

This request was noticed according to the provisions of the City of Chandler Zoning Code with a
neighborhood meeting being held on February 8, 2005 attended by approximately 8 neighbors.
Minutes of the Regular Meeting
Chandler City Council
Thursday, April 14, 2005
Page 14


As a result of the neighborhood meeting, the Applicant stated that any major performances would
be conducted off-site at a more suitable venue and security lighting will be installed in the parking
lot. Staff has received no phone calls or letters in opposition to this proposal.

MR. BALLARD said that Staff has been meeting with the Mr. Bromley, HOA President, in
addressing his earlier concerns and have come to some resolution. Regarding no parking along
Fairview and Emerson Street, the City would initiate that action by posting no parking signs. The
other street requested for no parking, would have to involve the neighbors, so it will be handled at
a later date.

Regarding speed humps, there is a program in place whereby the neighbors are involved. The
HOA has agreed to initiate the process with the City.

The applicant is in the process of providing plans for a security gate to secure the site after hours
and have agreed to keep the site well lit.

Mr. Bromley was satisfied with the explanation regarding no long-term parking and had no further
objections.

MOVED BY COUNCILMEMBER ORLANDO and SECONDED BY COUNCILMEMBER
CACCAMO to APPROVE INTRODUCTION of Ordinance No. 3671, DVR04-0060, Yen-Li Chen
Ballet School, rezoning from single-family district to PAD along with a Preliminary Development
Plan for the construction of a dance school and real estate office building on approximately 0.82
acre at the NEC of Alma School Road and Fairview Street including the following Staff
recommendations:

     1.       The City will post “No Parking” signs on Fairview and Emerson Streets.
     2.       The Homeowner’s Association will initiate the speed hump process with the City.
     3.       The applicant is in the process of installing a security gate.
     4.       The applicant agreed to keep the site well lit.
     5.       On-site parking was adequately addressed.

COUNCILMEMBER ORLANDO commented on the professionalism of the Staff in quickly being
able to address the issues.

THE MOTION CARRIED UNANIMOUSALY 7-0.

9.        REZONING: QuikTrip – Arizona Avenue and Germann Road                          Ord. #3676

COUNCILMEMBER SEPULVEDA declared a conflict of interest on this item and left the dais.

Planner JODIE NOVAK introduced this item. The request is for a QuikTrip gas station at the
SWC of Arizona Avenue and Germann Road rezoning from PAD for Community Commercial
District to PAD amended to include a gas station along with a Preliminary Development Plan on
approximately 2 acres. (Applicant: QuikTrip Corporation, Dennis Archuleta.)

The site is adjacent to two major arterial streets, Arizona Avenue and Germann Road. The
General Plan Land Use Element map designates the intersection of Arizona Avenue and
Germann Road as a commercial node and the commercial retail center at this intersection
complies with the intent of the Land Use Element. The site was identified for commercial within
the Carino Estates Area Plan.
                                                                           Minutes of the Regular Meeting
                                                                                    Chandler City Council
                                                                                 Thursday, April 14, 2005
                                                                                                 Page 15



The site is bordered to the west and south by commercial retail zoning. To the north is
undeveloped property zoned High-Density Residential District (MF-3) and Regional Commercial
District (C-3). To the east is County property zoned for agricultural, commercial and industrial.

The two-acre parcel proposed for a gas station facility and convenience store as a part of a larger
commercial retail center, Olive Tree Plaza. The commercial center’s PDP was approved in 2004.
In 1999, the larger 11-acre parcel was approved for PAD zoning for conceptual commercial. The
commercial parcel includes uses permitted in the Community Commercial (C-2) zoning district
and any uses not permitted in C-2 zoning such as gasoline requires an amendment to the PAD
zoning.

This application amends the PAD zoning and PDP to allow a QuikTrip gas station. The QuikTrip
parcel was recently approved for a 6,500 square foot retail shop pad as a part of Olive Tree
Plaza’s PDP. The QuikTrip development includes a convenience store and gas canopy with 10
double-sided fuel-dispensing units. The fuel units provide simultaneous service to 20 vehicles.
The site provides 28 parking spaces; 21 parking spaces are required. The request is consistent
with the General Plan.

Notification was made in accordance with the Chandler Zoning Code requirements with a
neighborhood meeting being held on December 21, 2004. No neighbors were in attendance.
The owner of Cobblestone Auto Spa and Market does not support the proposed number of
pumps because they were limited to 8.

The Planning Commission and Staff recommend approval subject to conditions as listed in the
ordinance.

COUNCILMEMBER HUGGINS asked why Staff has not been consistent with the number of gas
pumps allowed. MS. NOVAK said that gas stations have typically been granted the number of
pumps requested. She is not aware of any instance of an applicant requesting ten and not being
approved.

MIKE CAHILL, 3739 E. Bell Road, Phoenix, one of the principals of the Cobblestone project at
the SEC of Alma School and Germann, said they are very happy to be in Chandler and won an
architectural award for best retail facility. He commented that the Chevron Station at the NWC of
Alma School and Germann was limited to 6 pumps by Design Review stipulation in 2000.

Mr. Cahill continued that they had originally requested 8 pumps at their site and were informed by
the City that only six would be allowed because the Chevron across the street had been restricted
to six. During the Planning and Zoning Commission hearing, there was talk of decreasing the
number to five. They have six pumps and two others on the carwash fueling islands that handle
approximately 1% of their fuel volume.

They were also informed that there was going to be a limited number of smaller gas stations in
south Chandler. If they had known that the policy would change in the future, they may have
been more insistent on getting 8 pumps. The gasoline business is one of perception. The
QuikTrip, as proposed, would provide the size and quantity perception that would adversely affect
their business and that of the Chevron and the Circle K. They are in support of the QuickTrip, but
feel that ten pumps is not consistent with past actions.
Minutes of the Regular Meeting
Chandler City Council
Thursday, April 14, 2005
Page 16


COUNCILMEMBER ORLANDO asked if Mr. Cahill has other Cobblestone Developments. Mr.
Cahill responded that there are five other establishments corporately owned with eight or ten
dispensers. There are licensed facilities that do not have as many. In explaining how design as
well as price are key factors, Mr. Cahill said that it is critical that there be enough pumps to
handle customers with easy access while maintaining their price on the low end. The distance
between the QuikTrip and the Cobblestone is also considered a direct competition.

In reviewing the approval process for Cobblestone, MAYOR DUNN said that it was originally
denied by Planning and Zoning on a land-use basis. The Chevron station was also opposed
because of competition. Mayor Dunn stated that he also viewed these projects as being quite
different. Ms. Novak explained that when considering the number of pumps allowed, other
factors have to be considered such as whether or not the site can handle the traffic, the site size
and other site development standards. In this instance, the Cobblestone site is approximately
3.41 acres while QuikTrip is approximately 2 acres being built on a site designated for a 15-acre
shopping center. Cobblestone fits the minimal standards with the current uses on the site and it
would be a challenge to possibly add two more pumps; however, they could request the
additional pumps and go through the process.

COUNCILMEMBER WALLACE stated that the QuikTrip is requesting only a gas station and
convenience store whereas Cobblestone provides numerous services.

MR. CAHILL said that even though they offer different services, 75% of their revenue comes from
gasoline. It is not only Cobblestone, but also the Chevron, Circle K and other businesses with
only six pumps.

J D SARAN, 1990 W. Alma School Road, a principal in the Chevron Station across from
Cobblestone, said that when they applied in 2002, the Planning Commission said that the
maximum number of pumps they could have was six. They were also told they could not have
the pumps facing Alma School. He asked for fairness in the decision.

VICE-MAYOR WESTBROOKS asked Mr. Saran to clarify where he was required to place his
pumps in relation to where he requested they be positioned. Mr. Saran said that he wanted to
locate his pumps to face Germann but was told they had to be facing into the shopping center.
His site is also in a shopping center like the QuikTrip site. He owns 1.7 acres and was not
permitted to put in eight pumps. Now they are allowing ten pumps on a 2-acre site and a 5,000
square foot convenience store.

JODIE NOVAK explained that the Chevron application originally came in requesting eight pumps.
There were also issues with the overall site design. The parcel is 1.5 acres and is part of a larger
shopping center and the shopping center and gas station were being reviewed as one large
project. As part of the commercial design element being reviewed by the Planning Commission,
they requested that the Chevron convenience store be located at the immediate corner of the
intersection to internalize the gas pumps. That concept has been applied to other commercial
centers. With eight pumps, there were problems meeting the City’s codes, access and parking.
So in order to orient the building in a different direction, internalize the canopy to the inside of the
shopping center and include a carwash, they had to decrease the number of pumps. In order to
ensure the pumps remained limited to six, it was included as a stipulation by the Planning
Commission.

In response to a question from VICE-MAYOR WESTBROOKS, Ms. Novak said that the pumps
for the QuikTrip are parallel to Germann Road. They had done some extensive design changes
                                                                           Minutes of the Regular Meeting
                                                                                    Chandler City Council
                                                                                 Thursday, April 14, 2005
                                                                                                 Page 17


to the canopy building and the convenience store, so the Commission agreed to the location of
the pumps. Staff was also in agreement with the decision to have the pumps remain facing to
Germann.

VICE-MAYOR WESTBROOKS commented that Staff and the Planning Commission have been
diligent in reviewing each case on an individual basis and merit. It may not appear to be fair to
other applicants who were approved years earlier, but the City’s standards and expectations have
also changed.

COUNCILMEMBER ORLANDO commented that a City would want developers to have a comfort
level in knowing that the expectations are to apply to everyone. Ms. Novak said that the City’s
expectations have changed over time.          With changes in membership of the Planning
Commission, the vision for the future of the City changes. The Planning Staff does not
specifically say how many pumps are appropriate or not appropriate. All site intensity and land
use facility factors are reviewed fairly with everyone to determine if it’s the best use for the
location.

In response to a question from COUNCILMEMBER WALLACE, Ms. Novak said that when the
Cobblestone project was approved, there was opposition from Danny’s Family Carousel as well
as the Chevron with competition being the concern.

CHARLES HUELLMANTEL, representing the applicant said that projects become very site-
specific and what is suitable at one location may not be acceptable at another location. Three
different locations are being discussed. The intensity is different for each location. The purpose
of QuikTrip is to get gas at a competitive price, there are no additional services offered. There
were three Design Review Commission hearings and extensive improvements were made to
make the project appropriate for the area. He stated that Cobblestone was originally opposed
because it was in a residentially zoned area. QuikTrip is proposed in a commercial zoned area
and across from industrial.

COUNCILMEMBER ORLANDO asked about the number of pumps typically requested for a
QuikTrip. Mr. Huellmantel replied that the majority are typically 10 or 12 pumps at a QuikTrip
facility. Occasionally, there may be eight depending on land use. Car washes are not included
on QuikTrip sites in Arizona.

MOVED BY COUNCILMEMBER WALLACE, SECOND BY VICE-MAYOR WESTBROOKS to
APPROVE Introduction of Ordinance No. 3676, DVR04-0046, QuikTrip – Arizona Avenue and
Germann Road, rezoning from PAD for community commercial district to PAD amended to
include a gas station along with a Preliminary Development Plan on approximately 2 acres
located on the SWC of Arizona Avenue and Germann Road.

MOTION CARRIED           UNANIMOUSLY        (6-0)   WITH     COUNCILMEMBER             SEPULVEDA
ABSTAINING.

The meeting adjourned at 8:35 p.m. and reconvened at 8:45 p.m.

36.    INTERGOVERNMENTAL AGREEMENT: No-Incentive Zone                                    Res. #3843

Assistant City Manager PAT MCDERMOTT said that the proposed Intergovernmental Agreement
is between the Cities of Phoenix, Tempe and Chandler. It creates a geographic area in west
Chandler, west Tempe and east Ahwatukee providing a non-incentive zone where the Cities
Minutes of the Regular Meeting
Chandler City Council
Thursday, April 14, 2005
Page 18


would not provide incentives to any retail business desiring to locate within that specific
geographic area. The issue was referred to the Economic Development Advisory Committee and
the Economic Development Council Subcommittee by the City Council for review. Each
committee was briefed on the issue.

The Economic Development Committee voted unanimously to recommend the adoption of the
Intergovernmental Agreement by Council. Staff also recommends adoption. It is Staff’s opinion
that development will come to this area whether or not incentives are offered and Chandler will
get their share of retail development in that area. The area is mature enough that incentives are
no longer necessary to get development and with all three cities not offering incentives, we will be
very competitive with any retail business considering that area.

The Legislature has discussed the issue of incentives and has proposed legislation. Staff feels
this Intergovernmental Agreement will send a message to the Legislature that cities can agree to
not provide incentives which could affect any future controlling legislation.

MAYOR DUNN said that the Cities of Phoenix and Tempe have unanimously approved the
Intergovernmental Agreement. Mr. McDermott reminded Council that the agreement they saw
three weeks ago has seen three changes including insertion of a date when it was approved by
Phoenix, a reference to a map was included and the request for additional wording regarding a
breach of the agreement by the City of Tempe.

The breach of the agreement stipulates that if one of the cities offers incentives in violation of the
agreement, the agreement is automatically terminated and the other cities have the right to bring
court action for any damages that may occur.

COUNCILMEMBER ORLANDO asked if this agreement is the exact language agreement as
voted on by Phoenix and Tempe? Mr. McDermott said that it was not. Phoenix and Tempe
presented their Councils with principles.   The specific agreement was not presented to the
Councils. They gave approval to Staff to prepare the agreement that was prepared from the draft
agreement circulated to the Chandler Council. All three cities will be signing the exact same
agreement.

Intergovernmental Affairs Coordinator PATRICE KRAUS said that there are two bills in the
Senate that address this issue. Senate Bill 1274, introduced by Senator Tibshraeny, requires
cities to make certain findings if they are proposing an incentive. There will be two votes
requiring a two-thirds vote; one is to accept the finding and the second is to actually award the
incentive. It also prohibits awarding incentives by use of an emergency clause and was amended
in the House to include Maricopa County and 25 miles surrounding the County to capture some of
the urbanizing areas in Pinal County. The Maricopa County and surrounding area limitation is
only for the two-thirds vote. The rest of the findings will apply statewide.

SB 1274 passed the House on April 12th and was caucused today on the amendments. Senator
Tibshraeny agreed to the amendments leaving one final vote of the Senate before being
forwarded to the Governor.

House Bill 2499, which was originally Senate Bill 1201, introduced by Senator Cheuvront, would
penalize a municipality in Maricopa County and surrounding 25 miles, for giving an incentive by
withholding state shared revenues in the amount of the incentive. As an example, if a
municipality gave a $10 million incentive, an amount equal to $10 million will be withheld over a
period of five years from state shared revenues. The bill was amended by Senator Cheuvront
                                                                               Minutes of the Regular Meeting
                                                                                        Chandler City Council
                                                                                     Thursday, April 14, 2005
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and it is conditionally enacted which delays the effective date to August 1, 2006, and allows the
Maricopa Association of Governments (MAG) to develop and implement a regional plan designed
to eliminate “excessive municipal tax incentives and bidding disputes among cities”. That plan
will be submitted to the Joint Legislative Budget Committee who decides if it is sufficient and
whether or not the bill will go into effect. HB 2499 passed the Senate floor April 13th and has one
more final vote. It will go back to the House, caucused, go to the Floor of the House for one more
vote. If that is successful, it will go to the Governor for signature. It could go to the Floor as early
as Monday, April 18th. This bill does not contain any criteria or specifics regarding the proposed
plan.

COUNCILMEMBER SEPULVEDA commented that HB 2499 is very subjective and there are no
performance standards or measures.

MAYOR DUNN asked if the approval of the IGA with Tempe, Phoenix and Chandler would be a
helpful tool for lobbyists is defeating HB 2499? Ms. Kraus responded that it would give her
something to talk to people about. Senator Cheuvront used the delay in enacting the bill and
spoke about cities not being able to come to an agreement regarding incentives as rationale to
support his bill. Ms. Kraus said that if the agreement could be approved before the final vote, it
would show that the cities are taking the Legislators concerns seriously and willing to address
those concerns on a city basis. However, he did not say he would stop his bill if the three cities
agreed.

MAYOR DUNN continued that there are members of the Legislature who want to treat this issue
as one of local control and by approving this IGA with three cities; it could convince them that it
can be done.

COUNCILMEMBER ORLANDO asked about the second bill and if it would be stopped if the IGA
were approved? Ms. Kraus responded that it is not just the issue of local control. The Legislature
is not concerned with which side of the street a business locates on, but it is of local concern.
City lobbyists have been trying to explain to the legislature that the reason incentives or needed is
to attract businesses and have the capability to be able to control our own revenue stream. If
given a preference, all of the cities would prefer not to see any legislation. There was a bill last
year that has come back this year as Senator Cheuvront’s bill. It was amended at the end of last
year’s session to be a less stringent version of Senator Tibshraeny’s bill, but some involved did
not support the compromise and the bill was defeated. The newly introduced bill is in worse form
than last year. The cities feel that if there is something enacted that we could live with while still
having the capability to use incentives when necessary, there may be a retrieve from the
legislative battle. The legislature would give the cities time to show that they can control issues
on their own level.

COUNCILMEMBER ORLANDO clarified that if the second bill were a “stand alone bill” there
would not be the same objections from the cities. Ms. Kraus concurred.

COUNCILMEMBER WALLACE asked Ms. Kraus if she is supporting Senator Tibshraeny’s bill,
SB 1274? Mr. Kraus responded that the cities have expressed that they would rather not have
any legislative control on this issue. However, it seemed that something was going to pass right
from the beginning of this current session. The League has taken the position that they oppose
both bills, but if one were to be passed, it would be Senator Tibshraeny’s. The League has not
been actively working to pass or defeat Senator Tibshraeny’s bill, but rather concentrating on
defeating Senator Cheuvront’s bill. COUNCILMEMBER WALLACE said Senator Cheuvront
commented that Chandler was not supporting the IGA with Phoenix and Tempe. She asked if it
Minutes of the Regular Meeting
Chandler City Council
Thursday, April 14, 2005
Page 20


was corrected that there was not lack of support, but the Council wanted it to go through the
process? Ms. Kraus said that Senator Tibshraeny corrected Senator Cheuvront on the record.

Economic Development Specialist HARRY PAXTON reviewed an economic analysis performed
as requested by Council. Several parcels in west Chandler in the proposed no-incentive zone
were reviewed. The four key parcels with potential for development are 50 acres at the NWC of
Kyrene Road and the 202 freeway, 29 acres at the SWC of 56th Street and Harrison Street, 6.5
acres with frontage along I-10 next to Freeway Chevrolet and 29 acres at 56th Street and Orchid
Lane next to Earnhardt Ford. Each parcel was reviewed with different scenarios for retail,
commercial, automotive development or RV development.

The parcel at the NWC of Kyrene Road and the 202 freeway contains approximately 50 acres
that are undeveloped. The amount of lot coverage, number of improved acres, and amount of
square footage was calculated for each scenario. A factor of $225.00 per square foot was used
for retail development which is a national average produced by the International Council of
Shopping Centers for community centers that usually are less than a power center in square
footage, typically less than 500,000 square feet. The actual cost of construction, the land cost,
the annual property tax and retail tax from each development to determine revenues. If auto
dealerships were to be considered for this location, there is a potential for gross sales of
approximately $40 million annually with 60% being taxable. The amount is smaller for RV
dealerships. This parcel is currently zoned AG-1, public institution, and designated for
employment on the General Plan. It is owned by the Tempe School District. Under Chandler’s
analysis, there strongest possibility for future development on this parcel is probably for office if
the school district does not build school facilities. It is unlikely that there will be retail
development because of the size and number of players currently in the market either in Chandler
or Ahwatukee area.

COUNCILMEMBER ORLANDO asked if this parcel is in the mid-rise district? DOUG BALLARD
said that it is not currently covered under the mid-rise ordinance that addresses areas along the
freeway. However, the ordinance does contain language stating that mid-rise could be
considered in areas that are designated as significant employment centers which would include
this parcel.

In response to a question from MAYOR DUNN, Mr. Paxton said that the total number of acres
available for development in the non-incentive zone is 120 and Tempe has 151 acres with the
majority being along the I-10 corridor. The area behind Casa Paloma could be developed with a
mix of retail and office. MAYOR DUNN commented that he would like to see that parcel
aggressively marketed for high quality retail because of the investment made at Casa Paloma.
He expressed concern that it may be attractive to a big box tenant.

COUNCILMEMBER SEPULVEDA clarified with Mr. Paxton that of the four available parcels, only
two are suitable for automotive use. He thanked Mr. Paxton for the thoroughness of his analysis
and stated the importance of understanding the possible revenue that could be generated from
each of those parcels.

VICE-MAYOR WESTBROOKS asked which site could be considered for big box retail and would
it fall under the big box ordinance. Mr. Paxton said that the ordinance specifies that big box retail
must be located at least 1500 feet away from a neighborhood. The site at the NWC of Kyrene
and Loop 202 is large enough, but is within 1500 of a residential neighborhood. None of the sites
were selected as big box sites.
                                                                          Minutes of the Regular Meeting
                                                                                   Chandler City Council
                                                                                Thursday, April 14, 2005
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MAYOR DUNN reiterated that he would like Staff to continue to recruit retail development at 56th
Street and Harrison. COUNCILMEMBER ORLANDO clarified that if the IGA is approved, we will
be bringing retail in without incentives.

COUNCILMEMBER SEPULVEDA said that there are two existing development agreements in
that area that would be exempt if the IGA is approved. Mr. Paxton confirmed that they would be
exempt.

COUNCILMEMBER WALLACE asked what would happen if Earnhardt chose to purchase the site
next to them and sell RV’s on the vacant site and construct the office on the current site since
they have a pre-existing development agreement? DENNIS O’NEILL said that per the terms of
the agreement, Earnhardt would have to construct a facility that costs at least $500,000.00.

THERESA OLSON, 1831 W. Lantana Drive, Vice-Chair of the Economic Development Advisory
Board, commended the Mayor and Council for forming this board and allowing them to serve the
community. The board was charged with the responsibility of meeting to form a recommendation
for the Council regarding the IGA. Both sides of the issue were thoroughly discussed. The
board looks forward to assist the Council in the future on other issues.

COUNCILMEMBER ORLANDO thanked Ms. Olson and the board for their dedication.

COUNCILMEMBER WALLACE expressed appreciation for comments made by one of the board
members thanking Council for forwarding this item to them.

FRANK PEAKE, 2693 E. Birchwood Place, member of the Economic Development Advisory
Board, thanked the Mayor and Council for allowing the board to review the issue. This
agreement is an opportunity for Chandler to take a positive regional leadership role regarding
development incentives. It supports Staff’s efforts in showing that cities can come together and
manage such issues at the municipal level. Mr. Peake encouraged the Council to support this
IGA which will show their commitment to providing development only when absolutely necessary
and deemed to be in the city’s best interest.

KAREN CUPPS, 6314 W. Del Rio Street, also thanked the Council for forming the board and
allowing them to review the issue. In her role as the Chamber of Commerce representative on
the committee, she was given an opportunity to have a better understanding of the issues. She
was able to explain to the executive committee exactly what the issues were.

COUNCILMEMBER ORLANDO asked Ms. Cupps if the Chamber executive committee took a
position regarding the IGA? Ms. Cupps responded that after her explanation, there was
unanimous support.

MOVED BY COUNCILMEMBER CACCAMO to ADOPT Resolution No. 3843 authorizing an
Intergovernmental Agreement with the Cities of Phoenix and Tempe creating a non-incentive
zone. SECONDED BY COUNCILMEMBER SEPULVEDA.

VICE-MAYOR WESTBROOKS thanked everyone involved in the process. He said that with the
passage of the IGA, he hopes it will send a message to the legislature that the Cities can work
together. He commented it was very ironic that there is an article in the paper that the State is
reviewing tax rebates for large corporations to locate in Arizona.
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Chandler City Council
Thursday, April 14, 2005
Page 22


COUNCILMEMBER ORLANDO thanked Staff for bringing this item back to Council so soon. He
thanked the Council for their integrity.

COUNCILMEMBER CACCAMO thanked Mayor Dunn and the Mayor’s of Phoenix and Tempe for
working together on this issue.

COUNCILMEMBER SEPULVEDA said that the discussion on this issue was very healthy. It was
also very important to get citizen input. Citizens are happy to be able to participate in an open
government process. The issue will continue and urged the review of regional revenue sharing.

COUNCILMEMBER WALLACE asked if this agreement would preclude the City from doing
revenue sharing. Mr. O’Neill said it would not.

MAYOR DUNN thanked the Economic Development Advisory Board for their diligence in meeting
so quickly and their thorough discussion of the issue. He said that it is important that citizens
understand that incentives are not offered to anyone who wishes to locate in Chandler. More
retail will want to come Chandler because of who we are and what we represent. This issue
needs to have local control and that message is getting to the legislature. The next issue to be
discussed is revenue sharing.

COUNCILMEMBER SEPULVEDA said that we should also be working with the Gila River Indian
Community as far as infrastructure.

THE MOTION TO ADOPT RESOLUTION No. 3843 CARRIED UNANIMOUSLY (7-0).

SPECIAL ORDERS OF THE DAY

A.       Mayor's Announcements:

MAYOR DUNN announced that the ribbon cutting was held earlier in the evening for the Blue
Peacock in downtown Chandler. It is owned by the Serrano family and has specialty and craft
items.

MAYOR DUNN announced that the Chamber of Commerce would be having a Leadership
Institute on Friday, April 15.

THE MAYOR announced the Chandler Jazz Festival to be held April 22 and 23 in historic
downtown Chandler with live jazz Friday evening and all day Saturday.

THE MAYOR announced that the City of Chandler is 93 years old. For the next 7 years, until the
100th year anniversary, the City will be hosting annual celebrations. This year’s pre-centennial
birthday bash will be held April 30 in Dr. A. J. Chandler Park at 9:00 a.m. prior to the Pioneer
Luncheon at 11:00.

B.       Councilmembers' Announcements:

COUNCILMEMBER ORLANDO announced that he had received an e-mail from Major Paul
Babou, a Chandler police officer who has been called to active duty in Iraq. He has completed
his training and has arrived safely in Iraq and is looking forward to serving his country.

C.       City Manager's Announcement:
                                                                        Minutes of the Regular Meeting
                                                                                 Chandler City Council
                                                                              Thursday, April 14, 2005
                                                                                              Page 23



There were no City Manager announcements at this time.


Adjournment: The meeting was adjourned at approximately 10:15 p.m.



ATTEST: __________________________                ______________________________
            City Clerk                                 MAYOR


Approved: _________________________




                                   CERTIFICATION

I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the
regular meeting of the City Council of Chandler, Arizona, held on the 14th day of April 2005. I
further certify that the meeting was duly called and held and that a quorum was present.



DATED this __________ day of _____________, 2005.


                                                       __________________________
                                                        City Clerk
MINUTES OF THE REGULAR MEETING OF THE HONORABLE MAYOR AND CITY COUNCIL
OF THE CITY OF CHANDLER, ARIZONA, held in the Council Chambers in the Chandler Library,
22 S. Delaware, on Thursday, April 28, 2005 at 7:00 p.m.

THE MEETING WAS CALLED TO ORDER BY MAYOR BOYD DUNN.

The following members answered roll call:   Boyd W. Dunn         Mayor
                                            Phillip Westbrooks   Vice Mayor
                                            Bob Caccamo          Councilmember
                                            Lowell Huggins       Councilmember
                                            Matt Orlando         Councilmember
                                            Martin Sepulveda     Councilmember
                                            Donna Wallace        Councilmember


Also in attendance:   Pat McDermott         Assistant City Manager
                      Rich Dlugas           Assistant City Manager
                      Dennis O’Neill        City Attorney
                      Marla Paddock         City Clerk

Staff present: Mark Eynatten, Chief Roxburgh, Patricia Walker, Dave Siegel, Glen Van
Nimwegen, Chief Kiyler, Bryan Patterson.

INVOCATION:      The invocation was given by Rabbi Dr. Irwin Wiener – Sun Lakes Jewish
Congregation

PLEDGE OF ALLEGIANCE:         Boy Scout Troop #285 led the Pledge of Allegiance.

SCHEDULED PUBLIC APPEARANCES:

1.     Retirement Recognition

MAYOR DUNN was joined by Community Services Director MARK EYNATTEN in recognizing
the retirement of MARK WALLIG after seven years of service with the City as a part-time
reference librarian. Mark’s previous experience as a secondary school history teacher and
librarian made him an invaluable part of the reference team. During is tenure, he has taught
hundreds of students how to navigate the Internet, learn word processing, and research school
projects. By using his talents in graphic arts, designed numerous brochures, fliers and signs.

2.     Service Recognitions

MAYOR DUNN was joined by CHIEF KIYLER in recognizing Karen Lopez for 15 years of service
in the Police Department. Karen began her career as a Police Services Aide for the Field
Operations Unit and then promoted to property & evidence technician where she has been
involved in the implementation of a new computer system and the expansion of the property and
evidence facility. Karen also serves as the unit’s Spanish translator and is responsible for
organizing the bi-annual Charity Bike giveaway. Because of her organizational skills, 200 bikes
can be distributed to various City charities.
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Chandler City Council
Thursday, April 28, 2005
Page 2


MAYOR DUNN was joined by Management Services Director PAT WALKER in recognizing Jose
Flores for 15 years of service in the Community Services Department where he began in the
summer youth program. He became an Airport Line Attendant and before becoming a Meter
Reader where he is responsible for accurately recording the readings from more than 10,000
meters. Joe’s knowledge of meter issues and willingness to help customers and co-workers has
allowed him to succeed in his profession despite the enormous growth of the City.

MAYOR DUNN and MS. WALKER also recognized Cynthia Castillo for ten years of service in the
Management Services Department. Cynthia began as a COE student and returned as a
temporary employee in various departments before joining Management Services. She is
currently an Administrative Specialist for the tax and utility services division where her major
responsibility is to provide administrative support for the entire division. Cynthia has also served
on the Employee Council and is on the EASE committee.

3.       Exceptional Merit Recognitions

MAYOR DUNN was joined by Municipal Utilities Director DAVE SIEGEL in presenting an
Exceptional Merit Award to Paul Ortega and Pete Rodriguez (unable to attend) who creatively
improved the water distribution system. After identifying low water pressure and low flow trends
in two areas in Chandler, Pete and Paul were able to quickly identify and correct operational
valve problems resolving the distribution of water within the operational system and identified
some valves for replacement. Their efforts resulted in better flow in the areas of the system,
increased customer satisfaction, and better operational capabilities and cost efficient energy
savings.

4.       Presentation – Employee of the Year Awards

MAYOR DUNN recognized the following employees as being chosen Employee of the Year in
their departments. He noted this was an important award because those being honored are
chosen by their peers.

Paul Nies: Fire
Since joining the Chandler Fire Department in 1986, Paul Nies has risen through the ranks to the
position of Battalion Chief. He is presently the Division Manager of Emergency Medical Services
(EMS). Throughout his career, Paul has demonstrated an outstanding grasp of the field of
emergency Para-medicine.

During his career, Paul has worked hard to establish himself as a regional leader within the EMS
field. Utilizing his knowledge, background and credibility, he established a Valley wide committee
of EMS managers to discuss and work through common issues. Under Paul’s leadership, this
committee has developed into a well-organized consortium that now represents the entire region
on EMS issues. Among other things, the committee is currently developing Valley wide paperless
documentation systems, quality assurance programs and hospital diversion policies.

As a manager Paul works hard to develop and support his personnel and programs. He has
earned the respect of his fellow employees and is seen as the authority on EMS issues within the
department. Paul’s progressive approach to management, attention to detail and dedication to
his fellow employees have earned him this Employee of the Year award.
                                                                           Minutes of the Regular Meeting
                                                                                    Chandler City Council
                                                                                 Thursday, April 28, 2005
                                                                                                  Page 3


Nanette Kahl: General Government
Nan Kahl joined the City Clerk’s office in 1999 as a City Clerk Assistant. She brought with her a
great deal of experience in the duties of the City Clerk’s office having been City Clerk Deputy
Treasurer in Monona, Wisconsin for 17 years.

Utilizing her accounting background and computer skills, Nan was instrumental in creating the
accounting system used in the Clerk’s office for daily reconciliation and revenue reporting. She is
responsible for the reporting of statistical information regarding passports and marriage licenses
and also serves as Webmaster for the City Clerk’s office.

Nan played an important role in the implementation of the electronic document management
system for the Clerk’s office. She was responsible for the converting of documents from paper to
electronic sources for the public to view.

Currently, Nan serves as the primary representative on the Employee Council for General
Services and is working toward the Master Municipal Clerk designation through the International
Institute of Municipal Clerks. Nan’s action and dedication at the City Clerk’s office make her the
clear choice for Employee of the Year.

Fran Wendtland: Library
Fran Wendtland joined Team Chandler in October of 2002, bringing a wealth of experience as a
Managing Librarian in both Washington and Oregon and Library Director in Montana. She
currently serves as Administrative Librarian of the Sunset Branch. Fran has many attributes that
contribute to her library success, but she has gone above and beyond everyone’s expectations
with her concentration on customer service and staff development.

Fran leads by example, and encourages all employees to do their best. No matter what the
situation, Fran is always professional, courteous, and demonstrates exceptional judgment and
exemplifies the high standards and values of Team Chandler.

Debbie Lawless: Management Services
Debbie Lawless has worked for the City of Chandler since January 1986 and currently serves as
a Senior Accounting Specialist in the Accounting Division. She and has proven to be a valuable
part of Team Chandler by continuously going above and beyond her everyday duties.

Employees from various departments are quick to turn to Debbie when looking for assistance and
she always assists them with their requests, even when it may be outside of her area of
responsibility. City employees have repeatedly commented that they can always count on Debbie
to provide the highest level of service and commitment to their needs. Debbie is truly a team
player and exemplifies the values of the City of Chandler

David Gonzales, Municipal Utilities and Ray Baumiller, Planning and Development Department,
James Sweeney, Public Works and Debbi Cox, Police Department were acknowledged as
Employee of the Year from their respective departments but were unable to attend the meeting.

5.     Special Presentation, Arizona Water Rights Settlement Act

MAYOR DUNN thanked Governor Narcia and the Gila River Community for the recent Water
Rights Settlement Act Agreement. This agreement represents a long-time commitment and
dedication of the City of Chandler, the Community and other State parties. THE MAYOR
recognized Assistant City Attorney Cindy Haglin and Assistant Municipal Utilities Director Karen
Minutes of the Regular Meeting
Chandler City Council
Thursday, April 28, 2005
Page 4


Barfoot for their work in seeing this agreement to come to fruition and each was awarded a
commemorative framing. He noted this agreement also represents a new era of cooperation
between the communities and further cooperation as the Gila River Indian Community continues
their farming and development.

6.       Proclamation & Presentation – Chandler Alliance for Character

MAYOR DUNN was joined by Roger Bonngard, Chandler Alliance for Character, as he read a
proclamation proclaiming May 2005 as Chandler Alliance for Character Month.

Mr. Bonngard thanked the Mayor and Council for the proclamation. The job of the Alliance is to
promote the five core values of respect, responsibility, integrity, courage and compassion.

Dr. Rabbi Irvin Wiener presented the award for “Respect” to Rev. Larry Gerber of Sun Lakes
Methodist Church.

Chairman of the Williams Institute Jim Williams presented the award for “Responsibility” to
Charlotte Patterson.

Chandler Alliance for Character Committee member Susan Stevens-Clark presented the award
for “Integrity” to Vice-Mayor Phill Westbrooks.

Lois Barthalomew, Vice-President of Student Affairs at Chandler Gilbert Community College
presented the award for Courage to Leah Heathcoat on behalf of CGCC President Hesse

Susan Stevens-Clark presented the award for “Compassion” to Racel Aleman representing the
Chandler Community Action Program, Lilah Dorsey representing the Chandler Christian
Community Center, Forrest Jacob representing Chandler Meals on Wheels, Luis Martinez
representing the Salvation Army, Ms. Waller representing St. Marys - St. Vincent De Paul, Father
Hall representing St. Matthews Food Bank. Kevin Hartke representing the Trinity Christian
Fellowship was unable to attend. These organizations assist the growing needs of the hungry in
Arizona. Ms. Stevens-Clark reminded everyone that National Hunger Awareness Day is June 7th
and encouraged everyone to make a contribution to one of these organizations.


7.       Captain Fred Reynolds – Senior Center Hours

Captain Reynolds of the Citizens Advisory Council addressed the Council regarding the Senior
Citizen Center. He said the center is exemplary with a caring staff that works hard for the
community. He addressed the need for additional public phones in the area of the Library and
Community Center. He relayed a late-night incident where he counseled a distraught senior
citizen who was contemplating suicide. She needed someone to talk to, but the center was
closed. He stated that extended hours should be considered and reported the highest suicide
rate among senior citizens occurs late at night and in the early morning. He commented there
were always folks waiting every morning to get in. Captain Reynolds also asked that a program
of senior citizens ombudsman and subcommittees addressing senior issues also be considered.

UNSCHEDULED PUBLIC APPEARANCES:

There were no unscheduled public appearances.
                                                                           Minutes of the Regular Meeting
                                                                                    Chandler City Council
                                                                                 Thursday, April 28, 2005
                                                                                                  Page 5


CONSENT:


MAYOR DUNN announced that item #11 (City Code Amendment) would be moved to the action
agenda. Item #46 (Special Event Liquor License) has been withdrawn. COUNCILMEMBER
SEPULVEDA declared a conflict of interest on agenda item #7 (QuikTrip-Arizona Avenue &
Germann Road) because the applicant is a client.

MOVED BY COUNCILMEMBER ORLANDO, SECONDED BY COUNCILMEMBER WALLACE, to
approve the Consent Agenda with the removal of item #11 to the action agenda and withdrawal of
item #46. Motion carried unanimously 7-0.

COUNCILMEMBER ORLANDO thanked Staff and the applicant for their work on items #10 and
13 by adding trees to the properties.

1.     MINUTES:

APPROVED, as presented, City Council Special Meetings of April 11 & 14, 2005 and City Council
Regular Meeting of April 14, 2005.

2.     NO COST POWER EASEMENT: Salt River Project                                        Ord. #3667

ADOPTED Ordinance No. 3667 granting a no cost power distribution easement to Salt River
Project to consolidate equipment locations along Ray Road between Alma School Road and
Arrowhead Drive.

3.     REZONING: Yen-Li Chen Ballet School                                               Ord. #3671

ADOPTED Ordinance No. 3671, DVR04-0060, Yen-Li Chen Ballet School, rezoning from single-
family district to PAD for the construction of a dance school and real estate office building on
approximately 0.82 acres at the NEC of Alma School Road and Fairview Street.

4.     REVOCABLE AIRSPACE EASEMENT: PSCI                                                 Ord. #3672

ADOPTED Ordinance No. 3672 granting a revocable airspace easement to PSCI Investments,
L.L.C., for a cantilevered canopy overhanging the City’s right-of-way (alley) at the south property
line at 81 West Boston Street.

5.     REZONING: Chandler Airport Center                                                 Ord. #3673

ADOPTED Ordinance No. 3673, DVR04-0037, Chandler Airport Center, rezoning from AG-1 and
PAD mixed-use commercial and industrial uses to PAD light industrial, office, commercial and
airport uses with a mid-rise building overlay on approximately 245 acres on the south side of the
Santan Freeway (Loop 202) on the east and west sides of Cooper Road.

6.     REZONING: Ritter Building                                                         Ord. #3675

ADOPTED Ordinance No. 3675, DVR05-0001, Ritter Building, rezoning from PAD
warehouse/industrial to PAD warehouse/industrial to PAD office on 3.35 acres at 7155 West
Detroit Street north of Chandler Boulevard and west of 56th Street.
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Chandler City Council
Thursday, April 28, 2005
Page 6


7.       REZONING: QuikTrip – Arizona Avenue and Germann Road                          Ord. #3676

ADOPTED Ordinance No. 3676, DVR04-0046, QuikTrip – Arizona Avenue & Germann Road,
rezoning from PAD for community commercial district to PAD amended to include a gas station
on approximately 2 acres on the SWC of Arizona Avenue and Germann Road.

COUNCILMEMBER SEPULVEDA declared a conflict of interest on this item due to the applicant
being a client.

8.       REZONING: JKM Self Storage                                                    Ord. #3677

ADOPTED Ordinance No. 3677, DVR04-0055, JKM Self Storage, rezoning from AG-1 to PAD for
a storage facility located on approximately 20 acres at the NWC of Ocotillo Road and Centre
Point Parkway.

9.       REZONING: Cornerstone Christian Fellowship                                    Ord. #3670

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3670, DVR04-0038,
Cornerstone Christian Fellowship, rezoning from AG-1 to PAD along with a Preliminary
Development Plan for phase two of the expansion of an existing church on approximately 17
acres at the SEC of Alma School Road and Willis Road. (Applicant: Barduson Architecture;
Kathy Sponsel.)

The church received initial zoning in 2000 and has constructed a worship auditorium and building
that houses classrooms and offices. A second phase was granted conceptual zoning at that time;
however, the church required additional space and has acquired more land to expand the
reconfigured the site. The property is bordered on the south by the Eden Estates single-family
subdivision, to the east by various agriculturally zoned parcels and to the north by vacant property
conceptually zoned for office uses.

This request was noticed in accordance with the requirements of the Chandler Zoning Code with
a neighborhood meeting being held on October 7, 2004 attended by six property owners.
Meetings between the applicant and the Eden Estates Homeowners Association were held on
September 27 and December 29, 2004. Staff has received no correspondence in opposition to
this request.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to conditions as listed in the ordinance.

10.      REZONING: Artesian Ranch                                                      Ord. #3681

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3681, DVR04-0057, Artesian
Ranch, rezoning from AG-1 to PAD for a single-family residential subdivision on approximately 62
acres.
APPROVED a PRELIMINARY PLAT, PPT04-0030, Artesian Ranch, for an approximate 186-lot
subdivision on 62 acres west of the NWC of Gilbert and Ocotillo Roads. (Applicant: Burch
Cracchiolo, P.A., Ed Bull.)

The subject property is currently being used as a dairy farm on a limited basis. Along the
northwest corner of Ocotillo Road, there are five homes and multiple dairy farm structures.
Vacant land is located to the south and east. Preliminary Development Plan approval was
                                                                           Minutes of the Regular Meeting
                                                                                    Chandler City Council
                                                                                 Thursday, April 28, 2005
                                                                                                  Page 7


granted for the property directly east and is being developed as single-family residences (Layton
Lakes). A single-family subdivision is located to the north and west of the subject site.

The site is located within the Chandler Airpark Area Plan boundaries and the proposed use
matches the Southeast Chandler Air Park Area Plan, which designates the area for low-density
single-family residential.

The application requests rezoning and PDP approval for the subdivision layout only. Any
approval granted by the Planning Commission and City Council will not carry an approval for
houses to be constructed. A Preliminary Development Plan will be submitted in the future to
obtain separate Council approval.

The subdivision satisfies the eight required subdivision diversity standards and ten of the 16
optional diversity standards. The applicant is requesting to pay impact fees for the future
construction of improvements on Gilbert Road and is proposing to construct half-street
improvements along Ocotillo Road.

This request was noticed in accordance with the requirements of the Chandler Zoning Code with
a neighborhood meeting being held on February 7, 2005 attended by one resident in support of
the development. The Airport Commission found no conflict with the proposed subdivision.

Upon finding consistency with the General Plan, the Chandler Airpark Area Plan and the
Subdivision Diversity Standards for the subdivision, Staff recommends approval subject to the
conditions as listed in the ordinance. Item 21 was added in response to a concern raised by a
Councilmember about the front yard landscaping within Artesian Ranch.

Staff recommends approval of the Preliminary Plat subject to the following condition:

1.     Approval by the City Engineer and Director of Planning and Development with regard to
       the details of all submittals required by code or condition.

11.    On the Action Agenda.


12.    INTERGOVERNMENTAL AGREEMENT: Mesa Public Schools                                  Res. #3842

ADOPTED Resolution No. 3842 authorizing an Intergovernmental Agreement with Mesa Public
Schools for the assignment of one school resource officer (SRO) to the school district. The SRO
will be assigned to Hendrix Junior High School. Mesa Public Schools will pay the Chandler
Police Department $84,206.00 towards the cost of salary and benefits for the officer. They will
also reimburse the Police Department $100.00 for travel expenses and $200.00 for supplies for
the officer. The Chandler Police Department will retain operational control of the officer selected
as the SRO.

13.    AREA PLAN AMENDMENT/REZONING: Windward                             Res. #3844, Ord #3679

ADOPTED Resolution No. 3844, AP04-0003, Windward, area plan amendment from townhouses
to single-family homes.
INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3679, DVR04-0050, Windward,
rezoning from PAD townhouses to PAD single-family homes along with a Preliminary
Minutes of the Regular Meeting
Chandler City Council
Thursday, April 28, 2005
Page 8


Development Plan for the subdivision layout and housing product for a 49-lot single-family
residential development on approximately 19 acres.
APPROVED Preliminary Plat, PPT04-0024, Windward, for property at the SWC of Balboa Way
and Alma School Road. (Applicant: Camelot Homes.)

The property is currently vacant and zoned PAD townhouses and is designated low-density single
family residential in the Chandler General Plan. The 2000 Ocotillo Phase II Area Plan designates
the subject site as townhouses. The Planning Commission and Staff are of the opinion that the
proposed amendment is consistent with the goals and policies of the Chandler General Plan.

The property is currently vacant and bordered to the north by a vacant parcel planned for
Specialty Commercial. To the south and west are existing single-family residential subdivisions.
A lake feature borders the site’s entire western boundary.

The project meets eight of eight required subdivision diversity standards, has achieved ten points
for optional diversity elements and meets nine of nine required architectural diversity standards
for housing product. It also meets nine optional architectural standards.

This request was noticed in accordance with the requirements of the Chandler Zoning Code with
a neighborhood meeting being held on January 31, 2005 attended by thirty neighbors. The
neighbors expressed concern with increased traffic using Balboa Way to access Alma School.
The applicant added a secondary exit onto Lake Drive that will allow traffic to exit at a signalized
intersection. Staff has not received any correspondence in opposition to this request. The
Ocotillo Design Review Board has reviewed and conditionally approved the project with minor
issues to be coordinated with the developer.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to conditions as listed in the ordinance.

Upon finding consistency with the General Plan and PAD zoning, the Planning Commission and
Staff recommend approval of the Preliminary Plan subject to the following condition:

1.       Approval by the City Engineer and Director of Planning and Development with regards to
         the details of all submittals required by code or condition.

14.      PROPERTY PURCHASE: 261 S. Dakota Street                                       Res. #3848

ADOPTED Resolution No. 3848 authorizing the purchase of vacant property located at 261 South
Dakota Street, for $80,000.00 plus closing costs of approximately $1,000.00. A purchase at this
time will eliminate the cost of future relocation of tenants and increased future acquisition costs.

15.      FAIR HOUSING POLICY                                                           Res. #3849

ADOPTED Resolution No. 3849 adopting a Fair Housing Policy and expressing commitment to
the principle of fair housing as required by the United States Department of Housing and Urban
Development. The grantee must also describe the actions it shall undertake to affirmatively
further fair housing.
                                                                             Minutes of the Regular Meeting
                                                                                      Chandler City Council
                                                                                   Thursday, April 28, 2005
                                                                                                    Page 9


16.    INTERGOVERNMENTAL AGREEMENT: ADOT / Paseo Phase III                                 Res. #3852

ADOPTED Resolution No. 3852 authorizing an Intergovernmental Agreement with the Arizona
Department of Transportation (ADOT) for funding for the development of the Paseo Phase III
construction along the Consolidated Canal at an estimated cost of $793,022.00.

The Parks and Recreation Master Plan addresses the use of canals, specifically the Consolidated
and Western Canals for uses as paseos. Unlike the majority of canals, no power line easements
run along its banks and it is primarily bordered by agricultural or residential uses. This linear 6.5
mile section from Ryan to Riggs Roads will feature a multi-use path and equestrian trail system.
The Paseo will be bordered by trailheads, rest areas, and linkages tying to the regional and
community parks and nearby neighborhoods.

The City has been selected to receive grant funds through the Arizona Department of
Transportation’s Transportation Enhancement Program for the Paseo project. In order to obtain
federal-aid funds, the City must execute an IGA with the State of Arizona for each phase of the
project. To date, the 1.5-mile section from Pecos Road to Ryan Road has been completed.

17.    INTERGOVERNMENTAL AGREEMENT: Kyrene School District                                 Res. #3857

ADOPTED Resolution No. 3857 authorizing an Intergovernmental Agreement with Kyrene School
District No. 28 for the assignment of two school resource officers (SRO) to the school district.
The SROs will be assigned to Apprende and Pueblo Middle Schools. Kyrene School District will
pay the Chandler Police Department $168,412.00 towards the cost of salary and benefits for the
officers. They will also reimburse the Police Department $200.00 for travel expenses and $400.00
for supplies for the officers. The Chandler Police Department will retain operational control of the
officers selected as SROs.

18.    REZONING: Abart Investment Corp.

CONTINUED TO AUGUST 25, 2005, Rezoning, DVR04-0021, Abart Investment Corp., from I-1
to PAD for a mixed use development including office, retail and storage on approximately 10
acres east of the SEC of Riggs Road and Arizona Avenue to allow Staff time to reevaluate the
proposed and allowable uses for the site at the request of the Planning Commission.

19.    REZONING: Summit At Chandler Heights

CONTINUED TO MAY 12, 2005, Rezoning, DVR04-0059, Summit at Chandler Heights, from AG-
1 to PAD along with a Preliminary Development Plan for the construction of an office and retail
development on approximately 6.7 acres located at the SEC of Chandler Heights and Alma
School Roads to allow the applicant additional time to work through substantial changes resulting
from a Design Review Committee hearing.

20.    PRELIMINARY DEVELOPMENT PLAN: Ocotillo Professional Building

CONTINUED TO MAY 26, 2005, Preliminary Development Plan, PDP04-0028, Ocotillo
Professional Building, for a two story office building on 1.78 acres at the NWC of Alma School
Road and Sandpiper Drive to allow time for the applicant to meet with the Design Review Board.
Minutes of the Regular Meeting
Chandler City Council
Thursday, April 28, 2005
Page 10


21.      INTERGOVERNMENTAL AGREEMENT: Town of Gilbert

APPROVED an Intergovernmental Agreement with the Town of Gilbert for a joint pipeline study
and authorized the expenditure, in an amount not to exceed $55,000.00.

Chandler’s Integrated Water, Wastewater and Reclaimed Water Master Plan recommends
constructing a second water treatment plant to increase Chandler’s drinking water supply
reliability and serve potable CAP water to southeast Chandler. Chandler’s existing water
treatment plant receives its water through the Salt River Project (SRP) canal. A pipeline
connecting the Central Arizona Project (CAP) Canal to the second water treatment plant is
envisioned. Having two raw water supply sources is more reliable than taking all of Chandler’s
water through the SRP canal.

Since the CAP canal is east of Chandler and Gilbert, Chandler and Gilbert could partner on a
pipeline to bring untreated CAP water from the CAP canal to southeast Chandler. CAP water
could be treated at a joint Chandler/Gilbert water treatment plant located in Gilbert, or a second
water treatment plant, solely for Chandler’s use, at the southeast corner of Ocotillo and Gilbert
Roads. To study the feasibility of a joint pipeline, Staff recommends Chandler participate with the
Town of Gilbert. The Town of Gilbert has retained a consultant and Chandler would pay one-half
of the consultant’s fee, but not more than $55,00.00.

22.      AGREEMENT AMENDMENT: Southwest Umpire Association

APPROVED an Agreement Amendment for professional softball umpire services with Southwest
Umpire Association, in an amount to exceed $53,000.00. Council awarded a one-year contract
with the option to extend three additional one-year increments. The vendor has agreed to extend
the contract with a price increase from $16.00 to $17.00 per game. Games are played three
seasons per year, 10-11 weeks per season, totaling approximately 3,000 games per year.

23.      AGREEMENT EXTENSION: East Valley Uniforms

APPROVED an Agreement Extension for police uniforms with East Valley Uniforms in an amount
not to exceed $150,000.00. This contract will also allow for replacement of worn or damaged
uniforms and over standard sized uniforms and alterations. It will allow officers to purchase
miscellaneous uniform and duty gear related items through the Department’s miscellaneous
voucher program. In June 2003, Council awarded a one-year contract with two one-year renewal
options. The contractor has agreed to extend the contract with a two percent price increase.

24.      AGREEMENT: Mountaineer Consulting

APPROVED an Agreement for LBMaintenance Application Modification and the Street Section
Module Revision Project for the purchase of consultant services with Mountaineer Consulting in
an amount not to exceed $25,000.00.

The LBMaintenance application is a customized GIS data maintenance application that was
originally written for the City by Mountaineer Consulting. At this time, IT has identified
modifications and enhancements to the application that are required to support GIS data model
changes, other GIS projects and City needs. Implementation of these changes will have a
positive and beneficial impact on the use of GIS data within the City’s GIS Enterprise System.
                                                                            Minutes of the Regular Meeting
                                                                                     Chandler City Council
                                                                                  Thursday, April 28, 2005
                                                                                                  Page 11


The Street Section Module Revision Project involves specific modification and enhancement of
the automated process within the LBMaintenance application for Street Section data. Having this
work conducted by Mountaineer Consulting will ensure that GIS street sections meet the needs of
other GIS applications and can be effectively used by all City GIS ArcMap users.

25.    RETIREE SUPPLEMENTAL EXTENSION

AUTHORIZED extension of the retiree supplemental subsidy of $48.00 per month for the period
July 1, 2005 through December 31, 2005.

In 2004, the Mayor and City Council approved a supplemental retiree subsidy in the amount of
$63.00 per month for the 2004 calendar year. In October 2004, the City formed a Benefits
Taskforce to study the retiree subsidy program as well as other options to address the long-term
issue of the cost of health care. Although the taskforce is making progress in addressing some of
these issues, a specific recommendation regarding the retiree subsidy program is not expected
until late 2005.

In 2004, the rates for the City’s medical plans rose 26.5%. As a result, the cost for medical
premiums increased for both the retirees and employees.    The total cost of the supplemental
subsidy for 2004 was just over $67,000.00.

In 2005, the City realized a reduction in the rates for the City’s medical plans. By applying the
same formula used in 2004 to calculate the retiree supplemental subsidy, the subsidy was
determined to at $48.00 per month. The Mayor and City Council approved the $48.00
supplemental subsidy through June 30, 2005 at an estimated cost of $27,072.00. This extension
is estimated to cost an additional $28,800.00 making the total supplemental subsidy for 2005
estimated to be $55,872.00.

26.    NON-EXCLUSIVE LICENSE AMENDMENTS: Chandler Air Service

AUTHORIZED amendments to the existing non-exclusive license and authorized a new non-
exclusive license with Chandler Air Service to conduct fueling operations at the Chandler
Municipal Airport.

The City granted a non-exclusive license to Chandler Air Service to conduct fueling operations at
the Chandler Municipal Airport on September 29, 1995, which will expire April 30, 2005. Staff
and Chandler Air Service have negotiated terms of a new license for six years with two, six-year
renewal options. The new license required Chandler Air Service to provide a Letter of Credit as
financial surety which will not be finalized before the current license expires. A temporary one-
month extension will allow Chandler Air Service to continue providing this essential service at the
airport until the surety document can be finalized enabling the new license to become effective.
Chandler Air Service will not be permitted to sell fuel at the airport after May 31, 2005 unless the
City has received the letter of credit in an approvable form.

27.    NEIGHBORHOOD GRANT: Warner Ranch Phase III Homeowner’s Association

APPROVED a matching neighborhood grant for Warner Ranch Phase III to replace granite along
the frontage of Ray and Kyrene Roads in the amount of $5,000.00. The neighborhood was built
in the early 90’s. Over the last 13 years, the rock landscaping in the rights-of-way has broken
down and eroded. The homeowner’s association did not anticipate the estimated $63,000.00
cost for replacement granite and has not put money aside. The homeowner’s association board
Minutes of the Regular Meeting
Chandler City Council
Thursday, April 28, 2005
Page 12


of directors has now established a reserve and will continue to put money aside for this purpose.
The project will be undertaken over several years. This first phase of the project will add 33 tons
of rock to approximately 100,000 square feet along Ray Road from Mill Avenue to Kyrene Road
and along Kyrene Road from Ray Road north to the property perimeter.

The application has met all of the requirements of the Neighborhood Matching Grants Program
guidelines. Members of the Neighborhood Grant Review and Neighborhood Advisory committees
have reviewed the grant application and recommend approval.

Fourteen neighbors have agreed to donate a total of 108 volunteer hours in sweat equity and the
homeowner’s association will pay the remaining $12,860.00 to complete this phase of the project.

28.      NEIGHBORHOOD GRANT: Haciendas Homeowner’s Association

APPROVED a matching neighborhood grant for the Haciendas Homeowner’s Association to
improve common area landscaping in the amount of $3,930.00. The Hacienda neighborhood
located north of Galveston Road and east of Alma School Road, has applied for grant funds to
plant 118 drought tolerant shrubs along the interior perimeter block wall.

The homeowner’s association has extremely limited financial resources with the majority of the
homeowners being seniors living on fixed incomes. Two years ago, the homeowners association
board of directors raised association dues $10.00 per month to begin saving for needed street
repairs. Without grant funding, this project could not be undertaken.

The application has met all of the requirements of the Neighborhood Matching Grants Program
guidelines. Members of both the Neighborhood Grant Review and Neighborhood Advisory
committees have reviewed the grant application and recommend approval.

Forty-one of 59 homeowners have been involved in the project and have agreed to donate a total
of 236 volunteer hours in sweat equity. The homeowner’s association will pay the remaining
$1,410.00 to complete the project.

29.      CONSTRUCTION AGREEMENT: Union Pacific Railroad

APPROVED a Construction Agreement with the Union Pacific Railroad Company for the
installation of track and a turnout/spur structure in Tumbleweed Park in the amount of
$74,569.00.

The Arizona Railway Museum is currently located in Armstrong Park. In 2004, Council awarded a
job order contract to 3D International for the installation of railroad bed and track within
Tumbleweed Park which will allow the Arizona Railway Museum to relocate, store and showcase
the various train cars in their collection. In order to connect Tumbleweed Park to the Union
Pacific Railroad Chandler Branch Line that is adjacent to the western property line of the park,
approximately 138 feet of tract and a turnout/spur structure needs to be installed by the Union
Pacific Railroad.

30.      LEASE AGREEMENT: Arizona Railway Museum

APPROVED an Agreement for the Arizona Railway Museum lease for ten years for the use of
Armstrong and Tumbleweed Parks. The Arizona Railway Museum is a non-profit volunteer
organization dedicated to the acquisition, restoration and preservation of Arizona rail history. The
                                                                              Minutes of the Regular Meeting
                                                                                       Chandler City Council
                                                                                    Thursday, April 28, 2005
                                                                                                    Page 13


City and the Arizona Railway Museum entered into a lease agreement on July 24, 1984 for the
construction and operation of a railway museum at Armstrong Park. The document has been
changed to reflect the planned relocation of the operation to Tumbleweed Park. During the
relocation process, it will be necessary for the museum to occupy both Armstrong and
Tumbleweed Parks.

31.    CONSTRUCTION CONTRACT: Nesbitt Contracting, Inc.

APPROVED Construction Contract #ST0508-401 to Nesbitt Contracting, Inc. for asphalt concrete
mill and inlay in an amount of $1,123,313.00.

The Street Division Staff has evaluated approximately 7.1 centerline miles of streets identified for
rehabilitation by the City’s pavement management system. The rehabilitation of these streets will
use the mill and inlay process. The mill and inlay of a street becomes necessary when the
existing pavement condition is such that the street can no longer be properly maintained with
slurry seal or micro seal applications.

The rehabilitation will occur along 17 residential and collector streets. These streets are located
in various locations within an area approximately bounded by the Loop 101 freeway to the west,
McQueen Road to the east, Elliot Road to the north, and Germann Road to the south. Access to
residences and businesses will be maintained at all times.

32.    CONSTRUCTION CONTRACT: FNF Construction, Inc.

APPROVED Construction Contract #ST0301-401 for Phase I of the Construction Manager at Risk
Project to FNF Construction, Inc., for the Chandler Boulevard Improvements from Hartford Street
to Colorado Street in an amount not to exceed $1,245,656.00. This construction project will be
completed in two phases to assist in completing the project in a timely manner and meet
commitments made to various downtown partners. The first phase will include the purchase of
long-lead items and utility relocations. The second phase will include construction for the
remainder of the project improvements and presented to the Council later this year. Construction
Administration services are expected to be performed by City Staff.

33.    AGREEMENT AMENDMENT: Marsh USA

APPROVED a one year extension for broker services with Marsh USA, Inc. in an amount not to
exceed $50,000.00. Broker services are used to provide the City information regarding the most
cost effective insurance products available for municipalities. The scope of services includes
meeting with the City to discuss loss control issues, exposure changes and support regarding the
City’s annual renewal application for liability, property, worker compensation, underground
storage tank, airport and crime policy insurance coverage. In addition, Marsh provides notice to
the City of favorable and unfavorable market developments, which may affect access to
insurance at prices deemed affordable.

34.    USE PERMIT: Adult Senior Daycare Facility

CONTINUED TO MAY 26, 2005, Use Permit UP04-0061, Adult Senior Daycare Facility for an
adult care facility and authorize a Use Permit extension for the office located within a single-family
residence located at 420 W. Chandler Boulevard to allow the applicant time to submit additional
information for review.
Minutes of the Regular Meeting
Chandler City Council
Thursday, April 28, 2005
Page 14


35.        USE PERMIT: Arizona’s Children Association

APPROVED Use Permit, UP05-0005, Arizona’s Children Association, for an office in Planned
Industrial District with a PAD overlay (I-1/PAD) zoning located at 1775 N. Arizona Avenue, Suites
3 and 4. (Applicant: Marc Kellenberger, Arizona’s Children Association.)

The site is zoned light industrial (I-1) with a Planned Area Development (PAD) overlay, I-1/PAD.
The property is located within a larger business park that includes a mix of industrial, office and
commercial uses. In 1981, the Arizona Avenue Garden Business Park, also known as Elliot
Commerce Plaza, was rezoned from Agricultural (AG-1) to I–1 with a PAD overlay designating
uses by area. The business park includes a mix of commercial, light industrial and uses requiring
Use Permit approval. The PAD overlay identifies and describes the type of uses allowed making
a compatible mix of office, commercial and light industrial uses.

The building proposed for Arizona’s Children Association’s (ACA) office has been occupied with
other office and auto related businesses. The proposed ACA office includes administrative,
clerical and child and parent services such as counseling, group meetings and training. The
office employs 15 full-time staff members and business hours are Monday through Friday, 8 a.m.
to 6 p.m. There may be occasions where services are provided on Saturdays. The office staff
works with children ages 1 through 17. Approximately 80 percent of the children are seen for in-
home services in lieu of meeting at the office. The office provides staff a home base to complete
paperwork and meet to plan services with other community members. The offices also
accommodate training for potential foster and adoptive parents and group meetings along with
foster care training classes, parenting training classes, and parent support groups for the parents
of Arizona’s Children Association’s children. The groups may have up to 20-25 people at one
time. The only time children are dropped off at the offices would be for a group meeting typically
held twice a month.

This request was noticed in accordance with the requirements of the Chandler Zoning Code and
Staff is not aware of any opposition to this request.

Upon finding consistency with the General Plan and I-1/PAD overlay, the Planning Commission
and Staff recommend approval subject to the following conditions:

      1.      Expansion or modification beyond the approved exhibits shall void the Use Permit and
              require new Use Permit application and approval.
      2.      Development shall be in substantial conformance with exhibits and representations.

36.        USE PERMIT: QuikTrip – Arizona Avenue and Germann Road

APPROVED a Use Permit, UP05-0015, QuikTrip – Arizona Avenue & Germann Road, Series 10,
for the sale of beer and wine at a convenience store and gas station at the SWC of Arizona
Avenue and Germann Road. (Applicant: Dennis Archuleta, QuikTrip Corporation.)

Upon finding consistency with the General Plan and PAD zoning, the Planning Commission and
Staff recommend approval subject to the following conditions:

      1.      Expansion, modification, or relocation beyond the approved exhibits (Floor Plan and
              Narrative) shall void the Use Permit and require new Use Permit re-application and
              approval.
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                                                                                       Chandler City Council
                                                                                    Thursday, April 28, 2005
                                                                                                    Page 15


      2.      Any substantial change in the floor plan to include such items as, but not limited to,
              additional bar serving area or the addition of entertainment related uses shall require
              reapplication and approval of the Use Permit.
      3.      The Use Permit is granted for a Series 10 license only and any change of licenses
              shall require re-application and new Use Permit approval.
      4.      The Use Permit is non-transferable to other store locations.

37.        USE PERMIT: Chino Bandido

APPROVED a Use Permit, UP05-0013, Chino Bandido, Series 12, for the sale of beer and wine
for on-premise consumption only within a restaurant at 1825 W. Chandler Boulevard. (Applicant:
Eve Collins.)

The restaurant, currently under construction, is located at the SEC of Dobson Road and Chandler
Boulevard within the San Marcos Square shopping center. Business hours will be 11:00 a.m. to
9:00 p.m., 7 days a week. There will be ten employees.

The request was noticed in accordance with the Chandler Zoning Code with a neighborhood
meeting being held on March 29, 2005 with no one in attendance. The Police Department has
been informed of the application and has responded with no comment.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to the following conditions:

      1.      Expansion, modification, or relocation beyond the approved exhibits (Floor Plan and
              Narrative) shall void the Use Permit and require new Use Permit re-application and
              approval.
      2.      Any substantial change in the floor plan to include such items as, but not limited to,
              additional bar serving area or the addition of entertainment related uses shall require
              reapplication and approval of the Use Permit.
      3.      The Use Permit is granted for a Series 12 license only and any change of licenses
              shall require re-application and new Use Permit approval.
      4.      The Use Permit is non-transferable to other store locations.

38.        LIQUOR LICENSE: Chino Bandido Takee-Outee

APPROVED a Series 12 Restaurant Liquor License (Chandler #53513) for Eve Lee Collins,
Agent, Chino Bandido Development, LLC dba Chino Bandido Takee-Outee, 1825 W. Chandler
Boulevard. A recommendation for approval of State Liquor License #12076169 will be forwarded
to the State Liquor Department. The Police Department reports no objections to the issuance of
this license and no written protests have been received. All licenses, permits and fees have been
paid and the applicant is in compliance with the City’s Tax Code.

39.        USE PERMIT: Sam’s Club (Santan Gateway)

APPROVED a Use Permit, UP05-0020, Sam’s Club (Santan Gateway), Series 9, for the sale of
liquor at a new retailer within the Santan Gateway commercial retail development at the NEC of
Arizona Avenue and Willis Road. (Applicant: Sean Lake, Pew & Lake PLC.)

The sale of alcohol as a retail commodity ancillary or incidental to the sale of other retail products
occurring in a commercially zoned area does not establish a land use conflict. The sale of
Minutes of the Regular Meeting
Chandler City Council
Thursday, April 28, 2005
Page 16


alcohol from a land use compatibility analysis is a typical retail transaction in commercial districts
throughout the City.

The request was noticed in accordance with the requirements of the Chandler Zoning Code. The
Police Department has been informed of the application and has responded with no issues or
concerns.

Upon finding consistency with the General Plan and PAD zoning, the Planning Commission and
Staff recommend approval subject to the following conditions.

      1.      Expansion, modification, or relocation beyond the approved exhibits (Floor Plan and
              Narrative) shall void the Use Permit and require new Use Permit re-application and
              approval.
      2.      Any substantial change in the floor plan to include such items as, but not limited to,
              additional bar serving area or the addition of entertainment related uses shall require
              reapplication and approval of the Use Permit.
      3.      The Use Permit is granted for a Series 9 license only and any change of licenses shall
              require re-application and new Use Permit approval.
      4.      The Use Permit is non-transferable to other store locations.

40.        LIQUOR LICENSE: Sam’s Club

APPROVED a Series 9 Liquor Store Liquor License (Chandler #100637) for Clare Hollie Abel,
Agent, Sam’s West, Inc. dba Sam’s Club #4927 at 1375 S. Arizona Avenue. A recommendation
for approval of State Liquor License #09070522 will be forwarded to the State Liquor Department.
The Police Department reports no objections to the issuance of this license and no written
protests have been received. All licenses, permits and fees have been paid and the applicant is
in compliance with the City’s Tax Code.

41.        USE PERMIT: Wal-Mart Supercenter (Santan Gateway)

APPROVED Use Permit, UP05-0021, Wal-Mart Supercenter (Santan Gateway), Series 9, for the
sale of liquor at a new retailer within the Santan Gateway commercial retail development located
at the SEC of Arizona Avenue and Pecos Road. (Applicant: Sean Lake, Pew & Lake PLC.)

The sale of alcohol as a retail commodity ancillary or incidental to the sale of other retail products
occurring in a commercially zoned area does not establish a land use conflict. The sale of
alcohol from a land use compatibility analysis is a typical retail transaction in commercial districts
throughout the City.

The request was noticed in accordance with the requirements of the Chandler Zoning Code. The
Police Department has been informed of the application and has responded with no issues or
concerns.

Upon finding consistency with the General Plan and PAD zoning, the Planning Commission and
Staff recommend approval subject to the following conditions:

      1.      Expansion, modification, or relocation beyond the approved exhibits (Floor Plan and
              Narrative) shall void the Use Permit and require new Use Permit re-application and
              approval.
                                                                              Minutes of the Regular Meeting
                                                                                       Chandler City Council
                                                                                    Thursday, April 28, 2005
                                                                                                    Page 17


      2.      Any substantial change in the floor plan to include such items as, but not limited to,
              additional bar serving area or the addition of entertainment related uses shall require
              reapplication and approval of the Use Permit.
      3.      The Use Permit is granted for a Series 9 license only and any change of licenses shall
              require reapplication and new Use Permit approval.
      4.      The Use Permit is non-transferable to other store locations.

42.        LIQUOR LICENSE: Wal-Mart Supercenter

APPROVED a Series 9 Liquor Store Liquor License (Chandler #100664) for Clare Hollie Abel,
Agent, Wal-Mart Stores Inc. dba Wal-Mart Supercenter #2671 at 1175 S. Arizona Avenue. A
recommendation for approval of State Liquor License #09070352 will be forwarded to the State
Liquor Department. The Police Department reports no objections to the issuance of this license
and no written protests have been received. All licenses, permits and fees have been paid and
the applicant is in compliance with the City’s Tax Code.

43.        LIQUOR LICENSE: QuikTrip

APPROVED a Series 10 Beer and Wine Store Liquor License (Chandler #100848 L10) for David
Gerard Cisiewski, Agent, QuikTrip Corporation, dba QuikTrip #442, 2010 S. Arizona Avenue. A
recommendation for approval of State Liquor License #10074980 will be forwarded to the State
Liquor Department. The Police Department reports no objections to the issuance of this license
and no written protests have been received. All licenses, permits and fees have been paid and
the applicant is in compliance with the City’s Tax Code.

44.        LIQUOR LICENSE: QuikTrip

CONTINUED TO MAY 26, 2005 a Liquor License, Series 10, for David Gerard Cisiewski, Agent,
QuikTrip Corporation, dba QuikTrip #450 at 1015 E. Chandler Boulevard to allow the applicant
time to complete the requirements for a new Use Permit.

45.        LIQUOR LICENSE: Texaco

APPROVED a Series 10 Beer and Wine Liquor License (Chandler #53114 L10) for Mahmoud
Hassan Majed, Agent, Speedsmart III,Inc., dba Texaco Mart, 1981 N. Alma School Road. A
recommendation for approval of State Liquor License #10075003 will be forwarded to the State
Liquor Department. This application reflects a change of ownership. A new Use Permit is not
required as this will be a continuation of the location’s previous use as Texaco Star Mart #775.
The Police Department reports no objections to the issuance of this license and no written
protests have been received. All licenses, permits and fees have been paid and the applicant is
in compliance with the City’s Tax Code.

46.        SPECIAL EVENT LIQUOR LICENSE: W. Steven Martin Police Toy Drive

WITHDRAWN, at the request of the applicant, a Special Event Liquor License for W. Steven
Martin Police Toy Drive for the Rock ‘N Roll Ball Dinner and Fundraiser, May 21, 2005, 5:00 p.m.
to 11:00 p.m., at the Chandler Community Center, 125 E. Commonwealth.
Minutes of the Regular Meeting
Chandler City Council
Thursday, April 28, 2005
Page 18


47.      TEMPORARY EXTENSION OF PREMISES: Iguana Mack’s

APPROVED a Temporary Extension of Premises for a Series 12 liquor license (Chandler #13393
L12) held by Destination Restaurants, Inc. dba Iguana Mack’s at 1371 N. Alma School Road for a
Cinco de Mayo Celebration to be held on May 5, 2005. The extension period is for one day
during normal business hours. A recommendation for approval of temporary extension of
premises for State Liquor License #12070644 will be forwarded to the State Liquor Department.
The Police Department has no objections to this extension and the applicant has applied for a
Temporary Sales and Promotional Event Permit through Neighborhood Services.

48.      PRELIMINARY PLAT: Cooper Crossings

APPROVED a Preliminary Plat, PPT05-0005, Cooper Crossings, for a 14-acre parcel for a
commercial office and retail center at the NWC of Ray and Cooper Roads. (Applicant: Urban
Realty Partners, L.L.C.) The plat creates the lots and tracts, construction phasing lines,
establishes the necessary easements and dedicates the required rights-of-way.

49.      FINAL PLAT: Chuparosas

APPROVED a Final Plat, FPT05-0004, Chuparosas, for a 40-acre mixed-use development that
includes commercial retail and office uses, church with education center and apartment complex
at the SWC of Dobson and Germann Roads. (Applicant: Germann Dobson CVS, LLC) The plat
creates the lots and tracts, establishes the necessary easements and dedicates the required
rights-of-way.

50.      FINAL PLAT: Fulton Ranch Parcel 6

APPROVED a Final Plat, FPT05-0012, Fulton Ranch Parcel 6, for an 89-acre single-family
residential subdivision at the SEC of Fulton Ranch Boulevard and Pacific Drive. (Applicant:
Fulton Homes Corporation.) The plat creates the lots and tracts, establishes the necessary
easements and dedicates the required rights-of-way.

51.      On the Action Agenda

52.      Public Hearing #1.

53.      UTILITY EASEMENT: Arizona Public Service                                    Ord. #3668

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3668 granting a no-cost utility
easement to Arizona Public Service (APS) to provide electrical power to the Denver Basin Pump
Station. The improvements at Denver Pump Station are nearly complete. This easement is
necessary to provide power to the Pump Station to enable the City to pump storm water from the
Denver Basin to the Santan Freeway drainage channel.

In order to provide power to energize and test the new storm water pump station facilities on the
site, it is necessary to grant a utility easement to Arizona Public Service. Because the utility
easement benefits the project, there are no costs to Arizona Public Service for this easement.

ACTION AGENDA:

11.      CITY CODE AMENDMENT: Chapter 12                                             Ord. #3683
                                                                             Minutes of the Regular Meeting
                                                                                      Chandler City Council
                                                                                   Thursday, April 28, 2005
                                                                                                   Page 19



Assistant City Manager RICH DLUGAS said that as a result of an appearance by several citizens
regarding disturbances from motorized play vehicles in their neighborhoods, a task force was
created at the direction of the City Council and City Manager to address these issues, review the
current ordinance and return to Council with recommendations. Mr. Dlugas recognized the
following task force members present: Matt Augie, Greg Dutton, Terry Greybow and Larry Azelli.
Joe Kenyon and Javier Rodriguez were also on the taskforce, but not present. He thanked the
taskforce for their time and effort in coming to a unanimous recommendation to the Council.

The task force met seven times to examine the issues and discuss possible solutions. They
reviewed current Ordinance No. 2969 and unanimously agreed to recommend the following
modifications:

   •   Specify that structural alterations to the exhaust systems are not allowed, except for
       alternations to make the exhaust system quieter than the original manufacturer’s design.
   •   Indicate that motorized play vehicles or motorized skateboards may only be operated
       between the hours of 8:00 a.m. and 8:00 p.m.
   •   Modify the helmet requirement to mandate that any motorized play vehicle or motorized
       skateboard operator under the age of eighteen (18) years wear a full-face protective
       helmet, as designated by the manufacturer and approved by DOT.
   •   Require any person who sells a new motorized play vehicle or a new motorized
       skateboard in the City of Chandler to display, at the place of sale, Chandler City Code
       Sections 12-5 (Motorized Play Vehicles and Motorized Skateboards), 30-4 (Public
       Nuisance) and 30-5 (Disturbing the Peace Prohibited).
   •   Require any person who sells a new motorized play vehicle or a new motorized
       skateboard in the City of Chandler by mail-order shipment to an address in the City of
       Chandler or a city adjacent to the City of Chandler to include a copy of Chandler City
       Code Sections 12-5 (Motorized Play Vehicles and Motorized Skateboards), 30-4 (Public
       Nuisance) and 30-5 (Disturbing the Peace Prohibited).
   •   Require any person who sells a new motorized play vehicle or a new motorized
       skateboard in the City of Chandler to provide the buyer written notice that motor vehicle
       insurance policies and some homeowner’s insurance policies will not cover liability claims
       involving these types of vehicles. This notice shall be in addition to any warnings or
       notices provided by the manufacturer.

The task force also asked the City to address the following:

   •   The City will make every effort to educate the public on the aforementioned changes by
       sending notifications to residents and posting information in the City of Chandler
       publications and the City’s website.
   •   Notifications of the modifications will also be sent to neighboring cities.
   •   The Police Department will educate officers on the modifications and enforce the
       ordinance to the best of their ability.
   •   The Police Department will continue to respond to the specific needs of neighborhoods
       that are particularly affected by unlawful riders. Upon request, the Police Department will
       send letters to residents in the affected areas.

It is the expectation of the task force that operators and retailers will adhere to the modifications
to the ordinance and abide by the new regulation.
Minutes of the Regular Meeting
Chandler City Council
Thursday, April 28, 2005
Page 20


The task force further agreed to reconvene in six months to evaluate the effectiveness of the
recommendations in reducing the number of complaints from the community. This will allow a
significant grace period for the industry and riders to self-regulate and hopefully limit further
restrictions.

STEVE CORMAN, 3361 W. Drake St., thanked the Mayor and Council for forming the taskforce.
He was asked to serve, but was unable to due to time constraints and other commitments. He
expressed his disappointment with the recommendations being brought forward. Some of the
recommendations being made are currently in the existing ordinance. He relayed his skepticism
with respect to posting information in schools given that a student member of the taskforce was
caught with an illegal modification on his scooter. He does not see any compromise but rather
minor adjustments to an ordinance that currently is ineffective.

MR. CORMAN continued that the more effective compromise would be the Chandler Public
Nuisance Ordinance 30-4.F which defines a public nuisance. Mini bikes and motor scooters are
listed in the ordinance as prohibited. He asked Council to consider his proposed additional
amendment to Section 5 of the ordinance that would ban noisy vehicles and make provisions to
allow them when they are proven to be no noisier than the average car.

MAYOR DUNN asked if Mr. Corman had been able to attend any of the taskforce meetings. Mr.
Corman replied that he had not. THE MAYOR asked if he had presented his suggested
modifications to the committee. Mr. Corman said that he had not.

COUNCILMEMBER SEPULVEDA clarified that the ordinance will be reviewed in six months
whether or not there are concerns.

COUNCILMEMBER ORLANDO suggested that Mr. Corman be a part of the review process over
the next six months if the ordinance is adopted.

GREG DUTTON, 4683 W. Tara Dr., member of the taskforce, stated that two things have
occurred during the meetings of the taskforce that have changed his opinion on motorized play
vehicles serving no purpose besides recreational. The first occurrence was Police Chief Kiyler’s
letter that went out to the community explaining that with stepped up enforcement, operators and
their parents are held accountable. He will be directing his time and attention to educating
neighborhoods on what they can do to work more effectively with the City. Lt. Hunt has made
some excellent policy changes within the Police Department and Chief Kiyler has been very
supportive.

COUNCILMEMBER CACCAMO complimented Mr. Dutton for his willingness to work on the
committee and commended him for building consensus.

COUNCILMEMBER WALLACE asked Mr. Dutton if he would be willing to work with Steve and
Diane Corman to work with their neighborhood. Mr. Dutton said that he would be more than
willing to and Steve’s help would be invaluable in monitoring the ordinance for six months if it is
approved. He is in the process of developing a plan by which a log will be established for calls
received by the Police pertaining to motorized play vehicles enabling it to be tracked through the
court system. The courts have been taking this issue very seriously with approximately 90% of
the citations for motorized play vehicle violations resulting in fines.

COUNCILMEMBER SEPULVEDA commented that there is still frustration in the community, but
wants everyone to know that there will be stepped up enforcement. In addition to quality of life
                                                                            Minutes of the Regular Meeting
                                                                                     Chandler City Council
                                                                                  Thursday, April 28, 2005
                                                                                                  Page 21


issues, there is also a safety issue and one of accepting responsibility.             MR. DUTTON
commented that it is a privilege and not a right to operate these vehicles.

MOVED BY COUNCILMEMBER ORLANDO, SECONDED BY COUNCILMEMBER HUGGINS to
INTRODUCE Ordinance No. 3683 amending City Code Chapter 12, Sections 12-1 and 12-5
relating to motorized play vehicles and motorized skateboards.

MAYOR DUNN urged everyone to make certain that this use can be compatible with our
neighborhoods from both a safety and quality of life standpoint. He thanked Chief Kiyler and the
Police Department for getting the information out. THE MAYOR also encouraged this issue to be
a part of the June 11th Congress of Neighborhoods at Snedigar Park and encouraged Mr. and Mr.
Corman to participate in the Congress.

COUNCILMEMBER HUGGINS asked Staff to give the information they receive, i.e. speak outs
and letters to the editor, regarding this issue to the Police Department and the taskforce for the
six-month review period.

THE MOTION TO INTRODUCE ORDINANCE NO. 3683 CARRIED UNANIMOUSLY 7-0.

51.    USE PERMIT: Desert Spring Adult Care Home

Planner Joshua Cook said that the request is for a Use Permit, UP04-0030, to provide adult care
services for up to eight senior adults within a single-family residence. The property is located at
1641 E. Yellowstone Place, south of Ocotillo and west of Cooper Road. The Planning
Commission had several concerns with this request. They expressed concerns with a family of
four and eight senior adults functioning in a single-family residence and that it was not adequately
explained at the commission meeting.

The Planning Commission also took exception to the fact that there was not an activity or
management plan clearly outlining when visitors would be allowed to come. Traffic generation
including ambulance and visitor traffic was also not adequately addressed. For these reasons,
the Commission recommended denial of the request.

It is Staff’s belief that the request is compatible with the zoning code. The zoning code allows for
consideration for up to ten senior adults and this request is for eight. No use permits have been
issued within 1200 feet of this residence.

The house is approximately 4200 sq. ft. and the lot is approximately 10,000 sq. feet. There are
seven bedrooms with four upstairs and three in the basement. Some of the activities the seniors
would be involved in include reading, watching TV, playing games or sitting on the patio. All of
the senior adults are ambulatory and would not have any serious conditions or debilitating
diseases such as Alzheimer’s or dementia.

The applicant is currently operating an adult care facility in the City of Chandler with four senior
adults along with her family. There are neighbors in opposition to this request.

MAYOR DUNN clarified that the applicant and her family will be living in the basement while the
senior residents will be on the main floor. Mr. Cook confirmed the Mayor’s comments. There will
be no other employees on premises which is in compliance with the City’s regulations.
Minutes of the Regular Meeting
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Thursday, April 28, 2005
Page 22


COUNCILMEMBER CACCAMO asked if the applicant would be closing their current facility and
moving those residents to the new home and adding four more or will they be running two
facilities? Mr. Cook responded that the current facility would be closed. COUNCILMEMBER
CACCAMO asked if there is a license necessary to operate an adult care home? Mr. Cook
replied there is a license issued by the Arizona Department of Health Services.

COUNCILMEMBER SEPULVEDA asked if HOA CC&Rs are considered by the City when issuing
this type of use permit? Mr. Cook said that the City has no authority to review or enforce CC&Rs.

COUNCILMEMBER ORLANDO asked how long the current facility has been operating? Mr.
Cook replied that he does not know. Mr. Cook said that no complaints have been received
regarding the current facility.

DALE WHITING, 500 W. Ray Road #1, representing the applicant, said that some of the
neighbor’s reservations focused in two areas. The first were health and safety concerns such as
the size, number of caregivers, number of residents in the home and outside activities. All of
those issues are handled by the Department of Health Services. There was some concern about
the stairwell, and it has been confirmed that there is a door that will be locked and not accessible
to the residents on the first floor.

In addressing the concern with the general size of the facility, which is dependent on how many
people will be in each bedroom. If it is at least 80 sq. ft., there can only be one occupant. At
least 120 sq. ft. can have two occupants. Because of the size of this home, there can easily be
eight residents.

Because of the CC&Rs, outside caregivers cannot be coming to the business. The regulations
prohibit a business to be operated out of a home if employees will be coming and going. The
business has to be operated by the occupants of the home. When this new home opens, the
applicant’s husband will quit his day-job and be a full time caregiver.

The location of the home on W. Yellowstone is the third house from the entrance. Any traffic
coming and going will barely enter the neighborhood with 99% of the neighbors not seeing the
traffic. This use could conceptually reduce the amount of traffic because there could be two
working adults and two driving teenagers living here coming and going at all hours.

Mr. Whiting said that the issue is not whether the business will operate, but if it will operate with
five, six, seven or eight. They do not intend to start with eight if the use permit is approved. If the
request is denied, they will return with more information and submit the request again. Most of
those in opposition are not familiar with this type of business and are misinformed or uninformed.

COUNCILMEMBER ORLANDO asked how long the Hudson facility has been operating. Mr.
Whiting replied that it opened in 2001 and during that time, no complaints have been filed against
the facility and the neighbors are in support.

COUNCILMEMBER SEPULVEDA clarified with Mr. Whiting that the applicant’s husband would
be leaving his day-job to be the second full-time caregiver if this application is approved. Mr.
Whiting concurred. There was discussion regarding how the number of caregivers is monitored.
Currently the ratio is one caregiver for every five residents. If the number increases to six,
another caregiver will have to be added.
                                                                              Minutes of the Regular Meeting
                                                                                       Chandler City Council
                                                                                    Thursday, April 28, 2005
                                                                                                    Page 23


COUNCILMEMBER CACCAMO clarified that both caregivers will be residents.                     Mr. Whiting
concurred. The applicant’s husband is a licensed caregiver.

COUNCILMEMBER WALLACE confirmed that the current facility is licensed with the State and
unannounced inspections can be conducted. If this use permit were approved, the applicant
would have to go through the State for their license and be overseen by the State. MR. WHITING
said that even if the use permit were denied, they would have to go through the State for approval
to operate as a care facility. The facility will operate as a care facility. The number of residents
depends on Council’s action.

WILLIAM TALBOW, 4053 S. Rio Drive, member of the HOA Transition Committee, said that the
HOA has not been formally organized and not able to get a full consensus from all of the
homeowners. He stated that this use does not fit in with the “home environment”. The streets
are narrow and the homes are very close. He reported the CC&Rs clearly state that this type of
use is not permissible because it is a business.

In response to a question from COUNCILMEMBER WALLACE, Mr. Talbow read the section of
the CC&Rs prohibiting businesses in homes for compensation or where a license is needed.

COUNCILMEMBER ORLANDO asked the City Attorney about HOA’s and CC&Rs in relation to
caregivers. MR. O’NEILL said that CC&Rs are a private contract between the residents and the
homeowner’s association. The City cannot interpret that contract. It is up to a court to determine
the terms. The CC&Rs should not be considered when considering the number of people in a
residential care facility. The law does not allow a City to regulate less than five residents which is
why our ordinance has that stipulation. Council should only consider the land use and land use
impact and a Court will make the determination regarding CC&R requirements.

COUNCILMEMBER CACCAMO asked about safety precautions such as a sprinkler system. Mr.
Whiting said the house has a sprinkler system installed and the house is ADA compliant.

CHRIS GAGNE, 4070 S. Melody Drive, said that they bought their home in this neighborhood
because of the common plan of the community as expressed in the CC&Rs. Seeing a dramatic
change in the nature of the properties would be devastating. During the Planning Commission
hearing, the applicant indicated that the tenants would not be leaving the residence and the doors
would be locked and alarmed. She is now saying the residents will be outside all the time. Mr.
Gagne expressed concern with an increase in noise and traffic. Even though the applicant has
stated that the residents are ambulatory and do not suffer from dementia, that may change in the
future.

SALLY TOMTE, 1630 E. Yellowstone Pl., directly across the street from the applicant, spoke
about compatibility to the neighborhood, the adverse effect the business would have on the
neighborhood and why the Planning Commission denied the request. The entire neighborhood is
single-family residences. A business is not compatible. Mr. Whiting mentioned that the
neighbors are misinformed regarding this type of business. Ms. Tomte said that she has lived in
close proximity to a senior adult care facility in California and it was not a pleasant experience. It
generated a lot of traffic and emergency vehicles were there on a regular basis. When she sells
her home, she will be required to disclose that a business or group home is across the street. To
overcome that adverse affect, she would have to reduce the price on her home. The Planning
Commission denied this request because of the ratio of caregivers to residents and being
husband and wife and not permitted to hire any employees, will they actually be in the facility
Minutes of the Regular Meeting
Chandler City Council
Thursday, April 28, 2005
Page 24


24/7, 365 days.        In an emergency situation when they have to leave, who will be caring for the
residents?

CHRIS TULLY, 1925 E. Grand Canyon Dr., said that their neighborhood is in very close proximity
to the street reducing the amount of space for parking. The area is community oriented and was
not sold as a business environment. The intent of the CC&Rs is to allow people to run minimal
home-based businesses. He commented that having an E-bay business is very different than
having twelve people living in one home.

FRANK WATSON, 4072 S. Danyell Dr., member of the Transitional Committee charged with
keeping track of the CC&Rs. He reported that this business violates three of the conditions.
Businesses are not permitted in homes. If any use permits are required, the applicant must go
before the HOA Design Review Committee for permission before going to the City of Chandler.
He stated that this was not done by this applicant. The CC&Rs also prohibit sub-leasing of
property meaning that the entire property can be leased, but not a room. As stated by the
applicant, they will operate whether or not this use permit is approved; however, the HOA will
take action to fight it. The applicants signed a statement that they had read and agreed with the
CC&Rs before purchasing. The Sana’s signed the statement with the intent of running a
business as evidenced with the installation of a sprinkler system and widening the doors. He also
expressed concern with the adverse financial impact on the adjacent properties.

COUNCILMEMBER WALLACE asked Mr. Watson if there are any homes in the neighborhood
providing day care services for children. Mr. Watson responded that there are none he is aware
of.

KATHELEEN BALINT, 1651 E. Yellowstone Pl., east of the applicant, expressed concerns with
the family living in the basement with the elderly residents upstairs. She added that she would
be affected by the traffic and emergency vehicles as no one can predict how many times
ambulances will be at the house. She is concerned about the noise affecting her children and
resale value on her home.

DALE MASON, 246 N. Hudson Pl., lives two doors away from the applicant’s current care facility.
He reported no problems. The house and yard are well kept and there has been no increase in
traffic.

FRANK PEAKE, 2693 E. Birchwood Pl., commended the neighbors for getting together during the
transition period from the builder to the HOA. He concurs with Staff and Planning and Zoning’s
recommendation for denial.

MR. WHITING concluded that most comments involved the CC&Rs are not admissible when
considering this use permit. He gave the opinion that this type of business is permissible in the
neighborhood. A day care would also be permitted which would generate much more traffic.
Traffic from families of those living in this residence would not be concentrated to one particular
time. Visitors would be coming at various times depending on needs of the residents. Visitors
are allowed to park in the street and the CC&Rs allow for widening the driveway if more parking is
needed. The applicant has not closed escrow on the house and cannot approach the HOA
because they are not the legal owners. As soon as escrow closes, a permit will be submitted to
the HOA requesting permission to widen the driveway.

COUNCILMEMBER CACCAMO asked about the 24/7 care that would need to be given when
there are only two caregivers. What will happen if they are both not present at all times? What
                                                                           Minutes of the Regular Meeting
                                                                                    Chandler City Council
                                                                                 Thursday, April 28, 2005
                                                                                                 Page 25


type of contingency plan is in place? MR. WHITING said that there is no requirement requiring
the caregivers to be present 24/7. They are allowed to take breaks. There will be monitoring
alarms in place downstairs.

MR. WHITING said that they plan to do a good job and win the neighbors over as they have in
their current location. Regarding property valuations, he has spoken to a real estate appraiser
who said that there is no way to determine whether or not this business will affect property
values.

COUNCILMEMBER SEPULVEDA noted that he did take exception to the fact that Mr. Whiting
inferred that this is a minority or discriminatory issue in his summary letter.

MOVED BY COUNCILMEMBER WALLACE, SECONDED BY COUNCILMEMBER CACCAMO.
to DENY Use Permit UP04-0030, Desert Spring Adult Care Home, for a senior adult care group
home within a single-family residence for up to eight senior adults at 1641 E. Yellowstone Place.

THE MAYOR clarified that this issue is before Council because the applicant wishes to go over
the five permitted residents. There is a comfort level needed for the neighbors and suggested the
applicant prove themselves and establish that comfort level before requesting the use permit.
MR. WHITING reiterated that there is a lack of information and misinformation on the part of the
neighbors and property values will not be adversely affected.

COUNCILMEMBER SEPULVEDA confirmed with Staff that as long as the applicant is licensed
by the State, they could proceed to operate the facility with up to five residents. MR. COOK
concurred.

THE MOTION TO DENY CARRIED UNANIMOUSLY 7-0.

The meeting adjourned at 9:35 p.m. and reconvened at 9:45 p.m.

PUBLIC HEARINGS:

PH #1.        COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM

Mayor Dunn declared the public hearing open at 9:45 p.m.

Community Development Coordinator PAT TYRELL said that the annual recommendations for
funding are both Staff and Housing and Redevelopment generated. The process began in
November 2004. Two public hearings were held during the first quarter of 2005 as well as three
study sessions. Mr. Tyrell thanked the Housing and Redevelopment Committee for their work in
bringing these recommendations forward.

MAYOR DUNN also commended the Housing and Redevelopment Committee for their work.

COUNCILMEMBER ORLANDO commented that the Community Development Block Grant funds
program was the number one topic at the National League of Cities annual conference. It is
helpful to be able to present a list of the fund requests to our congressmen to show how the funds
are used. Council and Staff have been heavily lobbying to keep these funds available. MR.
TYRELL said that the budget resolution was approved for full funding, however, the Appropriation
Committee has not held the final vote. COUNCILMEMBER ORLANDO said that the agencies
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Chandler City Council
Thursday, April 28, 2005
Page 26


requesting the funds need to be encouraged to contact congressmen regarding maintaining these
funds.

COUNCILMEMBER WALLACE asked why fire department funding was denied. MR. TYRELL
explained that the Housing and Redevelopment Committee evaluated each request by using a
scoring method. This request received a low score from the beginning. In further discussion, the
Committee wished to concentrate more on basic needs and neighborhood-based revitalization
issues. There are always more requests than funds available.

MR. TYRELL explained in response to a question from MAYOR DUNN that there has been talk of
revamping a lot of various programs because there is a belief that the programs do not produce
results. The use of CDBG funds is up to the local jurisdiction and is not strictly monitored by the
Federal government. To quantify the results, Mr. Tyrell said that he could tell the government that
14,000 Chandler residents are directly impacted by the funds. HUD is proposing a change in
criteria by increasing weights in different areas rather than being based strictly on population and
poverty factors. From the proposal he has seen, alternative-funding methods would impact all of
the cities in the valley and the western United States. Staff is keeping in close contact with
personnel at the Federal level to monitor any changes.

COUNCILMEMBER WALLACE asked about funds for the CSA Senior Nutritional Program. Mr.
Tyrell said that the funds requested have remained the same and a request for more funds may
be forthcoming.

VICE-MAYOR WESTBROOKS asked Mr. Tyrell if CDBG funds have decreased? Mr. Tyrell
responded that our entitlement has decreased from last year and that certain Presidential
initiatives are taken from CDBG funds. For fiscal 2005/06, there was less money overall even
though the entire CDBG program totaled the same amount as last year. Our decrease was
approximately $60,000.00. The youth programs through our public housing department are
funded through CDBG funds. VICE-MAYOR WESTBROOKS commented that this is an
important program because it provides transportation for children in public housing that otherwise
would not be available.

MAYOR DUNN asked about the allocation to Mesa CAN and if it is benefiting Chandler residents.
Mr. Tyrell said that it is strictly for use at the East Valley Men’s Transitional Shelter and is a
regional program serving the entire east valley.

Being no further comments on this item, the Mayor closed the public hearing at 9:58 p.m.

52.      CDBG FUNDS                                                                    Res. #3845

Resolution No. 3845 authorizing receipt and allocation of FY 2005/2006 CDBG funds in
accordance with the recommendations of the Chandler Housing and Redevelopment Committee
(HARC) and City Staff.

The City of Chandler expects to be awarded $1,543,419.00 in FY 2005/2006 Community
Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban
Development to benefit low and moderate-income residents and alleviate conditions of slum and
blight.

MOVED BY COUNCILMEMBER ORLANDO to ADOPT Resolution No. 3845. SECONDED BY
COUNCILMEMBER CACCAMO. Motion carried unanimously.
                                                                         Minutes of the Regular Meeting
                                                                                  Chandler City Council
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                                                                                               Page 27



PH #2.          HOME PROGRAM ALLOCATION

Mayor Dunn declared the public hearing open at 10:00 p.m.

Community Development Coordinator PAT TYRELL said that similar to the CDBG Program, the
HOME Program funds are received annually from the Department of Housing and Urban
Development through the Maricopa HOME Consortium. Chandler’s share for 2005/06 is
$460,978.00. HOME Program funds can be used for only the following:

     •   Development of affordable rental housing.
     •   Housing rehabilitation
     •   Down payment assistance

It cannot be used for traditional social services.

Staff and the Housing and Redevelopment Committee will recommend to the Council that funds
be allocated to the housing rehabilitation program. This fund helps with the CDBG program
because it is dollars that do not have to come from CDBG for traditional housing rehab.

VICE-MAYOR WESTBROOKS asked for an example of housing rehabilitation and down payment
assistance programs work. Mr. Tyrell explained that the housing rehabilitation program targets
the Galveston neighborhood by using the three-to-one loan program. The HOME program funds
are easier to loan out on a large scale. The City loans to a moderate income family who are
homeowners an amount of money. Twenty-five percent is paid back to the City as zero percent.
The funds returned to the City are recycled back into the program to loan to someone else. The
money is borrowed by the family who secures a contractor. The contractor performs work
overseen by the City, specs the job out and provides an opportunity for a family to completely
renovate their home. Funding for the down payment assistance program is not being requested
for allocation in 2005/06 because there are remaining funds from last year. Down payment
assistance is offered to families who wish to locate in or around the downtown. Three percent of
the purchase price of the home is offered. VICE-MAYOR WESTBROOKS commented that these
programs are essential in providing affordable housing in Chandler.

Being no further comments on this item, the Mayor closed the public hearing at 10:05 p.m.

SPECIAL ORDERS OF THE DAY

A.       Mayor's Announcements:

MAYOR DUNN announced a Centennial Countdown Kickoff would be held Saturday, April 30th, at
Dr. A. J. Chandler Park beginning at 9:00 a.m.

THE MAYOR announced the Pioneer Luncheon to be held Saturday, April 30th, at 11:00 a.m. at
the San Marcos.

THE MAYOR announced the community budget meetings to be held May 2nd at Shumway
Elementary School, May 10th at Chandler Basha Branch Library and May 11th at Sunset Branch
Library. Each session will begin at 6:30 p.m.
Minutes of the Regular Meeting
Chandler City Council
Thursday, April 28, 2005
Page 28


THE MAYOR announced that the signing of the Non-Incentive Zone Agreement would take place
on May 3rd at the Mountain Vista Park on the border of Phoenix, Chandler and Tempe at noon.

MAYOR DUNN announced the 8th Annual Cinco de Mayo Celebration to be held on Saturday,
May 7th, at Dr. A. J. Chandler Park from noon to 8:00 p.m. There will be food, entertainment and
the famous Chihuahua races.

MAYOR DUNN commented on the passing of Chandler pioneer Jackson Bogle and the
celebration of his life. One of the high lights of the celebration was when the grandchildren sang.

B.       Councilmembers' Announcements:

COUNCILMEMBER HUGGINS said that what separated General Bogle for other achievers is the
fact that he shared his rewards with his family and community.

COUNCILMEMBER WALLACE commented on how much Mr. Bogle and his wife Barbara have
given to the community as a team.

COUNCILMEMBER WALLACE also mentioned that Chandler’s Chihuahua races have also been
covered in New York.

COUNCILMEMBER ORLANDO provided an update on Darrin Dugan who is now Private First
Class in the Marines. He will be going to infantry school in Camp Pendleton. Major Paul
Baubou, serving in Iraq, sent an e-mail thanking Council and Staff for taking care of his fellow
officers and their wives.

COUNCILMEMBER SEPULVEDA said that the celebration for Jackson Bogle was done very well
and tastefully. It celebrated the impact of the entire Bogle family on Chandler.

COUNCILMEMBER SEPULVEDA commented that he attended the water agreement signing
ceremony at Gila River with Councilmember Ben Arredondo from Tempe. It is incumbent on
Chandler to consider the Gila River Indian Community when dealing with issues effecting
neighboring communities.

VICE-MAYOR WESTBROOKS commented on the contributions of the Bogle family to the
community.

C.       City Manager's Announcement:

There were no City Manager announcements at this time.

Adjournment: The meeting was adjourned at approximately 10:20 p.m.



ATTEST: __________________________                  ______________________________
            City Clerk                                   MAYOR


Approved: _________________________
                                                                        Minutes of the Regular Meeting
                                                                                 Chandler City Council
                                                                              Thursday, April 28, 2005
                                                                                              Page 29




                                   CERTIFICATION

I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the
regular meeting of the City Council of Chandler, Arizona, held on the 28th day of April 2005. I
further certify that the meeting was duly called and held and that a quorum was present.



DATED this __________ day of _____________, 2005.


                                                       __________________________
                                                        City Clerk
MINUTES OF THE REGULAR MEETING OF THE HONORABLE MAYOR AND CITY COUNCIL
OF THE CITY OF CHANDLER, ARIZONA, held in the Council Chambers in the Chandler Library,
22 S. Delaware, on Thursday, May 12, 2005 at 7:05 p.m.

THE MEETING WAS CALLED TO ORDER BY MAYOR BOYD W. DUNN.

The following members answered roll call:   Boyd W. Dunn          Mayor
                                            Phillip Westbrooks    Vice Mayor
                                            Bob Caccamo           Councilmember
                                            Lowell Huggins        Councilmember
                                            Matt Orlando          Councilmember
                                            Martin Sepulveda      Councilmember
                      (telephonically)      Donna Wallace         Councilmember


Also in attendance:   W. Mark Pentz         City Manager
                      Pat McDermott         Assistant City Manager
                      Rich Dlugas           Assistant City Manager
                      Dennis O’Neill        City Attorney
                      Marla Paddock         City Clerk

Staff present: Nachie Marquez, Dave McDowell, Chief Roxburgh, Patricia Walker, Dave Siegel,
Chief Kiyler, Bryan Patterson, Doug Ballard

THE MAYOR requested a moment of silence in memory of slain Phoenix Police Officer Uribe.

INVOCATION: The invocation was given by Rev. Ray De Lang – Christ’s Community Church.

PLEDGE OF ALLEGIANCE: Councilmember Sepulveda led the Pledge of Allegiance.

City Attorney DENNIS O’NEILL explained the method of voting as Councilmember Wallace was
attending the meeting telephonically as she was out of state.

SCHEDULED PUBLIC APPEARANCES:

1.     Recognition – Sharon Brause, NIGP State Capitol Chapter Buyer of the Year

MAYOR DUNN acknowledged Purchasing Buyer SHARON BRAUSE as she was recently
presented the National Institute of Governmental Purchasing Buyer of the Year Award for the
State Capitol Chapter. She is the primary buyer for the City’s Central Supply Division and
oversees a number of city-wide contracts and was instrumental in conducting the City’s
purchasing training course in 2004.

2.     Recognition – Donna Henry, 2004 Presidential Award for Excellence in Teaching

MAYOR DUNN introduced DONNA HENRY who received the 2004 Presidential Award for
Excellence in Mathematics and Science Teaching. Ms. Henry teaches 4th grade math at
Shumway Elementary School. This award is given to only 95 elementary and middle school
teachers nationwide and Ms. Henry is the only recipient in Arizona. She has received praise from
the National Science Foundation, the administering organization for the award, for her efforts to
bring creativity and a unique approach to teaching and her ability to connect with student.
Minutes of the Regular Meeting
Chandler City Council
Thursday, May 12, 2005
Page 2



3.       Proclamation – Nurses’ Week

MAYOR DUNN was joined by the City of Chandler’s Occupational Health Nurse KERRY
CASSENS, JANET ALTHOFF, BILL RILOWSKI, KAY PROSE, and PEGGY REEP from Chandler
Regional Hospital as he read a proclamation proclaiming May 6-12, 2005 as National Nurses’
Week.

VICE-MAYOR WESTBROOKS, Director of Education & Community Benefit at Chandler Regional
Hospital, commended the nurses for the work they do. Approximately 40,000 patients go through
the ER department annually and approximately 5,000 babies are born annually at Chandler
Regional Hospital.

4.       Proclamation – National Police Week/Peace Officers’ Memorial Day

MAYOR DUNN was joined by Police Chief KIYLER as he read a proclamation proclaiming May
15-21, 2005 as National Police Week and May 15, 2005 as Peace Officers’ Memorial Day in
Chandler.

Chief Kiyler reminded everyone that since 1792 when the first line-of-duty death was
commemorated, more than 16,500 police officers have lost their lives serving their communities.
Two hundred twenty-one of those deaths have been from the State of Arizona and two from the
City of Chandler.

5.       Proclamation - National Public Works Week

MAYOR DUNN was joined by Municipal Utilities Department Employee of Year KATHLEEN
MOORE and Public Works Department Employee of the Year JIM SWEENEY as he read a
proclamation proclaiming May 15-21, 2005 as Public Works Week.

6.       Dave Layman – Repeal 11-6 of the Chandler City Code

DAVID LAYMAN said that he is requesting the repeal and revision of City Code 11-6. His
concern was that any object or instrument capable of firing a projectile is within the scope of the
ordinance. This would include a dart gun and a stomp rocket. There is no attempt to scope in
the power of such a device as to its ability to destroy or harm. He agreed that a soft air gun
should not be fired in a manner that others may be hit or forced to vacate public places. He
added that it allows the prosecution of a person with little demonstration that any intent to harm
ever took place. It is a criminal misdemeanor, punishable by six months in jail, to be caught in
public with a child’s toy. There is a valid concern that a police officer may mistake an air soft
handgun for the real thing, but this ordinance does not address this issue. He acknowledged the
Chandler Police Department was working on a revision, but added that it is more reasonable to
provide for a civil fine and only proceed to a class one misdemeanor after a certain number of
repeat offenses. Such a repeat clause currently exists in the City Code.

UNSCHEDULED PUBLIC APPEARANCES:

There were no unscheduled public appearances.
                                                                         Minutes of the Regular Meeting
                                                                                  Chandler City Council
                                                                               Thursday, May 12, 2005
                                                                                                Page 3


CONSENT:

MOVED BY COUNCILMEMBER HUGGINS, SECONDED BY COUNCILMEMBER ORLANDO, to
approve the Consent Agenda as presented.            Motion carried unanimously 7-0.
COUNCILMEMBER HUGGINS clarified that his vote did not show on the electronic board, but his
was a “yes” vote.

1.     MINUTES:

APPROVED, as presented, minutes of the Council Special Meeting of April 25, 2005 and the
Regular Meeting of April 28, 2005.

2.     UTILITY EASEMENT: Arizona Public Service                                        Ord. #3668

ADOPTED Ordinance No. 3668 granting a no-cost utility easement to Arizona Public Service
(APS) to provide electrical power to the Denver Basin Pump Station.

3.     REZONING: Cornerstone Christian Fellowship                                      Ord. #3670

ADOPTED Ordinance No. 3670, DVR04-0038, Cornerstone Christian Fellowship, rezoning from
AG-1 to PAD for phase two of the expansion of an existing church on approximately 17 acres at
the SEC of Alma School Road and Willis Road.

4.     REZONING: Windward                                                              Ord. #3679

ADOPTED Ordinance No. 3679, DVR04-0050, Windward, rezoning from PAD townhouses to
PAD single-family homes for a 49-lot single-family residential development on approximately 19
acres at the SWC of Balboa Way and Alma School Road.

5.     REZONING: Artesian Ranch                                                        Ord. #3681

ADOPTED Ordinance No. 3681, DVR04-0057, Artesian Ranch, rezoning from AG-1 to PAD for a
single-family residential subdivision on approximately 62 acres west of the NWC of Gilbert and
Ocotillo Roads.

6.     CITY CODE AMENDMENT: Chapter 12                                                 Ord. #3683

ADOPTED Ordinance No. 3683 amending City Code Chapter 12, Sections 12-1 and 12-5 relating
to motorized play vehicles and motorized skateboards.

7.     PROPERTY USE CHANGE: Lindsay and Chandler Heights Roads                         Res. #3795

ADOPTED Resolution No. 3795 changing a portion of the Chandler Heights Recharge Project
property to another public use, road right-of way, at the NEC of Lindsay and Chandler Heights
Roads.

As part of the Avian Trails Subdivision approved by Council on February 10, 2005, the developer
plans to construct roadway improvements along Lynx Place north of the Chandler Heights
Recharge Project property and the east side of Lindsay Road, to provide an entrance at the south
end of the subdivision.
Minutes of the Regular Meeting
Chandler City Council
Thursday, May 12, 2005
Page 4


To facility the construction of the half-street dedicated by the plat and because the developer is
constructing street improvements that will continue as part of the Chandler Heights recharge
Project, Staff recommends the City change the use of the half-street road right-of-way on the
south side of Lynx Place and along the east side of Lindsay Road.

8.       LAND PURCHASE: Roosevelt Water Conservation District                         Res. #3851

ADOPTED Resolution No. 3851, authorizing the purchase of a vacant parcel from Roosevelt
Water Conservation District at the NEC of Lindsay and Chandler Heights Roads, for the cost of
closing an old well on the property, but not to exceed $15,000.00, plus closing costs of
approximately $800.00. Roosevelt Water Conservation District has agreed to cover any costs
associated with closing the well over $15,000.00.

The City currently owns the property to the north and east adjacent to this site which is planned
for a police substation, park facility and an area for water recharge. Construction of Police
Department Substation is planned for a portion of the adjacent City owned land. Acquisition of
the property at this time will benefit the City by adding the corner parcel to existing City owned
land, providing for closing an old Roosevelt Water Conservation District well site and saving the
cost of future price increases.

9.       INTERGOVERNMENTAL AGREEMENT: Pima County                                     Res. #3858

ADOPTED Resolution No. 3858 authorizing an Intergovernmental Agreement with Pima County
for the Police Department to participate in the High Intensity Drug Trafficking Area Program grant
agreement.

In June 2004, the City of Chandler entered into an Intergovernmental Agreement (IGA) with Pima
County granting authority for the Police Department to participate in the High Intensity Drug
Trafficking Area Program. Participation consisted of one officer being assigned to the Maricopa
County Methamphetamine Task Force.

This IGA renews the agreement through September 30, 2006 with $10,085.00 in overtime
authorized for payment. At the present time, the Maricopa County Sheriff’s Office (MCSO) is
paying the officer’s salary with grant money. Should this grant not be renewed in the future, it is
possible the Department will have to absorb the officer’s salary.

10.      INTERGOVERNMENTAL AGREEMENT: Chandler Unified School District                Res. # 3859

ADOPTED Resolution No. 3859 authorizing an Intergovernmental Agreement with Chandler
Unified School District No. 80 to provide for the assignment of five school resource officers
(SROs) and 1.875 D.A.R.E. officers to the school district for the 2004-05 year.

The SROs will be assigned to Hamilton and Chandler High Schools and Bogle, Willis and
Andersen Junior High Schools. The D.A.R.E. officers will provide instruction to District
elementary Schools. The Chandler Unified School District will pay the Police Department
$555,076.00 towards the cost of salary and benefits for the officers. They will also reimburse the
Police Department $1,500.00 for travel expenses and $1,000.00 for supplies for the officers. The
Police Department will retain operational control of the officers.

11.      PRELIMINARY DEVELOPMENT PLAN: Pad 1 at the Provinces
                                                                             Minutes of the Regular Meeting
                                                                                      Chandler City Council
                                                                                   Thursday, May 12, 2005
                                                                                                    Page 5


CONTINUED TO JUNE 23, 2005 a Preliminary Development Plan, PDP04-0029, Pad 1 at the
Provinces, for a 10,200 square foot building in an existing shopping center at 1020 E. Ray Road.
(Applicant: Kirt Barr, Ellermann, Schick and Bruno.) This application was referred to the Design
Review Committee by the Planning Commission and continued to the Commission’s June 15,
2005 meeting.

12.        PRELIMINARY DEVELOPMENT PLAN: Renaissance Clubsport Hotel

APPROVED a Preliminary Development Plan, PDP04-0003, Renaissance Clubsport Hotel,
amendment for hotel and condominiums with conferencing facilities and a fitness club on a 10.04-
acre site at the SWC of the Price Freeway and Frye Road. (Applicant: RCS-Chandler, LLC, Jeff
Cline.)

This property is part of the Chandler Fashion Center regional mall master plan. In May 2001, a
Preliminary Development Plan was approved for a hotel with conference facilities on this site. In
January 2004, it was amended to incorporate a fitness club facility, decreasing the number of
rooms and reducing the building height. The current application proposes to add two additional
floors (10 total) of condominium units along with a parking garage. No other substantive changes
are proposed. Condominium owners would have use of the hotel facilities and services.

The property was zoned Planned Area Development (PAD) in February 2000 allowing for
commercial uses (C-1 and C-2). This part of the regional mall master plan, Parcel G,
encompassed approximately 84 acres bounded on two sides by freeways and the other two sides
by collector streets. Development rights granted with the PAD zoning for Parcel G expected
intensive building coverage and increased building heights in comparison with the balance of the
regional mall master plan.

Under the proposed changes, the building height increases from 115 to 135 feet. The top two
floors will be divided into a number of condominiums not to exceed 29 units. The site’s main
vehicular access is from Frye Road on the north with a secondary access on the west from the
adjacent collector street, Galleria Way. Adequate parking is provided in accordance with a
parking study that factors the shared use parking of the combined facility.

A neighborhood open house was held on February 10, 2005 attended by approximately 17
residents who expressed no objections.

Upon finding consistency with the General Plan and PAD zoning, the Planning Commission and
Staff recommend approval subject to the following conditions:

      1.     Development shall be in substantial conformance with the Development Booklet
             entitled “Renaissance ClubSport”, kept on file in the City of Chandler Planning
             Services Division, File No. PDP04-0003, except as modified by condition herein.
      2.     Completion of the construction of all required offsite street improvements including but
             not limited to paving, landscaping, curb, gutter and sidewalks, median improvements
             and street lighting to achieve conformance with city codes, standard detail and design
             manuals.
      3.     Sign packages, including free-standing signs as well as wall mounted signs, shall be
             designed in coordination with landscape plans, planting material, storm water retention
             requirements and utility pedestals, so as not to create problems with sign visibility or
             prompt the removal of required landscape material.
Minutes of the Regular Meeting
Chandler City Council
Thursday, May 12, 2005
Page 6


      4.      The Galleria Way driveway shall be restricted to right in right out movements only, or
              as otherwise approved by the Public Works Director.
      5.      Additional parking lot landscape planters and taller date palms and trees shall be
              provided along the front of the building at Frye Road.
      6.      The applicant shall work with Staff to include metal awnings or canopies at the upper
              floor windows to provide additional architectural relief and shade.
      7.      Outside Storage on balconies shall be prohibited.
      8.      Additional trees spaced at a minimum of 20 ft. on center shall be planted along the
              perimeter of the parking structure.
      9.      Applicant to work with Staff for a final color determination on upper level.

13.        On the Action Agenda.

14.        INTERGOVERNMENTAL AGREEMENT: Chandler Unified School District

APPROVED an Intergovernmental Agreement with Chandler Unified School District for a
subcontract with the Chandler Public Library to provide instruction supervision for migrant
education classes through the library’s City of Readers Education (C.O.R.E.) programs for two
years with one two-year renewal.

In 2004, the library’s C.O.R.E. program collaborated with the Chandler Unified School District
(CUSD) as a trial to provide Adult Education Programs and Services to Spanish speaking
residents who live within the district’s geographical boundaries. These programs and services
were funded through Arizona Department of Education using federal monies provided by the No
Child Left Behind initiative and targeted for Migrant Education. Based upon the trial, CUSD
wishes to broaden its services to parents as adult learners and it is efficient and effective for them
to work with the Library C.O.R.E. program. CUSD has requested a more formal relationship to
accomplish this.

CUSD receives grant funds to provide migrant educational opportunities. They will provide space
in their facilities for classes to meet and for the storage of supplies and materials. The
Administrative Librarian for the C.O.R.E. program will recruit, supervise and schedule certified
instructional staff and invoice CUSD at the prevailing or mutually agreed upon rate. C.O.R.E.
staff is responsible for completing required reports of student progress and other evaluation
measures to the Arizona Department of Education and CUSD.

The Chandler Unified School District is responsible for all costs of the program including
administration. CUSD will be invoiced by the library’s C.O.R.E. program for services rendered.

15.        ALLOCATION: HOME Program Funds

APPROVED allocation of HOME Program Funds to Community Services of Arizona for the
purpose of purchasing a duplex located at 394 N. McQueen Road in the amount of $172,000.00.

The City of Chandler, through its participation in the Maricopa HOME Consortium, receives in
excess of $460,000.00 in federal HOME Program funds annually. The HOME Program is a
federal grant to expand homeownership opportunities and improve the quality of existing housing.
This funding is exclusively available to provide for affordable housing activities (housing
rehabilitation, acquisition of affordable rental housing and down payment assistance). CSA
currently owns all but one duplex occupying the 200-400 block of N. McQueen Road. The final
duplex has become available and CSA has proposed to use city HOME funds to acquire the two
                                                                            Minutes of the Regular Meeting
                                                                                     Chandler City Council
                                                                                  Thursday, May 12, 2005
                                                                                                   Page 7


units (one 2 bedroom and one 3 bedroom) and lease them affordably. Additionally, CSA is
working with Catholic Social Services to provide their properties in an effort to increase the
number of transitional housing units for victims of domestic violence. Although this specific
duplex is not specifically “designated” for that purpose, the availability of affordable housing for
the purpose of transitioning women and their children out of a shelter setting is an important part
of the strategy to break the cycle of domestic violence. Finally, if the duplex is purchased by
CSA, it will bring the block of duplexes facing McQueen Road under single ownership. CSA will
rehabilitate the two units and re-landscape the property in a manner that conforms to the other
units to the south.

16.    FAÇADE LOAN: PSCI Investments

APPROVED a façade loan to PSCI Investments, L.L.C. for the purpose of restoring the rear
facade of property at 81 West Boston Street in an amount not to exceed $20,000.00.

The City has set aside Downtown Redevelopment funding for the purpose of upgrading facades
of commercial buildings in and near the downtown historic district. PSCI Investments, LLC, owns
or controls commercial property located at 81 W. Boston Street and intends to renovate the
interior and the façades of the building. The City of Chandler is encouraging owners of buildings
around the historic square to improve the rear facades of their buildings to create dual entries and
inviting rear facades for their buildings. The proposed improvements for the rear façade of the
historic Rowena Theater building at 81 W. Boston Street will accomplish this and improve the
identity and visibility of their business, di Sciacca, from the south.

The City of Chandler did participate with the previous owners in the historic renovation of the
building’s front façade in the amount of $45,000.00. The owners are also making additional
improvements to the front façade. The current owner has asked for City participation in the
renovation of the rear façade of the building. The Architectural Review Committee and State
Historic Preservation Office have approved the proposed exterior improvements. Total costs for
the entire project to purchase and improve the building including the rear façade restoration are
estimated at $1,054,000.00; however, Staff recommends funding of $20,000.00.

17.    EMERGENCY APPROPRIATION: Benchmark Restoration

APPROVED payment of emergency appropriation to Benchmark Restoration for mold
remediation work performed at Fire Station No. 2 in an amount of $58,925.40. A tenant
improvement project for Fire Station No. 2 was requested and approved by Council in December
2004. An environmental study was conducted prior to renovating the existing station and mold
was found in various areas of the station. As drywall was removed to eliminate the mold, Staff
discovered that the extent of the mold was greater than originally anticipated. Benchmark
Restoration was given the approval to proceed with what needed to be done to rectify the mold
situation. Presence of the mold in the building was more extensive than originally anticipated.
Upon completion of their work, post environmental tests have been conducted that have shown
the mold situation to be rectified. Since Benchmark was already mobilized on site and working on
the mold remediation, it was more cost-effective and timely to have them complete the full
remediation.

18.    ADDITIONAL FUNDING: Household Hazardous Waste

APPROVED payment of the amount in excess of approved funding for household hazardous
waste contractual services with Clean Harbors, in the amount of $10,673.00. In July 2004, the
Minutes of the Regular Meeting
Chandler City Council
Thursday, May 12, 2005
Page 8


City Council extended an agreement for household hazardous waste contractual services with
Clean Harbors in an amount not to exceed $66,000.00. Due to a higher than anticipated amount
of material brought to these events, actual collection and disposal costs exceeded the approved
amount by $10,673.00.

19.      MEMORANDUM OF UNDERSTANDING: International Fire Fighters Association

APPROVED a Memorandum of Understanding (M.O.U.) with the International Fire Fighter’s
Association (I.A.F.F.), Local 493, Chandler Chapter. The non-economic terms of the M.O.U.
begin on July 1, 2005 and the economic terms go into effect the beginning the 1st pay period in
July (7/20/05). The M.O.U. will expire on June 30, 2007.

As a result of Meet and Confer Ordinance #3619 approved by Council on October 28, 2004, the
City of Chandler entered into meet and confer discussions in January of 2005 with three
employee organizations which were recognized by the City after the bargaining unit employees
selected these organizations in three separate elections. The meet and confer process was
concluded in April 2005 and the membership of all three employee organizations ratified the
tentative meet and confer agreements.

Total compensation increased costs are 4% for the first year and 3.5% for the second year not
including retirement or merit increase costs. Each employee organization designed their
economic package based on their organizations needs within the overall total compensation
parameters.

20.      MEMORANDUM OF UNDERSTANDING: Chandler Law Enforcement Association

APPROVED a Memorandum of Understanding with the Chandler Law Enforcement Association
(C.L.E.A.).

Total compensation increased costs are 4% for the first year and 3.5% per year for the 2nd and 3rd
years not including retirement or merit increase costs. Each employee organization designed
their economic package based on their organizations needs within the overall total compensation
parameters.

21.      MEMORANDUM OF UNDERSTANDING: Service Employees International Union

APPROVED a Memorandum of Understanding with the Service Employees International Union
(S.E.I.U.), Local 5.

Total compensation increased costs are 4% for the 1st year and 3.5% for the 2nd year not
including retirement or merit increase costs. Each employee organization designed their
economic package based on their organizations needs within the overall total compensation
parameters.

CHUCK BUXTON, 18-year employee of the City of Chandler, speaking on behalf of the
employees of the labor and trades unit represented by SEIU Local #5, thanked the Mayor and
Council, City Manager Mark Pentz and his administration, and the members of the Fire and
Police Departments who worked diligently in the development of the Meet and Confer ordinance.
He also thanked the citizens of Chandler for voting to approve the Meet and Confer process. The
Memorandums of Understanding before Council this evening are a result of that process. Mr.
Buxton commended the City’s bargaining team and fellow members of the SEIU bargaining team
                                                                              Minutes of the Regular Meeting
                                                                                       Chandler City Council
                                                                                    Thursday, May 12, 2005
                                                                                                     Page 9


for working to show flexibility and a cooperative spirit to complete the first agreement. This
agreement sets a foundation for a constructive relationship between City management and
employees. Employees are committed to working with City leaders to give citizens the best
quality of services possible. The residents of Chandler will soon see their total commitment to the
community and plan to become a positive force within the community by creating innovational
solutions to challenges that may arise with the City’s future growth.

MAYOR DUNN thanked those in the audience supporting these MOU's. He also thanked Scott
Wall representing the Fire Department and Dave LaVoy from the Police Department for their hard
work.

22.    MEMORANDUMS OF AGREEMENT: Landscape Maintenance

APPROVED Memorandums of Agreement for landscape maintenance for Municipal Utilities
Facilities, for one year with provisions for four one-year extensions, with Groundskeeper for
$109,168.00 and Artistic Land Management for $132,154.00, in a total amount not to exceed
$241,322.00.

These contracts include weekly trash pickup, weed control, irrigation repair, mowing and
pruning/trimming as required. The landscaped areas to be maintained are the Water Treatment
Plant, Water Production facilities including 36 well and reservoir sites, two Environmental
Resource locations, Airport Water Reclamation facility including thirteen lift stations and well sites
and three solid waste facilities.

23.    AGREEMENT: Progress Software Corporation

APPROVED an agreement with Progress Software Corporation for Progress software license
maintenance, sole source purchase, in an amount not to exceed $32,339.00.

The City of Chandler’s Law, Police and Courts divisions share access to the Criminal Justice
Information System (CJIS) for law enforcement and case tracking requirements. The CJIS
system is primarily built on the Progress Software platform. Progress is the only provider of
Progress maintenance. This maintenance provides technical support, software patches and
upgrades to stay current with technology and ensure application availability.

24.    AGREEMENT AMENDMENT: Peoria Pest Control

APPROVED an Agreement Amendment with Peoria Pest Control for treatment of manholes,
utilizing the City of Tempe contract, in an amount not to exceed $50,000.00.

The City of Chandler currently has 14,318 sewer manholes. Historically, Wastewater Collection
exterminated these manholes for roaches, with a boron dust. Boron has a life of approximately 2
months per application. Insecticide paint used in manholes has a life of approximately 3 years.
Municipalities, which were once exempt from the state laws governing pesticide licensing and
application, are now required to obtain these licenses to apply pesticides. It has been determined
that the most cost effective solution for controlling roaches in City-owned manholes is to engage
the services of a licensed exterminator to apply an insecticide paint to the manholes.

In July 2004, the City Council approved use of the City of Tempe contract for treatment of
manholes. The City of Tempe extended the contract for one year through June 6, 2006.
Minutes of the Regular Meeting
Chandler City Council
Thursday, May 12, 2005
Page 10


25.      AGREEMENT AMENDMENT: Heinfeld, Meech and Co., P.C.

APPROVED an Agreement Amendment with Heinfeld, Meech and Co., P.C. for professional audit
services in an amount not to exceed $76,743.00.

The City is required by City Charter and State Statute to issue an annual, audited financial report.
In addition, federal law requires the City to undergo an annual single audit of federal financial
assistance. Consistent with the City’s practice to competitively procure a contract for auditing
services every five years, a request for proposals for auditing services was issued upon the
expiration of the previous contract. The current contract is a one-year contract with the option to
renew for up to four additional one-year periods.

It is also noted that the scope of services includes the City and affiliated organizations, i.e., the
City of Chandler Industrial Development Authority and the Chandler Cultural Foundation. At their
pleasure, the respective boards of these entities may have audit work performed under this
contract at their cost.

The contract is in the third of a possible five years. The contract has been amended to
discontinue a separate audit of the Municipal Property Corporation because there is no statutory
or other legal requirement to have a separate audit conducted. The transactions of the Municipal
Property Corporation are included in the citywide audit.

26.      ACCEPTANCE OF CHANDLER HEIGHTS RECHARGE PROJECT MASTER PLAN

APPROVED acceptance of the Chandler Heights Recharge Project Master Plan. In September
2003, the City awarded a contract to Carollo Engineers to assist staff in the master planning of
the surface recharge facility and wetlands listed in the Integrated Reclaimed Water Master Plan.
This plan is now complete and ready for the design and construction of the Chandler Heights
Recharge Project. The project site, within the Southeast Chandler Area Plan, is a 113-acre City
owned property located at the northeast corner of the intersection of Lindsay Road and Chandler
Heights Road. Four acres of the site have been dedicated for a proposed future Police
Department facility, yielding a net 109 acres for recharge/wetlands and multiuse park
development. The primary goal of the project is to develop a recharge site using surface basins,
with an important secondary goal of developing an integrated, multi-use park facility including
education, passive recreation, habitat and trails.

The Master Plan has identified a capital construction cost of approximately $27 million split
between Community Services, Police and Municipal Utilities. The operation and maintenance of
the Chandler Heights Recharge Project is estimated to be approximately $347,000.00 annually,
exclusive of the programming and maintenance costs of the environmental education center and
the internal building maintenance of the proposed Police facility.

27.      ENGINEERING SERVICES CONTRACT: Carollo Engineers

APPROVED Engineering Services Contract #WW0401-201, to Carollo Engineers for the design
of the surface water recharge basins and reclaimed water delivery structures for the Chandler
Heights Recharge Project, in an amount not to exceed $299,777.00.

The City owns 113 acres on the northeast corner of Lindsay and Chandler Heights Roads for the
purpose of constructing a wetlands recharge site, with the goal of developing an integrated, multi-
use park facility including open air educational opportunities, passive recreation, wildlife habitat
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and hiking trails. The master plan for this facility has been completed and the next project will
include the design and construction of the surface water recharge basins and reclaimed water
delivery infrastructure on the 80-acre portion of the site. Having the surface recharge basins
operational before the next winter season for the delivery and recharge of reclaimed water during
low-peak demand periods will be beneficial to the operation of the reclaimed water system. The
remaining acreage will be leased for farming activities until the next phase begins.

28.    ENGINEERING SERVICES CONTRACT: J2 Engineering and Environmental Design

APPROVED Engineering Services Contract #PR0506-201 to J2 Engineering and Environmental
Design for Tumbleweed Park Improvements and Adventure Play area in an amount of
$140,813.00.

Tumbleweed Park is a 189-acre park on the southwest corner of Germann and McQueen Roads.
To date, approximately 71 acres have been developed. The FY 2004-05 budget currently
allocates funding for the design and development of an adventure play area at Tumbleweed Park.
This project will continue the design of this park as defined by the park’s master plan by providing
additional amenities for park users to enjoy. This contract will include design and the
development of construction drawings as well as construction observation for a themed adventure
play area within Tumbleweed Park. In addition to the playground, additional amenities such as
walking paths, lighting, landscaping and irrigation improvements will be included in the design.

29.    ENGINEERING SERVICES CONTRACT: HDR Engineering

APPROVED Engineering Services Contract #ST0518-101 to HDR Engineering for the
Stormwater Management Master Plan Update in an amount not to exceed $109,800.00.

The Stormwater Management Master Plan Update project includes updating the City’s current
stormwater master plan adopted by Council in 1999. The update must address changes that
have occurred and will define the future stormwater system improvements for the City. The
Stormwater Management Master Plan Update will review all capital improvement requirements,
existing model assumptions, and any Arizona Pollutant Discharge Elimination system permitting
drainage requirements.

30.    PROJECT AGREEMENT: Southwest Ground-water Consultants, Inc.

APPROVED Project Agreement #WA0522-101 to Southwest Ground-water Consultants, Inc. to
develop a water production well management model in an amount not to exceed $56,750.00.
The purpose of the study is to evaluate the City’s current ground-water production well system
and its operation, and to identify potential long-term operating strategies to minimize well
pumping impacts. This project will integrate the City’s current groundwater model with the
distribution system model in order to simulate current operating conditions and assess the affects
of pumping rates on the distribution system.

31.    PROJECT AGREEMENT: Southwest Ground-water Consultants, Inc.

APPROVED Project Agreement #WA0524-201 to Southwest Ground-water Consultants, Inc. for
hydrogeological design services for the Price South Well in an amount not to exceed $69,600.00.

32.    PROJECT AGREEMENT: Carollo Engineers
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Thursday, May 12, 2005
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APPROVED Project Agreement #WA0524-202 to Carollo Engineers for equipping design of the
Price South Well in an amount not to exceed $109,500.00.

33.      PROJECT AGREEMENT: Layne Christensen

APPROVED Project Agreement #WA0524-401, Job Order Contract 03-15, to Layne Christensen
for drilling of the Price South water production well, in an amount not to exceed $574,410.00 and
one-year extension for well drilling and rehabilitation services in an amount not to exceed
$2,500,000.00.

34.      PROJECT AGREEMENT: SDB, Inc., Tumbleweed Park

APPROVED Project Agreement #PR0510-401, Job Order Contract 03-12, to SDB, Inc. for the
construction of Tumbleweed Park Celebration Plaza to be located within Tumbleweed Park at
2250 S. McQueen Road in an amount not to exceed $434,727.00.

Council approved a recommendation from the Parks and Recreation Board in November 2004 to
develop a special place to recognize outstanding individuals of sound moral character who had
displayed outstanding civic commitment, leadership, public outreach and service to the City. The
concept was to create a place in Tumbleweed Park, Celebration Plaza, where plaques would be
displayed recognizing such individuals.

35.      PROJECT AGREEMENT: SDB, Inc., Arrowhead Meadows Park

APPROVED Project Agreement #PR0511-401, Job Order Contract 03-12, to SDB, Inc. for new
concrete paths at Arrowhead Meadows Park at 1475 W. Erie Street in an amount not to exceed
$139,263.00. When the park was developed, the paths were constructed using asphalt. Over
time, these paths have deteriorated due to use, time and weather conditions. This contract
allows for the removal of existing asphalt to be replaced with concrete.

36.      JOB ORDER CONTRACT: Arizona Beeman Drilling

APPROVED Job Order Contract 05-01 with Arizona Beeman Drilling for well drilling and
rehabilitation services for a period of one year with the option of two one-year extensions in an
amount not to exceed $1,500,000.00.

The development of new water production well sites and the rehabilitation of existing well sites is
required to provide water to meet the City’s future demand. In addition, the development of
aquifer storage and recovery (ASR) wells is required to support the effluent distribution system.
This contract provides for drilling and rehabilitation services for diagnostic, monitoring, ASR and
water production wells. Individual project agreements will be prepared for execution and approval
for each specific project. Project agreements over $50,000.00 will be submitted for Council
approval up to the annual aggregate of $1,500,000.00. This action will result in saving staff time
and expense by eliminating the consultant selection and bid processes for projects to be awarded
under this annual contract. It is estimated that two water production wells could potentially be
awarded under this contract.

37.      No Item.

38.      CONTRACT RENEWAL: Arizona Waste Services
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APPROVED a Contract Renewal with Arizona Waste Services for City facilities refuse collection
in an amount not to exceed $51,000.00. This contract was awarded in 2003 for one-year with
provisions for four one-year renewals. The contractor has agreed to a second extension with a
five percent increase due to increased fuel costs, disposal, labor and insurance.

39.    CONTRACT EXTENSION: G & G Construction

APPROVED a one-year Contract Extension for asphalt paving to G & G Construction in an
amount not to exceed $845,800.00. In May 2004, Council approved this contract for one year
with provisions for four one-year extensions. This will be the first extension. The contractor has
agreed to extend the contract with a 6% price increase.

This “as needed” asphalt-paving contract will be used for the repair of arterials, collectors and
local streets. The current volume or scope of work of asphalt paving repairs to be completed by
the Streets Division exceeds the capacity of existing crews; therefore, the contract will be used to
complete the overflow asphalt paving work. This contract will also be used to apply an asphalt
cap on unimproved arterial streets in southeast Chandler that have deteriorated because of the
high rainfall amounts from this spring. This work will extend the useful life of the pavement until
full roadway reconstruction occurs.

40.    PURCHASE: Fluid Conservation Systems, Inc.

APPROVED the purchase of and WAIVED the Bid Process for a non-intrusive water distribution
leak detection system from Fluid Conservation Systems, Inc., sole source purchase, in an amount
not to exceed $61,646.00.

The City of Chandler contracts for water distribution system leak detection testing annually to
meet stipulations set forth in the Arizona 1980 Groundwater Management Code. The annual
contract amount for leak detection is $15,000.00 and provides for surveying of seventy miles of
water mains. Minimal leaks have been found utilizing this process. Purchase of the non-intrusive
leak detection system will allow the Water Distribution Division to increase the miles of water
mains surveyed annually, as well as being instrumental in locating a greater number of leaks.
The system can also be used to immediately evaluate localized customer complaints of water
seepage, will increase the ability to respond quickly to leaks as they develop in areas of sensitive
water demand, and can be integrated with the City’s GIS system to maintain a record of all leaks
to assist in planning for replacement of old and deteriorating water mains.

In an effort to locate additional sources of the requested equipment, staff issued a Request for
Information to all vendors registered in the City to provide leak detection equipment. No
responses were received. Additionally, Staff searched the Internet for companies that offered
non-intrusive leak detection equipment with none being found.

41.    PURCHASE: EMC Corporation

APPROVED the purchase of disk upgrades and additional memory with EMC Corporation,
utilizing the State of Arizona contract, in an amount not to exceed $38,200.00. The current EMC
storage area network (SAN) and network attached storage (NAS) need additional disk drives
added to increase storage capabilities. The SAN and NAS are used to store production and
test/development database for City staff and citizen access. The current SAN/NAS are reaching
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Thursday, May 12, 2005
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disk capacity and the additional disk space is needed to continue operations. The vendor will
install and setup the SAN/NAS drives for operation.

42.      USE PERMIT: Qwest Chandler/Galveston

APPROVED a Use Permit, UP05-0004, Qwest Chandler/Galveston, for an addition to an existing
utility building within an AG-1 zoning district at 2850 W. Galveston Street. (Applicant: RNL
Design.)

The subject property is zoned Agricultural (AG-1) and is surrounded by single-family residential
homes to the east and west with a park to the south. A planned custom home subdivision is
located to the north. A 1,740 square foot utility building was constructed on this site in 1986.
This building contains telephone switching equipment maintained by Qwest Communications.
This is not an office or facility that employees report to on a daily basis. Four similar facilities
currently operate within Chandler. All facilities are well maintained with healthy, mature
landscaping and are designed to assimilate into their respective neighborhoods. Technicians
stop by the facility as necessary to make new connections for telephone and Internet service.
The expansion will add a small office for a part time utility manager and permanent restroom
facilities.

This request was noticed within the requirements of the City of Chandler Zoning Code with a
neighborhood meeting being held on March 8, 2005 attended by four neighbors.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to the following conditions:

      1. Development shall be in substantial conformance with a Development Booklet entitled
         “Qwest Chandler/Galveston Central Office Building Addition” kept on file in the City of
         Chandler Current Planning Division, in file No. UP05-0004, except as modified by
         condition herein.
      2. Approval by the Director of Planning and Development of plans for landscaping (open
         spaces and rights-of-way) and perimeter walls.
      3. All mechanical equipment shall be completely screened by solid masonry walls or building
         parapets equal to or taller than the equipment height.
      4. All exterior light fixtures shall be decorative to enhance the property’s residential look.

43.      USE PERMIT: KLB Construction

APPROVED Use Permit, UP05-0011, KLB Construction, to allow the installation of two 5,000-
gallon fuel tanks to be used for refueling company vehicles at 401 N. 56th Street. (Applicant: KLB
construction; Tom Turley.)

KLB Construction has been at this location since 2002. The business is part of a Washington
State company that specializes in road and highway construction projects. Current construction
projects include the new Santan Freeway and Dobson Road improvements.

The approximate two-acre site is comprised of an office building located near the site’s southwest
corner and equipment and truck storage areas along the site’s north and east property lines. An
existing concrete slab at the site’s southeast corner will support the two fuel tanks. An eight-foot
CMU fence with two sliding gates along 56th Street surrounds the site. The wall is set back a
minimum of 30-feet from 56th Street. The fuel tanks will not be visible from the street due to the
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perimeter eight-foot screening and the tanks’ remote location approximately 275-feet from 56th
Street.

There are three refueling vehicles that would use the fuel tanks. They will enter through the north
gate, refuel at the tanks and then exit the site through the south gate. The refueling vehicles
leave the site at approximately 10 a.m. and return to the yard around midnight.

Currently, the three refueling vehicles are refueled every morning by a tanker truck that comes to
the site. When the fuel tanks are installed, the tanker truck will only need to come once every few
days to refill the fuel tanks.

All environmental issues related to these operations are subject to State and Federal laws. The
Chandler Fire Marshall is not opposed to these types of installations.

This request was noticed according to the provisions of the Chandler Zoning Code with a
neighborhood meeting being held on April 14, 2005. There were no neighbors in attendance.
Staff has received no correspondence in opposition to this Use Permit.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to the following conditions:

      1.      Development shall be in substantial conformance with exhibits submitted as part of
              this application and shall be kept on file in the City of Chandler Planning Services
              Division in File No. UP05-0011.
      2.      Landscaping along 56th Street shall be installed according to requirements found in
              Zoning Code Section 35-1903. A landscape plan shall be submitted to Staff for review
              prior to installation.
      3.      A fuel containment area shall be provided in accordance with State and Federal laws.

44.        USE PERMIT EXTENSION: David L. Christensen

APPROVED Use Permit Extension, UP05-0017, David L. Christensen, for a professional law
office within a single-family residential zoning district at 484 W. Chandler Boulevard. (Applicant:
David L. Christensen.)

The Residential Conversion Policy was established in 1989 to allow single-family homes the
opportunity to allow small commercial businesses to operate within a residential zoning district
with the approval of a Use Permit. Such homes must have direct frontage on an arterial street
and propose a business compatible with the existing neighborhood. Within this policy, criteria
were established to accommodate the conversion of homes into professional offices or like
businesses. Such criteria include the requirement of an improved parking lot, preservation of
front yard landscaping for the aesthetic streetscape setting of the home and buffering from
adjacent residences. The property in question was originally converted to an office in 1992 and
currently meets the guidelines of the Residential Conversion Policy.

The applicant received a one-year Use Permit approval to utilize a portion of his residence on
Chandler Boulevard for office purposes in October 1992. An extension of that approval was
granted in June of 1994 and again in March of 2000. The applicant has made the subject
property his residence with a portion of it being used as his law office since the time of original
approval. The applicant’s law practice is limited to estate planning, wills, trusts, probate and
guardian/conservatorships. The applicant has been the sole practitioner of his business for over
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25 years. He employs one person to assist him in his practice. He typically sees two to three
clients per day.

The policy requires three parking spaces be provided, on per employee and one per 500 square
feet of office space. Two spaces for employee parking are provided in the existing garage, one
space for client parking is provided in the existing covered parking area east of the home. To
avoid vehicular backing into the street, an ample turnaround area is maintained on the lot’s
northeast portion.

The site is maintained in a clean, weed free condition with well maintained mature landscaping in
the front yard. This business proposal is consistent with the intent of the Residential Conversion
Policy due to the low intensity of the business. The minimal amount of customer traffic will not be
a nuisance to the surrounding residents. The owner plans to maintain the residential character of
the property aesthetically and functionally, as it is his primary residence. This use is appropriate
for the subject site, as it follows the standards established by the Residential Conversion Policy
and has been in operation for thirteen years.

This request was noticed in accordance with the requirements of the Chandler Zoning Code.
Staff has not received any correspondence regarding this project.

Upon finding consistency with the General Plan and Residential Conversion Policy, the Planning
Commission and Staff recommend approval subject to the following conditions:

      1.      Substantial conformance with exhibits Narrative, Site Plan, Floor Plan and Signage.
      2.      Expansion or modification beyond the Site Plan and Floor Plan shall void the Use
              Permit.
      3.      The Use Permit may not be transferred to any other individual or entity not occupying
              the home as living facilities.

45.        LIQUOR LICENSE: Payless Market

APPROVED a Series 10 Beer and Wine Store Liquor License (Chandler #52147) for Philip
Michael Malik, Agent, Payless Market, Inc., dba Payless Market at 398 S. Arizona Avenue. A
recommendation for approval of State Liquor License #10075016 will be forwarded to the State
Liquor Department. The Police Department reports no objections to the issuance of this license
and no written protests have been received. All licenses, permits and fees have been paid and
the applicant is in compliance with the City’s Tax Code.

46.        LIQUOR LICENSE: Silk Road Asia Bistro

APPROVED a Series 12 Restaurant Liquor License (Chandler #100597) for Michael Charnick,
Agent, Pearl Dragon LLC, dba Silk Road Asia Bistro at 2510 W. Chandler Blvd, Ste. 1. A
recommendation for approval of State Liquor License #12076207 will be forwarded to the State
Liquor Department. The Police Department reports no objections to the issuance of this license
and no written protests have been received. All licenses, permits and fees have been paid and
the applicant is in compliance with the City’s Tax Code. A Use Permit is not required since this
will be a continuation of the location’s previous use as Chopstixx.

47.        LIQUOR LICENSE: Long Wong’s
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APPROVED a Series 12 Restaurant Liquor License (Chandler #100793) for Peter Ashraf Farag,
Agent, Mad Vibes Entertainment, LLC, dba Long Wong’s at 4929 W. Ray Rd., Ste. 3. A
recommendation for approval of State Liquor License #12076218 will be forwarded to the State
Liquor Department. The Police Department reports no objections to the issuance of this license
and no written protests have been received. All licenses, permits and fees have been paid and
the applicant is in compliance with the City’s Tax Code.

48.    FINAL PLAT: Ocotillo Animal Clinic

APPROVED Final Plat, FPT05-0011, Ocotillo Animal Clinic, for a 2.9 acre, two-lot commercial
subdivision located north of the NEC of Appleby Road and Arizona Avenue. (Applicant: Daniel &
Leslie Wheeler.) The plat creates the lots and tracts, establishes the necessary easements and
dedicates the required rights-of-way.

49.    FINAL PLAT: Cooper Crossings

APPROVED a Final Plat, FPT05-0021, Cooper Crossings, for a 14-acre commercial office and
retail center subdivision located at the NWC of Ray and Cooper Roads. (Applicant: Urban Realty
Partners, LLC.) The plat creates the lots and tracts, construction phasing lines, establishes the
necessary easements and dedicates the required rights-of-way.

ACTION:

50.    REZONING: Summit at Chandler Heights                                              Ord. #3684

Planner KEVIN MAYO stated that this request is for rezoning from agricultural district to Planned
Area Development with a Preliminary Development Plan for the construction of an office and
retail development on approximately 6.7 acres at the SEC of Alma School and Chandler Heights
Roads. This item comes before Council with a split recommendation. The Planning Commission
recommends approval with conditions. Staff recommends denial based upon a change resulting
in a code deviation.

This item was continued at Planning Commission to allow for a Design Review hearing that was
held on March 22nd. Through the DRC process, the site plan and building architecture have
undergone some significant changes such as three of the buildings have been pulled into a
landscaped setting along the streets providing a more attractive street scene rather than buildings
with parking between the street and the buildings. The buildings have been enhanced to provide
a higher level of four-sided architecture and the pedestrian system has also been enhanced.

The variance resulting in Staff’s denial is for retail Pad A that has been pulled to a 30’ setback
and code requires 50’ for any building along an arterial street. Planning and Zoning voted in favor
of the request finding design merit based on the changes warranting the setback variance.
Through the commercial design standards and based on the flexibility of the PAD zoning districts,
Staff has, in the past, supported setback deviations when items such as architectural projections
crucial or unique to the design of a building are used. However, Staff does not find merit in the
request based on the fact that it is pulled into a landscaped setting.

A neighborhood meeting was held and was well attended by neighbors in support of the project.
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Thursday, May 12, 2005
Page 18


MAYOR DUNN asked if Staff is still recommending denial after changes were made? Mr. Mayo
said that it is based on maintaining consistency with Staff’s recommendations on previous cases
requesting setback deviations.

COUNCILMEMBER CACCAMO asked about neighborhood opposition to parts of the project. Mr.
Mayo explained that the initial opposition was to the hours of operation. The applicant is not
requesting any late business hours as defined in the City’s late-hour business policy and has
included a stipulation restricting the hours to 11:00 p.m. which was agreeable to the neighbors.
The other issue was with the proposed drive-thru at the corner of the site. The applicant is not
requesting preliminary development plan approval for the drive-thru. The building will come back
through the process for a separate preliminary development plan requiring neighborhood
notification and meetings.

MAYOR DUNN said that it is disconcerting to show the potential for a drive-thru on a conceptual
plan so close to residential. Mr. Mayo said that homes back up to the east property line. Nolan
Way borders the property to the south with homes fronting onto Nolan Way.

THE MAYOR asked if there are concerns regarding the development near the corner affecting
the visibility of the second phase being developed directly behind the first phase. Mr. Mayo
responded that the buildings in the back are office buildings that typically do not require as much
visibility as retail. The pad has visibility along Alma School. Mr. Mayo clarified that Staff is
opposing this request because of the variances requested in the setback of the buildings in the
first phase.

COUNCILMEMBER ORLANDO asked why the applicant is requesting a setback variance. Mr.
Mayo explained that the applicant’s intent was to provide some staggering in the location of the
buildings for visual breakup along Chandler Heights Road. The neighbors have been aware of
the potential for a drive-thru from the beginning of the process and did have an issue with it.

COUNCILMEMBER ORLANDO clarified with the City Attorney that Council could approve this
item with a 50’ setback and no drive thru. Mr. O’Neill concurred.

KEVIN SOUTH, 6221 Riverside Dr., Dublin, OH, applicant, said that the 30’ setback is being
requested for visual purposes. If the buildings were all aligned, it would create the appearance of
one long building. It was determined that the location of a potential drive thru was the most
advantageous on the site because it is the farthest away from the residences.

VICE-MAYOR WESTBROOKS asked if the 30’ setback is the only option in terms of trying to
break up the buildings. Could the building have been repositioned to face more inward? Mr.
South said that it was considered, but there was also a visibility issue for Pad A building from the
corner. The code refers to the 50’ setback only 250’ from the corner of the property which is
where Pad A building starts. There was some gray area on the setback. When it is not
specifically stated in the code, it reverts back to C-3 zoning.

Mr. Mayo clarified that the 50 x 250 referred to by Mr. South refers to the landscaping at
intersection setback. For 50’ of depth and 250’ in either direction of the corner, there can only be
landscaping. There cannot be parking. After that 250’, parking can go within 20’ of the right-of-
way line. That is separate from the building setback requirements that state that buildings cannot
encroach within 50’ of a setback, 30’ for a collector street.
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VICE-MAYOR WESTBROOKS asked if other 50’ setback exceptions have been made in the City
for this type of development? Mr. Mayo said that he does not believe so. There have been
architectural projection setbacks and covered outdoor pedestrian areas, but not the placement of
buildings.

In response to a question from Vice-Mayor Westbrooks, Mr. Mayo explained that initially, the
buildings were pulled more internally into the site with parking between the buildings and streets.
By pulling the buildings into a landscaped setting, the parking lot is shielded. The applicant has
also upgraded the architectural level of the buildings and dressed them up more than what was in
the original proposal providing a more attractive street scene. There is a tower placed on the
corner with an architectural steel dome trellis with a pedestrian link that goes through. Based on
those changes, the Planning Commission unanimously felt the applicant earned the 30’ building
setback.

COUNCILMEMBER ORLANDO asked about parking if the setback is approved. Mr. Mayo stated
that they are over- parked at this point. If the building were brought to the 50’ setback, they would
loose 11 spaces still leaving them 8 spaces over what is required by code.

MAYOR DUNN asked what Staff envisions on this corner. Mr. Mayo replied that there is nothing
unique about this lot that prevents meeting code. Overall, the proposed development is of good
quality. The architectural level has been raised and the site planning is very strong. Office use
has been included in the back corner adjacent to the residential homes and is very low impact to
the neighborhood. It is a good transition to the retail buildings further into the site. The
development is also single-story. The parking is provided according to code.

MOVED BY VICE-MAYOR WESTBROOKS and SECONDED BY COUNCILMEMBER WALLACE
to APPROVE the introduction of Ordinance No. 3684, DVR04-0059, Summit at Chandler Heights,
rezoning from AG-1 to PAD along with a Preliminary Development Plan for the construction of an
office and retail development on approximately 6.7 acres at the SEC of Alma School and
Chandler Heights Roads with Planning and Zoning stipulations.

MOVED BY COUNCILMEMBER CACCAMO and SECONDED BY COUNCILMEMBER
ORLANDO to amend the motion to add the stipulation that approval includes no drive-thru.

COUNCILMEMBER WALLACE clarified that Mr. Mayo stated that the drive-thru is not part of the
project being considered tonight. Mr. Mayo concurred that it is not included, but Council has the
option to add such a stipulation. If, in the future, an application comes forward for a drive-thru, it
would require rezoning and a preliminary development plan.

COUNCILMEMBER ORLANDO said that if the amendment were approved, it would let the
applicant know Council’s position on a drive-thru.

COUNCILMEMBER CACCAMO expressed concern that if the motion is approved without the
amendment, when it comes back, it will be mentioned that it was approved the first time without
knowing what the intention was. It is clearer to have it specifically stated.

COUNCILMEMBER WALLACE commented that it puts the applicant through more process rather
than less. As the original motion stands, a drive-thru is not being approved. If they chose to
come forward with a drive-thru, they still have to come before Council again.
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Thursday, May 12, 2005
Page 20


MAYOR DUNN asked if Staff was concerned with the location of a drive-thru? Mr. Mayo said that
there are always concerns with a drive-thru adjacent to a property line. It would require design
sensitivity when it comes back for a preliminary development plan. It is not inconsistent with
other drive-thru’s that have been approved.

COUNCILMEMBER CACCAMO said that concerns he had heard regarding a drive-thru were
street traffic, vehicles going through the drive-thru and noise carrying across the street.

THE MOTION TO AMEND CARRIED BY MAJORITY (4-3) WITH COUNCILMEMBER’S
WALLACE AND SEPULVEDA AND VICE-MAYOR WESTBROOKS VOTING NAY.

THE MAIN MOTION AS AMENDED CARRIED BY MAJORITY WITH COUNCILMEMBER
CACCAMO VOTING NAY.

13.      BOARD AND COMMISSION APPOINTMENTS

MAYOR DUNN recommended the 62 board and commission appointments be approved. Twenty-
one are new appointees and 27 are second terms. He noted this is done annually pursuant to
Section 6.01, Article 6 of the City Charter although there has been discussion about the process.
He also recommended to the City Manager that the discussion be scheduled for the next Council
retreat. He stated another means to discuss the process might be to convene an ad-hoc
committee of former Mayor’s and include citizens.

THE MAYOR explained that he typically sends out letters to all members who have served one
term asking if they are interested in serving a second term based on their interest and a check of
the attendance and participation. They will not be recommended for a second term if there have
been problems. The reappointments represent approximately 80% of those recommended for
approval at this time. Fourteen are being recommended that have exceeded two terms. A point
of discussion for Council would be whether or not they wish to establish a policy regarding board
and commission appointments beyond two terms. There are three commissions whose
ordinance forming the commission stipulates that members can serve only two terms. That
stipulation can be applied to other boards and commissions. If that is the wish of Council, the
Mayor suggested that in doing so, each board and commission be reviewed separately. In some
instances, having consistency on the board can be beneficial such as Planning & Zoning.

COUNCILMEMBER HUGGINS said he was pleased with the number of applicants willing to
serve on a board or commission. He has had the opportunity to make recommendations to
various Mayors and has never had all of his recommendations chosen.

MOVED BY COUNCILMEMBER HUGGINS SECONDED BY COUNCILMEMBER CACCAMO to
APPROVE the board and commission recommendations as presented by the Mayor.

COUNCILMEMBER SEPULVEDA asked for an overview of what the process is for appointing
someone to a board or commission. MAYOR DUNN said that he has made a total of 333
recommendations for board and commission members since he has been Mayor. All have been
approved unanimously with the exception of one appointment. The process entails sending
letters to those whose terms will be expiring and asking if they are interested in serving another
term if applicable. As has been his practice, he asks to be notified if they do not wish to be
reappointed. Citizens submit written applications and Council also makes recommendations.
The written application verifies certain pertinent information such as length of residency in
Chandler, and area of interest. People also call wanting to serve which is typically followed up
                                                                           Minutes of the Regular Meeting
                                                                                    Chandler City Council
                                                                                 Thursday, May 12, 2005
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with a written application. There is also some recruitment involved in filling vacancies on the
more difficult boards and commissions where there are not the number of applicants. There are
some very popular commissions such as Planning & Zoning and Parks & Recreation.

THE MAYOR continued that he looks at the makeup of the boards and commissions and tries to
ensure that all parts of Chandler are represented. That held true with the last recommendation
for Planning & Zoning with a nominee from southeast Chandler. He also considers the ethnicity
make up of the board for some of the boards that should have a balance of gender. There are
usually more applications than openings on most boards making the decision challenging. He
stated that if Council wished to limit the terms of other boards and commissions, it would indicate
that 14 of tonight’s nominations should not be made. MAYOR DUNN commented that each
board and commission should be reviewed and a decision made based on the best interest of the
needs of that board.

COUNCILMEMBER SEPULVEDA commented that it is fortunate to have so many interested
citizens wishing to serve on boards and commissions. He stated his intention not to talk about
individuals or individual boards, but rather to clarify the process. There are several members up
for a second term, but their original appointment date was in the 90’s. He commented that the
community is much different now than in the early 90’s.

MAYOR DUNN reiterated that of the 14 recommendations, some are being nominated for their
third term although most have been serving since the late 90’s. He said he had indicated to some
reappointee’s that this would probably be their last term and if Council did not wish to have that
discretion with the Mayor on some of those boards and commissions, they could, by ordinance,
limit those terms.

COUNCILMEMBER ORLANDO asked the City Clerk if the process is available in writing? City
Clerk MARLA PADDOCK said that although it is not written, it is a practice that the City has been
following for a number of years. COUNCILMEMBER ORLANDO said that when a citizen submits
an application to serve on a board, they do not know what happens after that. MS. PADDOCK
explained that if the application were for a board not currently seeking applicants, she would
normally send a letter to the applicant. However, if in recruitment, then the application would be
held until a decision had been made.

COUNCILMEMBER ORLANDO asked about other city’s written policies. MS. PADDOCK
responded that most of those she surveyed do have written policies. COUNCILMEMBER
ORLANDO said that it is disturbing to him that Chandler does not have a written policy. He
stated that when he first came on the Council in 1990, the Mayor at that time wanted
reappointments limited to two terms. He remembers having this discussion with the former Clerk
and he and Councilmember Judy Harris sat down with the Clerk and put together a pamphlet. He
commented that the process needed to be put in writing; if not, the citizens and Council are at the
whim of a historical perspective which is not fair. Everyone needs to know what the process is
and understand it.

MAYOR DUNN said that when he served on the Planning & Zoning Commission, Mayor Payne
indicated to him that he only wanted to appoint him to serve two terms, but ended up appointing
him for eight years. He noted that it would vary from Mayor to Mayor on their appointments.

COUNCILMEMBER WALLACE commented that she had understood that the process for anyone
interested in serving on a board or commission was to complete an application and return it to the
City Clerk’s office to be put on file. She noted a number of applicants who have been waiting a
Minutes of the Regular Meeting
Chandler City Council
Thursday, May 12, 2005
Page 22


long as six years to serve. Some have been waiting a year and some less than a year. Council
has encouraged citizens to submit their applications because of the desire for people to serve
and to be an inclusive community. She was surprised to see the number of applicants still waiting
for an appointment when she received a copy of all of the applicants from the City Clerk. To her,
that could indicate that the City is not being as inclusive as could be. COUNCILMEMBER
WALLACE said that she appreciates everyone who has served on a board or commission
because those are the decisions and recommendations that come to Council to make Chandler
the high-quality community it is. She did not want to be misrepresented as though she did not
appreciate everyone who has served on a board or commission.

MAYOR DUNN said that because there is discussion about the process, anyone in the audience
who has been recommended for appointment is being reconsidered because of their capability or
qualification to serve. He, and other Councilmember’s, appreciate every citizen who has applied.
The number of applications grows with the population. The City has also added more committees
giving more opportunity to serve. He stated that there would never be the opportunity to put
everyone on a board or commission. If Council wished, there could be a policy of one three-year
term. However, in a lot of instances, the member is just hitting their stride after the first term
especially on Planning & Zoning and other commissions where you get “on the job training”.

THE MAYOR continued that he did ask some members that he called if they would be interested
in serving on another board or commission or ending their term of service. Many indicated their
desire to remain as some are very passionate about issues and because things were happening.
It is a judgment call that all mayor’s will need to make to not only include people, but making
those boards and commissions as effective and efficient as they can possibly be. He noted that
with some of the experience, they could give recommendations independent of what staff is
recommending as with the Planning & Zoning Commission.

COUNCILMEMBER WALLACE said she doesn’t believe that any Councilmember has indicated
that there should be a one-term limit. Because of the staggered terms on the boards and
commissions there is always the experience. It is also important to consider those applicants
who have not served at all when shuffling members from one board to another.

MAYOR DUNN said that there is only one instance he can recall that member was moved from
one board to another. That individual had difficulty attending, so he suggested that moving to
another board could alleviate that problem.

COUNCILMEMBER SEPULVEDA said that there are some citizens not up for reappointment that
started in the early 90’s which is another reason to explore possible term limits. He cited
concerns with the lack of application for a nominee or two, duplication on some boards and
serving beyond two terms.

MAYOR DUNN responded that he has a written application for every person he recommended.
A written application is not a legal requirement, but merely to verify their address and how long
they have lived in Chandler. With regard to someone being on more than one board, there are
sub-committees formed from different boards such as Design Review and the Architectural
Awards Committee from the Planning & Zoning Commission. There is an architect serving on all
three boards because of his expertise. He wants to have a dialogue regarding the policy, but
feels it would be more appropriate at the next Council retreat.

VICE-MAYOR WESTBROOKS said that what’s different this time, from his perspective, is that
the Council is hearing from citizens, either those currently serving, those who have submitted
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                                                                                        Chandler City Council
                                                                                     Thursday, May 12, 2005
                                                                                                     Page 23


applications and are waiting to be appointed or are moving from one board to another. He has
also heard from current members being “termed out”. Citizens say there is something wrong with
the system and Council’s only response is that there is no consistent system. He expressed
concerns with members serving on more than one commission which seems unfair when there
are others waiting to serve. In addition, some commission members are allowed to move from
one commission to another, while those who submitted applications years ago and have not had
an opportunity to serve. There is a situation where a commission member is moving from one
commission to another but does not have an application for the commission they are moving to.
Others have their application in for that particular commission while someone is moving from one
to another without a proper application.

VICE-MAYOR WESTBROOKS continued by addressing term limits. He questioned why only
three commissions have term limits. He noted several inherent problems with the system and
how the process is working. Everyone agrees that anyone who volunteers their time with no pay
and wants to serve the community is a value. There have been some people who have had their
applications in for five or six years and this is the first time they have had the opportunity to serve.
He noted there were people in the audience present to hear the discussion and express
concerns.

VICE-MAYOR WESTBROOKS clarified that in the past when the Mayor makes nominations,
there has been notification that nominations are being considered and an opportunity for Council
to submit names. There needs to be some consistency in that process also.

MAYOR DUNN said that he felt there is a fair and equitable system, but there is also room for
improvement. He believed everyone nominated is qualified, has indicated a willingness to serve
and is committed to spending the time away from their families to do so. MAYOR DUNN
continued that he does not feel there has been a difference in the process over the last 25 years.
He has nominated 333 individuals, but in looking back, there have been mayors that have
nominated people onto more than one board and have nominated people to serve a number of
years and the Councils have all approved them. He does not want to imply that the process is
not fair and equitable. It is the responsibility of the Mayor, under the City Charter, to make board
and commission recommendations and he will not please everyone. He has sent out notifications
to Council and does listen to their recommendations. The Solid Waste Committee was formed
based on most of the recommendations he received from the Council. He can send out a
reminder each year if necessary. Even without the notice, Council provided recommendations.

COUNCILMEMBER ORLANDO said that appointments might need to be made twice a year
rather than once. Even with approval of the recommended nominees at this time, there are still a
number of vacancies that need to be filled.

MS. PADDOCK responded that there are quite a few vacancies on the Youth Commission at this
time as they adhere to a strict attendance policy. Sara C de Baca provides names to fill the
vacancies, but did not have any recommendations at this time. Applications for the Merit System
Board are also being reviewed at this time.

COUNCILMEMBER ORLANDO reiterated that the process might need to be done twice annually.
It may be too cumbersome to do once a year because of the increasing number of boards and
commissions. The City has grown, but the process has not evolved.

MAYOR DUNN agreed, but added the Council needed to realize that there are some boards and
commissions that are more challenging than others in finding someone willing to serve. In
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Chandler City Council
Thursday, May 12, 2005
Page 24


addition, there was one resignation on the list for reappointments. Additional recommendations
may be presented at the next Council meeting for some vacancies that could not be filled.

COUNCILMEMBER WALLACE asked the City Attorney to clarify the requirements of the Charter
as far as the 7-day notice to Council for a resignation. MR. O’NEILL said that no one could be
nominated by the Mayor unless the Council receives the required notice. If the Mayor is notified
that someone being nominated cannot serve and wishes to be removed from the list, that name
can be removed and the Mayor could notify Council that that person is no longer able to serve on
the board and to remove the nomination.

MAYOR DUNN said another approach would be to go ahead with the nominations, since the
withdrawal was just received, and bring that vacancy back to Council as soon as possible. MR.
O’NEILL concurred.

COUNCILMEMBER WALLACE said that there is also a nomination for someone filling a specific
category on a commission that no longer is employed in that field. She asked how that
nomination would be handled. MAYOR DUNN responded that he is still recommending the
nomination based on that person’s experience and background. He is recommending the
reappointment of all of the members of the Economic Development Advisory committee.
COUNCILMEMBER WALLACE said that when the board was set up, certain categories were
established for representation. THE MAYOR said that he still feels this particular individual still
has experience in that area. COUNCILMEMBER WALLACE asked if the commitment had been
made that he would stay current in that field to be able to answer questions. MAYOR DUNN said
that he didn’t feel a commitment was necessarily warranted.

COUNCILMEMBER SEPULVEDA clarified that what’s has been submitted to Council is a slate.
Mr. O’Neill concurred, but it does not have to be submitted that way. COUNCILMEMBER
SEPULVEDA asked what would happen to the approval process if the slate were altered? MR.
O’NEILL said that the only thing that cannot be done is to add names the Council did not get
seven days advance notice of. Other than that, it is Council’s discretion to vote how they wish.

MAYOR DUNN said that all nominees are being presented at one time; however, a
Councilmember could indicate an exception if they wished to vote against someone. He has the
prerogative to divide the question and vote for each one individually. He said that if Council
intends to vote against someone, they might want to allow the person to come up and address
any concerns.

MR. O’NEILL said that if a Councilmember wanted to vote on the motion with an exception, they
could do so. MAYOR DUNN said it is his Charter responsibility to make recommendations and
Council’s prerogative to approve or deny.

SANDRA LANEY, 1233 W. Lantana, said that as a 10-year resident of Chandler she has been
very active in citizen involvement, particularly zoning issues. She knows how important it is for
Council to have as much citizen input as possible when facing decisions that affect the quality of
life of all Chandler residents. Prior to moving to Chandler, she was employed by the State of
Washington where she advised the Governor on appointments to State boards and commissions
and knows how important the make up of each board and commission is. She stated that
conflict of interest must be avoided at all costs. It is an issue that comes up frequently on some
of Chandler’s boards and commissions. It is important to have geographic representation on
each board. Membership turnover is critical to allow for enthusiasm and new ideas. Any member
serving longer than ten years on any committee has a tendency to become complacent. It is
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                                                                                    Thursday, May 12, 2005
                                                                                                    Page 25


critical to have well-rounded representation including new and long-time residents as well as
different age groups. The majority of Chandler residents did not live here ten years ago but do
not have per capita representation on the boards and commissions. She felt the majority of the
membership consists of residents who grew up in Chandler or have lived here for 20 years.
There are many residents who are eager to participate in the process, have indicated their
willingness to serve and have the expertise to make a significant contribution.

COUNCILMEMBER HUGGINS asked Ms. Laney if she stated that anyone who has served on a
board or commission for more than 10 years is complacent. Ms. Laney clarified that some are,
but there are exceptions. Because there are so many qualified applicants and everyone wants to
participate, she suggested a lottery should be held to see who serves.

MICHELLE DALY, 1710 E. Redwood, said that she and her family enjoy being able to live, work
and play in close proximity to their home. She applied to serve on a number of boards and
commissions last year in hopes of helping with the build-out process. She enrolled in the City
Services Academy and enjoyed the experience and learned more about Chandler. Each week,
Staff encouraged the attendees to participate on the numerous boards and commissions and she
attended several meetings and felt she could offer a different perspective not represented on
those boards. She noted that of the membership of the current boards and commissions, there
are 26 people who have served more than 8 years with some having served more than 16. At
least 6 members are serving on multiple boards. What is being asked tonight is to limit service to
one board or commission and limit terms on the more popular boards. The various boards and
commissions encourage citizen discussion, which would give members who have term-limited out
to still bring their enthusiasm and ideas to those boards. If these changes are made, all of the
160 waiting applicants can bring their talents, ideas, energy and enthusiasm to the City of
Chandler.

COUNCILMEMBER SEPULVEDA clarified with Ms. Daly that if term limits are initiated and a
member has termed out, they can still remain an “ex-officio” type member. Ms. Daly concurred.
They could still participate in discussions, just not have voting rights. She was able to do that just
through attendance.

COUNCILMEMBER WALLACE said that Ms. Daly is not necessarily talking about them being ex-
officio members, but rather attending the meetings and participating in the audience and
providing input to the board or commission. Ms. Daly concurred and said that any citizen also
has that right since they are all public meetings.

CHRISTIAN WEEMS, 4913 S. Mosley Dr., said that she has been a resident of Chandler for 9
years and has a willingness and desire to serve and contribute in the City. She has witnessed
first hand the impact that citizens have and can have on the City. She expressed concerned
about the process by which citizens are appointed and how the process speaks to the residents
of Chandler as a whole. Council and Staff are constantly encouraging citizens to participate in
the community by announcing vacancies and telling citizens it is easy to get involved however
she disagreed that it was not that easy. The process has not seemed to evolve with the growth of
the City. She expressed concern that in a city of more than 200,000 residents, citizens are
allowed to hold multiple positions while many wait to serve. In putting together any team in
industry, it is vital that there be diversity to have representation from all sides and perspectives.
She made the observation that there are a great number of dynamic women in the City, yet there
seems to be a problem with “gender balance” on boards. During this appointment process, many
women including her were overlooked for positions while men were given a seat on boards with
more men than women. There is also little presentation from 85249, which is a fast-growing area
Minutes of the Regular Meeting
Chandler City Council
Thursday, May 12, 2005
Page 26


in the City. She encouraged a change to the process in order to allow more citizens the
opportunity to contribute to the City.

MAYOR DUNN thanked Ms. Weems for her recent service on the Solid Waste Committee. He
also encouraged citizens to choose a few boards and commissions they are interested in as it
makes it easier to fill vacancies.

DALE MUKAVETZ, 6902 W. Laredo St., said that Chandler should take great pride in their
boards and commissions. He was on the Library board for three years and reported a good
experience. Citizen participation is a key to the way the country works. He encouraged the
Council to do their utmost to get the maximum amount of citizen participation possible.

GARRY HAYS, 1845 E. Locust Place, said that he has spoken to a number of Councilmember’s
regarding the process. What everyone seems to be forgetting is that the Mayor had a tough job
of choosing among 162 citizens who are all active in the community and qualified to serve. He
agreed that there needs to be more representation in 85249.

MAYOR DUNN thanked Mr. Hays for his service on the Merit System Board.

COUNCILMEMBER SEPULVEDA also thanked Mr. Hays for his service on the Merit System
Board. He asked Mr. Hays how he would address the equity issue with respect to the size of the
City, the number of applicants and the process. MR. HAYS responded that the Mayor and the
Council need to meet in the future to work this out. The equity issue could be addressed by
adding more boards and commissions or a two-term limit. He noted that some who apply are not
qualified for the specific board they applied for. COUNCILMEMBER SEPULVEDA said that he
appreciates the time Mr. Hays spent with him discussing the process and disagrees that this is
not the time for the discussion. His greatest concern is the equity. He also complimented the
Mayor because he acknowledged that this was a very time-consuming process.

COUNCILMEMBER WALLACE commented that it is important to have applications on file so
qualifications can be assessed. MAYOR DUNN added that some of the applications are lengthy
and include resumes and letters of recommendation. Others are very brief and require a phone
interview to get more information.

FRANK PEAKE, 2693 E. Birchwood Pl., referred to the increase in the number of applications in
the late 90’s resulting from citizen involvement and feedback which is very healthy and important
for the City. He pointed out the potential for additional boards and commissions or expansion of
the existing boards. He also felt it was healthy to have a discussion about the process and how
the citizens understand it. Potential term limits could be considered depending on the duties of
the board or commission. He agreed that there should be written procedures regarding the
appointment process. Mr. Peake continued that there might need to be a discussion on
prioritizing applications on file considering the date the application was received versus the
qualifications of the applicants. Applicants should be contacted if their application has been on
file for an extended period of time to see if they would be willing to serve on another board or
commission. There could also be prerequisites established for certain boards such as the City
Services Academy or the Chandler Leadership Program through the Chamber of Commerce.
Potential improvements in communication between members of the recommending body could
also be investigated. The current slate should be approved and discuss the process in the proper
venue.
                                                                        Minutes of the Regular Meeting
                                                                                 Chandler City Council
                                                                              Thursday, May 12, 2005
                                                                                              Page 27


GREG DUTTON, 4683 W. Tara Drive said maybe a committee should be formed to discuss
boards and commissions.

COUNCILMEMBER ORLANDO suggested formation of a Council subcommittee to speak with
former Mayors, former Councilmember’s and citizens regarding the process. Other cities have
addressed these issues. He proposed forming a three-member subcommittee to review the
applications, interview people and return in 60 days with some recommendations. He
volunteered to serve on the subcommittee. COUNCILMEMBER ORLANDO said that he did not
want to wait until a retreat to discuss it because of the length of those agendas. It should be
done as soon as possible.

COUNCILMEMBER WALLACE said that she would also like to serve on the subcommittee.

MAYOR DUNN said that it was a possibility and that he would be participating. There should be
a discussion with the entire Council, but it can be tried through a committee.

COUNCILMEMBER CACCAMO said that he would also like to serve and agreed that having
former Mayors provide input and Council refine it may be the best resolution.

COUNCILMEMBER SEPULVEDA said that this has been a healthy discussion and the Council
has a good problem with so many wishing to participate. Establishing prerequisites is a very
good suggestion as is the Council subcommittee.

MOTION BY COUNCILMEMBER SEPULVEDA to TABLE Item #13, Board and Commission
Appointments, until such time that Council establishes what needs to be done.
COUNCILMEMBER SEPULVEDA reiterated that this is not derogatory to anyone who has
applied under the current process, but there are cases where appointments can be made more
efficiently and equitably. SECONDED BY COUNCILMEMBER WALLACE.

City Attorney DENNIS O’NEILL clarified that according to the Council Rules and Procedures, if a
motion is on the table, a motion to table can be made and takes precedence. The vote needs to
be taken on the motion to table with no further discussion.

MAYOR DUNN asked for clarification on what a motion to table entails and when the item would
come back before Council. MR. O’NEILL said that, according to the Rules and Procedures, a
motion to table could be taken off the table at any time before the end of the next meeting.
Typically, because it can be taken off the table before the end of the next meeting, it will be
posted that a motion to table has been made at a previous meeting and someone may make a
motion to remove it from the table sometime during the next meeting.

COUNCILMEMBER SEPULVEDA asked if any Councilmember could take it off the table. MR.
O’NEILL responded yes.

COUNCILMEMBER CACCAMO clarified that there can be no further discussion on a motion to
table. MR. O’NEILL concurred.

COUNCILMEMBER ORLANDO clarified whether or not they could discuss the ideas and
suggestions that have been brought forward at this meeting. MR. O’Neill said nothing discussed
regarding this item could be discussed. It would have to be posted for a future meeting.
COUNCILMEMBER ORLANDO asked whether or not the formation of a subcommittee could take
place. MR. O’NEILL said that he did not feel any action had been taken by the Council and no
Minutes of the Regular Meeting
Chandler City Council
Thursday, May 12, 2005
Page 28


action was posted to set up procedures or refer to a committee. There can be consideration
individually by Councilmember’s similar to what has occurred the last couple of weeks but no
formal process can be set up.

COUNCILMEMBER WALLACE asked that whether or not the motion to table passes, no process
or subcommittee and be formed because it was not posted. MR. O’NEILL concurred.

THE MOTION TO TABLE PASSED BY MAJORITY (4-3) WITH MAYOR DUNN AND
COUNCILMEMBERS HUGGINS AND CACCAMO VOTING NAY.


SPECIAL ORDERS OF THE DAY

A.       Mayor's Announcements:

MAYOR DUNN thanked those attending the meeting and offering their suggestions.

THE MAYOR announced that there will be a Surfin’ on the Santan celebration on Saturday, June
11, marking the opening of the freeway from the 101 to Arizona Avenue. It will be held 9:00 a.m.
until noon with plenty of family activities. The Governor will also be in attendance.

MAYOR DUNN thanked the citizens who attended the community budget meetings and staff for
their involvement. Monday, May 16, will be a full day of briefings with the Council in the Council
Chambers. The session will be taped with copies available at all City libraries.

MAYOR DUNN recapped the Cinco de Mayo celebration. He thanked the organizers, Staff and
Councilmember’s for their participation. The Mayor offered congratulations to the Chihuahua
race participants and the King and Queen Chihuahua.

THE MAYOR said that he and VICE-MAYOR WESTBROOKS had the privilege of handing out
awards to the Environmental Art Poster Contest winners. There were several hundred winners
and he complimented the winners.

MAYOR DUNN announced the groundbreaking for Fire Station #9, the first police substation and
community center in west Chandler on Desert Breeze and Chandler Boulevard. He noted there is
a temporary fire station currently at that location.

B.       Councilmembers' Announcements:

COUNCILMEMBER SEPULVEDA thanked ART THOMASON for media coverage of the
Chihuahua races.

COUNCILMEMER WALLACE said that she was planning to attend the ceremony for the
Environmental Art Poster Contest, but attended the memorial for Mike Desper, former girls
basketball coach at Chandler High.

C.       City Manager's Announcement:

There were no City Manager announcements at this time.
                                                                       Minutes of the Regular Meeting
                                                                                Chandler City Council
                                                                             Thursday, May 12, 2005
                                                                                             Page 29


Adjournment: The meeting was adjourned at approximately 9:48 p.m.



ATTEST: __________________________               ______________________________
            City Clerk                                MAYOR


Approved: _________________________




                                   CERTIFICATION

I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the
regular meeting of the City Council of Chandler, Arizona, held on the 12th day of May 2005. I
further certify that the meeting was duly called and held and that a quorum was present.



DATED this __________ day of _____________, 2005.


                                                      __________________________
                                                       City Clerk
MINUTES OF THE SPECIAL MEETING OF THE HONORABLE MAYOR AND CITY COUNCIL
OF THE CITY OF CHANDLER, ARIZONA, held in the Council Chambers in the Chandler Library,
22 S. Delaware, on Monday, May 23, 2005 at 7:00 p.m.

THE MEETING WAS CALLED TO ORDER BY MAYOR BOYD W. DUNN.

The following members answered roll call:   Boyd W. Dunn          Mayor
                                            Phillip Westbrooks    Vice Mayor
                                            Bob Caccamo           Councilmember
                                            Lowell Huggins        Councilmember
                                            Matt Orlando          Councilmember
                                            Martin Sepulveda      Councilmember
                                            Donna Wallace         Councilmember


Also in attendance:   W. Mark Pentz         City Manager
                      Rich Dlugas           Assistant City Manager
                      Dennis O’Neill        City Attorney
                      Marla Paddock         City Clerk

Staff present: Nachie Marquez, Mark Eynatten, Chief Roxburgh, Michael Traynor, Patricia
Walker, Dave Siegel, Doug Ballard, Chief Kiyler, Bryan Patterson

1.     Proposed 2005/06 Tentative Budget Amendments:

MANAGEMENT SERVICES DIRECTOR PAT WALKER explained that various budget
amendments are being presented by both outside agency requests and Councilmember’s.

She explained that in the Council contingency reserve, Council has been appropriated
$100,000.00 of on-going funds and $500,000.00 of one-time money. In addition, there are
appropriated expenses for 2005/06 in the amount of $117,794,596.00 that have been
appropriated, but Council will decide if the appropriations are correct in the various categories.
Under proposed designated reserves, there is $76,561,682.00 of which $61,908,854.00 is “non-
restricted”. The two items restricted are vacation accrual and property tax collections. All
amendments may be considered within those parameters. There is also a contingency reserve
with an arterial street impact fee mentioned on one of the proposed amendments.


Chandler Historical Society/Museum:

Request:      $10,000 supplement to existing on-going funding
Approved:     $10,000 on-going funding

MOVED BY COUNCILMEMBER ORLANDO SECONDED BY VICE-MAYOR WESTBROOKS to
APPROVE the request.

VICE-MAYOR WESTBROOKS thanked the Historical Society for their work and outreach with the
history in the parks in recognizing pioneer families.

THE MOTION CARRIED UNANIMOUSLY (7-0).
Minutes of the Special Meeting
Chandler City Council
Monday, May 23, 2005
Page 2



Public History Program:

Request:           $25,363.00
Approved:          $17,427.00

MAYOR DUNN stated that a memorandum has been received from the Museums Advisory Board
requesting on-going funding for the Public History Program in the amount of $57,297.00 in FY
2005/06 budget.

MOVED BY COUNCILMEMBER ORLANDO, SECOND BY COUNCILMEMBER CACCAMO to
approve the Public History Program amendment.

COUNCILMEMBER WALLACE commented on the kiosks at Thude and Harris Parks and
commended Jean Reynolds for her work on the project. It is important for Chandler citizens to
learn about the history of Chandler and pioneer families.

MAYOR DUNN explained that the original request has been decreased from $57,297.00 to
$25,363.00. MS. WALKER said that the Community Services Department had agreed to fund
approximately $31,934.00. They could fund up to $39,870.00, as there is $100,000.00 of on-
going funds available. If they were to fund the additional amount of $7,936.00 if Council wishes
to consider the other amendment, the amount for approval by Council is $17,427.00.

MAYOR DUNN said that many of the factors of the Public History Program as described in a
memo distributed to Council are already covered by the proposed budget except for the additional
funds of $17,427.00. COUNCILMEMBER ORLANDO agreed on that amount for the motion.

DR. NOEL STOWE, Museums Advisory Board, asked for clarification on the amount They had
requested $57,297.00 for on-going funds so that when they got into increased funding next year
they didn’t start from zero especially when the Price house came on.

MAYOR DUNN explained that after reviewing the budget, the bulk of their request is contained in
various parts of the existing budget necessitating the need for a smaller amendment amount.
Ultimately, the total program in the requested amount of $57,297.00 will be included in the
budget.

MOTION TO APPROVE $17,427.00 in on-going funding for the Public History Program
CARRIED UNANIMOUSLY (7-0).


Police Science Officer Reassignment/New Patrol Position:

Request:           Addition of new patrol position $64,637 on-going and $3,595 one-time
Approved:          $64,637 on-going and $3,595 one-time

COUNCILMEMBER CACCAMO explained that in 1995, the Police Department provided a
teaching position for two periods part-time to Chandler High School to teach Police Science and it
expanded when Hamilton High School opened. He stated it was a very good program and
popular with the students. The Police Department has proposed this position be moved to patrol.
                                                                            Minutes of the Special Meeting
                                                                                    Chandler City Council
                                                                                   Monday, May 23, 2005
                                                                                                   Page 3


COUNCILMEMBER CACCAMO recommended that the City provide funding for the program for
one year to allow the school district time to investigate ways to keep the program in their budget.
He also recommended a provision that would allow the City to help the school district with a
transition if there are problems after a year. That does not include fully funding the position
again, but to help in transition or provide ideas to change the program or come up with a new
approach to the program to provide Police Science in the schools.

MAYOR DUNN clarified that there are on-going funds of $64,637.00 and the first one-time
request of $3,595.00.

MOVED BY COUNCILMEMBER CACCAMO, SECONDED BY COUNCILMEMBER HUGGINS to
APPROVE the budget amendment for the Police Science officer for on-going funds of $64,637.00
and one-time allocation of $3,595.00 and to allocate those funds in the tentative budget.
MOTION CARRIED UNANIMOUSLY (7-0).

In response to a question from the Mayor, MS. WALKER said that there is a balance of $7,936.00
in on-going contingency.


Special Olympics Volunteer Partner Fees:

Request:      $7,936.00 on-going
Approved:     $7,936.00 on-going

COUNCILMEMBER WALLACE said that she attended the Special Olympics awards banquet and
became aware of the fact that the volunteer coaches, or partners, have to pay fees for bowling.
No other fees are assessed in any other City-sanctioned activities that the Olympians participate
in. She is recommending a budget amendment that would cover the fees for the volunteer
coaches that would be an on-going amount of $7,936.00.

MOVED BY COUNCILMEMBER WALLACE, SECONDED BY COUNCILMEMBER CACCAMO
TO APPROVE an on-going amount of $7,936.00 to fund the Special Olympics Volunteer Partner
Fees. MOTION CARRIED UNANIMOUSLY (7-0).

MAYOR DUNN asked Ms. Walker to provide a summary of one-time fund requests. MS.
WALKER said that there is $250,000.00 available for one-time contingency. Historically, there
has been an additional $250,000.00 in reserve to be used during the year. Total one-time
$500,000.00 for Council contingency has been appropriated.

In addition, there are appropriated one-time expenses of $117 million that have been designated
for specific purposes with one amendment being contingency reserves. Proposed designated
reserves are not appropriated but open for Council discussion as to the use of those funds. Of
the total amount of $76,561,582.00, $61,908,854.00 is not restricted.
Minutes of the Special Meeting
Chandler City Council
Monday, May 23, 2005
Page 4


Chandler Non-Profit Coalition/Fire CARE 8/Special Events/Chandler Learning Center/Community
Action Program/Senior Nutrition Program – one-time requests

    •    Chandler Non-Profit Coalition                                $35,000.00
    •    Fire CARE 8 intern stipends                                  $30,000.00
    •    Special Events Funding                                       $30,000.00
    •    Chandler Learning Center                                     $53,000.00
    •    Chandler Community Action Program                            $31,500.00
    •    Senior Nutrition Program                                     $15,000.00


MOVED BY COUNCILMEMBER ORLANDO, SECONDED BY COUNCILMEMBER WALLACE to
APPROVE The Chandler Non-Profit Coalition, The Fire Care 8 (social work) intern stipends,
Special Events Funding, Chandler Learning Center, Chandler Community Action Program and
the Senior Nutrition Program.

MARK PENTZ clarified a notation that the Fire Department needed $24,000.00 for interns. VICE-
MAYOR WESTBROOKS said that he included this request and rounded the amount off to
$30,000.00 because he felt there might be more of a need than what was listed in the Fire
Department’s budget and wanted to give them extra funds to use if necessary since they are
attempting to get 24-hour coverage with the CARE 8 program.

GLENNA MCCOLLUM, speaking on behalf of the Non-Profit Coalition, thanked the Mayor and
Council for bringing their request forward. It has been a rewarding two-year process collaborating
with other non-profits wishing to be very efficient and effective in their service to the community.

MOTION CARRIED UNANIMOUSLY (7–0).


Early Hiring of Five Police Positions for the Southeast Substation:
Request:        $840,920.00 one-time funding
Approved:       $840,920.00 one-time funding

MAYOR DUNN said that he requested that this item be included in the proposed amendments.
Chief Kiyler has indicated that even though there have been some amendments done in dividing
one beat and hiring some officers, there is still a need for patrol officers in south Chandler. As
Council has discussed moving up the completion date for the southeast substation, it would be a
good policy for Council to meet that need and put some officers on the street.

MS. WALKER explained that the total amount is $420,460.00, which includes salary and benefits
for five police officers as well as associated on-going costs and one-time costs for adding the
positions. The recommendation is to fund it with one-time money for the first two years. It has
been included in the budget for 2007/08 under CIP requests, but it would be funding with one-
time funds because there are no available on-going funds. MAYOR DUNN asked if this is the
$1.8 million available in excess revenue compared to expenses? MS. WALKER responded that it
is from the general fund on-going analysis, which was put in the proposed designated reserves.
There were a number of items including Riggs Road, the wetlands and the remainder went into
the economic development stabilization reserve. This proposal is to use some of those funds for
this particular purpose instead of the others.
                                                                             Minutes of the Special Meeting
                                                                                     Chandler City Council
                                                                                    Monday, May 23, 2005
                                                                                                    Page 5


MAYOR DUNN said that there would still be sufficient funds for the wetlands and the Riggs Road
design acceleration with a matching grant. He explained that even though this request violates
the policy of not using one-time money for on-going needs, this is bridging a gap of two years. It
addresses a safety issue in southeast Chandler.

COUNCILMEMBER WALLACE commented about the deviation from policy. She was concerned
that the funding of these positions was like an unfunded mandate where Council was tying the
hands of the budget process in the future in coming up with funding for these types of positions.
It is for two years of funding and committing those dollars in the budget two years for two years.

MAYOR DUNN reiterated that he is not attempting to diminish the policy and that if there were not
a two-year gap to fill, he would not be supporting it. He asked Staff to find a way to do it with
available funds. The total amount over two years would be $840,920.00.

COUNCILMEMBER WALLACE clarified that what is being voted on is $840,920.00 as opposed
to $420,460.00. MAYOR DUNN concurred. COUNCILMEMBER WALLACE asked about the
time frame for hiring these five positions. CHIEF KIYLER said that there is approximately a three-
month process from the time recruitment starts until a candidate can begin attending the
academy which is when the funds will begin to be expended.

COUNCILMEMBER HUGGINS asked Chief Kiyler if there was an existing hiring list. CHIEF
KIYLER said that there is, but there are eight vacancies with four remaining people on the current
list with another recruitment coming up in a month. Recruitments have increased to every other
month as opposed to every three months to increase the hiring pool.

VICE-MAYOR WESTBROOKS asked Chief Kiyler how confident she felt in getting recruits since
it has become so competitive. CHIEF KIYLER replied that she was confident there would be an
ability to hire especially by moving the recruitment process to every other month in terms of
testing. She has also asked the recruitment staff to explore other options to recruit. We can hire
new recruits, but the problem we have is attrition, which has to be added to the new hires. VICE-
MAYOR WESTBROOKS asked how many of the proposed five new positions would be
administrative and how many would be on patrol. CHIEF KIYLER responded that what is being
approved are early positions for the south-Chandler substation including a commander and
sergeant for the planning team and three patrol officers. In addition to the additional officers that
will be added to the Police Department’s proposal, the additional three would give more flexibility
for calls for service in southeast Chandler.

VICE-MAYOR WESTBROOKS asked how many officers would be in the west-Chandler
substation. CHIEF KIYLER said that the patrol force would be split with half from the downtown
station and half from the west substation from existing personnel. Currently, there are
approximately 230 patrol personnel. Approximately 100 will be moving to west Chandler and 130
will remain downtown as long as there are two stations. There was discussion regarding
Chandler’s goal for police response time. The goal is 5 minutes, which has not been met since
2001.

MAYOR DUNN said that he feels there is a safety issue in southeast Chandler. Citizens have
commented that they would like to see officers patrolling in the area and this is an opportunity to
bring in additional officers. He thanked Council for dealing with this safety issue effectively and
directly.
Minutes of the Special Meeting
Chandler City Council
Monday, May 23, 2005
Page 6


MOVED BY MAYOR DUNN TO ADD FIVE POLICE POSITIONS FOR THE SOUTHEAST
SUBSTATION EFFECTIVELY IMMEDIATELY AND APPROVE THE TOTAL AMOUNT OF
$840,920.00 FOR THE NEXT TWO YEARS. SECONDED BY COUNCILMEMBER CACCAMO.

VICE-MAYOR WESTBROOKS asked Ms. Walker to explain why the policy of not using one-time
money for on-going expenses is important. MS. WALKER explained that in using one-time
money, there was a potential for trouble the third year out if funds are not appropriated. The
difference in this instance is that it is built into the third year. It is not something new and not
even considered in Staff’s analysis. She noted it was different from what has been done
previously although there has been funding of some things one-time that are on-going such as
street paving, library collection, etc.

VICE-MAYOR WESTBROOKS asked when it was done in the past and who brought it forward in
terms of an amendment. MR. WALKER said that the library collection was “ramped up” They
were not amendments, but were built into the budget and wrapped up in uncommitted funds.
There was one position that was not 100% funded from the $100,000.00 on-going. VICE-
MAYOR WESTBROOKS clarified that those were actually in the budget by Staff and not a
Council amendment. MS. WALKER said that the street and library amendments were put in by
Staff.

COUNCILMEMBER WALLACE said that the motion is $840,920.00, but committing half this year
and the remainder next year. MS. WALKER verified that there was $1,877,199.00 available in
the reserve fund. With this amendment, it would leave $1,036,279.00.

VICE-MAYOR WESTBROOKS asked what other needs the Police Department had. CHIEF
KIYLER responded that while there is not an area in the Department that does not need
additional personnel at some time, there is not a more critical need than what has been brought
forward as the amendment at this time. Their most critical needs were brought forward in their
proposed budget. If they wanted to be more proactive as a department, they could move some of
the detectives and move some of the felony follow-up out of patrol more quickly that with four
detectives. Additional bicycle, motorcycle or community program units could be added. There is
always a need and are things that need to be added. VICE-MAYOR WESTBROOKS asked
about staffing needs for these additions. CHIEF KIYLER responded that a bicycle team generally
consists of seven officers and a sergeant. Depending on how quickly we want to move forward
with felony follow-up and moving more cases out of patrol, the number of detectives could be
anywhere from one to twenty. Even though it is not necessary at this point, the Department will
be seeking to increase those types of functions over the long term. These categories are being
included in the proactive category along with the amendment.

VICE MAYOR WESTBROOKS asked how additional detectives would help in terms of moving
the felonies out of patrol and putting them with detectives. CHIEF KIYLER said that many of the
crimes committed are retained by the patrol officer for follow-up. The goal is to have more
officers available to respond to calls for services and more proactive patrol time, which is a
preventative measure in terms of crime suppression. If the officers were not retaining those
cases for follow-up into the next shift or shift after and those cases were transferred to the
detective section early on, that would free up the patrol officers’ time.

VICE MAYOR WESTBROOKS asked what bicycle units would add in a proactive approach.
CHIEF KIYLER replied that the bicycle team is one of the most proactive units. They are present
in downtown Chandler, at the mall, in parks and special events. There is currently one bike team
                                                                            Minutes of the Special Meeting
                                                                                    Chandler City Council
                                                                                   Monday, May 23, 2005
                                                                                                   Page 7


for the city split into various hours of the day for better coverage. CHIEF KIYLER recommended
that each station have its own bicycle team.

In regards to motorcycles, the proactive approach would be more responsiveness to not only
street issues, but neighborhood issues as well.

COUNCILMEMBER SEPULVEDA clarified with Ms. Walker that there is still over $1 million left of
the available $1.8 million. Ms. Walker said that $1,036,279.00 is still available. It was put in the
proposed designated reserves in total in three categories. The proposed amendment is taking it
out of that category and putting it towards the police officers for two years. COUNCILMEMBER
SEPULVEDA asked where the $1 million goes. MS. WALKER responded that it is Council’s
discretion as to how it is used; however, it remains in one-time funds. MAYOR DUNN said there
are two additional requests that will take money from the remaining funds.

MAYOR DUNN clarified with Chief Kiyler that the items she wants to bring forward in future years
were discussed with Staff and the City Manager during this current budget process. CHIEF
KIYLER concurred. MAYOR DUNN commented that Council is making decisions on what they
feel is critical. He expressed appreciation for Chief Kiyler’s comments that there are critical
needs in southeast Chandler best met with additional officers to ensure that streets are patrolled
adequately and response times are improved.

MAYOR DUNN continued that he supports the Council policy in terms of using one-time money
for on-going needs and that if this item was not budgeted in the third year he would not be
supporting this request. He noted it is Council’s policy and not Staff’s and if they wish to handle
the policy differently on a case-by-case basis, that’s where the leadership needs to occur. He
does not feel this jeopardizes that policy.

COUNCILMEMBER WALLACE asked for clarification from Chief Kiyler regarding her list of items
requested but not funded.          Ms. Walker indicated that there had been a change.
COUNCILMEMBER WALLACE said that she is specifically referring to the west Chandler
substation and requested positions of four officers and supplies that were unfunded. But it is
noted that three administrative specialists were funded.         CHIEF KIYLER said that the
administrative assistants were in the budget proposal. Because it is the first station, they feel
they can open without station staff and continue to do tele-serve out of the main police station if
necessary. It is their plan to come back to Council during the next budget year and ask to staff
the positions for police officers. COUNCILMEMBER WALLACE confirmed that the Department
could wait on the four unfunded positions. CHIEF KIYLER said that the positions are not needed
until they open the substation.

COUNCILMEMBER WALLACE asked about the beat patrol team request. MS. WALKER said
that it should have read six requested and six were filled because four were reassigned and two
are patrol officers. What was not funded was two detective positions. All six positions were
funded for the additional beat patrol team.

ERIC BLATT, 1582 E. Jay Place in southeast Chandler, asked how Chandler compared to other
cities in the national average with the additional average. CHIEF KIYLER said that Chandler has
1.35 officers per 1,000 residents. The ideal ration would be 2 officers per 1,000. Although she
did not know the national average, the number changes in terms of looking at the kind of
community served, the types of calls, demographics, geography, etc. There is a significant
difference in just considering total square miles.
Minutes of the Special Meeting
Chandler City Council
Monday, May 23, 2005
Page 8


MAYOR DUNN asked how Chandler’s average compares to surrounding cities. CHIEF KIYLER
replied that Gilbert has less per 1,000 than Chandler, while the other cities have a higher ratio.
Phoenix is currently the only city that has 2 per 1,000.

MAYOR DUNN referenced a past Council decision to increase sales tax to have a dedicated
revenue source to build the Chandler Police Department and hire officers. Chandler has been
able to keep up with the demands of growth better than other cities. He does not want to indicate
that we are not able to meet the public safety needs of the city, but there is a deficiency in
southeast Chandler that needs to be addressed. There needs to be an on-going source of
revenue to bring on officers.

COUNCILMEMBER ORLANDO said the decision for increase sales tax was made in 1994 under
Mayor Coy Payne.

VICE-MAYOR WESTBROOKS asked Chief Kiyler what her plans for staffing are for three years
out. CHIEF KIYLER responded that the focus now is to divide the department to best serve the
community. She was still conducting an evaluation of services provided vs. needs.

VICE-MAYOR WESTBROOKS commented that he would like to explore the overall staffing with
comparable valley cities. He strongly encouraged Chief Kiyler and the City Manager to make
sure that Chandler is staffing appropriately and comparably as build out draws near

MAYOR DUNN said that those issues are being considered in the build-out strategy and will be a
key element to be discussed by the visioning committee.

City Manager MARK PENTZ agreed and said the departments would be studying their build-out
needs and returning to Council with recommendations. There may not be adequate funding in
place to meet the build-out needs.

COUNCILMEMBER WALLACE requested that a memo be included in Council packets that if the
amendment is approved, what the statistics will be once the officers come on line in terms of what
the ratio would be. CHIEF KIYLER said that with the additional six officers, the ratio would be
1.32 which is a decrease in the current ratio because of the increase in population.

MOTION TO ADD FIVE POLICE POSITIONS FOR THE SOUTHEAST SUBSTATION
EFFECTIVELY IMMEDIATELY AND APPROVE THE TOTAL AMOUNT OF $840,920.00 OVER
TWO YEARS CARRIED UNANIMOUSLY (7-0).

COUNCILMEMBER ORLANDO asked to move up the discussion for the contingency funds to
cover some of the one-time revenues and because he was losing his voice. MAYOR DUNN said
that he would like to discuss the proposed amendments first to make a clearer picture for
discussion of contingency funds.

MOTION BY COUNCILMEMBER ORLANDO SECONDED BY COUNCILMEMBER WALLACE to
move up the discussion of the contingency funds before the rest of the amendments.

COUNCILMEMBER SEPULVEDA commented that if all of the one-time requests were approved,
it would be more money than is available. The motion on the table may help free up some money
to handle some of the one-time requests if they are all approved.
                                                                           Minutes of the Special Meeting
                                                                                   Chandler City Council
                                                                                  Monday, May 23, 2005
                                                                                                  Page 9


MAYOR DUNN said that if they proceed with the rest of the amendments, Council would discover
that they could work with the funds presently available and give a better picture of whether they
want to change a significant on-going Council policy. Staff would be making suggestions on how
this can be achieved without taking the money from the general contingency fund.

MOTION TO MOVE UP THE DISCUSSION OF CONTINGENCY FUNDS CARRIED BY
MAJORITY (4-3) WITH MAYOR DUNN AND COUNCILMEMBERS HUGGINS AND CACCAMO
VOTING NAY.

Reduction of the Contingency from 15% to 12% and allocating the money for one-time projects
with 50% for parks, 25% for neighborhood enhancement revitalization and 25% for economic
development opportunities.

COUNCLMEMBER ORLANDO proposed that reducing the general fund contingency reserve to
12% would allow more tax dollars to go into the parks and recreation programs, neighborhood
enhancement revitalization programs, and strategic programs to capture employment
opportunities. These items have been discussed by Council and are priority items. He reiterated
that he is not asking for any adjustment in any of the contingency reserves.

In 1992, when Chandler was the fastest growing city in the nation, there was a contingency
reserve of $7.3 million and the budget committee at that time felt that amount needed to be
raised. There was a limited revenue base and we relied primarily on State Shared revenue and
city-administered sales tax. The total budget at that time was $45 million.

He commented that today was a different environment and in rapid transition from the rapid
growth -build-out community. His concern is about sustaining a good quality of life. He noted the
more diverse and balanced revenue stream including malls, hotels and industry expansion.
There were no impact fees in 1992 and a higher sales tax. There has been the ability to build a
proposed designated reserve of $76 million and appropriate a reserve of $117 million. Some of
the money is designated for specific projects, but large amounts of taxpayer dollars accumulate
each year unused.

He explained that out of the $194 million in reserves in the 05/06 budget, this proposal would
amount to $5.1 million or approximately 2.5% of the total budget. Chandler would still continue to
have the highest general contingency reserve fund in any major city in Arizona. By making this
policy change, there could be an investment in the community today and receive greater revenue
than by not using this money.

He noted that Staff has indicated that property values can increase as much as 20% around park
areas. By putting money into neighborhood enhancement and revitalization programs, we can
increase affordable housing stock; fund programs similar to Habitat for Humanity, fund
neighborhood abatement programs or add more money to other proposals. This would not only
improve neighborhoods, but will have a huge economic impact. He commented that Chandler
was in a different stage of development and Council must create a general contingency fund
more appropriate.

COUNCILMEMBER WALLACE confirmed that individual department contingencies are not
included in this figure. MS. WALKER said that it is appropriated separately within each
department and projected savings are built into their budgets. Those contingencies are above
the 15% of the general fund.
Minutes of the Special Meeting
Chandler City Council
Monday, May 23, 2005
Page 10


COUNCILMEMBER CACCAMO asked if individual department contingencies are ever used to
reach the 15% reserve. MS. WALKER said that it is not included in the 15% reserve; however,
the amount in departmental savings is included in each department appropriation for purchases.

COUNCILMEMBER CACCAMO asked if that could be used to bring it back to 15% when
presentations are made. MS. WALKER responded that Council could not appropriate the money
to the department and put it towards the 15% if they chose. It is included in the budget as
presented at this time.

COUNCILMEMBER ORLANDO gave an example that of the current $27 million reserved for city
hall.   It is a contingency reserve and Council could decide not to build city hall.
COUNCILMEMBER ORLANDO said that there is money available to handle any emergency and
we could take the $27 million designated for city hall to deal with the emergency. MS. WALKER
said that is technically correct, but it would not be viewed as something set aside for a specific
purpose for emergencies. That is the difference between a contingency reserve and other
reserves.

COUNCILMEMBER CACCAMO asked if the funds for advancing the southeast substation in the
CIP are set aside? MS. WALKER said that the amount set aside in the CIP is currently
$8,080,540.00 with design and construction in 2006/07. By moving it up a year, there is a
savings because of inflationary costs leaving a cost of $7,598,975.00 to be paid for with impact
fees. The proposal is to give a loan to the impact fee to advance it. The money will ultimately be
paid back to the general fund.

COUNCILMEMBER HUGGINS commented that in 1988, the reason for establishing the 15%
contingency was because employees were being laid off and wages were being frozen and the
Council at that time wanted to establish some means to prevent it from happening in the future.
Since that time, Staff and different Councils have worked to develop the contingency and have
good bond ratings and should not be discussing decreasing it.

VICE-MAYOR WESTBROOKS said that by moving up the police substation up a year, a savings
of $382,000.00 is realized.

COUNCILMEMBER WALLACE commented on Councilmember Huggins statement and that in
1988, 15% of the general fund contingency was a lot less than what it is on the current budget.
She appreciated Councilmember Orlando bringing this forward and indicated her support for the
reduction to 12% to free up some funds to accomplish some of the quality of life projects that are
important to the citizens.

COUNCILMEMBER SEPULVEDA said that an underlying fear is the loss of our AAA bond rating.
He asked how many cities in Arizona have AAA ratings and what their contingency reserves are.
MS. WALKER responded Scottsdale is the only other city that has AAA ratings from all three
agencies. They have different reserves besides the contingency reserves such as an economic
stabilization reserve, an operating contingency reserve among others. Their reserve level is
approximately 22%. The City of Tempe has one rating agency AAA with Fitch, as does Chandler.
They do not have AAA with Moody’s or Standard and Poore’s and their reserve level is nearer
8%. MS. WALKER further explained that Tempe has $41 million of undesignated reserves
whereas Chandler has designated reserves. If the $41 million were added to their designated
reserves, Tempe’s reserve level would be higher.
                                                                              Minutes of the Special Meeting
                                                                                      Chandler City Council
                                                                                     Monday, May 23, 2005
                                                                                                    Page 11


COUNCILMEMBER ORLANDO said that that is the point he was trying to make. They have a
designated reserve and say it’s not designated. Chandler has not adopted that type of policy.
City hall is a designated reserve that could be changed at any time. It depends on how the term
reserve is defined.

MAYOR DUNN agreed that it depends on how general contingency reserve is defined. The
general contingency reserve policy is the most important policy established by the City. He
commented that additional funds could be found by being more selective in the budget instead of
going after one of the key foundations establishing the City’s financial basis. The City brags
about being able to maintain a 15% contingency reserve and it was his opinion that the
contingency reserve has enabled the achievement of a record number of bond upgrades over the
years.

MAYOR DUNN expressed concern about adequate notice or for citizen comments. He received
the memo suggesting changing the contingency fund on Saturday. He asked that the issue be
continued to Thursday evening to provide adequate notification to ensure that anyone who
wishes offer comments has the opportunity to do so. The action entails changing a significant
policy and should be scheduled to allow for full and adequate public input. THE MAYOR asked
City Attorney O’Neill if this policy was actually voted on by Council that should be noticed or can it
be dealt with at this meeting.

COUNCILMEMBER HUGGINS commented that 15% is not too large of a contingency. If the time
comes when there is too much in savings, we should find a way to put the funds back in the
pockets of those who put the extra savings in.

CITY ATTORNEY O’NEILL stated that Council could vote on this issue as part of the budget
amendments. If the amendment is approved, Council may want to bring it back in writing to
clarify what the policy is. In 1992, when the policy was adopted, something went out in writing
after the Council meeting that is somewhat in conflict with what is in the minutes. No matter what
policy is established, it is up to the discretion of the sitting Council at that time.

COUNCILMEMBER ORLANDO said that all of Council received the packet on Saturday and that
was the first opportunity for Council to review the amendments. He said he called all of the
Councilmember’s on Friday to advise them of this and felt there was adequate notice for the
Council. He felt this policy would help citizens invest in the future with benefits being recouped by
increasing property values, blighted neighborhood clean-ups, abatement of programs and then do
some economic development studies to increase the long term economic employment.

MAYOR DUNN reiterated that he does not view this as being an amendment, but a policy
change. Even though Council received adequate notice, the public was not adequately noticed.

COUNCILMEMBER WALLACE said that previously, she asked what effects lowering the
contingency funds would have on bond ratings. The City Manager spoke with someone at
Moody’s and asked if reducing Chandler’s contingency reserve would negatively affect its bond
rating, he responded that Moody’s would want to know why the change in policy was being made.
He indicated that Moody’s would be more concerned if the amount of funds being reduced were
to be redirected to on going rather than to one-time expenditures. On the other hand, the City
would have a good chance of maintaining its current credit ratings with all three agencies as long
as they believe that the Mayor and Council had good reasons for revising the policy and use the
recaptured funds prudently. In essence, the memo said that it would not affect our current bond
Minutes of the Special Meeting
Chandler City Council
Monday, May 23, 2005
Page 12


ratings, but may affect any other AAA ratings. The determining factor for increased bond ratings
would be in how the funds are used.

COUNCILMEMBER WALLACE continued that as build out approaches, to take the $5.1 million
and use toward parks and park projects to neighborhood enhancement and revitalization
programs and strategic economic development opportunities would be investing back into the
community.

MAYOR DUNN asked the City Manager if, in his professional opinion, it would be in the best
interest of the City to reduce the general fund contingency from 15% to 12% based on what it has
done in the past. MR. PENTZ responded that Staff is not recommending a reduction in the
contingency fund. It is ultimately a policy decision on the part of the governing body as to what
the fund is.

MAYOR DUNN again stated his concern with the process and how Council has always been
adamant that the established process be followed. He recommended that the decision be
delayed until the meeting on Thursday. He also expressed concern with the vagueness of how to
use the funds.

MOVED BY COUNCILMEMBER ORLANDO TO ADJUST THE GENERAL CONTINGENCY
FUND TO 12% AND RECAPTURE THOSE FUNDS IN PARKS AND RECREATION BY
ALLOCATING HALF INTO BUYING NEW PARK SITES AND/OR ACCELERATING
IMPROVEMENTS AND DEVELOPMENT OF EXISTING PARKS; 2) A QUARTER OF THOSE
RECAPTURED FUNDS WOULD GO TO THE NEIGHBORHOOD ENHANCEMENT
REVITALIZATION PROGRAMS SUCH AS LOOKING AT WAYS FOR AFFORDABLE HOUSING,
FUNDING PROGRAMS SIMILAR TO HABITAT FOR HUMANITY, FUNDING NEIGHBORHOOD
ABATEMENT PROGRAMS AND GENERAL IMPROVEMENT OF OUR NEIGHBORHOODS;
STRATEGIC ECONOMIC DEVELOPMENT; A QUARTER OF THOSE RECAPTURED FUNDS
BE ALLOCATED TO OUR FUTURE AND LONG TERM OPPORTUNITIES. THE CITY
MANAGER SPOKE EARLIER IN THE BUDGE PROCESS ABOUT WORKING WITH SOME OF
THE UNIVERSITIES AND TRYING TO ENTICE SOME NEXT GENERATION TECHNOLOGIES
TO OUR COMMUNITY. SECONDED BY COUNCILMEMBER SEPULVEDA.

MAYOR DUNN exercised his prerogative as Mayor to divide the question. Each issue will be
voted on separately beginning with the contingency fund and then how we wish to use the
savings if the reduction is adopted separately. The City Attorney verified that the Mayor has the
prerogative to divide the motion if there are two distinct questions. The Council can also divide
the question by motion if there are two distinct questions.

COUNCILMEMBER ORLANDO attempted to make a motion to take it as one question. MAYOR
DUNN stated that it is prerogative as Mayor under the rules of Council to divide a question and is
not subject to vote of the Council. MR. O’NEILL concurred with Mayor Dunn. The only way it
could be overruled is to amend the rules and procedures, which would take a two-thirds vote of
the Council.

MAYOR DUNN voiced his opposition to the proposed motion.

COUNCILMEMBER SEPULVEDA said that before the motion was made, the Mayor commented
that it was unclear as to where the money would be used, however the memo specifies the
categories, but without specific numbers. The motion was made to include how the funds would
be used to address the Mayor’s concerns.
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                                                                                   Chandler City Council
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MAYOR DUNN said that his concern is with the second motion on the division. His concern is
with the lack of specificity and he has a philosophical point of view similar to Councilmember
Huggins that if we’re going to reduce the savings, the savings should be returned to the citizens.
As an alternative, he would like a corresponding property tax reduction.

MAYOR DUNN asked the City Attorney if he could amend the second part of the motion. MR.
O’NEILL said that it would be more appropriate to wait until the first question is voted on.

MAYOR DUNN said that he does not feel it is clear in terms of strategic economic development
opportunities. There is a gamut of strategies. In looking at parks and recreation, one half of the
recaptured funds are to be allocated to buying new park sites and/or accelerating the
improvements of existing parks. The cost for purchasing land at $100,000.00 per acre would only
for the purchase of less than 20 acres. There was an amendment to consider advancing the
wetlands park design by a sizeable sum that could be found in the existing budget. He asked if
there was money set aside in the current budget to purchase parkland? MS. WALKER said there
were funds available in the current budget. MAYOR DUNN asked if it is done through bonding.
MS. WALKER said it is done with a combination of impact fees depending on the type of park and
part bonding.

MAYOR DUNN asked if the intent was to use this money to buy down the bond obligation to
eliminate or no longer have to incur the debt.

COUNCILMEMBER ORLANDO asked if there is enough money today to buy all the parkland in
the CIP. Community Services Director MARK EYNATTEN stated that there are currently some
dedicated funds for neighborhood parks. There are some park acquisition projects in the queue
in various stages. Acquisition projects are listed in their capital program through 2008/09. The
projection is for purchase of five acres next year and ten acres each year thereafter. The funds
are not currently available but would be generated through the residential development tax.

COUNCILMEMBER ORLANDO said that if the money were available today, the purchase of the
parkland could be accelerated and there could potentially be no need to bond and incur debt and
repay the bonds with tax dollars. MR. EYNATTEN concurred. There are two line items in their
capital program. One is for existing neighborhood park improvements which have been
increased this year to $500,000.00 per year. A new line item has been introduced that would
start in FY 2008/09 for existing community park improvements. There are currently G.O. bonds
for existing neighborhood park improvements. Community Services CIP is based on the
assumption that Council would consider and voters would approve another bond issue sometime
in 2008/09.

COUNCILMEMBER ORLANDO clarified there may not be a need for a bond election if one-time
money is used to buy the land today. Mr. Eynatten concurred.

COUNCILMEMBER CACCAMO asked that if all of the amendments were approved except this
one, could this issue be revisited as he would like to solicit public input.

MAYOR DUNN commented that was his point in dealing with the amendments first and
scheduling the discussion on the general contingency fund reduction for Thursday after full public
notice.
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Chandler City Council
Monday, May 23, 2005
Page 14


COUNCILMEMBER WALLACE said that Council receives weekly e-mails and comments through
water bills from residents in southeast Chandler wanting parks and amenities. She viewed this
change as a response to the citizens’ requests for amenities.

COUNCILMEMBER SEPULVEDA said that in the proposed designated reserves, the biggest line
items are the city hall and downtown redevelopment, which totals approximately $42 million. This
could force more creativity with the private sector as there are savings from alternative delivery
methods.

MAYOR DUNN said that he wanted to go ahead with the amendments because there were
opportunities to do some major reshuffling of the dedicated reserves. Some of the funds set
aside for the city hall could be used differently and replenished when city hall is ready to build. If
the amendments had been done, there still would have been the ability to do all of the major
arterial streets in southeast Chandler, move up some major park projects, move up a police
substation and demonstrate that there are ways to reallocate the money we currently have
without changing a policy that has produced millions of dollars of savings to the city through
increased bond ratings. Part of formulating a budget is determining how to spend on absolute
necessities and how to not spend the money to maintain long-term fiscal health of the city.

COUNCILMEMBER SEPULVEDA asked Ms. Walker what the percentage of contingency reserve
would be if we were to add all of the contingencies from all departments. MS. WALKER said that
there are variables, but the percentage would be roughly 80%.

COUNCILMEMBER ORLANDO reiterated that he has been talking about reducing the
contingency for nine years and Council has discussed it three times over the last year. They
have also discussed priorities. This is a small portion of the total budget.

COUNCILMEMBER CACCAMO said he would feel more comfortable having public input on
reducing the contingency funds, reducing taxes and investigating creative partnerships. Council
has always been looking for public inclusion and it should be instituted for this important issue
also.

COUNCILMEMBER WALLACE called for the question.

COUNCILMEMBER HUGGINS asked Mr. O’Neill if it would be appropriate for him to move to
amend the original motion allow more time before making a decision as this was one of the
biggest policy changes made by this Council. He agreed that he had not heard from citizens
asking for the contingency to be lowered and would like to allow public discussion. MR. O’NEILL
responded that it would be a motion to continue rather than a motion to amend and it would be
appropriate to do so which would take precedence over the standing motion.

MOTION BY COUNCILMEMBER HUGGINS SECOND BY COUNCILMEMBER CACCAMO TO
CONTINUE THE DISCUSSION ON REDUCING THE CONTINGENCY FUNDS TO THURSDAY,
MAY 26, 2005 TO ALLOW FOR PUBLIC INPUT.

VICE-MAYOR WESTBROOKS asked if he could talk about the item in the original motion or is he
limited to discussing the amendment only. MR. O’NEILL said he could discuss both. The item to
be voted on first is the motion to continue, but it is all-inclusive.

VICE-MAYOR WESTBROOKS observed that the issue comes down to two different philosophies
and one is not better than the other. There was a major policy change approved before this
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                                                                                    Chandler City Council
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motion that was not recommended by Staff. He compared the discussion with making personal
financial decisions and deciding what is in the best interest of your family. Is it more valuable to
keep money in a savings account to earn low interest, or use part of it to improve the value of
your home. Even with the reduction, our contingency is twice that of other cities. He stressed the
need to use savings before build out to start revitalizing some of those older neighborhoods.

MS. WALKER said there are approximately 30 contingency funds and are restricted for purposes
within their funds except for the general fund.

VICE-MAYOR WESTBROOKS continued that this policy has been in place since 1992 and
Council should use them before costs are higher and save the taxpayers money in the long run.

MAYOR DUNN offered a different perspective. The purpose of a general contingency fund is to
put savings aside in the event of a downturn without having to lay employees off, cut projects or
make any significant changes. Other contingency funds are restricted and can only be used for
specific purposes. The original purpose for contingencies is to save an amount that is needed to
meet obligations in the worst-case scenario. The City presented to every bond company the
City’s ability to deal with changes that may occur. It’s good to compare Chandler to other cities,
but it is more important to focus on what works best for the City of Chandler and the 15% has
worked continuously.

COUNCILMEMBER CACCAMO said he does not feel there is a philosophical difference among
the Council when it comes to citizen participation. It is an important decision that needs public
input.

VICE-MAYOR WESTBROOKS said that it was discussed in public during the last budget cycle
and in the retreat. Regarding bond ratings, he stated he has gone on bond rating trips and asked
what formula is used to obtain a AAA bond rating. The response is they look at many variables
including what is being done in the City. Reducing the general contingency does not mean the
bond rating will go down.

MS. WALKER said that since 1993, there have been 19 bond upgrades.

MAYOR DUNN said he feels that it does have an affect. What the bond rating agencies look at is
consistency. If the contingency is reduced, Council will have to explain it.

COUINCILMEMBER SEPULVEDA said that in looking at the proposed designated reserves,
there are eleven line items, including $42 million for city hall and downtown redevelopment. If
those funds were added into the present contingency, it would bring the present contingency
number up to 40%. There are some philosophical disagreements, but we can re-designate. He
would advocate creativity. There may be better ways to deliver the projects other than spending
cash.

COUNCILMEMBER WALLACE explained that she called for the question earlier because things
were being repeated. She expressed appreciation for the new information. She also commented
that Bil Bruno has asked for many years to reduce the contingencies.

MAYOR DUNN said he is asking to give Mr. Bruno a chance to come and speak on this issue.

VICE-MAYOR WESTBROOKS asked the City Attorney if the decision could be made to move the
contingency back to 15% if a reduction is approved. MR. O’NEILL responded that it could.
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Chandler City Council
Monday, May 23, 2005
Page 16



MAYOR DUNN cautioned that it would not be easy to find $5 million to replace.

MAYOR DUNN called for a vote on the motion to continue discussion of reducing the contingency
fund to Thursday, May 26.

MOTION FAILED FOR LACK OF MAJORITY (3-4) WITH VICE MAYOR WESTBROOKS,
COUNCILMEMBERS’ ORLANDO, SEPULVEDA AND WALLACE VOTING NAY.

MAYOR DUNN called for a vote on the motion to reduce the contingency fund from 15% to 12% .

MOTION CARRIED BY MAJORITY (4-3) WITH MAYOR DUNN AND COUNCILMEMBERS’
HUGGINS AND CACCAMO VOTING NAY. Mayor Dunn clarified as the vote was called that he
hit the “yes” button by mistake and that he is voting “no”.

MAYOR DUNN explained that when the policy was adopted, there was official language adopted
by this Council with regard to the policy. He would like to have specific language adopted by
Council on Thursday.

COUNCILMEMBER ORLANDO expressed concern with further discussion on this matter after
the Council has voted and made a decision.

MR. O’NEILL said that at the time the policy was adopted, there was confusion in the record
regarding what the Council actually adopted at that time. There was a memo sent to Council with
a policy. There were a lot of changes made to the policy and a lot of Council discussion in the
minutes. The written policy and the motion were different. He suggested earlier that the policy
come back in written form so everyone agrees on what the policy is. If the motion maker is
simply reducing the contingency to 12% and nothing more, it is up to Council if they want it
clarified in writing.

MAYOR DUNN said that he would consider putting it on the agenda and wants to make certain
that the policy is made very clear.

COUNCILMEMBER WALLACE asked the City Attorney for a procedural clarification. If a motion
is passed, in order to be brought back for reconsideration or re-vote, doesn’t the request have to
come from one of the prevailing voters? MR. O’NEILL confirmed that it would.

THE MEETING RECESSED AT 9:45 P.M. AND RECONVENED AT 10:00 P.M.

MAYOR DUNN said that the second part of the motion is for the allocation of the reduction of
funds. He stated that the issues could be addressed in the current budget. If the general
contingency fund were being reduced, he would like to see a corresponding reduction in the
property tax rate.

In response to a question from the Mayor regarding what the reduction would be, MS. WALKER
said that $1.5 to $2 million worth of bonds equates to approximately two cents on the property tax
rate.

COUNCILMEMBER ORLANDO said they should consider all of the contingencies and not
consider just one.
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                                                                                    Chandler City Council
                                                                                   Monday, May 23, 2005
                                                                                                  Page 17


MAYOR DUNN said that he views the general contingency fund differently. It is not the same as
those funds dedicated for specific uses. He would like to return the savings to the public.

At the request of COUNCILMEMBER ORLANDO, Mr. O’Neill explained that the current motion is
to allocate the $5.1 million.

MOTION BY MAYOR DUNN TO AMEND IN ITS ENTIRETY, AS AN ALTERNATIVE TO
REDUCE THE PROPERTY RATE FOR THE CORRESPONDING AMOUNT REPRESENTING
THE TOTAL AMOUNT OF REDUCTION IN THE CONTINGENCY FUND AS APPROVED BY
THIS COUNCIL. SECONDED BY COUNCILMEMBER HUGGINS.

COUNCILMEMBER WALLACE said that if two or four cents per $100 of assessed value which
would mean the annual savings on a $100,000 home would be $4.00 and $8.00 per year on a
$200,000 home as opposed to using the money to further the parks projects, neighborhood
revitalization and the economic development employment opportunities. She supports
Councilmember Orlando’s motion because of the opportunity to do more with those dollars in
terms of expediting the parks in the southeast area and enhancing the older neighborhoods.

COUNCILMEMBER CACCAMO reiterated that he would like to have public input on how they
would like to see the funds spent.

COUNCILMEMBER ORLANDO asked for clarification on what exactly is being voted on. If a
reduction is being proposed, what is it and what it will do to the other funds. He asked Ms.
Walker what it would do to the rate? MS. WALKER said that she does not have an exact
number, but a ballpark guess would be two cents. She has not have an exact number without
considering the projected assessed value and interest rates.

COUNCILMEMBER ORLANDO said that he is uncomfortable with “ball park” figures and will vote
against the motion.

MAYOR DUNN AMENDED HIS MOTION TO STIPULATE A TWO-CENT REDUCTION.

COUNCILMEMBER SEPULVEDA said that several people have said that the money needs to be
given back to the taxpayers. If the projects are expedited, the citizens will be getting the money
back in the form of amenities.

MAYOR DUNN asked what specific projects are being expedited?

COUNCILMEMBER SEPULVEDA said one example is the wetlands project. The construction
was moved up one year for a savings of over $2 million. We need to continue looking outside the
box and not be beholden to a steadfast line item of $27 or $10 million.

COUNCILMEMBER ORLANDO asked what would happen if we maintained the 15% contingency
fund policy and there was no more one-time money this year or the next. Would there be a need
to potentially find new revenue or move current revenue to maintain the 15%. MS. WALKER said
that as long as the operating revenues continue to grow, the reserve level goes up. Once build-
out is reached, it would probably start to go down and with no additions to it. That is historically
was has happened and why the reserve is added to each year.

COUNCILMEMBER ORLANDO said that, in the long run, they have actually reduced potential tax
increases by reducing the contingency to 12% because we don’t have to fund it at 15%. MS.
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Chandler City Council
Monday, May 23, 2005
Page 18


WALKER said that contingency funds are not funded through property taxes. Sales tax and one-
time dollars do go into the one-time reserve. COUNCILMEMBER ORLANDO said that,
technically, if we didn’t have this policy tonight, we may have to raise taxes to maintain the 15%,
so by reducing it to 12%, taxes have probably been cut tonight. MS. WALKER said that it comes
from various sources in the general fund and taxes are one source.

MAYOR DUNN said that we will be looking at utility and solid waste increases and it would be
nice to have a balance with a property tax reduction.

COUNCILMEMBER CACCAMO said that he wouldn’t support the motion unless there was public
input.

MS. CHRISTIAN WEEMS said that she feels that Councilmember Orlando is responding to an
outcry from citizens for improvements. Many citizens don’t know what a contingency fund is and
don’t know to ask the funds to be reduced. They want parks, improved roads, and nice
neighborhoods. They don’t want $8.00. She is a big proponent of the public process, but this is
happening all year round. Many neighbors in her area have sent e-mails and made phone calls
saying what they want and to please respond. She would like to be on a committee to help make
that decision.

JIM PATTERSON, 40 S. Fairway Court, thanked the Mayor and Council for their support on the
Historical Society amendments and the Public Historian position. He stated there is always a
concern about enough bonding capacity. If there’s a cut in property, then the bonding capacity
gets cut. He expressed his opinion that there wasn’t enough bonding capacity to accomplish
what needs to be done. Five million dollars spent by a governmental entity will turn about three
times and will turn very closely to where it is spent which is good for the public. He commented
there was a Council who reduced taxes by a penny a year and it wasn’t enough to buy milk with.
He asked how much contingency was being considered. MS. WALKER said that the general
fund contingency reserve at 15% is $25.3 million with the discussion to lower is to $20.2 million.
There are other designated reserves totaling over $60 million. Mr. Patterson continued that it
would be extremely beneficial for Council to get involved with the budget process much earlier.

COUNCILMEMBER CACCAMO said that they are aware that roads need to be improved and
that process will be accelerated. It’s the parks portion that he has not heard until now.

MAYOR DUNN called for the vote on the motion to amend to reduce the property tax rates by two
cents, which represents a corresponding savings based on the reduction of the general
contingency fund.

MOTION FAILED FOR LACK OF MAJORITY (2-5) WITH VICE-MAYOR WESTBROOKS AND
COUNCILMEMBERS’ SEPULVEDA, WALLACE, CACCAMO AND ORLANDO VOTING NAY.

MAYOR DUNN called for a vote on the main motion to use the savings for the originally listed
categories with 50% designated for parks sites, 25% to neighborhood revitalization and 25% to
downtown redevelopment.

MOTION CARRIED BY MAJORITY (5-2) WITH MAYOR DUNN AND COUNCILMEMBER
HUGGINS VOTING NAY.

MAYOR DUNN said there had been a request from Vice-Mayor Westbrooks to move up a
significant road project on Riggs Road to complete the project. In reviewing the budget, he was
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                                                                                    Chandler City Council
                                                                                   Monday, May 23, 2005
                                                                                                  Page 19


concerned to see that many of the key arterial roads in south Chandler are being designated in
2009/10. Five years is not far off, but considering the condition of those roads currently, it needs
to be moved up. There are traffic flow issues and safety issues to consider.

Public Works Director BRYAN PATTERSON concurred that road construction acceleration is
needed. There are currently seven major arterial street projects in the five-year CIP.

Assistant Public Works Director DAN COOK displayed graphs depicting estimated construction
dates for major arterial streets projects.

   •   The proposal for Germann Road from Dobson to Arizona would be to put all of the money
       in 2005/06 and do a design/build project. There is a unique opportunity accelerate one of
       the mile segments to accelerate it.
   •   Pecos Road from McQueen to Gilbert shows a one-year advancement to 2006/07 getting
       it in line with Cooper from the Consolidated Canal to Germann.
   •   Cooper Road would go one year earlier to 2006/07.
   •   Gilbert Road from Germann to Queen Creek, which would be the next mile south of
       current construction. It would be accelerated by approximately two years to 2007/08.
   •   McQueen Road from Queen Creek to Riggs is a segment that needs work and Staff
       proposes advancing it by a year to 2008/09.
   •   Queen Creek Road from McQueen to Gilbert would be advanced about a year to 2009/10.
   •   Riggs Road from Gilbert to Val Vista would be advance about three years to 2007/08.

The graph depicts the construction period and not the design, which includes a design period,
right of way acquisition and utility relocation. The level of difficulty with design and utility
relocation will vary by project.

There are only four of the seven projects that would require additional money to be moved to the
2005/06 fiscal year. The largest increase would be Germann Road from Dobson to Arizona as a
design build project.

COUNCILMEMBER CACCAMO asked about the completion of Riggs Road from Gilbert to
Arizona Avenue. MR. COOK responded that it is currently under construction and should be
completed by November of this year.

MAYOR DUNN clarified that there is an additional $21 million needed to move these projects
forward. MR. COOK confirmed and said that approximately $2.1 million is water and wastewater
corresponding improvements.

MAYOR DUNN asked if the $400,000.00 we are committing to Riggs Road is the amount to be
matched by the County for design purposes. MR. COOK replied yes. MAYOR DUNN asked
about temporary paving.     MR. COOK said that the temporary improvements could be
accommodated in the current year budget. The cost for the temporary improvements would be
an additional $150,000 to $200,000.00 in addition to what is in the budget for Riggs Road
improvements.

COUNCILMEMBER ORLANDO asked where the funds would be coming from to accelerate
these projects. MS. WALKER responded that there is $10 million available in the arterial street
impact fee contingency reserve that had not been designated for projects that can be used.
There is also $400,000.00 for proposed designated reserves for Riggs Road leaving a balance of
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Chandler City Council
Monday, May 23, 2005
Page 20


$9,635,370 to take from a proposed designated reserve on one of the projects such as city hall or
downtown redevelopment with a repayment. MAYOR DUNN commented that he would prefer
taking it from city hall contingency funds. MS. WALKER said she felt the funds could be
replenished in time to build city hall under the current schedule.

COUNCILMEMBER ORLANDO asked if this action would nullify earlier discussions of
accelerating the city hall project. MARK PENTZ said it would not and that the funds should be
replenished within one to two years. COUNCILMEMBER ORLANDO asked if any rights-of-way
had to be purchased. MR. COOK replied yes.

In response to a question from Councilmember Orlando, MS. WALKER said that there would be a
savings by accelerating these projects. BRYAN PATTERSON said the estimated savings would
be between $2-3 million by bringing the $20 million forward.

MR. COOK said two of the projects, Gilbert Road and Queen Creek Road, do have Prop 400
funding.

COUNCILMEMBER SEPULVEDA said if a partnership were made on city hall, we would not be
impacted.    MR. PENTZ said that Staff could review that aspect.        COUNCILMEMBER
SEPULVEDA asked what the savings are by moving up Germann Road a year and doing it on a
design build process. MR. COOK said it would be approximately $800,000.00. The total project
cost is approximately $16 million.

MR. COOK pointed out on a map the road projects being considered for acceleration. VICE-
MAYOR WESTBROOKS confirmed that the time line is moving them up from one to three years.
He asked Staff to look at temporary solutions for all of the areas slated for improvements for
better traffic flow. The goal would be to try to eliminate the one-mile backups in that area during
rush-hour traffic. He asked about temporary stoplights thus eliminating four-way stops. MR.
COOK responded that there is currently a plan in place to do that beginning within the next
couple of months. Gilbert Road will be completed with temporary signals leaving three other
signals to complete and all of the four-way stops at the mile-mile will be completed and the last
three should be completed by the end of the calendar year.

VICE-MAYOR WESTBROOKS asked if between now and the end of the year traffic officers could
be at these four-way stops to keep traffic flowing smoothly during the rush hour periods. MR.
COOK said that there are traffic officers in selected areas. It is envisioned for a short period of
time. The issue would be funding for salaries. VICE-MAYOR WESTBROOKS asked that funding
be found to have these intersections controlled. He also asked to investigate installation of
temporary paving in the intersections allowing for a left and right turn lane to help get the traffic
through those intersections. He stressed the need for temporary solutions to get better traffic flow
through those intersections. VICE-MAYOR WESTBROOKS asked these solutions, including
costs, be submitted for approval Thursday night. He would also like Staff to include any
temporary solutions during design and construction.

MOTION BY MAYOR DUNN TO APPROVE ADVANCED CONSTRUCTION OF STREET
PROJECTS IN THE ARTERIAL IMPACT FEE AREA AS RECOMMENDED BY STAFF.
SECONDED BY COUNCILMEMBER CACCAMO.

COUNCILMEMBER WALLACE asked about a dollar figure.
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                                                                                        Chandler City Council
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MAYOR DUNN said that the motion would include one half from impact fees and one half from
the city hall contingency reserve. MS. WALKER said that the amount would be $9,635,370.00
taken from designated reserves. $10 million has already been appropriated in the arterial street
impact fee fund; $400,000.00 has been designated for Riggs Road and the additional
$9,635,370.00 would need to be redistributed from some designated reserve such as city hall.

ERIC BLATT said he put together a presentation based on the May 10th budget meeting. He
looked at what was presented through 2010 and the plans included five streets and eleven
intersections. The plans do not address the basic infrastructure needs. At the current rate, the
homes will be over ten years old before the streets are installed. The area he is concerned with
is south of Pecos and east of Arizona Avenue. He showed a map depicting the areas designated
for improvement and those that are not, but should be. There was no definitive construction date
given and no plan to address the four-way stops. In his view, the first priority should be to provide
the basic infrastructure elements such as power, water, sewage and streets. There is a long-term
escalating traffic problem that will only get worse. Other community enhancements he considers
medium priority such as parks, aquatics, transit and bike paths. He is proposing that Chandler
change its fundamental philosophy and go with a different approach. The government needs to
change and address the infrastructure. All streets for existing communities should be in the plan
now with a definitive completion date. Future community plans should have infrastructure almost
completed in parallel since they are done at the same time. Other community enhancements
should follow after the basic infrastructure is in.

VICE-MAYOR WESTBROOKS thanked Mr. Blatt for his interest and for attending the various
budget meetings. He asked Mr. Blatt if he is suggesting that there should be a plan for existing
and new roads and what the time lines would be. Mr. Blatt pointed out the growth area on the
map showing homes built within the last few years that still do not have roads. He has to go
down Ocotillo and by the time he gets to Arizona Avenue it is a single lane road. He goes to work
at 5:30 at still has a two-light wait which is unacceptable. His point is that there is not a definitive
plan for the roads.

MR. COOK explained the process in deciding when streets are improved. Different priorities are
reviewed in the entire city. Many of the eleven intersection projects identified are to address
severe congestion and safety issues the City has in that portion of town. The areas with the
highest number of accidents are intersections in the north and central part of town. The rates are
three to four times that of what occur in southeast Chandler. The majority of intersection
improvements address those issues. There are various sources of funding which are the
Congestion Management Air Quality Funds that can only be used in addressing congestion
issues. In southeast Chandler there is the constraint of paying for infrastructure with impact fees.
Staff recognizes the need in southeast Chandler, but the problem has always been funding.

MR. COOK continued saying that design and power need to be in place to proceed. Fulton
Ranch will be will be making improvements to Ocotillo Road, Arizona Avenue and Chandler
Heights Road and all of their interior and collector streets.

BRYAN PATTERSON reported that there are approximately 50 road projects that need to be
done for a cost of approximately $300 million. The cost of what is being discussed tonight is just
under $100 million. About a third of what is needed to finish building out southeast Chandler is in
five years. At this rate, it will take an additional tens years beyond the five-year program to
complete everything.
Minutes of the Special Meeting
Chandler City Council
Monday, May 23, 2005
Page 22


In addressing cash flow, MR. PATTERSON said that the impact fees come in as building permits
are issued. While residential build out will occur in the next few years, industrial and commercial
build out will not happen at that time. Industrial and commercial development are some of the
major generators of the impact fees which means funding would not be available to build the
roads for 10-15 years from now.

JANE OWENS, a Solara subdivision resident, east of Gilbert on Riggs, expressed appreciation
for the acceleration of the road projects in her area. She said that she represents 2,000
homeowners who feel that the entrance to their development is a safety hazard. Ninety-percent
of the homeowners are using Hunt Highway instead of their front entrance because of safety
issues. She commended the Public Works Department for coming up with a temporary plan in
front of Walgreen’s and the intersection, but it will not help the Solara residents. They will still be
in a funnel coming in and out of the entrance. There is a new community being built right across
from them with a driveway directly in front of theirs so there will be two communities coming out
together and approximately ¼ mile west is Mesquite Grove whose driveway will come out and
meet the Walgreen’s driveway. She commented that the stoplight has helped some, but there is
still a major safety hazard.      She asked that the temporary plan be reviewed to at least add a
third lane in front of their entrance.

MR. COOK addressed Ms. Owens’ concerns by saying that one of the considerations when
installing a temporary solution is that it has a limited life value. A few hundred thousand dollars
are being expended for a limited period of time and Staff looks at what the return value is.
Several factors such as safety, the number of accidents and traffic volumes are all considered
when determining when improvements will be made. This section of Riggs Road is one of the
safest sections in town. Staff recognizes that improvements can be made and that is why they
are recommending acceleration. The balance is how many temporary improvements we want to
do. What Staff proposes is to bring the four-lane section east of the Solara entryway is doubling
the capacity in front of the driveway providing an additional left turn lane. Staff will continue to
review the situation and determine if anything else can be addressed.

MS. OWENS commented that Chief Kiyler checked their entrance and feels it is a definite safety
challenge.

MOTION TO APPROVE FUNDING FOR THE ADVANCED CONSTRUCTION OF STREET
PROJECTS IN ARTERIAL IMPACT FEE AREA IN THE AMOUNT OF $9,635,370.00 CARRIED
UNANIMOUSLY (7-0).

Wetlands/Park/Police Substation Design:

Request:           $566,708 one-time funding
Approved:          $566,708 one-time funding

MAYOR DUNN said this request is for acceleration of the design of the wetlands project for a
total one-time cost of $566,708.00. This will also include all of the community amenities. MS.
WALKER stated that there was $1,036,279.00 remaining from the $1.8 million. Subtracting this
request of $566,708.00 would leave $469,571.00.

MARK EYNATTEN confirmed that they are requesting $566,708.00 next year for the design. The
construction portion is in 2006/07 in the amount of $6,875,000.00.
                                                                             Minutes of the Special Meeting
                                                                                     Chandler City Council
                                                                                    Monday, May 23, 2005
                                                                                                   Page 23


MOTION BY VICE-MAYOR WESTBROOKS TO APPROVE THE ADVANCEMENT OF THE
WETLANDS PARK DESIGN FOR 2005/06 IN THE AMOUNT OF $566,708 AND THE
ADVANCEMENT OF THE SOUTHEAST POLICE SUBSTATION DESIGN TO 2005/06 IN THE
AMOUNT OF $790,000. SECONDED BY COUNCILMEMBER ORLANDO.

MARK PENTZ clarified that there are three projects going on at this same location – the
wetlands, the park and the police substation. The design of all three affect each separately and
there needs to be coordination. If the site planning could start next year, they would all be primed
for construction at the same time. It may be that the police substation could move ahead before
the end of the year, but it will not be a problem with funding and reserves. By the time the
projects get going, all three will see design in 2005/06 and construction in 2006/07.

In response to a question, MR. EYNATTEN confirmed that for the parks portion, the acceleration
would save approximately $1 million.

COUNCILMEMBER ORLANDO asked for clarification on funding the $790,000.00. MS.
WALKER said that the total wetlands/substation design is $1,356,708.00. Of that total, we are
using what was left on the $1.8 million with the remaining balance of $320,429.00 coming from
the city hall project. It’s coming from designated reserves, just different projects. A summary
sheet will be distributed to Council before Thursday’s meeting.

MOTION CARRIED UNANIMOUSLY (7-0).


Neighborhood Abatement Program:

Request Withdrawn

COUNCILMEMBER SEPULVEDA withdrew his request for $100,000.00 based on the earlier
decision to reduce general contingency funds from 15% to 12% and designating some of those
savings for neighborhood revitalization. He addressed the need to be proactive in keeping older
neighborhoods kept up and hold the owners accountable.

DOUG BALLARD said that there are a number of ways to approach this problem. Staff, along
with the City Attorney, could develop a program to deal with this issue and bring it back to
Council. It is an on-going issue not only for Chandler, but every city. It is a matter of an on-going
inspection program and issue orders to abate or demolish. MR. O’NEILL said that it would
involve having advanced funds, which the City has not had. The development of such a program
will not affect his Staff or budget.

COUNCILMEMBER SEPULVEDA said that he would like to have Staff come forward with an
inter-departmental program in the near future.

COUNCILMEMBER WALLACE said that she verified with Ms. Walker that if there are any
requests Council would like to bring forward for funding as amendments from the unfunded list,
that can be done Thursday night if it is put on the agenda prior to the tentative adoption of the
budget.

VICE-MAYOR WESTBROOKS said that in conjunction with neighborhood revitalization, there is a
need to have funds available for those who cannot take care of their homes like the elderly. This
could be done through volunteers.
Minutes of the Special Meeting
Chandler City Council
Monday, May 23, 2005
Page 24



COUNCILMEMBER SEPULVEDA stated that many violations do not occur in owner occupied,
but rather rentals. The intent of the code enforcement is primarily for landlords and not
homeowners.


2.       Set an Executive Session

MOVED BY COUNCILMEMBER WALLACE SECONDED BY VICE MAYOR WESTBROOKS to
set an executive session following this special meeting. MOTION CARRIED UNANIMOUSLY (7-
0).


Adjournment: The meeting was adjourned at approximately 11:30 p.m.



ATTEST: __________________________               ______________________________
            City Clerk                                MAYOR


Approved: _________________________




                                    CERTIFICATION

I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the
special meeting of the City Council of Chandler, Arizona, held on the 23rd day of May 2005. I
further certify that the meeting was duly called and held and that a quorum was present.




DATED this __________ day of _____________, 2005.


                                                      __________________________
                                                       City Clerk
MINUTES OF THE REGULAR MEETING OF THE HONORABLE MAYOR AND CITY COUNCIL
OF THE CITY OF CHANDLER, ARIZONA, held in the Council Chambers in the Chandler Library,
22 S. Delaware, on Thursday, May 26, 2005 at 7:00 p.m.

THE MEETING WAS CALLED TO ORDER BY MAYOR BOYD W. DUNN.

The following members answered roll call:   Boyd W. Dunn           Mayor
                                            Phillip Westbrooks     Vice Mayor
                                            Bob Caccamo            Councilmember
                                            Lowell Huggins         Councilmember
                      (telephonically)      Matt Orlando           Councilmember
                                            Martin Sepulveda       Councilmember
                                            Donna Wallace          Councilmember


Also in attendance:   W. Mark Pentz         City Manager
                      Pat McDermott         Assistant City Manager
                      Rich Dlugas           Assistant City Manager
                      Dennis O’Neill        City Attorney
                      Marla Paddock         City Clerk

Staff present: Nachie Marquez, Mark Eynatten, Chief Roxburgh, Patricia Walker, Dave Siegel,
Doug Ballard, Chief Kiyler, Bryan Patterson, Judge Traynor

City Attorney DENNIS O’NEILL explained the method of voting as Councilmember Orlando was
attending the meeting telephonically from out of state.

INVOCATION: The invocation was given by Reverend Tom Rakoczy, First Assembly of God.

PLEDGE OF ALLEGIANCE: Councilmember Caccamo led the Pledge of Allegiance.

SCHEDULED PUBLIC APPEARANCES:

1.     Service Recognitions:

MAYOR DUNN was joined by Police Chief Kiyler in recognizing Officer ROBERT BELLOWS for
25 years of service in the Police Department. Officer Bellows has served as a patrol officer,
crime scene officer, field-training officer, business officer and the crime free multi-housing
coordinator. Officer Bellows served as a detective working fraud forgery and sex crime cases.
He served on the special assignment team (SWAT) as a sniper for 10 years and is currently
assigned to the firearms training unit. He is certified as a firearms instructor teaching basic and
advance tactical firearms classes, FATS instruction and is certified to inspect and repair the
firearms used by the Department. Officer Bellows received an Exceptional Merit Award for his
service in the Crime Free Housing program and a Unit Citation Award for his service in the
firearms training unit. He has been a positive role model, excellent trainer and a great friend to
many officers over the years.

MAYOR DUNN and Chief Kiyler recognized Officer DANIEL CHAVARRIA for 10 years of service
in the Police Department. He has served as a patrol officer, DARE officer, SAU officer, Spanish
speaking PIO liaison officer and as the El Protector. El Protector is a community based policing
Minutes of the Regular Meeting
Chandler City Council
Thursday, May 26, 2005
Page 2


program designed to strengthen the relationship between the Spanish community, police and the
schools. He has also received numerous awards including the Medal of Valor, an award from the
Latino Police Officer Association, the Julio Caesar Chavez award and a nomination for the Valle
Del Sol Award. In his current assignment as a DARE officer, he provides a positive role model for
the children he has contact with.

MAYOR DUNN and Chief Kiyler recognized Sergeant GREG L. HOWARTH for 10 years with the
Police Department. Officer Howarth began his career with the City as a patrol officer before
being transferred to the community services section as a DARE officer. Greg then moved to the
Department’s property crime unit as a detective. He also served as the unit’s pawnshop detective
and was a board member of the Arizona Pawn Shop Investigators Association. Greg became a
fraud investigator in the Financial Crimes Unit before eventually winding up in the Persons
Crimes unit investigating robberies, homicides and sex offenses. Greg returned to patrol and was
promoted to this current rank of Sergeant. He is one of the most energetic supervisors in patrol
and has a reputation as a relentless investigator.

MAYOR DUNN and Chief Kiyler recognized Officer KEVIN QUINN for ten years of service in the
Police Department. Officer Quinn has served in the Field Operations Division and in his current
position in the Public Resources Unit. Kevin’s instructor and program development skills were
instrumental to Chandler Police Department’s national recognition of its preventing abuse and
violence program taught in all CUSH junior, middle and high schools. Over the years, Officer
Quinn has performed as an instructor for the Arizona Police Officer Standards and Training Board
and routinely teaches high-risk stops and defensive tactics to new and veteran officers. Officer
Quinn also provided instruction for the City, youth and citizen police academies while guest
speaking at local junior colleges and community groups. He currently serves as the school
resource officer for Hamilton High School and is the current president of the Arizona Association
of School Resource Officers. Officer Quinn was a member of the Chandler Police Department’s
School Resource Officer Team in 2004 when the team was awarded Model Agency by the
National School Resource Officer Association.

 MAYOR DUNN was joined by Public Works Director BRYAN PATTERSON in recognizing
GEORGE ARBUCKLE for 25 years of service in the Public Works Department. George is always
ready and willing to tackle any problem and always with a smile. He began his career with the
City as a temporary laborer in the sanitation division. George spent most of his career in the
street division as laborer, equipment operator I, equipment operator II, maintenance worker and
his current position as senior street specialist in the storm water division. He has operated
equipment while part of the right-of-way and asphalt crews were rehabbing alleys’ performing
weed control and trash removal and pothole and street repairs. Currently, George is part of the
storm water crew, assisting in cleaning storm drains, pumping water during and after storm
events and dust control during shoulder grading. After working 25 years, George’s advice for
fellow employees is to be proud of your job and take pride in what you do, be prompt and try to
greet everyone with a friendly smile.

VICE-MAYOR WESTBROOKS said that he grew up with Mr. Arbuckle, and acknowledged his
family as one of the pioneer families in the City of Chandler. His family was recently honored by
having a park named after them. He thanked Mr. Arbuckle for his service to the community.

COUNCILMEMBER HUGGINS said he is proud to have known Mr. Arbuckle for many years.

MAYOR DUNN was joined by Community Services Director MARK EYNATTEN in recognizing
ERIC FAULHABER for 15 years of service in the Community Services Department. Eric began
                                                                             Minutes of the Regular Meeting
                                                                                      Chandler City Council
                                                                                   Thursday, May 26, 2005
                                                                                                    Page 3


working for the Arts Center in 1989 as a production assistant. He provided production support for
performing arts events, coordinated the installation of exhibits at the center, and provided project
support for public art installations. In 1996, he assisted with the development of the Vision
Gallery and was relocated there when it opened in 1997. Since that time, Eric has been directly
responsible for establishing the successful Vision Kidz program that provides free art workshops
to more than 1500 children each year. He also established relationships with more than 200
artists to display their work at the Vision Gallery and created a successful merchandising program
that provides revenue to support the Vision Gallery operations. Additionally, Eric cultivated grants
and other fundraising income to further support programs at the Vision Gallery. Another example
of Eric’s work is the annual Dia De Los Muertos exhibit that he started from the ground up. The
exhibit has emerged into a celebrated tradition in Chandler and receives prominent media
attention each year. Eric also serves as the staff liaison with the Chandler Arts Commission. Eric
was recognized in playing a significant role in the development of the arts in Chandler.

 MAYOR DUNN was joined by Community Services Director MARK EYNATTEN in recognizing
CHRISTINA KOETH for 10 years of service with the Community Services Department. Chris is a
library assistant working in acquisitions for the City of Chandler libraries. Chris is precise in her
work and takes her responsibilities seriously. She searches for the largest discount available and
all of her communication with vendors if handled professionally and courteously. Chris is always
willing to help in other areas of the library. Chris was on the Ease Committee for five years where
she helped with the city picnics, holiday parties and group ticket sales. She served two terms on
the Employee Council, one year as vice-president. She has organized the National Kids’ Day
School Supply Drive, works on the multicultural festival committee and also served on the Cesar
Chavez Day Committee. Chris was voted Community Services Employee of the Year in 2004.

 MAYOR DUNN was joined by Community Services Director MARK EYNATTEN in recognizing
MICHAEL OHLAND for 10 years of service in the Community Services Department. Mickey is a
great fit with the parks and recreation staff and his team spirit was evident from the start. He
never hesitates to jump in and assist other staff members whether it was to drive tractor, pick up
litter, or push the department float when it ran out of gas in the annual parade of lights. Mickey
has had a direct impact on the quality of life for Chandler residents through the planning,
development and renovation of parks. The Community Services department’s five-year capital
improvement budget, which Mickey administers, was $10,000,000 in 1995. The 2005-06 five-
year capital budget is $126,000,000. There were 28 developed parks in 1995 and 293 developed
acres of parkland. Today, there are 51 developed parks and 874 developed acres of parkland.
Mickey worked closely with a team of young people, design professionals and various
departments to bring the skate park facility to life in Chandler.

2.     Recognition – Fire Incident at 99 West Palomino:

MAYOR DUNN was joined by Fire Battalion Chief DAN COUCH who introduced Capitan BRAD
MILLER and the crew from Engine #2282. This crew responded to a fire at 99 West Palomino
and recognized the important part the following young community heroes played: Alexandra
Lavandera, age 13; Raul Lavandera, age 11; Michaela Villa, age 11; and Miranda Villa, age 9.
These young people alerted apartment management, called 911 and went to make sure everyone
was out and safe. Although the incident turned out to be a minor one, the actions of these young
people definitely made a difference.


3.     Recognition – Chandler State Champions:
Minutes of the Regular Meeting
Chandler City Council
Thursday, May 26, 2005
Page 4


THE MAYOR introduced Chandler High School Track Coach Steven Carson whose team won the
Arizona 5A Boys Track and Field competition. Coach Carson said that this is the second
championship Chandler High has won since 1996 and they will strive to continue next year. He
thanked the community for their support.

COUNCILMEMBER CACCAMO commended Coach Carson on his academic as well as sports
interest in the students in his programs.

THE MAYOR said that Seton Catholic High School athletes have won 3A State titles in softball,
tennis, cheerleading and soccer. He introduced Girls Softball Coach Jerry Mollen and Girls
Soccer Coach Ladislav Zbozinek and congratulated them on their championships. Mr. Mollen
said that his softball team said that this is the fourth state title for his team and they had to beat 3
number one teams and a number two team to take the title. Coach Zbozinek said that this is also
the fourth state championship for the soccer team.

COUNCILMEMBER SEPULVEDA commended Seton for their championships. He noted the
cheer program has taken the State championship three consecutive years.

MAYOR DUNN reported that Valley Christian High School won 2A titles this year in both golf and
track. He introduced Track Coach Dan Kyper and Golf Coach Marlin Broke.

COACH BROKE said their golf team won the first state championship for the school. The team
began as freshman and set a goal for themselves to win the state championship as sophomores,
which they accomplished.

COACH KYPER said that both boys and girls track teams have won state championships this
year. This is the tenth consecutive year for the girls and the fifth consecutive year for the boys.
He thanked Chandler High School for allowing them to practice on their track before they had
their own track built.

COACH CARSON noted that Coach Kyper has been nominated for Coach of the Year.

4.       David Layman – Decriminalization of the City Code:

DAVID LAYMAN, 2100 W. Mulberry Dr., said that the City Code specifies in Section I that every
provision of the City Code, unless otherwise specified, is punishable as a Class I misdemeanor.
The penalty is six months in jail or a $2,500.00 fine. Many of the code articles defer to the default
punishment or specify punishment as a Class I or Class 2 misdemeanor. Mr. Layman asked that
the language in Section 11-6 be reviewed and clarified so as not to create problems with
interpretation.

5.       Tony Dibonito – Swimming Pools:

TONY DIBONITO spoke about water quality in swimming pools.

UNSCHEDULED PUBLIC APPEARANCES:

LEIGH RIVERS, 3737 W. Geronimo St., said that he served on the Citizen’s Solid Waste
Advisory Committee established to discuss increases in refuse fees with the closure of the
Chandler landfill. It was determined by City Staff that when the landfill closed, fees would
increase from $11.90 per month to $16.54 per month if the City built it’s own transfer station. The
                                                                            Minutes of the Regular Meeting
                                                                                     Chandler City Council
                                                                                  Thursday, May 26, 2005
                                                                                                   Page 5


plan approved by the committee provides for a monthly charge of $15.53, over a dollar less than
the original projection. This is a 6% reduction of the original projection and no services are
eliminated. Eliminating the Bikes for Tykes Program will save each ratepayer 1.2 cents per year.
He can understand the need to eliminate services or lay employees off when revenues are not
sufficient, but a committee appointed by the Council met several times in invested well over 250
man-hours in making the final decision. He stated the majority voted to not eliminate any existing
services and encouraged Council support.

CONSENT:

MOVED BY COUNCILMEMBER WALLACE, SECONDED BY COUNCILMEMBER SEPULVEDA,
to approve the Consent Agenda as presented.

COUNCILMEMBER SEPULVEDA declared conflicts of interest on items #34 (Quiktrip Use
Permit), #35 (Quiktrip liquor license) and #6 (Quiktrip rezoning) and abstained from voting on
these items.

MAYOR DUNN commented that the Preliminary Development Plan for the Intel Ocotillo campus
amendment (agenda item #9) includes the future FAB facility that indicates Intel’s intent to
remain in the City of Chandler and invest another $2 billion in the community. He thanked Intel
for continuing to operate in Chandler and for having meetings with neighborhoods to assure them
that the facility will be a quality facility and remain compatible with the community.

MAYOR DUNN noted that items with #12 and #13 the City is receiving nearly $177,000.00 in
funding from the Department of Homeland Security for various fire prevention and safety
programs and purchase of equipment.

COUNCILMEMBER WALLACE commented that Intel has made a tremendous commitment to the
community, especially the schools.

MAYOR DUNN said that agenda items #5 (Valencia II rezoning) and #8 (Ocotillo Professional
Building Preliminary Development Plan) are on the action agenda for separate vote.

MOTION TO APPROVE THE CONSENT AGENDA CARRIED UNANIMOUSLY (7-0).

1.     MINUTES:

APPROVED, as presented, minutes of the City Council Special meeting of May 9, 2005, and
Regular meeting of May 12, 2005.

2.     REZONING: Summit at Chandler Heights                                               Ord. #3684

ADOPTED Ordinance No. 3684, DVR04-0059, Summit at Chandler Heights, rezoning from AG-1
to PAD for the construction of an office and retail development on approximately 6.7 acres at the
SEC of Alma School and Chandler Heights Roads.

3.     NO COST POWER EASEMENT: SRP                                                        Ord. #3686

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3686 granting a no cost
distribution easement to Salt River Project (SRP) for the purpose of providing electrical service to
Golden Lane Well.
Minutes of the Regular Meeting
Chandler City Council
Thursday, May 26, 2005
Page 6



On October 14, 2004, Council approved construction contract to Garney Companies for the
Golden Lane Well Equipping. The project will complete the well site with the installation of the
well pump, chlorination equipment, standby generator and equipment building. In order to
provide electrical power to the new well improvements, a power distribution easement is needed
from the City to Salt River Project. The cost to provide electrical power to the new well
improvements will be approximately $230,000.00.

4.       CITY CODE AMENDMENT: Chapter 11                                             Ord. #3687

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3687 amending Chapter 11,
Section 6, of the City code relating to display or discharge of weapons other than firearms.

The City received a complaint regarding Chandler City Code Section 11-6 that pertains to the
“possession, discharge or carrying of weapons other than firearms”. The Police Department and
City Attorney’s Office reviewed the complaint and agreed that the real concern with such
weapons is the display of such weapons or firearm replicas in a manner that would threaten a
reasonable person or the discharge of any such weapon. This ordinance specifically prohibits the
display of weapons other than firearms or replicas of firearms in a manner that would threaten a
reasonable person and prohibits the discharge of weapons other than firearms. This amendment
would no longer prohibit the simple possession of weapons other than firearms or replicas of
firearms.

The complainant also wanted this code section to be decriminalized, but Staff feels that the
display of weapons other than firearms or replicas of firearms, or the discharge of weapons other
than firearms can create a significant enough danger to warrant criminal prosecution. Under the
misdemeanor penalty section of the Code, City Judges have the discretion to impose a penalty
ranging from deferred prosecution up to jail time and fines, and Staff feels that the City Judges
need that broad discretion to adequately deal with the various fact situations that may occur.

5.       On the Action Agenda.

6.       REZONING: Quiktrip-Chandler Blvd & McQueen Road                             Ord. #3691

 INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3691, DVR04-0049, Quiktrip-
Chandler Blvd. & McQueen Road, rezoning from AG-1, C-2 and MF-3 to PAD for a commercial
development with retail and office uses along with a Preliminary Development Plan for a gas
station and convenience store on approximately 10 acres at the SEC of Chandler Boulevard and
McQueen Road.

The site is bordered to the east by an existing apartment complex, La Cuesta, zoned MF-3, as
well as the existing residential subdivision Senate Acres. To the south are an existing apartment
complex and the City-owned vacant subdivision Trails End Manor. A Circle K convenience store
is located at the southwest corner of Chandler Boulevard and McQueen Road. At the northeast
corner of Chandler Boulevard and McQueen Road is an existing gasoline station and
convenience store bordered by vacant land zoned PAD for commercial uses.

The request was noticed according to the provisions of the City of Chandler Zoning Code with a
neighborhood meeting being held on February 8, 2005 attended by two neighbors. Staff has
received a phone call and letter in opposition and a letter in support.
                                                                             Minutes of the Regular Meeting
                                                                                      Chandler City Council
                                                                                   Thursday, May 26, 2005
                                                                                                    Page 7


Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to conditions as listed in the ordinance.

COUNCILMEMBER SEPULVEDA declared a conflict of interest on this item and did not vote.

7.     GRANT SUBMISSION:               Child Safety Seats                                  Res. #3853

APPROVED Resolution No. 3853 pertaining to submission of projects by the Fire Department for
consideration in Arizona’s 2006 Highway Safety Plan.

The Fire Department has applied for a National Highway Traffic Safety Grant in the amount of
$27,238.79 to be used specifically in the area of Occupant Protection/Child Safety Seats. The
grant requests funding for conducting Child Car Seat Safety Clinics, purchasing and distributing
child safety seats and public education on vehicle occupant safety for children.

8.     On the Action Agenda.

9.     PRELIMINARY DEVELOPMENT PLAN: Intel Ocotillo Campus Amendment 3

APPROVED Preliminary Development Plan, PDP05-0004, Intel Ocotillo Campus Amendment 3,
Phase 3 expansion on a 705-acre campus on the Westside of Dobson Road at the Ocotillo Road
intersection.

The site is bounded by the Sun Lakes Community on the south, which is also the extended
alignment of Chandler Heights Road. The western side of the property is the extension of the
Price Road alignment and common with the border of the Gila River Indian Community. Dobson
Road borders the eastern side of the property, which is also adjacent to the Ocotillo master
planned neighborhood. North of the property, which extends to approximately one-half mile south
of Queen Creek Road, is the Orbital Science industrial facility and the City’s waste water
reclamation plant, reverse osmosis water treatment facility, fire training facility and a municipal
water storage tank.

The parcel was zoned in 1993 after being planned for employment land uses in 1982 as part of
the Ocotillo master plan. Phase 1 of the development was constructed and opened in late 1996.
Amendment 2 to the campus master plan was approved in 2000, which resulted in the
construction of FAB 22 and several support buildings.

This application anticipates the potential construction of additional facilities on the campus. Intel
local management is seeking the planning approvals necessary for the expansions to pre-qualify
the site. If the approvals are granted, Intel will consider the site for the expansions. It is not
known at this time if Intel will authorize the Chandler Ocotillo campus to construct the new
facilities.

A traffic study was prepared for the current application updating the two previous studies. The
analysis indicates that the campus traffic generation is operating in accordance with expectations
and is appropriately accounted for within the City’s Transportation Plan. This traffic pattern will
change as the Loop 202 Santan Freeway is extended towards Gilbert Road and beyond. No
additional traffic mitigation measures are needed to accommodate the development.

There have been two neighborhood meetings hosted by Intel. One was held in Sun Lakes and
the second at Hamilton High School. There were no community objections that are not otherwise
Minutes of the Regular Meeting
Chandler City Council
Thursday, May 26, 2005
Page 8


being accounted for in the request. Comments were raised about the function and future use of
Price Road, on-site lighting, and the expansion plans of Memorial Airfield on the Gila River Indian
Community.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to the following conditions:

      1. Development shall be in substantial conformance with Development Booklet entitled “Intel
         Ocotillo Campus Preliminary Development Plan Amendment #3” kept on file in the City of
         Chandler Current Planning Division in file number PDP05-0004, except as modified by
         condition herein.
      2. The applicant shall work with Staff to develop a public transportation plan to identify
         existing and planned public transit facilities on and adjacent to the site.

10.      INTERGOVERNMENTAL AGREEMENT AMENDMENT: Maricopa HOME Consortium

APPROVED an Intergovernmental Agreement with the Cities of Glendale, Mesa, Peoria,
Scottsdale, Tempe, the Town of Gilbert and Maricopa County to provide continued participation in
the Maricopa HOME Consortium through FY 2008/2009 and authorized the inclusion of the Cities
of Avondale and Surprise.

All costs associated with the HOME Program and Maricopa HOME Consortium will be paid by the
U.S. Department of Housing and Urban Development and do not require repayment on the part of
the City of Chandler.

11.      HOME PROGRAM ALLOCATION

APPROVED FY 2005/2006 HOME Program allocation of $460,978.00 in FY 2005/2006 HOME
Program funds to the City’s Housing Rehabilitation Loan Program.

The City of Chandler, through its participation in the Maricopa HOME Consortium, expects to
receive in excess of $460,000.00 in FY 2005/2006 HOME funds. The HOME Program is a
federal grant to expand homeownership opportunities and improve the quality of existing housing.
This funding is exclusively available to provide for affordable housing activities such as housing
rehabilitation and down payment assistance. Programs include the Emergency Home Repair
Program, Exterior Improvement Grant, Accessibility Grant and 3 to 1 Loan Program. HOME
funds will be used exclusively for the 3 to 1 Loan Program in which families may borrow up to
$50,000.00 to renovate their homes and repay the City 25% of the principal.

At a Public Hearing on April 28, 2005, Staff presented recommendations regarding these funds to
the Mayor and Council. HARC and Staff recommend that these funds be distributed as follows:

              •    $434,978.00 – Housing Rehabilitation Loan Program
              •    $ 26,000.00 - Oversight and Administration

12.      ACCEPT GRANT: U.S. Department of Homeland Security

APPROVED acceptance of a grant in the amount of $29,349.00 from the U. S. Department of
Homeland Security and the Fire Prevention and Safety Program for the purchase of a fire safety
house for the Fire Prevention Program.
                                                                              Minutes of the Regular Meeting
                                                                                       Chandler City Council
                                                                                    Thursday, May 26, 2005
                                                                                                     Page 9


The Assistance to Firefighters – Fire Prevention and Safety Program (FP&S Program) provides
funds to assist State, regional, national or local organizations to address fire prevention and
safety. The primary goal is to reach high-risk target groups including children, seniors and
firefighters. The emphasis for these grants is the prevention of fire related injuries to children. In
May 2005, the Chandler Fire Department was awarded $29,349.00 in FY 2004 FP&S Program
funds to purchase a new 29-foot two-level fire safety house from Surrey Fire Safety House in
Napoleon, Ohio. A City match of $12,578.00 is required. The Fire Department will request
reimbursement in the amount of $29,349.00 once the fire safety house has been purchased.

13.    ACCEPT GRANT: Homeland Security

APPROVED acceptance of a reimbursable grant in the amount of $147,432.00 from the State
Homeland Security Grant Program for the purchase of respirator masks for first responders in the
Police and Fire Departments.

In FY 2004 State Homeland Security Program (SHSP) provides funds to enhance the capability
of State and local units of government to prevent, deter, respond to and recover from incidents of
terrorism involving the use of chemical, biological, radiological, nuclear and explosive weapons
and cyber attacks. In February 2005, the City of Chandler was awarded $111,600.00 in FY 2004
SHSP funds to support the City’s Rapid Response Team. An IGA between the City of Chandler
and the State of Arizona, Division of Emergency Management was executed to allow the City to
accept those funds. An additional $147,432.00 was awarded to the City on April 1, 2005. The
same IGA applies to this new award, which will be used to purchase personnel protective
equipment for Chandler Fire and Police officers.

This is a reimbursable grant, which does not require any matching funds from the City. Once
funds have been expended, the City will apply for reimbursement of these funds under the
guidelines set forth in the IGA.

14.    AGREEMENT: NEC

APPROVED an agreement for support and maintenance of the City’s Cisco networking software
and equipment with NEC, utilizing the State of Arizona contract in an amount not to exceed
$97,000.00.

15.    AGREEMENT: ASAP Software

APPROVED an agreement for various software licenses and support renewal maintenance from
ASAP Software, utilizing the State of Arizona contract, in the amount of $133,000.00. This
includes all City of Chandler’s Lotus Domino servers (processor maintenance renewal), Lotus
Notes clients (license maintenance renewal & upgrades), Novell Netware and Zenworks clients
(user maintenance) and McAfee Antivirus (subscription renewal support). These are annual
recurring costs to cover upgrades, maintenance and technical support for these applications.

16.    REJECT PROPOSALS

REJECTED all proposals for Financial Strategy for Aging Infrastructure. The evaluation
committee recommended rejection due to numerous deviations from specifications and cost of
the offers.

17.    AGREEMENT: Specialized Utility Paving & Construction, LLC
Minutes of the Regular Meeting
Chandler City Council
Thursday, May 26, 2005
Page 10



APPROVED a one-year agreement with Specialized Utility Paving & Construction, LLC, for the
installation of new asphalt speed humps as part of the traffic-calming program in an amount not to
exceed $85,000.00.

In FY 2003/04, a total of 34 humps were constructed and all were 100% City funded. In FY
2004/05, 19 speed humps were installed; 15 were 100% City funded, three were cost shared
between the City (50%) and residents (50%) and one speed hump was funded entirely by the
residents.

In May 2002, Council awarded a three-year contract to Specialized Utility Paving & Construction,
LLC with the option for two one-year extensions not to exceed five years upon mutual agreement
between the City and Contractor. The contract has agreed to this first extension of the contract
without a price increase.

18.      PROFESSIONAL SERVICES AGREEMENT: Arizona State University (ASU)

APPROVED a Professional Services Agreement one-year extension with Arizona State
University (ASU) for water testing and chemical optimization recommendations for the Chandler
Surface Water Treatment Plant, in the amount of $41,463.00.

For the past six years, the City of Chandler Surface Water Treatment Plant staff has collaborated
with ASU in real-time monitoring of source water and in-plant sites for taste and odor causing
agents methylisoborneal (MIB) and geosmin. Based on the information received from ASU, plant
staff has been able to reduce the amount of powdered activated carbon needed to reduce MIB
and geosmin in the finished water.

19.      PROJECT AGREEMENT: Builders Guild, Inc.

APPROVED Project Agreement #PR0514-401, Job Order Contract 03-13, to Builders Guild, Inc.
for Tumbleweed Park Barn and Edwards House stabilization in an amount not to exceed
$120,907.00.

Tumbleweed Ranch, located in the SEC of the park, is an area dedicated to the preservation and
interpretation of Chandler’s agricultural heritage. The first structure to be completed under this
contract is a rustic barn, which will provide storage and serve as a program site for historical
programs. The barn will also fulfill needs for future gardening and agricultural programs. The
other project included under this contract will be in the stabilization of the Edwards House, which
was relocated from downtown Chandler. The stabilization will include leveling of the house
foundation, restoring the wood roofing and siding shingles, installation of perimeter skirting,
repairing the windows and doors and painting the exterior.

20.      CONSTRUCTION MANAGER AT RISK CONTRACT: PCL Civil Constructors, Inc.

APPROVED Construction Manager At Risk Contract #WA0404-401, to PCL Civil Constructors,
Inc., for arsenic treatment systems for ten potable water wells in an amount not to exceed
$4,119,374.00.

The United States Environmental Protection Agency (USEPA) recently lowered the arsenic
maximum contaminant level to 10 parts per billion (ppb) from 50 ppb. All community water
systems are required to comply with the new arsenic standard by January 2006. The City
                                                                             Minutes of the Regular Meeting
                                                                                      Chandler City Council
                                                                                   Thursday, May 26, 2005
                                                                                                   Page 11


currently operates 28 well sites, of which 10 require arsenic mitigation. The current arsenic levels
in these wells range from 10 ppb to 18 ppb.

21.    CONSTRUCTION MANAGER AT RISK CONTRACT: Hunter Contracting Company

APPROVED Construction Manager at Risk Contract #WA0320-401, to Hunter Contracting
Company for procurement and installation of alternating frequency drives (AFD’s) as part of the
Surface Water Treatment Plant expansion in an amount of $1,371,917.64.

The Water Master Plan identifies the need to expand water treatment capacity of the existing
Surface Water Treatment Plant located near Pecos and McQueen Roads. During the study and
design phases of the project, the engineer, contractor and City staff identified significant benefits
to the replacement of the AFD’s. This equipment operates the finish water pumps, which pump
the treated water from the Surface Water Treatment Plant to the water distribution system. The
timing of the replacement has been accelerated ahead of the expansion construction due to the
age of existing equipment, expense of on-going repairs, difficulty of procuring replacement parts
and the opportunity to have this portion complete by the start of other work.

22.    ENGINEERING SERVICES CONTRACT: Black and Veatch Corporation

APPROVED Engineering Services Contract #WA0320-451 to Black and Veatch Corporation for
construction management services during phase one construction of the Surface Water
Treatment Plant expansion in an amount not to exceed $103,640.00.

The Water Master Plan identifies the need to expand water treatment capacity of the existing
Surface Water Treatment Plant located near Pecos and McQueen Roads. During the study and
design phases of the project, the engineer, contractor and City staff identified significant benefits
to the replacement of specialized equipment called Alternating Frequency Drives (AFD’s). This
equipment operates the finish water pumps, which pump the treated water from the Surface
Water Treatment Plant to the water distribution system. The timing of the replacement has been
accelerated ahead of the expansion construction due to the age of existing equipment, expense
of on-going repairs, difficulty of procuring replacement parts and the opportunity to have this
portion complete by the start of other work.

23.    ENGINEERING SERVICES CONTRACT: Wilson and Company

APPROVED Engineering Services Contract #WW0501-101, for the Construction Manager at Risk
Project to Wilson and Company for a phase one study, Airport Water Reclamation Facility
expansion, in an amount not to exceed $124,418.00.

An expansion of a Wastewater Treatment Facility will be required to begin construction by July
2007 due to growth in Chandler, as determined by using current Planning Department population
projections and by reviewing wastewater flow modeling forecasts. The design for the proposed
expansion will begin this fiscal year with a study (Phase I) of the solids handling and disposal
system needs with design to follow the following year. Construction is scheduled to begin in fiscal
year 2007-08 and be completed by the end of calendar year 2009.

24.    CONSTRUCTION CONTRACT CHANGE ORDERS: Ricor, Inc.

ACCEPTED staff-approved Change Order Nos. 1-12 in a total amount of $38,588.34 and
APPROVED Change Order Nos. 13 and 14 in an amount of $81,276.37 for Ray Road
Minutes of the Regular Meeting
Chandler City Council
Thursday, May 26, 2005
Page 12


Improvements (Arrowhead to Alma School Roads) #ST0202-401, with Ricor, Inc., for a revised
contract total of $1,706,463.01.

Change orders 1-10 represent compensation for various unforeseen conditions encountered
during underground utility installation, user-requested changes, and quantity adjustments.
Change orders 11 and 12 award an additional 87 days to contract time for delays caused by
inclement weather and an inability to secure rubberized asphalt in the winter construction season.
Change order 13 compensates the contractor for additional waterline installation. Change order
14 compensates the contractor for additional expenses incurred to provide two lanes of traffic in
each direction during the holiday season.

25.      CONSTRUCTION CONTRACT CHANGE ORDER: FNF Construction

APPROVED Change Order No. 2 to the Construction Manager At Risk Contract #ST0244-401
with FNF Construction, Inc., for Pecos Road Improvements – Dobson to McQueen Roads and
McQueen Road Improvements – Pecos to Queen Creek Roads, in an amount not to exceed
$237,920.32 for a revised contract price of $20,358,640.69.

The City of Chandler Municipal Utilities Department has requested that a section of severely
corroded sanitary sewer force main be removed and replaced. The corroded pipe was
discovered during the installation of other utilities. A subsequent investigation revealed
approximately 1000 feet of the pipe will need to be replaced. This work is beyond the original
scope of the contract and will have minimal impact to schedule.

26.      CONSTRUCTION CONTRACT CHANGE ORDERS: MMC of Nevada, Inc.

ACCEPTED staff-approved Change Orders 1-9 in the total amount of $47,649.20 and
APPROVED Change Order 10 in the amount of $21,045.81 for the construction of the Ocotillo
Water Reclamation Facility improvements for a total addition of $68,695.01 and a revised contract
total of $3,743,695.01. Construction Contract #WW0217-401, with MMC of Nevada, Inc.,

This construction contract was awarded at the October 13, 2003 Council meeting and provides
for the replacement of the headworks odor control scrubber system, structural rehabilitation of the
pretreatment building roof, improvements to the existing disinfection facilities and construction of
a new pump station and reclaimed water transmission main to deliver treated effluent meeting A+
water quality standards to the Gila River Indian Community (GRIC).

Change Orders 1, 3, 4, 6 and 7, in the amount of $28,804.85 made changes and modifications to
the effluent pipeline connections to the GRIC delivery structure, added piping to the double
containment system, and replaced two existing chlorine lines that were found during construction
to be defective. Change orders 2, 5, and 8, in the amount of $5,233.08 made miscellaneous
changes to underground conduit modifications and added additional Radio Transmitting Unit
(RTU) inputs, lighting fixture boxes and supports. Change Order No. 9, in the amount of
$13,611.27 was for the purchase and installation of a new 24” butterfly valve found to be
defective in the existing wet wells.

Change Order No. 10 (Final) in the amount of $21,045.81 will make elevation changes to the
effluent line (by tracking time and material) due to an unforeseen conflict with existing Salt River
Project electrical lines, and add programming and testing to enhance plant operations and
monitoring capabilities.
                                                                             Minutes of the Regular Meeting
                                                                                      Chandler City Council
                                                                                   Thursday, May 26, 2005
                                                                                                   Page 13


27.    CONTRACT: Sunland Asphalt

APPROVED Contract to Sunland Asphalt for the resurfacing of four tennis courts and two parking
lots at Arrowhead Park at 1475 W. Erie Street, utilizing the Dysart Unified School District contract,
in the amount not to exceed $58,650.00.

The four courts at this facility consist of an acrylic surface designed to create a uniform (non-
glare) colored wearing surface while protecting the integrity of the concrete courts. Over time,
use and weather wear the court surface down, which can change the way the ball plays. Park
staff has received requests from court users that the courts be resurfaced. The courts were last
resurfaced in 1998. The two west parking lots at Arrowhead Park were constructed in 1987. The
parking lots have deteriorated over the years and are in need of patch repair and resurfacing.

28.    CONTRACT: Fabiani Painting & Decorating, L.L.C.

APPROVED Contract to Fabiani Painting & Decorating, L.L.C., for painting of traffic signal and
streetlight poles along Chandler Boulevard, Arizona Avenue and the downtown area, in an
amount not to exceed $115,000.00.

Traffic signal poles located along Chandler Boulevard and along Arizona Avenue are to be
painted tobacco brown in color, with the exception of the downtown area. All signal and street
light poles in the downtown area will be painted Park Green, a color to match the existing street
furniture in the area. The streetlight poles on Chandler Boulevard between Emmett Road and
Gilbert Road will be painted Gallery Green in color. Staff estimates that approximately 260 traffic
signal poles, 153 mast arms and 150 streetlight poles will be painted as part of this program.

29.    CONTRACT EXTENSION: Utility Construction Company, Inc.

APPROVED a one-year Contract Extension with Utility Construction Company, Inc. for the
replacement of damaged streetlights and the installation of miscellaneous new streetlights, in an
amount not to exceed $115,830.00.

This contract is for the replacement of damaged streetlights as a result of traffic accidents or
corrosion, and for miscellaneous streetlight installations to increase lighting levels in older
developed areas. This contract is used on an as-needed basis and therefore the quantities are
estimates based on the previous two-year history. Staff has estimated that approximately 74
streetlights may be replaced and/or upgraded during the term of the contract, June 1, 2005
through May 31, 2006. Rusted streetlight pole replacements and the miscellaneous new
installations are funded from the Capital Improvement Program.

This is the first of five one-year extensions and the contractor has agreed to the extension without
a price increase.

30.    PURCHASE: Cunningham Commercial Vehicles

APPROVED Purchase of a water truck for the Streets Division to Cunningham Commercial
Vehicles, in an amount of $95,859.21.

This truck will replace the 1985 truck currently in the Streets Division fleet because of its age and
increase in maintenance costs. The new truck will be used for dust control during shoulder and
alley grading, watering roads during inspections and for cleaning storm water structures.
Minutes of the Regular Meeting
Chandler City Council
Thursday, May 26, 2005
Page 14



31.      PURCHASE: G & K Services

APPROVED Purchase of uniform rental and laundry services for eight months from G & K
Services, utilizing the State of Arizona contract, in the amount of $50,000.00.

The number of citywide employees currently renting uniforms is approximately 170. In addition to
renting uniforms, this contract also provides for the rental of entrance and hall mats and
shop/print towels. New hires are an added expense since there is a start up cost for initiating a
new set of uniforms. The number allotted to each employee varies by employee schedule and/or
position. There are also additional charges for unusual sizes, lost or damaged garments,
biohazard charges, etc.

32.      CONTINUED USE PERMIT: Adult Senior Daycare Facility

CONTINUED to JULY 28, 2005, Use Permit, UP04-0061, Adult Senior Daycare Facility, for an
adult care facility and an extension for the office located within a single-family residence, 420 W.
Chandler Boulevard. Due to additional information that will be submitted for review, the applicant
and Staff are requesting continuance.

33.      USE PERMIT: Desert Sage Herbs Holistic Center

APPROVED Use Permit, UP04-0046, Desert Sage Herbs Holistic Center, to allow retail sales and
personal services within the PCO zoning district at 1728 N. Alma School Road. (Applicant:
Owner, Vicki Greener, and Planning Consultant, Greg Loper.)

The site is zoned Planned Commercial Office (PCO) and is located across the street from a
commercial retail center and single-family subdivision. In May 1985, the property was zoned from
Single-Family (SF-7) to PCO to allow the conversion of a single-family home to office use, which
included an insurance office. The property included two lots platted as a part of Brooks Crossing
Unit Two single-family subdivision. The office zoning provided a transition between the
commercial center and the residential development.

Zoning time extensions were granted in October 1986 and February 1988. Following the last
zoning extension, the property completed construction including a new parking lot, landscaping
and converting the garage to additional office space.

In August 2004, upon a request for a sign permit, City staff notified the property owner of Desert
Sage Herbs Holistic Center that the business was not in compliance with the PCO zoning district,
and a Use Permit application is required. The PCO zoning district provides for the development
of office and related uses in a manner that is attractive for such uses and compatible with the
surrounding neighborhood. The PCO zoning district generally serves as a land use transition
between commercial and residential development.

This request was noticed in accordance with the requirements of the Chandler Zoning Code with
a neighborhood meeting being held on April 12, 2005. There were no citizens in attendance.
Staff has received no correspondence in opposition.

Upon finding consistency with the General Plan and PCO zoning, the Planning Commission and
Staff recommend approval subject to the following conditions:
                                                                              Minutes of the Regular Meeting
                                                                                       Chandler City Council
                                                                                    Thursday, May 26, 2005
                                                                                                    Page 15


      1.      The Use Permit shall remain in effect for two (2) years from the effective date of City
              Council approval. Continuation of the Use Permit beyond the expiration date shall
              require re-application to and approval by the City of Chandler.
      2.      Development shall be in substantial conformance with exhibits and representations.
      3.      Expansion or modification beyond the approved exhibits shall void the Use Permit and
              require new Use Permit application and approval.
      4.      Landscaping shall be installed within 6 months and in compliance with current
              Commercial Design Standards.
      5.      The applicant shall work with Staff to provide a decorative screen wall for the parking
              area within one (1) year.
      6.      Re-stripe existing parking spaces and provide for a handicap parking space in
              compliance with site development requirements.
      7.      Monument signage shall be in compliance with the Sign Code and obtain a sign
              permit. Wall-mounted building signage including window signs and banners is not
              permitted.
      8.      The applicant shall work with staff to upgrade the monument sign making it more
              identifiable.

34.        USE PERMIT: Quiktrip-Chandler Blvd. & McQueen Road

APPROVED Use Permit, UP05-0019, Quicktrip-Chandler Blvd. & McQueen Road, Series 10, for
the sale of liquor for off-premise consumption only at a convenience store and gas station at the
SEC of Chandler Boulevard and McQueen Road. (Applicant: Ed Bull, Burch & Cracchiolo, P.A.)

This request was noticed in accordance with the requirements of the Chandler Zoning Code with
a neighborhood meeting being held on April 19, 2005 attended by two neighbors. The Police
Department has been informed of the application and has responded with no issues or concerns.

Upon finding consistency with the General Plan, the Planning Commission and Staff recommend
approval subject to the following conditions:

      1.      Expansion, modification or relocation beyond the approved exhibits (Floor Plan and
              Narrative) shall void the Use Permit and require re-application and approval of a new
              Use Permit.
      2.      The Use Permit is granted for a Series 10 license only and any change of licenses
              shall require re-application and approval of a new Use Permit.
      3.      The Use Permit is non-transferable to other store locations.

COUNCILMEMBER SEPULVEDA declared a conflict of interest on this item and did not vote.

35.        LIQUOR LICENSE: Quiktrip #450

APPROVED a Series 10 Beer and Wine Store Liquor License (Chandler #101208 L10) for David
Gerard Cisiewski, Agent, Quiktrip Corporation dba Quiktrip #450, 1015 E. Chandler Boulevard. A
recommendation for approval of State Liquor License #10074981 will be forwarded to the State
Liquor Department. The Police Department reports no objections to the issuance of this license
and no written protests have been received. All licenses, permits and fees have been paid and
the applicant is in compliance with the City’s Tax Code.

COUNCILMEMBER SEPULVEDA declared a conflict of interest on this item and did not vote.
Minutes of the Regular Meeting
Chandler City Council
Thursday, May 26, 2005
Page 16


36.      LIQUOR LICENSE: Honmachi Sushi & Teppanyaki

APPROVED a Series 12 Restaurant Liquor License (Chandler #100623 L12) for Kangsub Byun,
Agent, The Hanaro Group Co., dba Honmachi Sushi & Teppanyaki, 3450 W. Chandler Blvd., Ste.
9. A recommendation for approval of State Liquor License #12076234 will be forwarded to the
State Liquor Department. The Police Department reports no objections to the issuance of this
license and no written protests have been received. All licenses, permits and fees have been
paid and the applicant is in compliance with the City’s Tax Code.

37.      LIQUOR LICENSE: Zorba’s Restaurant

APPROVED a Series 12 Restaurant Liquor License (Chandler #100843 L12) for Athanasios
Sakellariou, Agent, Zorba’s Restaurant, 1964 N. Alma School Rd. Ste. 10. A recommendation for
approval of State Liquor License #12076232 will be forwarded to the State Liquor Department.
The Police Department reports no objections to the issuance of this license and no written
protests have been received. All licenses, permits and fees have been paid and the applicant is
in compliance with the City’s Tax Code.

38.      LIQUOR LICENSE: Pomas Ristorante

APPROVED a Series 12 Restaurant Liquor License (Chandler #10888 L12) for Albert Poma,
Agent, Poma Ristorante, Inc., dba Pomas Ristorante, 1950 N. Arizona Ave. Ste. 8. A
recommendation for approval of State Liquor License #12076235 will be forwarded to the State
Liquor Department. The Police Department reports no objections to the issuance of this license
and no written protests have been received. All licenses, permits and fees have been paid and
the applicant is in compliance with the City’s Tax Code.

39.      LIQUOR LICENSE: Outback Steakhouse #0316

APPROVED a Series 12 Restaurant Liquor License (Chandler #100960 L12) for Randy D.
Nations, Agent, Outback Phoenix II Limited Partnership, dba Outback Steakhouse #0316, 1080
N. 54th St. A recommendation for approval of State Liquor License #12076239 will be forwarded
to the State Liquor Department. The Police Department reports no objections to the issuance of
this license and no written protests have been received. All licenses, permits and fees have been
paid and the applicant is in compliance with the City’s Tax Code.

40.      LIQUOR LICENSE: Brunswick Kyrene Lanes

APPROVED a Series 6 Bar Liquor License (Chandler #100300 L06) for Danny H. Van Wart,
Agent, Leiserv, Inc., dba Brunswick Kyrene Lanes, 6225 W. Chandler Blvd. A recommendation
for approval of State Liquor License #06070256 will be forwarded to the State Liquor Department.
The Police Department reports no objections to the issuance of this license and no written
protests have been received. All licenses, permits and fees have been paid and the applicant is
in compliance with the City’s Tax Code.

41.      CONDOMINIUM PLAT: Stellar Industrial Airpark Condominiums

APPROVED Condominium Plat, CPT05-0004, Stellar Industrial Airpark Condominiums, for an
industrial building with three individual suites on 1.6 acres at the NWC of 79th Street and Saturn
Way. (Applicant:        JNM Holdings, L.L.C.) The plat creates the condominium units and
establishes the necessary easements.
                                                                              Minutes of the Regular Meeting
                                                                                       Chandler City Council
                                                                                    Thursday, May 26, 2005
                                                                                                    Page 17



ACTION AGENDA:

5.     ZONING AMENDMENT:              Valencia II                                     Ord. #3690

INTRODUCED AND TENTATIVELY APPROVED Ordinance No. 3690, DVR05-0008 – Valencia
II, rezoning from PAD to PAD amended to eliminate the zoning condition requiring copper
plumbing in a subdivision located at the SWC of Lindsay and Chandler Heights Roads.
(Applicant: T.W. Lewis.)

Planning and Development Director DOUG BALLARD addressed the Council regarding this
agenda item. He noted that earlier in the year staff brought forward an ordinance to adopt the
2003 International Building Code. At that time, discussion took place regarding the issue of plastic
pipes. Chandler and a number of cities around the country previously experienced a series of
problems with a plastic pipe product called Polybutylene (pb), which had a troubled history
resulting in substantial litigation. The City of Chandler elected to specifically prohibit the use of
the material. As a result, a stipulation was applied to all residential rezonings stating that, “the
homes shall have all copper plumbing for those lines under water pressure.” An Ordinance was
passed in 1995 to prohibit the further use of pb and shortly after pb was withdrawn from the U.S.
market, the City was approached by several manufacturers and suppliers to approve a new
plastic pipe, cross-link Polyethylene, or Pex for short. Staff took the position at that time that the
intent of Council was to ban the use of all plastic pipes and that ruling was challenged and taken
before the Board of Appeals, where staff’s ruling was upheld. In addition, the City Council placed
stipulations on all residential zoning projects going forward requiring the use of copper pipe only.
This particular project is one of the projects that were subject to the aforementioned stipulation.
The evolution of the use of plastic pipe and the different methodologies used for its assembly and
installation has been examined by a number of different organizations, including the International
Congress of Building Officials. When the International Building Code (IBC) was put together in
2000 and 2003 (updated), Pex was allowable and in fact, the Code provided for specific
installation methodologies that addressed a lot of the failings associated with pb.

MR. BALLARD said that staff had taken a pretty conservative approach toward whether or not to
allow this plastic product and noted that Chandler was not the only City to ban pb, the earlier
failed product in Arizona. Chandler was, however, the last to allow the use of Pex, earlier this
year when the Council adopted the new Code. Since the Code itself changed and Pex is
allowable in a residential home, staff anticipated that there might be a number of residential
projects that have not yet been built that might request removal of the Zoning Code amendment.
The simple adoption of the new Building Code did not “undo” the stipulations placed on those
zoning cases requiring copper plumbing only. He explained that this project is coming forward
with a request for an amendment to the zoning to the effect of removing the “copper only”
stipulation.

COUNCILMEMBER CACCAMO said that he brought this item forward because he had a lot of
questions about it. He served on the Committee when they talked about going to cross-link
Polyethylene (Pex) and at the time he had reservations about it due to the lack of any long-range
product testing. It was pointed out at the time that copper was still in the City’s Ordinance and if
the IBC was passed, anything in the Ordinance that superseded it, would supersede it. He stated
that when they voted on this issue, he probably didn’t understand the memo that explained what
they were doing and that they were in fact approving plastic pipe. He added that he had been
referring to a previous memo that stated, “it must be noted that the use of plastic pipe as a
plumbing material is mooted by the fact that all new residential zoning contains a stipulation that
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Thursday, May 26, 2005
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only copper piping is permitted. Therefore, regardless of the provisions of the Code, plastic
piping is not permitted, nor has it been permitted, since the stipulation relating to copper was put
into place.”    He said that the contents of that memo stuck in his mind and noted that a
subsequent memo altered that language somewhat. He said that when he voted to approve the
item, he really did not have a clear understanding of what was going to occur and if he did, he
would not have voted in support of the issue.

COUNCILMEMBER CACCAMO stated that he favors the use of copper and expressed the
opinion that it is appropriate for residential use. Once there is a long-range test of Pex, he might
be more apt to approve its use. He asked what was happening with the sprinkler systems and
whether they were moving away from the use of steel pipe in those systems according to the IBC.
MR. BALLARD responded that the staff person who was going to respond to technical questions
was not present. He said he does not believe that Pex is an allowable material for sprinkler
systems, however, there is a certain type of PBC pipe that is allowable according to the Code for
certain types of sprinkler systems. The way the Ordinance was drafted on pb, it was banned for
use in all potable water systems but in any case, would not be used for fire sprinkler systems. He
confirmed that there is heat resistant plastic pipe that is allowable for use in certain situations.
COUNCILMEMBER CACCAMO said that unless there is more information about how effective
the proposed cross-link Polyethylene is, based on years and years of study, he couldn’t vote in
support of its use. He questioned whether the product has been installed in Arizona and, if so,
how long has it been used in residential installations. He also asked what type of maintenance
record exists for it. MR. BALLARD responded that the product has been in use for a number of
years and said he believes it was in use when pb was out. The product never suffered the types
of failures attributed to pb, largely because the connection methodology, the form and method of
connection, is quite different that those specified for pb. All of the failures that the City
experienced were as a result of the use of pb, however, Pex was not available at the time and pb
was the material of choice for homebuilders when all of the failures were occurring. Since the
copper stipulation was put in place, there have not been any problems. He added that Pex has
been used extensively in the state of Arizona for the last number of years in all communities.
Chandler was the last community in the State that prohibited its use and it is an allowable
material in all of the major building codes across the country.

COUNCILMEMBER HUGGINS stated that he too read the memo the way Councilmember
Caccamo did and said he simply assumed that the copper pipe stipulation would override that
specific part. He questioned whether a copper pipe code was still in place. MR. BALLARD
commented that the code has not been changed at all and copper pipe certainly is an allowable
material. The code itself was never changed to say copper pipe was the only material that could
be used; an Ordinance was adopted that banned the use of pb and then they added zoning
stipulations on all zoning cases requiring the use of copper. In effect, when pb was banned by
Ordinance, at staff level that was interpreted as banning all plastic pipes and the stipulation was
placed on all zoning cases to make it crystal clear that only copper could be used at that point in
time. MR. BALLARD apologized for any lack of clarity in the memo provided to the Council and
added that he had attempted to explain it better in the cover letter but apparently did not achieve
his goal. He noted that the building code that the City operated under at the time the Council
banned pb allowed Pex and the Council simply interpreted the change to disallow any type of
plastic pipe and the zoning stipulations reinforced their thinking.

MAYOR DUNN questioned whether they will be seeing more of these cases and MR. BALLARD
responded that they might see more cases coming forward but to date, staff has not seen this
occur and this is the only application that had come forward. Either the homebuilders are
comfortable using copper piping or their projects were far enough along so they didn’t want to
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change the piping at this point in time. Staff has not witnessed the “rash of applications” they
anticipated.

MAYOR DUNN said his recollection was a major source of the problems were with the fittings,
and asked what assurances have been given regarding the craftsmanship, the connections, and
the training. MR. BALLARD replied that it is his understanding that the installation methodology
is quite different for Pex than it was for pb and agreed that the primary failure points were the
connections, the pipe itself appeared to be fairly durable. The International Building Code and
the International Congress of Building Officials have set forth specific installation methodologies
that must be used with this particular product. The City inspectors in the field will monitor that the
proper processes are being followed. The hardware itself is quite different; there are hard brass
fittings.

COUNCILMEMBER WALLACE extended her appreciation of staff’s conservative approach to this
issue based on previous problems and said that over the past number of years representatives of
this product have come forward and requested that the Council consider using Pex. She said
that now that staff has determined that the product is working out well for other communities, it
appears to be a good choice for the City of Chandler and more cost effective for the builders as
well. She emphasized that quality has always been a top priority for the City and she appreciates
staff’s efforts to maintain the high level of quality.

COUNCILMEMBER SEPULVEDA noted that the move to copper was a result of the failure of pb
and Pex was too new at the time to really understand and it appeared then to be the same type of
material as pb. In reality, Pex and pb are two very different types of materials, the only thing they
have in common is that they are both made out of plastic. He summarized the issue by stating
that the move to copper was an “over-kill” but it was also a known material with fewer failures
than pb. He added that Pex has been on the market now for ten to twelve years and said in the
future he would like staff to look at Pex and provide information on its failure rate. MR. BALLARD
indicated staff’s willingness to monitor the product and provide information on its failure rate at a
future date.

TOM LEWIS, representing T.W. Lewis, the applicant in this case, introduced WARD GILBERT,
representing Gilbert Plumbing and EARL BROCKERT with Southwest Sales. He advised that
Gilbert Plumbing has done the exclusive plumbing work for T.W. Lewis for the past ten to twelve
years and added that they have also used Pex exclusively in projects outside of the City of
Chandler.

MR. BROCKERT said that they have been using Pex in Arizona since the end of 1995 (9.5 years)
and said that the product has a great track record and has undergone extensive testing, more
than any other water pipe in the world. The product meets 100% all of the Code requirements
and plastic has been used in sprinkler systems for a number of years. Pex is an approved
product for use in the fire sprinkler area and there are other uses for the product. He explained
how the fittings go together on the several different types of fitting connections and emphasized
that they are better fitting connections than the old pb system. There are some built-in safety
factors and the contractors who use the product receive training in the proper use of the product.
Many improved steps are in place to control both the product and its installation. He noted that
the life expectancy of the product is approximately 150 years and the chlorine testing, which was
one of the City’s concerns, has been done and proven that at five times the chlorine level of a
water-treatment plant, the material will still last over 50 years. When the amount of chlorine that
actually runs through the system is taken into consideration, the tests show that the product will
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Page 20


clearly last well over 150 years. Water softeners, salt and/or particulars have no effect on the
product’s lifespan.

COUNCILMEMBER ORLANDO asked how long the manufacturer’s warranty would remain in
place and MR. BROCKERT stated that it lasts 25 years, to the structure itself, not the individual
homeowner. Copper has no warranty protection.

VICE MAYOR WESTBROOKS questioned whether any defects in the product have been
detected over the ten to twelve year use and MR. BROCKERT advised that defects occasionally
occur. In the Arizona market, 4 to 5 million feet of pipe a month is sold and if he sees one or two
incidents a month, that is a lot. Typically he comes across one to two defects every two months
and there are sometimes defects in fittings and/or tubing but for the amount actually sold, the
defects are extremely minimal. 75% of the plumbers in Arizona are currently using the product
and they report that Pex has reduced their issues associated with copper by over 75% or greater.
With Pex, they don’t have to worry about soil or water conditions, they don’t attack the product the
way it does copper tubing. There are a lot of areas in the state that are not conducive to copper
as far as soil conditions.

VICE MAYOR WESTBROOKS asked whether Pex usage is disclosed to potential homebuyers
and MR. BROCKERT confirmed that they are made aware of this fact. Brochures are actually
distributed to the homebuyers containing all of the information regarding the manufacturer,
warranty, etc. He confirmed that prior to signing final closing documents, homebuyers receive all
of the pertinent information regarding the use of Pex.

WARD GILBERT, Gilbert Plumbing, said that his company has been in operation for over 38
years and they complete approximately 2,000 houses a year in the Valley. His company no
longer works with builders who use copper plumbing in their homes. He noted that a cultural
problem exists among the older generation of people who are used to using the copper plumbing
that came in after World War II to replace galvanized plumbing, which was inferior and caused a
lot of problems. The technology for soft copper plumbing finally became available and it was so
much superior to galvanized plumbing that everyone was amazed and happy to have it in their
homes. However, over the last 50 years as the population densities in Arizona have increased
along with increased water requirements, the water has gradually become more and more
corrosive to copper. He reported that a professional from California who deals with just water
testing was hired to conduct testing at the Ocotillo subdivisions approximately a year and a half
ago, and he found the water to be extremely corrosive to copper, especially during the summer
months when the water becomes extremely warm. He advised that a recent study was
conducted by the National Association of Corrosion Engineers (the first full scientific study
conducted that explains what is happening regarding copper tubing versus the water, soil and
corrosion issues) and offered to provide the Council with copies of that study.

MR. GILBERT advised that they learned from pb that they need to have training and the industry
needs to be more involved in who is supplying the materials, fittings and connectors and the
training. Even when they used to use pb, their plumbers were trained in its use for optimum
effectiveness. There are literally thousands of homes across the Valley (12 to 18 years old) that
contain pb and have not experienced any problems and never will the systems will last forever
because they were correctly installed. The pb failures were due to the fact that third party
manufacturers came in and offered an inferior, cheaper alternative to the factory specified fitting
and their product had no strength, the fittings actually disintegrated. He noted that his company
never used the alternative fitting and never experienced any problems. They have been using
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the Pex pipe for over ten years and have installed it in over 10,000 houses across the Valley and
have experienced one-tenth of one percent of the problems they experienced with copper.

COUNCILMEMBER CACCAMO expressed concerns regarding the product’s track record and
explained that he heard the very same arguments when pb was approved for installation in
homes. MR. GILBERT responded by providing data relative to the negative aspects associated
with copper piping and said that the copper plumbing myth has been dispelled. He added that
the copper that goes into the copper plumbing does not come from Arizona, that is way too
expensive, the copper tubing manufacturers are not required to warranty their product. The code
never anticipated the level of hardness the water has today and the velocity of the water traveling
through the copper pipe literally abrades the pipe like sandpaper, wearing it away. The ratios of
the minerals in the water are not being met so chemical reactions occur and drills holes right
through the pipes. Grounding issues also exist and compound the problem. He added that there
are dozens and dozens of examples showing how copper can fail.

A MOTION WAS MADE BY COUNCILMEMBER WALLACE, SECONDED BY VICE MAYOR
WESTBROOKS, to introduce Ordinance No. 3690, DVR05-0008, Valencia II, rezoning
amendment to eliminate the zoning condition requiring copper plumbing located at the SWC of
Lindsay and Chandler Heights Road.          MOTION CARRIED BY MAJORITY (6-1) with
Councilmember Caccamo voting nay.


   9.      PRELIMINARY DEVELOPMENT PLAN:                            Ocotillo Professional Building

Planner I KIM CLARK addressed the Council regarding this agenda item, a request for
Preliminary Development Plan approval for a two-story office building located on the northwest
corner of Alma School Road and Sandpiper Drive, a 13,314 square foot medical and general
office building on a 1.78 acre parcel. She stated that the site was conceptually zoned for
Commercial uses in 1985 as part of the Ocotillo Community Master Plan. The parcel is located
south and east of the lake that is integrated into the residential community and is bordered to the
south by open space and to the north (across the lake) by The Falls of Ocotillo commercial retail
center. The site has been carefully organized to orient views from inside the building away from
existing residences. The building is located at the site’s northern end adjacent to the lake and the
architect has taken advantage of this existing amenity and created a nice outdoor plaza around
the building’s north side that overlooks the lake. To discourage cut through traffic, vehicular
drives have been offset across the parking lot and speed bumps have been incorporated. The
building is configured in an asymmetrical layout with two separate buildings combined into one
cohesive structure by a floating cmu wall on the south elevation. A two-story breezeway is
covered by a trellis on the second floor and leads to the plaza adjacent to the lake on the ground
level. The buildings are further connected by a shared exterior walkway on the south and
northeast elevations. The north wall is a two-story glass curtain wall with bronze horizontal
mullions. The glass has been revised in response to comments from the Planning Commission.
The remainder of the building consists of stucco walls accented by the same glass panels. The
same colors and materials as The Falls at Ocotillo are proposed.

She stated the applicant had coordinated this proposal with the neighborhood and has received
positive feedback from the surrounding residents. The only concerns that have been expressed
focused on traffic. The neighborhood and the Ocotillo Association are in support of this proposal
and the Planning Commission and staff also recommend approval of this request. The challenge
of designing around three street frontages has been met and resulted in an attractive street
presence with increased landscaping and buffering between the project and the existing
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Page 22


residences. This land use is compatible with the land use that is in place and will contribute a low
impact commercial element to the existing community. The site layout, landscaping and building
architecture do meet the commercial design standards of the City of Chandler. MS. CLARK
advised that staff recommends approval of the case subject to the following stipulations:

1.       Compliance with original stipulations adopted by the City Council as Ordinance No. 1467
         in case Z85-27, OCOTILLO WEST, except as modified by condition herein.

2.       Development shall be in substantial conformance with Exhibit A, Development Booklet,
         entitled “Ocotillo Professional Building,” kept on file in the City of Chandler Planning
         Services Division, in File No. PDP04-0028, except as modified by condition herein.

3.       Approval by the Director of Planning and Development of plans for landscaping (open
         spaces and rights-of-way) and perimeter walls.

4.       Sign packages, including free standing signs as well as wall-mounted signs, shall be
         designed in coordination with landscape plans, planting materials, storm water retention
         requirements, and utility pedestals, so as not to crate problems with sign visibility or
         prompt the removal of required landscape materials.

5.       The landscaping in all open-spaces and rights-of-way shall be maintained by the adjacent
         property owner or a homeowners’ association.

6.       The monument sign’s sign panels shall have an integrated or decorative cover panel until
         a tenant name is added to the sign.

7.       The landscaping plan shall be revised to ensure compliance with all Commercial Design
         Standards. Tree sizes along arterial frontages are to be comprised of 2% - 48” box trees,
         25% - 36” box trees, and 50% - 24” box trees.

8.       The applicant shall work with staff to select glass that is non reflective in color and
         appearance for the buildings’ exterior material. The glass selection shall be compatible
         with the Falls at Ocotillo development to the north.

COUNCILMEMBER SEPULVEDA said that he has received several telephone calls regarding
this item and asked whether the project went through the Design Review process. MS. CLARK
confirmed that it did. COUNCILMEMBER SEPULVEDA stated that some of the comments he
received related to the project’s unique architecture and the callers’ opinion that the proposal
does not “fit in” with the rest of the architecture in place at the Ocotillo Shopping Center project
that has received a number of design awards. He added that he has spoken with neighbors as
well as people with businesses in the Center and noted that they feel that the existing architecture
should serve as a benchmark for architecture in that portion of the community. The blue glass
(compared to the green water) is one example of concerns expressed by citizens he spoke with
as well as the general shape of the building. He added that in many cases, especially
commercial centers, they look for architecturally graded rooflines and variations and said that
none exist for the proposal. In addition, from a neighborhood perspective, both businesses and
neighbors have expressed concerns regarding the fact that carports can be viewed from Alma
School Road.

MS. CLARK stated that as far as the glass, the Planning Commission did have some concerns
regarding the proposed color and said that some new samples were brought in and a grey, non-
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reflective alternative piece of glass has been selected to compliment the proposed building. It is
the same glass used at The Falls at Ocotillo and therefore will match what is on the other side.
She added that there is a carport that will be visible from Alma School Road and the applicant
has been requested to match it with the building as far as making the carport form non-traditional;
making it oblong in shape, able to have an enlarged fascia, and containing the same colors and
possibly some of the same materials in the columns. She explained the way that the building is
oriented (with there being two forms that are connected by the trellis) creates an unusual shape
that, when completed, will provide some form of variation.

COUNCILMEMBER SEPULVEDA commented that the parcel is a difficult one to work with as far
as shape. He asked whether Mr. Palermo provided any input from the Association regarding the
proposal. MS. CLARK advised that the Ocotillo Community Association has given their approval.
She noted that they were reluctant at first because the architecture is different but said they have
given conceptual approval of the project. COUNCILMEMBER SEPULVEDA asked whether staff
felt there was any room for improvement should the Council decide to bring the case back to the
Design Review Board for additional review and consideration. MS. CLARK responded that the
Design Review Commission and the Planning and Zoning Board scrutinized the case on two
occasions.

VICE MAYOR WESTBROOKS requested that a rendering of the project be placed on the screen
and asked staff to point out the exact location of the proposal. He asked Ms. Clark to provide a
summary of the building, Design Review Board comments and action, and concerns expressed
by the three members of the Planning and Zoning Commission who voted to deny the project.
MS. CLARK outlined the exact location of the proposed project and referred to a picture of the
site layout.

MR. PAUL BOMAN said that he has an office and home in Chandler and introduced his colleague
DR. JEFF GIRELLI and the project’s principle architect MR. DWAYNE RAY to the Council. He
said that when he and Dr. Girelli decided to place a professional office building on this parcel of
land, their instructions to the architect were to incorporate natural light into the interior of the office
suite, to make sure that they have a quality structure with Class A physical construction, be
sensitive to the surrounding community and to design timeless architecture that would provide a
pleasant and appealing presence to compliment the surrounding community. He commented that
they faced a number of challenges in that the parcel of land is surrounded by three streets, two
corners that require significant landscape setbacks, and pointed out that 40% of the site is
covered by landscaping. The other challenge the architect faced was the fact that the project is
adjacent to three distinct and different styles of construction and their intent was not to copy any
of the other styles, but simply to relate well with the surrounding community. Their goal was to
provide a nice transition from the larger retail centers to the residential community. MR. BOMAN
added the opinion that the project provides diversity because of its individual architecture and
said that it will architecturally tie into the adjacent community through the colors and materials
that will be used. He stated that they believe it is good to have an individual identify because the
proposal is a professional office building, and actually the only such building on this major
intersection in the City of Chandler. He commented on the fact that approval has been received
from the members of the Ocotillo Community Association, City staff, Planning and Zoning and,
most importantly, the citizens who surround the project and requested Council approval as well.

A MOTION WAS MADE BY VICE MAYOR WESTBROOKS, SECONDED BY
COUNCILMEMBER WALLACE to approve the Preliminary Development Plan, PDP04-0028,
Ocotillo Professional Building, for a two-story office building located on 1.78 acres at the NWC of
Alma School Road and Sandpiper Drive, in accordance with recommendations provided by staff
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Thursday, May 26, 2005
Page 24


and members of the Planning and Zoning Commission, and subject to the above listed
stipulations (including Stipulation #8 relative to selection of the glass to be used). THE MOTION
CARRIED UNANIMOUSLY (7-0).


MAYOR DUNN declared a recess at 8:50 p.m. The meeting was reconvened at 9:00 p.m.

MAYOR DUNN stated that based on the number of citizens present, he would like to discuss
Agenda Item #43 prior to #42 in an effort to accommodate the citizens.


43.      BOARD AND COMMISSION APPOINTMENTS:

MAYOR DUNN noted that this item was tabled at the last Council meeting and requested a
motion to remove the item from the table in order to discuss and consider the appointments at
this time.

A MOTION WAS MADE BY COUNCILMEMBER SEPULVEDA,                                 SECONDED BY
COUNCILMEMBER WALLACE to take Agenda Item #43 off the table.                 MOTION CARRIED
UNANIMOUSLY (7-0)

MAYOR DUNN said that he was going to divide the question based on communications he
received from a number of Councilmembers. He stated that they would first deal with approval of
the first 60 nominations followed by discussion of the remaining two remaining nominations that
involve Frank Peake of the Economic Advisory Committee and Garry Hays of the Parks and
Recreation Committee.

MAYOR DUNN clarified that the members of the Council should have received an e-mail from
Ms. Jeanette Polvani who has indicated, per the Mayor’s request, that she remain on the
Planning & Zoning Board until her replacement is approved by the Council. He emphasized the
importance of having a continuing quorum in place on that Board and he said he believed Ms.
Polvani is up for re-nomination and so she would be approved to remain on the Board until her
replacement has been appointed.

MR. STEVE SORENSON, 300 E. Commonwealth, said he wished to speak on the entire
appointment process. He stated that the purpose of a citizens’ committee is to involve citizens in
local government and added that the voices of citizens in the community is the essence of this
process. He said that if that voice is provided to only a select few or specifically qualified
individuals, they are alienating and perverting the intent of the process. He noted that the
purpose of the committees is to help steer policies, not create it, and if the City had effective
citizens’ committees for issues such as the waste transfer station, they might have avoided a
number of issues. He gave the opinion that processes need to be put in place that allow
everyone to have a voice.       This would also avoid the appearances of impropriety and/or
favoritism. He recommended that the Council create a committee composed of citizens and
Councilmembers and said they should look at term limits for individuals to allow more voices to
be heard. He added that they should look at the number of committees a person is allowed to
serve on for that same reason and spoke in favor of having alternate members available to serve
and creating sub-committees and/or ad hoc committees as needed.

In response to a question from COUNCILMEMBER SEPULVEDA regarding alternate members
for a quorum, City Attorney DENNIS O’NEILL advised that they have done this on two occasions,
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with the Planning and Zoning Commission years ago and on the Merit Board. An ordinance was
developed that stated if a committee did not have a quorum, the first alternate would be called to
fill in and if two people were needed, then the second alternate would be called. He stated the
opinion that the ordinance still allows this to occur for the Merit Board but not for the Planning and
Zoning Commission. He expressed the opinion that ordinances could be developed for each of
the boards and commissions that would allow this process to occur.

COUNCILMEMBER WALLACE said that after the meeting they had and the lengthy discussion
that took place two weeks ago, she appreciates the fact that the Mayor came forward with a
memo right away regarding the formation of a committee to look at the appointment procedure.
She also thanked Mr. Sorenson for his input.

MAYOR DUNN stated that he felt it important to get a group together that would include previous
Mayors to have a discussion of how they went about choosing the committee nominees, etc.
under the language of the Charter, which is pretty simple and direct. He reported that all of the
Mayors he has had a chance to talk with have agreed to serve including former Mayors Brooks,
Payne, Patterson and Tibshraeny and added that he intends to talk with Richard Dugan and
Kenny Thomas. He said he hopes to present the appointment recommendations to the Council in
the near future so discussions can take place. He stated that the committee would also look at
term limits and pointed out that the Council has placed term limits on three boards and
commissions to date. He noted that the former Mayors recommend proceeding with caution in
this area because they might not want to place such a restriction on certain boards and/or
commissions.

COUNCILMEMBER ORLANDO also congratulated the Mayor on his pro-active approach in
forming a committee to look at this important issue.

The Mayor urged the members of the Council to forward committee recommendations to him.

THE MOTION (as it stood from the last Council meeting) WAS MADE BY COUNCILMEMBER
HUGGINS, SECONDED BY COUNCILMEMBER CACCAMO to approve the listed appointments
(with the exceptions of Mr. Hays & Mr. Peake) to Boards and Commissions as recommended by
the Mayor. THE MOTION CARRIED UNANIMOUSLY (7-0)

Airport Commission: David Church, Jim Cullumber, Mike Wigfield
Architectural Excellence Award Committee: Michael Flanders, Maria Cadavid, Jean Makin
Architectural Review Committee: Michael Flanders
Arts Commission: Pam Tarpy, Al Pace, Thomas Cavagnaro, Carolyn Rhinehart
Board of Adjustment: Damon Testa, Gerald Boschma
Board of Appeals:     Roger Stage, Kevin Alexander
Citizens’ Panel for Review of Police Complaints & Use of Force:
        Mark Healy, Lorrie Washburn, Randy Hansen, Frank Keough, Charles Bown,
        Stephen Barnes, Lupe Deihl
Chandler Cultural Foundation Management Board:
        Ailene Anderson, Steena Murray, Everett Tackett
Economic Development Advisory Board:
        Dan Kush, Kearney Adams, Steve Fisher, David Basha (At Large), Darwin Wall (At Large)
Human Relations Commission: Gina Hill, Ana Regalado, Ed Clavell
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Thursday, May 26, 2005
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Housing & Human Services Commission:
       Joe Diaz, Ari DeAndrado, Deb Arteaga, Susan Appel- Brewer (replacing Lynda Dallyn),
       Marc Erpenbeck, Virginia Cardenas
Mayor’s Committee for the Aging: LaVerne Johanson, Bert Johanson
Mayor’s Committee for People with Disabilities:
       Joan Barron, Lavonne Wiggins, Christopher Brown
Mayor’s Youth Committee: Shalin Sheth, Stephen McGinnis
Merit System Board: Daniel Pote, David Burks
Municipal Property Corporation: Jason Vanacour
Museums Advisory Board: Hal Whitehead, Dr. Noel Stowe
Neighborhood Advisory Committee: Doug Roberts, Ben Schwatken
Parks & Recreation Board: Steven Bjornstad, Philip Hettmansperger
Planning & Zoning Commission: Michael Flanders, Richard Gulsvig, Jeannette Polvani
Transportation Commission: Kevin Ringer, Burrell Price, Frank Peake Tim Ryan


MAYOR DUNN advised that he has nominated Garry Hays to serve on the Parks & Recreation
Board and asked him to come forward at this time and present his remarks.

MR. GARRY HAYS, 1845 E. Locust Place, stated that he was at the meeting because he had
heard that of concerns with his nomination. Two of the concerns expressed are that an
application was not submitted and that he would be jumping from one board to another. He
stated that he thought he had an application on file since he submitted two applications over the
last three years. In the absence of a current application, he provided the Council with personal
background information and said that as a father, he understands the importance of providing
children with excellent parks throughout the City and he would like to continue to work towards
that goal. He stated that he appreciates the Council’s service to the community and members’
service to their country as well and noted that he served as a military policeman in the Army for
nine years. He also served the State as Chief of Staff to an Arizona Corporation Commissioner in
addition to serving the County, the City and the community. He brought up the fact that some of
the Councilmembers had a concern regarding “switching boards,” from the Merit Board to the
Parks & Recreation Board and explained that because of his military background and the fact that
he has a law degree, he was asked by the City to fill an open slot on the Merit Board for the
remainder of a term, one year, in order to help address a major case that was coming forward.
He said that he was reluctant to serve on that committee but felt a sense of duty to comply. He
informed the Council that he would like to serve on the Parks & Recreation Commission and
hopes that the Council will support his nomination.

COUNCILMEMBER WALLACE stated that she does have a copy of Mr. Hays’ application that
was submitted to the City Clerk’s office to serve as a member of the Merit Board. She added that
the Clerk’s office keeps excellent records and has done so for many years. She commented on
the fact that she called Mr. Hays directly to voice her concerns, which had nothing to do with him
personally. MR. HAYS stated that after going through the Chandler Leadership Program several
years ago and being encouraged to serve the community, he submitted an application to serve on
Parks, Planning & Zoning and one other committee. When he was asked to serve on the Merit
Board last year, he filled out another application but assumed that there was still one on file for
the Parks Board.

COUNCILMEMBER WALLACE expressed appreciation to Mr. Hays for serving on the Merit
Board, which has been a very time consuming endeavor.
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COUNCILMEMBER SEPULVEDA said that it is all about service and they would all be remiss if
they did not thank Mr. Hays for his service to the community. He said that the issue he is
concerned about is one of equity and noted that a number of the applications on file were
submitted in the mid 1990’s. He commented on the fact that Chandler’s population has doubled
since that time. Many citizens who have not participated before have shown an interest in doing
so. It is not a matter of saying that Mr. Hays’ service has been bad, it is a matter of looking at a
policy that is inclusive in order not to exclude anyone. He added that the fact that Mr. Hays
served on the Merit Board certainly adds weight to his application but the overriding issue, as
they both discussed, is the equity issue, and if a person has served on a board or commission,
there are others waiting in line to serve their turn.

MR. HAYS replied that he understands the equity issue but said that out of the 62 names, he is
the person standing before them and after serving the City for a year, it is difficult not to take this
issue personally. He pointed out that there are people who have served on the same boards
since the early 1990’s and some who are in their second term and were first appointed in 1993.
He asked the Council to allow him to serve his community in this capacity.

COUNCILMEMBER SEPULVEDA noted that not all of the 60 people who were just appointed
started serving in the 1990’s but some of them have and that is one of the issues that they talked
about and determined must be addressed. He referenced the large number of applications that
have been received from citizens wishing to serve on various boards and committees.

COUNCILMEMBER ORLANDO said that he and Mr. Hays have talked over the last couple of
weeks and he appreciates his input. He emphasized that they are not talking about Mr. Hays’
qualifications, he is extremely qualified and a nice person, but said that when they dissected the
appointment process, the only consistent thing that seemed to be working was the application
process. People came in, submitted an application, and it was filed under the particular board or
commission that person wished to serve on. In this case, there is no application from Mr. Hays
for Parks & Recreation but there are approximately 8 other applications that have been submitted
to serve on that Board. He stated that there was a similar case before the Council this evening
where they approved a person going from one board to another and explained that the person
had good reasons for doing so and on that person’s application, the person said that he wanted
to serve on that particular board because it was her passion and she was approved for her
second choice. She had an application on file and went from one board to the next. He stressed
the importance of consistency and said as far as approving individuals, during his one-year
tenure on the Council he has approved approximately 104 nominations out of 106, almost 100%,
and every one of the candidates submitted an application or applied for particular commissions or
boards. He stated that he views it as a 98% selection or success rate. He also commented that
people have called him to voice the fact that their applications are still on file while someone who
has not submitted an application for this specific position receives the nomination for the open
slot. He said he was unable to answer them and that is his dilemma at the current time.

MR. HAYS reiterated that he filled out an application and submitted it and assumed that the
application remained on file. He added that he feels as though he is being placed in the position
of defending himself.

COUNCILMEMBER CACCAMO commended Mr. Hays for serving as a member of the Merit
Board when being asked by the City to do so. He said that if he were Mr. Hays, he would feel like
he had “paid his dues” so that he could serve on a board or commission that really interested him.
He added that he does not view it as jumping from committee to committee but rather paying his
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Chandler City Council
Thursday, May 26, 2005
Page 28


dues to get appointed to the committee he really wants to serve on. He stated that he respects
Mr. Hays’ position and he has his support.

VICE MAYOR WESTBROOKS said that he agreed with 99% of the comments that have been
made by both sides. He added that the point that stands out is the fact that the process at this
point in time is broken and they would not be here this evening if it was not. He emphasized the
importance of fixing the process and said that a committee is going to be put together to bring
forward some ideas to help develop a policy on how to handle various situations. He said that
what brought this to light is citizens who called and said their names have been on a list for years
and they haven’t heard what the process is, or why they weren’t selected, etc. He added that a
citizen advised him personally that someone who is currently serving on a board is moving to
another board that that person had submitted an application to serve on quite a while ago, without
submitting an application. He said that the person did not feel that the process was fair and
indicated that information on the process itself should be disseminated to citizens before actual
decisions are made. He spoke in support of enhancing the current communications system and
keeping applicants in the loop as far as their applications are concerned. He agreed that the
current process is simply not a fair one and needs to be fixed. He thanked Mr. Hays for his past
and current desire to serve the community and said he appreciates all the effort he has put forth.

MR. HAYS commented that the process seems to be broken for just two people, not the other 60
appointees. He again said that he filed an application three years ago and simply assumed that it
was active, remained on file, and after serving on the Merit Board he called the Mayor, as many
others have done, and asked to be appointed to the Parks Board.

VICE MAYOR WESTBROOKS stated that when he is contacted by citizens wishing to serve on a
board or commission, he advises them to submit an application to the City Clerk’s office. Mr.
Hays said that that is exactly what he did three years ago and it should still be on file.

COUNCILMEMBER HUGGINS said that the City really needed some help when they asked Mr.
Hays to fill the one-year time-consuming position and noted that it was okay for the City to ask
him to serve, but now some are saying it is not right for him to call and ask to be appointed to a
Board he is interested in serving on. He commended Mr. Hays for his work on the Merit Board
and stated that he had his support as well.

COUNCILMEMBER ORLANDO asked City Clerk Marla Paddock whether the applications that
are submitted are simply kept on file after being received. MS. PADDOCK responded that if the
City is not currently recruiting for a position applied for, her office typically sends out a letter
advising the citizen of this. However, if a vacancy does exist and recruitment is taking place, the
applications are placed in a file until the Mayor reviews them. She said that if an application had
been filed to serve on the Parks & Recreation Board, it should be in that file.

COUNCILMEMBER ORLANDO commented that when Mr. Hays was asked to serve on the Merit
Review Board, he submitted an application and knowing that this is the process to be followed, an
application to serve on the Parks & Recreation Board should have been submitted or at a
minimum he should have checked to ensure that his previous application was still on file and had
not expired.

MR. HAYS said that had he known that his application was no longer on file, he would have
submitted another one but since he filed the application with the City, he just assumed that it was
still on file. He asked whether applications get destroyed if there are no openings when
submitted. MS. PADDOCK explained that the City has a three-year retention period on
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applications and unless she has talked with the applicant since that time, and they have indicated
a desire to continue having the application remain on file, the application is destroyed after that
time period. MR. HAYS advised that he was not aware of the City’s retention policy and since he
submitted his application over three years ago, there is a good chance that it has been destroyed.

COUNCILMEMBER SEPULVEDA stated that just as Mr. Hays’ application was specifically
geared to serve on the Merit Systems Board, other applications have been received and are on
file from citizens specifically wishing to serve on the Parks & Recreation Board. He encouraged
Mr. Hays to stay involved in the community and not to let this deter him from serving in other
areas.

MR. HAYS requested that the Council support his application to serve as a member of the Parks
& Recreation Board.

MAYOR DUNN thanked Mr. Hays for participating in a very difficult process. He commented that
the process is not broken, the Charter is very clear that it is the responsibility of the Mayor to
make nominations and the Council can vote in support or opposition. He said that he has served
on the Council for eleven years and has recommended over 300 appointments, all approved by
the Council. He added that during the 8 years he served with the previous Mayor, countless
nominations were all approved. He stated that they are focusing on a technicality and saying he
can’t be appointed because he didn’t list the proper board on an application. He noted that he
has received applications that say “appoint me to any board you want” or ones that list up to 7
boards. He added that members of the Council would call him and say they have recruited
someone for a certain position and he tells the person to submit an application. He emphasized
that it is just a technicality and a situation he has never witnessed since he began serving on the
Council. He stated that Mr. Hays is unbelievably qualified to serve on the Parks & Recreation
Board and briefly reiterated his qualifications. He said that Mr. Hays called him and said he
wanted to serve on the Board because he was tired of putting in the long hours on the Merit
Board. He commented on the fact that he has actually gone out and recruited applicants when
there were none on file for certain openings based on the need to have a diverse board
composition. He said he advises them to submit an application but that is not a legal
requirement. He added that they cannot appoint everyone to boards and commissions but it is
the Mayor’s responsibility to try and bring in the best talent, the most qualified people to create
the most balanced boards and committees, which will better serve the community.

The Mayor stated that he finds it very disappointing and sad that the Council would treat a citizen
in this manner. He added that he has heard their reasons with the primary reason being Mr.
Hays’ failure to list the right board on an application and said he believed this was petty, personal
and political.

COUNCILMEMBER WALLACE advised that the only person who is making the matter person is
the Mayor and said she has made it very clear that she does not know Mr. Hays. She noted that
for as long as she has been sitting on the Council, she has requested that the City Clerk provide
her with copies of all applications when they are filed so that she can familiarize herself with their
qualifications. She said that there was no application and therefore she had no idea what Mr.
Hays’ qualifications were other than what was listed on his application for appointment to the
Merit System Board and his written resume. She stated that the City Clerk, at her request,
provided her with all six applications that were submitted for possible appointment to the Parks &
Recreation Board. Some of the applicants had been waiting to be appointed for six years or less.
She said that she has never voted against an appointment during her seven years on the Council
as far as she can recall, and agreed that the Charter is very clear in that the Mayor brings forth
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Chandler City Council
Thursday, May 26, 2005
Page 30


the recommendations and it is up to the Council to approve them or disapprove them. She
emphasized that she is basing her decision on the fact that she wanted to be inclusive and
pointed out that there are 160 people waiting in the stack of applications to serve on boards and
commissions. She also concurred that term limits should be put into place due to the extensive
population growth so that more people have the opportunity to serve. She added that she is
looking forward to the formation of the committee and the recommendations that will result.

MAYOR DUNN agreed that that is true for every board and commission and there were certainly
more applications received for the 60 positions that were filled this evening. He added that this
would remain a fact of life - more applications than opportunities. He noted that the application
consists of a single page and is intended to indicate the name, address, years of residency, a
couple of blanks to fill in information and many times, in order to narrow his choices down, he has
called the individuals for additional information. He added that the primary purpose is to establish
their address and length of residency.

MR. HAYS said that he understands exactly where Councilmember Wallace is coming from and
what she said this evening is exactly what she said in her voice mail. He added, however, that he
does not have a term limit issue and that is what she talked about. He agreed that the issue of
term limits should be addressed to provide additional opportunities but clarified that that is not his
issue. He stated that he does not believe his situation fits into what she described as being a
problem. He added that many of the people who were appointed this evening do have term limit
issues but said he is not one of them.

COUNCILMEMBER WALLACE clarified that what she did tell Mr. Hays was that she could not
support him, she did not know him and it wasn’t personal, but she could not support his
appointment for the reasons that there were people who have been waiting years to serve on this
board and his application was not submitted. She added the opinion that those people deserve
consideration for this appointment.

COUNCILMEMBER SEPULVEDA referred to the Mayor’s previous remarks and said he would
like to take issue with the term “petty.” He stated that he has spoken with Mr. Hays and Mr.
Peake and people on their behalf and has spent a lot of time on this Council as well. He agreed
that it is the Mayor’s prerogative to appoint and the Council’s prerogative to approve or
disapprove the recommendations. He noted that there is a process that should be followed and
the process was followed by several of the Councilmembers who reviewed the applications on file
and endorsed an applicant who had a very definite interest in parks. He said that this issue is not
personal, it is about fixing the process and it’s not broken but it’s close. He added that it is also
about communication. He noted that previous Councils had discussions with the Mayor regarding
his recommended appointments and said that he has not had any discussion with the Mayor
regarding the appointments.

COUNCILMEMBER ORLANDO commented that this is no more political than it smacks of
“cronyism” and said that he does not believe it is either. He discussed the extensive time he has
spent with Mr. Hays and the Mayor in an effort to avoid letting the issue get to this point. He
pointed out that if he was going to be political, he would not have bothered talking to the Mayor or
Mr. Hays, he would have tried to “work” the issue. He emphasized that he has tried to find a
solution to the problem and added that he too takes issue with the term “petty” and the word
“cronyism,” which he also heard this evening.

MAYOR DUNN concurred that they did discuss the issue and disagreed as to how this individual
should be treated as well as the reasons for his denial.
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                                                                                    Thursday, May 26, 2005
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COUNCILMEMBER CACCAMO reiterated his previous remarks and said he felt bad for Mr. Hays
and he should not have to undergo this type of treatment.

VICE MAYOR WESTBROOKS posed questions regarding the applicant who was selected and
the fact that the person has indicated that at this time he/she does not wish to serve due to the
situation. He said that he does not believe the matter is political or petty, and said he too takes
that remark personally. He added that he is sorry that the situation was allowed to get to this
point. He stated that if the process is not broken, then they should not be putting a committee
together to help them develop a policy.

MR. HAYS remarked that the members of the Council do not take the matter personally because
they are sitting there but he is the one standing in front of the “tribunal” defending himself and his
actions in an effort to serve his City. He added that the situation is personal for him as he stands
there before them defending himself.

COUNCILMEMBER SEPULVEDA reiterated that the issue relates to the process, not the person,
his qualifications or willingness to serve and not the result of the fact that the Mayor did not
discuss the appointments with him. He said it is about the duty of the Mayor, in his opinion, as
the leader of this elected board, to communicate and that is an issue he and the Mayor will work
on. He asked Mr. Hays not to personalize the situation and added that he appreciates Mr. Hays’
friendship.

MAYOR DUNN stated that he did not want to recount conversations he has had with members of
the Council but said that he and Councilmember Sepulveda did discuss it but he did not perhaps
talk to them prior to making his 62 nomination selections. He said that Councilmember
Sepulveda made it very clear during a conversation that he was not going to vote for Mr. Hays
and there was no window of opportunity for any further discussion. He added that he would like
to bring the discussion on this item to a conclusion and thanked Mr. Hays for addressing them
this evening and for his service to the City, the community, his country as well as the extensive
hours he served on a State and County level.

MR. RICK HEUMANN, 4310 W. Dublin, said that some good ideas came out of the last meeting
as far as the process itself, i.e. proper applications and requirements for the different
commissions, a Citizens’ Academy prerequisite, and term limits, which should not be a blanket
approach. He noted that because someone’s application has been on file for several years does
not necessarily mean that the person is qualified to serve on a board or commission. He
requested than an agenda item be noticed to discuss the process and agreed that a committee
should be formed to properly undertake this matter.

MR. MICHAEL CASON, 1619 E. Whitten Street, stated the opinion that the process is not broken
and if the Council looks at the various committees and all of the work they have carried out over
many years, they will find that they all function correctly and do what they are supposed to do.
He added that they all contain people who make the operation work. He said that he believes it is
the Mayor’s province to select people and that the rest of the City Councilmembers need to
discuss that and decide whether to support or oppose the Mayor’s recommendations. He added,
however, that to come to a public forum such as this and speak about a single person is wrong
and all of these things should have happened in a more friendly, citizen-responsible manner. He
requested that the members of the Council support the Mayor’s decisions and stressed the
importance of interaction when making important decisions.
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Chandler City Council
Thursday, May 26, 2005
Page 32


MR. GREG DUTTON, 4683 W. Tara Drive, said that he too sat through the last Council meeting
and he does not know any of the parties involved but he would like to serve on a committee in the
future so he was present to learn about the process. He stated that he has served on ad hoc
committees in the past and has had many opportunities as a citizen to provide input as do all
citizens. He commented that the Mayor is elected to be the leader and choose people who can
effect change within the City. He noted that the Mayor has nominated individuals for the various
openings and he trusts his judgment. He said that if the only reason Mr. Hays is not being
selected for this board is because he does not have an application properly submitted and on file,
then he believes they are acting petty. He stated that the Mayor has selected someone who is
obviously extremely qualified to serve on that committee and he would like to see Mr. Hays
appointed to represent him on the Parks & Recreation Board.

MAYOR DUNN thanked the speakers for their input.

Additional discussion ensued relative to the importance of appointing people who will effect
positive change for the City to lead it in the right direction and the fact that there is probably a
reason why those people who do not know the Mayor or any members of the Council, but who
wish to serve on a committee or board and are qualified, still never seem to get to the top of the
list; the fact that during that long time period, their applications have been reviewed by the Mayor
and members of the Council so in essence they have had every opportunity to have their
qualifications scrutinized; and the importance of encouraging people who want to participate to
submit an application but allowing those who do not to also be considered.

COUNCILMEMBER ORLANDO questioned the meaning of the word “qualified” and said that is
another subjective criteria that will need to be discussed. He stated that he has no doubt that
there are qualified people out there but the only thing that he has that is a consistently factual tool
and that he is basing his decisions on this evening, is the fact that when you go to the website it
says “fill out an application.” He noted that the application is the first step in the process and
must be consistently followed.

MAYOR DUNN thanked the Council for their input.

MAYOR DUNN noted that the vote now is whether Mr. Hayes will serve on the Parks &
Recreation Board. In response to clarification, Mr. O’Neill explained that earlier the Mayor divided
the question on the motion that was taken from the table.

THE MOTION FAILED FOR LACK OF A MAJORITY (3-4) WITH VICE MAYOR WESTBROOKS
AND COUNCILMEMBERS SEPULVEDA, WALLACE AND ORLANDO VOTING NAY.

MAYOR DUNN advised that they would now consider the appointment of Mr. Frank Peake to the
Economic Development Advisory Committee.

MR. FRANK PEAKE, 2693 E. Birchwood Place, provided brief background information and noted
that he has been a Chandler resident since returning from Desert Storm and has volunteered
service throughout the community for many years while raising his family here. He noted that he
currently serves as Chairman of the Transportation Commission, is Chairman of the Maricopa
County Transportation Advisory Board representing District #1, served as a member of the
Executive Bond Committee, as requested by the City, is on the Board of Directors for the
Downtown Chandler Community Partnership and Chairman of the Downtown Revitalization
Committee for the Downtown Partnership, is a member of the Board of Directors for the Chamber
of Commerce, is a graduate of the first Citizens’ Services Academy, and a charter member of the
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                                                                                   Thursday, May 26, 2005
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Chandler Economic Development Advisory Board. He also provided information on his extensive
banking background, said he likes to serve the community and believes he can effect positive
change for the City.

MR. PEAKE stated that he is here this evening as a nominee for a second term on the Economic
Development Advisory Board and that he understands the issues discussed this evening. He
said that he looked forward to receiving the Council’s unanimous support once again for the
nomination and added that he brings a local and regional perspective to this Board, which he
believed is vital. He noted that he has had conversations with just about every council member
and appreciates the calls and comments he has received. He added that it is very difficult to
stand up there and be singled out from the 61 other applicants but he is here to say that he is
willing to serve and capable of doing so and would appreciate their support.

MAYOR DUNN thanked Mr. Peake for his service to the community and asked when he was
originally appointed to serve on the Economic Development Advisory Committee. MR. PEAKE
responded that it was fairly recent and was a one-year appointment. He explained that when the
Committee was formed, the actual appointments did not take effect until later on so it was really
not a one-year term, it was considerably less. MAYOR DUNN noted that by the time Mr. Peake
was appointed, it was within months of the term’s expiration (only three meetings have been
held). The Mayor noted that Mr. Peake’s initial appointment was unanimously approved. He said
that what he has heard is an area of concern among the Council is Mr. Peake’s change of
employment and explained that the City has categories on the Economic Development Advisory
Committee. He asked Mr. Peake to explain the circumstances surrounding that and how he feels
his experience is still applicable.

MR. PEAKE stated that he was recruited by a company to take over their six companies in the
development contracting industry. He noted that he was in banking for close to ten years serving
in various high level capacities. The change, for him, is technically a change out of the industry
but he is still serving in a financial capacity and has many years of experience behind him in the
industry he would represent.

COUNCILMEMBER WALLACE commented that earlier this evening he was reappointed to the
Transportation Commission (part of the 60 initial appointments). She commended him on his
work with regard to the Commission. She explained that her reason behind not supporting his
reappointment to the Economic Development Advisory Board this evening is based on the fact
that he is currently serving on a commission (as well as the County’s Transportation Advisory
Board) and the fact that this is a specific appointment for financial services and Mr. Peake is no
longer in the banking business. She pointed out that there is an application on file in the City
Clerk’s office, prior to this nomination coming forward, from a local bank president who has been
involved in the community for many years as well. She said that since there is another person
who is in the banking business, and will therefore remain current on banking issues and
opportunities and issues that change in that field, she is inclined to support that application and
allow someone else the opportunity to serve the community. She emphasized that her vote not to
approve the reappointment is not personal; this is basically a vote in opposition in order to be
more inclusive in the community and to involve someone else in the community who has been
and remains active in the banking business.

MR. PEAKE thanked Councilmember Wallace for her comments and said he was aware of the
fact that another applicant was interested in filling that slot. He commented that the other
applicant is certainly as qualified or more qualified than he is but added that he believes he brings
to the table something that the other applicant may not, and that is the other aspects of the
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Chandler City Council
Thursday, May 26, 2005
Page 34


community that would need to be taken into account from an economic development standpoint.
He noted that a transportation perspective is crucial to economic development and the
experience he has gained as a result of serving on the DCCP and Chairing the Revitalization
effort for the downtown is also key. MR. PEAKE added that he is also a resident of Chandler and
he believes that to be an important point.

MAYOR DUNN asked whether Mr. Peake was serving on the Transportation Commission when
he was unanimously approved by the Council for his initial appointment to the Board and he
responded that he was. He added that he was serving as Chair of the Commission at that time.

COUNCILMEMBER ORLANDO commented that the last time that he approved Mr. Peake’s
appointment, he and Mr. Peake had a discussion and he told Mr. Peake that he had concerns
regarding the possibility of him “maxing” out his time framing. He said he knows that Mr. Peake
does an excellent job on the Transportation Commission and stated that he was a little concerned
that the appointment to EDAB as well would be a difficult task to handle. He noted that at the
time Mr. Peake stated that he intended to only serve the remaining portion of the one-year
appointment and then move on. He said he was confused now because Mr. Peake is seeking an
additional term.

MR. PEAKE responded that the initial appointment to EDAB was one of uncertainty as to the
direction and to the scope that the original Board would take. He stated the opinion that no one
fully comprehended the full scope of the Board at that time and, based on his current
involvement, he feels he would be remiss if he advocated those responsibilities to someone else.
In addition, he noted that he only had the opportunity to serve for a brief period of time and has
not received the full scope and benefit of the initial term.

MR. PEAKE commented that during his first EDAB meeting, he was not aware that not all of the
members of that Board were Chandler residents. He expressed the opinion that that speaks
directly to the point of getting Chandler residents involved. COUNCILMEMBER ORLANDO
clarified that they appointed people who have regional influence that could benefit the City of
Chandler.

MAYOR DUNN noted that Mr. Peake is just one of several members who were re-nominated by
him based on the feeling that they only had the opportunity to serve for a few months.

COUNCILMEMBER SEPULVEDA advised that he and Mr. Peake have had many conversations
and as far as the requirements for EDAB, he does not believe the members have to be Chandler
residents, though it is a plus. He added that he and the Mayor had a discussion regarding his
reappointment and said that his concern was that at the time, they were asking for a person in a
specific field to serve on that Board, namely in a financial category, and Mr. Peake was in finance
at that time. He commended Mr. Peake on his service to the City and stressed that this has
nothing to do with his qualifications or level of expertise. He added that it must be very difficult to
be standing where he is and be subjected to an inquisition. He said that that was never anyone’s
intent. He agreed with a previous speaker’s comment that issues such as this should be decided
in private.

COUNCILMEMBER ORLANDO apologized for the fact that Mr. Peak was placed in this particular
situation. He reiterated that the Council only approves or disapproves the appointments and
provide reasons for their decision and added that he was not the one who made the nomination.
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VICE MAYOR WEST BROOKS concurred with Councilmember Orlando’s remarks and added
that both votes could have been handled differently, they could have been voted all together and
they could have just noted that they didn’t want to vote for certain individuals and move on. He
thanked Mr. Peake for his service to the community and explained that it would be difficult to
allow someone to serve on two committees when there is a long list of qualified applicants who
want to serve on just one.

MR. PEAKE said that he appreciated the Council’s comments and the fact that they
acknowledged those who are currently serving the community. He noted that he too was once in
the position that the long list of applicants are in a number of years ago and discussed his efforts
to get appointed, including attending the Citizens’ Services Academy, started attending Council
meetings and made it a point to introduce himself to the members of the Council. He further
expanded on his efforts and stressed the importance of appointing applicants who are going to be
pro-active rather than reactive as he was in pursuing a position on one of the boards. He
discussed difficulties the City is experiencing in filling some of the boards and commissions and
said that this an area the committee previously discussed can address. He added that he would
be curious to know how many applicants actually meet the qualifications for the EDAB slot aside
from himself and the other banking representative. He further noted that he is a Chandler
resident while the other applicant is not. He stated that he would appreciate the Council’s support
but if it is not forthcoming he will understand because they have to vote in the direction they need
to.

MAYOR DUNN noted that both applicants chose to address the Council regarding their
reappointments. He commented that the situation now and a few months ago are identical and
there is no reason why the vote should be unanimous approval once again. He cautioned against
focusing on the fact that he is no longer working in the banking industry because they look more
at experience than perhaps the technical job position. He said that they were going to have to be
careful with all of the categories that they choose. He added that he is grateful that he is not
hearing now is what he heard during previous discussions with members of the Council, namely,
that Mr. Peake had political aspirations of someday being on the Council. He commented that
the appointees have the opportunity to learn a variety of things and if they decide to move up to
the dais, they will have the experience that will make them better Councilmembers.

COUNCILMEMBER WALLACE pointed out that when the Mayor brought forth Mr. Peake’s initial
recommendation for appointment, he was to serve as an at-large member of EDAB and the name
of another local banker were also brought forward to fill the financial services category. In this
case he is bringing Mr. Peake forward to fill the financial services category and reiterated that he
is no longer in the banking business while another applicant remains active and may better serve
the community. She expressed the opinion that this is a major difference.

COUNCILMEMBER CACCAMO thanked Mr. Peake for his extensive service to the City and for
going through this process. He added that sometimes people think you are stretched too far if
you serve on a lot of committees but said that the cliché “went you want something done, give it
to a busy person,” does hold true. He said that Mr. Peake is a good candidate and he values his
experience and expertise.


THE MOTION TO APPROVE THE REAPPOINTMENT OF MR. PEAKE TO THE ECONOMIC
DEVELOPMENT ADVISORY BOARD FAILED FOR LACK OF A MAJORITY VOTE (3-4) WITH
VICE MAYOR WESTBROOKS AND COUNCILMEMBERS SEPULVEDA, WALLACE AND
ORLANDO VOTING NAY.
Minutes of the Regular Meeting
Chandler City Council
Thursday, May 26, 2005
Page 36



THE MAYOR declared a recess at 10:55 P.M. and reconvened at 11:10 p.m.


#42      ADOPTION OF THE 2005-06 TENTATIVE BUDGET                                       Res. #3861

MAYOR DUNN said that at their last special meeting there were several significant amendments
that occurred at that time involving areas of major concern to the Council, namely growth issues,
transportation and public safety. He noted that this evening they would be continuing with that
effort by adding on to the things they have already accomplished. He added that although they
did not necessarily agree on one significant policy, they did agree to approve significant dollars
for these areas to address issues of growth, particularly in south Chandler. He reported that
monies would be allocated to advance all arterial road projects in southeast Chandler (expedite
work one to three years). He thanked the Council for their efforts in this regard. He added that
public safety was also a major concern of the Council and they are not only moving up a police
substation along with a wetlands project in southeast Chandler, they also found it necessary to
hire five additional officers along with literally doubling the force in southeast Chandler through
the leadership of their Police Chief by dividing one large beat into two smaller beats and adding to
that. He spoke in strong support of these actions. He expressed appreciation to staff for their
extensive efforts.

VICE MAYOR WESTBROOKS reiterated that the first item is the acceleration of adding police
officers for Chandler and the request is to add an additional four officers in response to extensive
growth and the need to provide high-level service in this area. He added that the other critical
need is response time goals, five minutes for police officers and they are currently at six, and nine
minutes in southeast Chandler. And the third is the increase in calls for service for police. He
said that these are the reasons he believes justify the additional funding.

A MOTION WAS MADE BY VICE MAYOR WESTBROOKS, SECONDED BY
COUNCILMEMBER HUGGINS for the use of one-time funds from the Economic Development
Opportunity reserve for FY05-06 and ongoing funds for FY06-07 to add an additional four police
officers and associated costs in order to meet increased demands.

MAYOR DUNN noted that the total amount is $356,987.

In response to a request from the Mayor, PAT WALKER provided a brief explanation of one-time
and ongoing funds associated with the motion. She noted that it is proposed that the funding for
the four police officer positions come from Strategic ED Opportunities designated reserve for
2005-06, and from on-going funds beginning in 2006-07.

VICE MAYOR WESTBROOKS recommended that the Police Chief and her staff determine where
the officers are placed based on the most critical needs.

COUNCILMEMBER ORLANDO thanked the Mayor and the Vice Mayor for bringing these issues
forward and the Chief advised that his recommendation is that they be police officers and not
sergeants or above. He concurred that they will be used at the Chief’s discretion. The Chief
advised that the department is looking at response times on all of their beats to determine the
best utilization for the additional officers. She added that they could possibly be used to remove
some of the responsibilities currently carried out by the patrol officers.
                                                                             Minutes of the Regular Meeting
                                                                                      Chandler City Council
                                                                                   Thursday, May 26, 2005
                                                                                                   Page 37


The Mayor said he has received several speaker comments and asked whether anyone in the
audience would like to talk on this particular amendment. There being none the Mayor called for a
vote.

THE MOTION CARRIED UNANIMOUSLY (7-0).

MAYOR DUNN advised that the second item is funds for the Public Housing Youth Program in
the amount of $20,000.

VICE MAYOR WESTBROOKS commented on the decline in monies received from the
Community Development Block Grant (CDBG) funds that are allocated towards housing youth
programs. He said he believes it important that they provide one-time funds in the amount of
$20,000 from the Council Contingency Reserve Fund for additional part-time staff, supplies,
equipment, transportation, etc. for the Program. He emphasized the importance of youth
programs to the entire community and noted that they help youths build character and become
good citizens.

A MOTION WAS MADE BY VICE MAYOR WESTBROOKS, SECONDED BY
COUNCILMEMBER WALLACE to approve an additional $20,000 in one-time funds from the
Council Contingency Reserve Fund towards Public Housing Youth Programs. THE MOTION
CARRIED UNANIMOUSLY (7-0).

MAYOR DUNN stated that the last item has to do with traffic management solutions in the City of
Chandler. He advised that at the last meeting, it became even more evident that additional traffic
safety is needed in high volume construction areas and specifically in Southeast Chandler. He
added that before they begin to build new arterial streets, it is important that additional traffic
control measurements are in place.

VICE MAYOR WESTBROOKS said that he is proposing that the Council allocate $250,000 one
one-time money for traffic safety officers from the Council Contingency Reserve Fund. He noted
that the additional resources would provide for improved traffic safety and traffic flow. He advised
that the reasons they need more traffic safety officers include: (1) the City is growing at an
extremely rapid pace and the traffic safety and flow is a major concerns of the citizens; (2) the
quality of life is impacted by the high volume of traffic because citizens are spending inordinate
amounts of time in traffic due to street construction; (3) traffic accidents may increase in high
volume construction areas. He noted that per his request, the Public Works staff did a great job
outlining short-range and long-range plans for traffic management in Southeast Chandler and
added that his request for traffic. He explained that even during construction, there would not be
any four-way stops, there would only be lights (even temporary lights) in order to improve the
traffic flow and they would look at using temporary pavement in the intersections to allow for three
lanes, a left-turn lane, a straight-through lane and a right-turn lane to really enhance traffic flow
and safety. He further stated that the proposed traffic safety officers would be out in the
community during peak hours to help with the traffic flow as well. He advised that the measures
would be put into place as quickly as possible.

A MOTION WAS MADE BY VICE MAYOR WESTBROOKS, SECONDED BY
COUNCILMEMBER WALLACE that $150,000 of one-time money be allocated for traffic safety
officers from the Council Contingency Reserve Fund to address traffic management solutions in
Chandler.
Minutes of the Regular Meeting
Chandler City Council
Thursday, May 26, 2005
Page 38


In response to a question from MAYOR DUNN, staff advised that the recommendations would be
in addition to what has already been approved. The off-duty police officers would continue (as
they have for the last week and a half) as needed until all of the four-way stops are gone.

MAYOR DUNN emphasized that they are talking about off-duty police officers so that on-duty
police will still provide the City with the highest level of quality public safety. He discussed the
positive feedback he has received from an off-duty police officer that is already performing these
tasks and the appreciation of the citizens.

MAYOR DUNN said that there is another issue that needs to be addressed, particularly now that
the arterial street schedule is moving up, is to put forth a major effort to inform residents that the
timing of their arterial streets has changed, that they may be doing more construction than
originally planned and therefore streets are going to be torn up more so than originally planned.
He requested that the City Manager pursue this issue.

COUNCILMEMBER ORLANDO commented that he has already talked with City staff regarding
this issue and agreed on the importance of an organized effort to get the word out to the citizens.
The Mayor thanked him for his efforts in this area.

COUNCILMEMBER WALLACE expressed appreciation to VICE MAYOR WESTBROOKS for
working so hard over the last few days in order to bring forward these important amendments to
the budget.

VICE MAYOR WESTBROOKS commented that he has also recommended that his request for
traffic management solutions be used for all of Chandler, where deemed necessary, not only in
Southeast Chandler. He added that the same is true in the public safety area.

THE MOTION CARRIED UNANIMOUSLY (7-0).


Management Services Director PAT WALKER provided a brief overview of the proposed tentative
budget and noted that with the approval of the amendments on Monday evening as well as this
evening, the total budget for 2005-06 is $774,281,828.00. She added with the two amendments
coming from the Council Contingency Reserve Funds, a balance of $131,905 (out of the
$500,000) would remain. She noted that this is the proposed budget and once the tentative
budget is approved it cannot be increased but it can be decreased before its final adoption on
June 9, 2005 and the property tax levy has been scheduled for June 23, 2005.

A MOTION WAS MADE BY COUNCILMEMBER WALLACE, SECONDED BY
COUNCILMEMBER ORLANDO TO ADOPT RESOLUTION #3861, ADOPTING THE 2005-06
TENTATIVE BUDGET, IN THE AMOUNT OF $774,281,828.00.

ERIC BLATT, 1582 E. Jade Place, expressed the opinion that the Council is moving in the right
direction and thanked them for their reaction to citizen concerns regarding the serious street
problems that exist in the Southeast Chandler area. He thanked the Council for their efforts and
hard work. He referred to a chart depicting the streets that will be accelerated and noted that it
reflects significant progress being made out to 2011. He added that at the last meeting, Mr.
Patterson mentioned that there is a street cost for the entire area in the amount of approximately
$300 million, projected to be completed in about 15 years, and expressed the opinion that 15
years seems a very long time to him. He stated the opinion that a side from communicating with
citizens about the accelerated timelines and resulting construction, they need to also let the
                                                                            Minutes of the Regular Meeting
                                                                                     Chandler City Council
                                                                                  Thursday, May 26, 2005
                                                                                                  Page 39


citizens know about the $300 million problem and the City’s plan to address that. He reiterated
that 15 years is just too long to wait and that a more appropriate time frame is needed.

MAYOR DUNN encouraged Mr. Blatt to review the Transportation Plan since a lot of those issues
are explained in detail. He added that he believed Mr. Patterson was saying that 15 years is
when they anticipate total build-out of all of the City’s streets.

MR. PATTERSON commented that the one thing that has not been discussed is private
development and noted that the City does have other partners out there who are building roads
and so there is going to be more road construction than depicted in the five-year Capital
Improvement Plan. He added that staff is already looking at development plans for major
stretches of Ocotillo Road, Chandler Heights, Lindsay Road and Val Vista and said that staff’s
challenge is going to be to fill in the gaps that are left. He pointed out that they have no real
control over when and where the land develops, although they are sure that it will happen fairly
quickly, and said that staff intends to update the Transportation Plan in the next year and they
could use help from citizens to update the process.

MICHELLE DALY, a resident of Southeast Chandler, said that while she would love to spend the
entire three minutes of time complimenting the Parks & Recreation Department with its variety of
classes, outstanding teachers and exceptional staff but she wanted to address some issues going
on with Parks & Recreation that she wants to bring to the Council’s attention. She said that the
department is a victim of its own success and often there just isn’t enough room in all the
programs for that to occur. She reported that currently there are almost 2,000 openings for pre-
school students and the anxiety to get registered is high. She noted that classes fill within 20
minutes and two minutes later there is a wait list long enough to fill another class. There are 365
people on a wait list for one particular class and other classes, such as “Wiggles & Giggles” are
full with a wait list long enough to fill two more classes. The programs are very limited by class
size and funding/accelerating the Tumbleweed Recreational Facility and the Snedigar expansion
cannot happen fast enough. The biggest complaint right now appears to be the(electronic)
registration process, which has failed twice over the last six months. When it works, it works
great but when it doesn’t work, citizens have to stand there for an hour waiting for one page to
load in order to select the class you are interested in signing up for.

MS. DALY noted that Chandler registers much later than the private pre-schools. She said that
while representatives from the Parks & Recreation Department are working very hard to address
the issues of concern, they are really constrained and need to bring in a technical consultant full-
time to work on the hardware/software issues they are experiencing. She noted that the next
registration is in August and requested that the Council provide the department with technical
assistance. She stated that she also spoke with them about the possibility of spreading
registration out over a few days and said they are working on this as well. She commented on
the vital role this department plays in the community and said space, resources and technical
support issues must be addressed.

In response to as question from the Mayor, MR. PENTZ advised that plans for the Tumbleweed
Recreation Center are complete. Staff confirmed that the plans are 99% complete after being “on
the shelf” for approximately one year. Staff is working with the architect to “tweak” them and they
anticipate going out to bid within the next several months (January), beginning construction next
year, and having a finished project approximately 18 months after the start date. It was noted
that the facility is much larger than any project previously built by the City.
Minutes of the Regular Meeting
Chandler Cit