NOTE:

IN ACCORDANCE WITH PROVISIONS OF THE ARIZONA REVISED STATUTES AND THE FLAGSTAFF CITY CHARTER THE SUMMARIZED MINUTES OF CITY COUNCIL MEETINGS ARE NOT VERBATIM TRANSCRIPTS.  ONLY THE ACTIONS TAKEN AND DISCUSSION APPEARING WITH QUOTATION MARKS ARE VERBATIM.  AUDIO RECORDINGS OF CITY COUNCIL MEETINGS ARE ON FILE IN THE CITY CLERK’S OFFICE.

SUMMARIZED MINUTES

SPECIAL COUNCIL MEETING

September 28, 2005

2:00 p.m.

A Meeting of the Flagstaff City Council was held on September 28, 2005 convening at 2:00 p.m. in the Council Chambers at City Hall, 211 West Aspen Avenue, Flagstaff, Arizona.

1.      CALL TO ORDER

The Meeting was called to order by Mayor Donaldson.

2.      ROLL CALL

On roll call, the following were present:

Mayor Donaldson

Vice-Mayor White

Councilmember Babbott

Councilmember Cooper

Councilmember Haughey

Councilmember Kelty

Councilmember Silva

Also present were:

Acting City Manager, Jim Wine

Acting City Attorney, Harry Lane

3.

Consideration of Right-of-Entry and Purchase and Sale Agreement:  Koch Field Property adjacent to Cromer School.

RECOMMENDED ACTION:

Approve the agreement with Flagstaff Unified School District No. 1 for a right-of-entry fee of $400 per month subject to purchase at a price to be determined by appraisal.

Withdrawn.

4.

Consideration of Resolution No. 2005-108:  A resolution approving an intergovernmental agreement between the City of Flagstaff and the Arizona Board of Regents concerning construction of a conference center facility and related improvements.

RECOMMENDED ACTION:

Read Resolution No. 2005-108 by title only.

Adopt Resolution No. 2005-108.

Councilmember Haughey moved to read Resolution No. 2005-108 by title only, seconded by Vice-Mayor White.

Section 1. (b)

The City’s Contribution

Vice-Mayor White moved to amend Section 1 (b) to read, “…for the construction of certain public infrastructure including sidewalks, parking facilities, sewer and water lines necessary in the construction of the conference facility…”  The motion was seconded by Councilmember Silva and passed on unanimous vote.

Section 1.1

The City’s Contribution

Councilmember Haughey moved to amend Section 1.1 by changing $400,000.00 to $500,000.00.  The motion was seconded by Councilmember Kelty and passed on unanimous vote.

Section 2.

RFP Selection Committee

Vice-Mayor White moved to amend Section 2 by adding “…with the opportunity for representation by other participants, e.g., the NAU Foundation...” to the end of the second sentence in this section.  The motion was seconded by Councilmember Haughey and passed on unanimous vote.

Councilmember Kelty requested that an individual representing Southside neighborhoods be appointed to the RFP Selection Committee.

Section 3.

Advisory Committee

Vice-Mayor White moved to amend Section 3 by adding “… with the opportunity for representation by other participants, e.g., the NAU Foundation...” to the end of the first sentence in this section.  Councilmember Haughey seconded the motion, which passed on unanimous vote.

Section 4.

Project Features

Councilmember Haughey moved to amend Section 4 to read “NAU and the City agree that all construction shall conform to all codes applicable pursuant to A.R.S. § 34-461(D).  The parties recognize that as a university under the jurisdiction of the Arizona Board of Regents, NAU is not bound as a matter of law by the Land Development Code of the City of Flagstaff for construction of improvements on the university campus. Subject at all times to NAU’s own requirements for compliance with the state fire code and other applicable laws and rules for design and construction of improvements on property owned by the Arizona Board of Regents, NAU will provide in its contracts for design, as nearly as practicable, that conforms to Sections 10-16-005-0001 through 10-16-007-0001 of the City of Flagstaff Land Development Code.”

“Furthermore, and subject to NAU’s own requirements as set forth above, NAU agrees that all construction shall comply with the provisions of Division 10-08-002 of the City of Flagstaff Land Development Code pertaining to Astronomical Zone II, and NAU shall endeavor, in good faith, to use green or sustainable building design in its construction.”  The motion was seconded by Vice-Mayor White and passed on unanimous vote.

Section 4.C.1.

Project Features

and 4.C.2

Vice-Mayor White moved to amend Section 4.C.1 by adding, “…or any other voter authorized tax initiatives…” after the words Transportation Excise tax, and by adding “Requirements for payment of taxes or equivalent payments in lieu of taxes provided for in this Agreement shall survive the termination of this Agreement...” to the end of the paragraph, and to amend Section 4.C.2 by adding “Requirements for payment of taxes or equivalent payments in lieu of taxes provided for in this Agreement shall survive the termination of this Agreement...” to the end of the paragraph.  The motion was seconded by Councilmember Cooper and passed on unanimous vote.

Section 4.D

Project Features

Vice-Mayor White moved to amend Section 4.D by adding “…except as otherwise expressly set forth in this Agreement...” to the end of the first sentence.  Councilmember Silva seconded the motion, which passed on unanimous vote.

Section 4.F.1.b.

Project Features:  The Hotel

and 4.F.1.c.

Councilmember Cooper moved to amend Section 4.F.1.b by striking “…as required in Section 3.C above…” and replacing it with “…as required in Section 4.C. above…” and by adding “Requirements for payment of taxes or equivalent payments in lieu of taxes provided for in this Agreement shall survive the termination of this Agreement...” to the end of the paragraph, and in Section 4.F.1.c by adding “Requirements for payment of taxes or equivalent payments in lieu of taxes provided for in this Agreement shall survive the termination of this Agreement...” to the end of the paragraph.  The motion was seconded by Councilmember Haughey and passed on unanimous vote.

Section 4.F.2.a.

Project Features:  The Conference Center

Councilmember Babbott moved to amend Section 4.F.2.a to read as follows:  “The conference center will be operated by a conference center operator experienced in managing and scheduling large conferences.  The selection will be subject to advice from the Advisory Committee established in Section 3 of this Agreement.”  Vice-Mayor White seconded the motion, which passed on unanimous vote.

Section 4.F.2.c.

Project Features:  The Conference Center

Councilmember Cooper moved to amend Section 4.F.2.c by adding “Requirements for payment of taxes or equivalent payments in lieu of taxes provided for in this Agreement shall survive the termination of this Agreement...” to the end of the paragraph.  The motion was seconded by Vice-Mayor White and passed on unanimous vote.

Section 6.

Termination

Vice-Mayor White moved to amend Section 6 to read, “In the event that either party breaches any provision of this Agreement, the non-breaching party shall provide the party in breach thirty (30) days written notice specifying the conditions of breach and opportunity to cure the breach.”

“If the breach is not cured within such thirty (30) day period, or such additional period equitably required if the party in breach is making good faith efforts to cure the breach, or such additional period to which the parties may agree in writing, the non-breaching party shall have the right but not the duty to terminate this Agreement, subject to the Dispute Resolution provisions of Section 9 of this Agreement.  In no case may the City refuse to complete the payments provided for in Section 1 above unless (a) NAU permanently ceases construction of the Project prior to the due date for any payment, (b) the conference center is not ready for occupancy within three (3) years from the start of construction, provided, that if an act of nature, war, labor strike, inability through no fault of NAU or its contractor(s) to be able to acquire necessary workers or materials or other force majeure beyond the control of NAU delays the date on which the conference center is ready for occupancy beyond three (3) years from the start of construction, the deadline for occupancy shall be equitably extended to a reasonable date for occupancy or (3) either party terminates this Agreement due to breach as set forth above in this Section 6.  Neither party is aware of or anticipates any reason why this Agreement will be terminated prior to its expiration date set forth in Section 5 above.  Termination, other than by expiration of this Agreement pursuant to Section 5, by either party shall render null and void all provisions of this Agreement.”

The motion was seconded by Councilmember Cooper.

At this point, Councilmembers identified the following areas of concern:

·          

Much of the language in the IGA is non-specific and rather loose.

·          

There is no clear timetable for the completion of the parking structure.

·          

While acknowledging the land is owned by the Board of Regents, public funds will be used for the project, and the public should be given the opportunity to weigh-in on the project.

·          

A higher-class hotel than the one offered by the RFP respondent is desirable.

The motion passed on unanimous vote.

Section 9

Dispute Resolution

Vice-Mayor White moved to amend Section 9 by changing the title from “Mediation” to “Dispute Resolution.”  The motion was seconded by Councilmember Haughey.  The vote was unanimous in favor.

The following speakers stated their support for Resolution No. 2005-108:

Bruce Nordstrom, 1600 Mariposa Road

Mark Ross, 1201 E. Ponderosa Parkway, on behalf of the Flagstaff Hospitality Association

The supporters of the resolution cited the following reasons:

·          

The conference center and hotel will provide for additional jobs in the community outside of the University.

·          

This agreement represents a historic partnership between the University and the community.

·          

The conference center will benefit the hospitality industry and the entire community, with long-reaching impacts.

The motion to read Resolution No. 2005-108 passed on unanimous vote and title was read as follows:

Resolution No. 2005-108

A resolution approving an intergovernmental agreement between the City of Flagstaff and the Arizona Board of Regents concerning construction of a conference center facility and related improvements.

Councilmember Haughey moved to adopt Resolution No. 2005-108, seconded by Councilmember Cooper.  The motion passed on unanimous vote.

5.      ADJOURNMENT

There being no further business to come before the Council, the Special Meeting was adjourned at 2:52 p.m.

MAYOR

ATTEST:

CITY CLERK

CERTIFICATION

STATE OF ARIZONA,

Coconino County.

)

)

)

ss.

I, MARGIE BROWN, do hereby certify that I am the City Clerk of the City of Flagstaff, County of Coconino, State of Arizona, and that the above Minutes are a true and correct summary of the Special Meeting of the Council of the City of Flagstaff held on September 28, 2005.  I further certify that the Special Meeting was duly called and held and that a quorum was present.

DATED this 19th day of October, 2005.

CITY CLERK