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HomeMy WebLinkAbout2014-09-02 City Council Regular MinutesCITY COUNCIL REGULAR MEETING SEPTEMBER 2, 2014 The regular meeting of the City Council of the City of Apache Junction, Arizona, was held on September 2, 2014, at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Mayor Insalaco called the meeting to order at 7:00 p.m. INVOCATION Councilmember Wilson gave the Invocation. PLEDGE OF ALLEGIANCE Councilmember Waldron led the Pledge of Allegiance. ROLL CALL Councilmembers Present:Mayor Insalaco Vice Mayor Barker Councilmember Evans Councilmember Rizzi Councilmember Serdy Councilmember Waldron Councilmember Wilson Staff Present:Assistant City Manager Bryant Powell City Attorney Joel Stern Public Safety Director Tom Kelly Parks and Recreation Director Jeff Bell City Engineer Emile Schmid Development Services Director Larry Kirch Assistant to the City Manager Matt Busby Others Present:Deputy City Clerk Jan Mason REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 1 OF 40 Revenue Resource Manager Roger Hacker Principal Economic Development Specialist Janine Solley Parks Superintendent Nick Blake ACCEPTANCE OF CONSENT AGENDA )Vice Mayor Barker MOVED THAT THE CONSENT AGENDA BE ACCEPTED; AND THAT THE AWARD OF BID FOR PWC2013-10, PUEBLO DEL SOL ROADWAY IMPROVEMENTS PHASE I, BE AWARDED TO VISUS, INC., IN THE AMOUNT OF $245,000.00 PLUS 10% IN THE AMOUNT OF $24,500.00 FOR UNFORESEEN CHANGE ORDERS FOR A TOTAL AMOUNT NOT TO EXCEED $269,500.00; AND THAT AUTHORIZATION BE GIVEN FOR THE MAYOR TO SIGN THE CONTRACT PENDING APPROVAL AS TO FINAL FORM BY THE CITY ATTORNEY; AND THAT RESOLUTION NO. 14-35, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AUTHORIZING THE CITY TO ENTER INTO AN INTERGOVERNMENTAL AGREEMENT WITH ARIZONA DEPARTMENT OF TRANSPORTATION FOR CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM FUNDS, BE APPROVED. Councilmember Wilson SECONDED THE MOTION. VOTE:Unanimous, The motion carried. AWARDS, PRESENTATIONS AND PROCLAMATIONS Revenue Resource Manager Roger Hacker announced VFW Post 7968 and Superstition Mountain VFW Post 9399 donated funds to purchase uniforms for the Apache Junction Police Department Honor Guard.They have donated for other items in the past. Public Safety Director Tom Kelly commented 5-6 years ago the police department had an honor guard but no longer had funds for the uniforms.With Roger's assistance and the VFW groups they now have the funds.These two organizations have been at the forefront for a variety of different city functions and they continue to do that. REGULAR.MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 2 OF 40 Revenue Resource Manager Roger Hacker introduced Commander Tremondo from VFW Post 7968, who then briefed the council on what occurred from their view.He had called Commander Bonell who also opted to participate. Revenue Resource Manager Roger Hacker introduced Commander Bonell of VFW Post 9399, who spoke about both posts supporting whatever the city needs. Mayor Insalaco commented he and Councilmember Waldron noticed the Veterans' Memorial Gazebo needed painting.They went to these two commanders and the commander from the American Legion. It will be painted this month. Mayor Insalaco read.a proclamation designating September 22 through September 26, 2014 as National Guard and Reserve Week. There was no one in attendance for the proclamation and the mayor stated he would see that Ed Mangon got the proclamation. Mayor Insalaco read a proclamation designating October 5 through October 12, 2014 as A Week Without Violence and presented the proclamation to Public Safety Director Tom Kelly. ANNOUNCEMENT OF CURRENT EVENTS Councilmember Waldron commented all the council and some staff attended the League of Arizona Cities and Towns annual conference last week.They had a lot of good discussions.They had a special meeting of the mayors attending an ice bucket challenge. Councilmember Waldron commented Dollar Self Storage takes electronic recycling for Apache Junction and all the proceeds go to local charities. Councilmember Rizzi commented the Apache Junction Drug Coalition has again partnered with the Boys and Girls Club for the annual Care for Youth Day for Kids event on Saturday, September 6.She commented on the various events that would be taking place. CITY MANAGER'S REPORT REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 3 OF 40 teaching positions, but they also positions.There was a period of which there was a superintendent, superintendents and a bunch of di Assistant City Manager Bryant Powell commented on the National Preparedness Month combined training, assistance provided to a stranded motorist by Public Works Director Giao Pham and Public Safety Director Tom Kelly, and the first Friday Fit Family event for parks and recreation being an overwhelming success. Assistant City Manager Bryant Powell introduced Development Services Director Larry Kirch from LaCrosse, Wisconsin, and gave a brief presentation on his background. Development Services Director Larry Kirch thanked everyone for their help and he is excited to be back in Arizona.He grew up in Scottsdale and now lives in Apache Junction.He is impressed with the caliber of the staff he met today. Dr. Chad Wilson, Superintendent of Schools for the Apache Junction Unified School District, gave a presentation on the facts of the override. Councilmember Serdy commented a lot of people think that the city is also the school district and the fire department.They use the city as a sounding board for the things they see.One of the things he hears is their letting teachers go.They want to know what he personally has done, if he has taken any cuts or will take cuts in the future.Several years ago when the city started to fail, the city manager took a $10,000 pay cut, gave up his car allowance and some physical checkups.He asked what he could do like that to send a message. Dr. Chad Wilson commented he had heard that, too.He thinks it is a much bigger discussion than his doing this or that.One of the things they have worked hard at is saying when they are going to cut, they are going to cut smart.They reduced reduced central :administration time in their organization in three associate rectors.Now there is just him.They want to make sure they are cutting smart.They have reduced staffing, but not just in the classroom or transportation, but also in administration.There is a performance clause for superintendents by statute.Oftentimes superintendents do not take their bonuses.When his clause was created, one of the pieces that was very important was his bonus REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 4 OF 40 being what it is intended to be.His clause states he is eligible for a bonus when 100% of the students meet or exceed the standards defined by the State of Arizona.That is not the case for other superintendents.There are lots of ways he could present this as if he is giving it up and sacrificing, but he does not know if that is the best message.A better message would be if they are talking about bonuses he would give up, he did create bonuses that would be measured by the success of their organization.If they are not as successful as they should be, he should not be offered a bonus.When they cut positions, he cut first at the administration level in the central office.The governing board can look at staffing and compensation in any way they feel is appropriate.He encouraged people to look at his contract and job expectations compared to other superintendents. Councilmember Evans commented she never went to school here; she attended in Pennsylvania.When he first presented this as a maintenance and operation override, to her it was keeping the lights on and the grass cut.That terminology does not appear to say it is for teachers' salaries or for classrooms.She is not sure how he can change that and she is sure she is not the only one who thinks it is not for classrooms and teachers.She has been a realtor for 27 years in Arizona.Women tell their husbands where they want to live.When relocating to the valley, they will look at the school systems and if the school system is not supported by the community by the last two overrides, or again in this case, it is not where people want their children.She agrees with his determination and any information he can provide to them to help explain this would be helpful. Dr. Chad Wilson stated they have some fact sheets they can bring by tomorrow.He does not want to put them in an awkward position.It is a one -page fact sheet they can use.Regarding maintenance and operation, the state defines the terminology and he thinks she is exactly right.It sounds like the grass and the water.Tc a degree there is a bit of that, but it falls largely in staffing. Councilmember Rizzi commented they attended the League of Arizona Cities and Towns and one of the classes gave a perspective of how the youth in the community feel.It was the REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 5 OF 40 youth coalition class.They answered different questions such as if they are going to stay in their community, what they would do, where they would go to school, why they would leave the community, or how they feel about overrides.She videotaped it and she would like to share it with the community at some point. They had talked about their communities being like ours, not having enough jobs, culture or arts activities or higher education.One thing one student said was when overrides do not pass, it makes them feel like the community does not care about them or their education.She wants to share this with the community.Kids are important and they deserve this.They deserve better and we can do better for them. Councilmember Wilson commented the aspect is number one.He is very supportive of them.They are trying to work together to work out some of the inner issues.They take this aspect personally as well.They are hoping to work some of these things out in the near future and continue, whether it is with the resource officers or the use of the facilities they share. Vice Mayor Barker commented for her there are two things.She was a high school teacher for 21 years and averaged 42 kids per class.However, it is important they all remember that property values also are a reflection of the quality of life within the community.The schools are a very big part, but the rest of it is, too; the pool, tennis courts, etc.As with Councilmember Wilson, she hopes they can renew the partnership and work together for the betterment of the community as a whole. Mayor Insalaco closed the discussion and moved on to the next item. PUBLIC HEARINGS PROPOSED RESOLUTION NO. 14-26, DECLARING PORTIONS OF PUBLIC ROADWAY EASEMENTS LOCATED ON 14TH AVENUE FROM WAGON WHEEL TO GOLDFIELD, DESCRIBED IN EXTINGUISHMENT CASE EX -14-26, BE EXTINGUISHED/ PROPOSED RESOLUTION NO. 14-25, DECLARING PORTIONS OF PUBLIC ROADWAY EASEMENTS LOCATED REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 6 .0F 40 IN THE EAST HALF OF THE NORTHWEST QUARTER OF SECTION 27, DESCRIBED IN EXTINGUISHMENT CASE EX -14-25, BE EXTINGUISHED )City Engineer Emile Schmid briefed the council on the items. Vice Mayor Barker asked why he drew back on that portion of Wagon Wheel and 14th Avenue.It is so encroached upon it cannot be a roadway anyway. City Engineer Emile Schmid stated it is because of the encroachment.There is a building structure and sometimes they are hard to make out.Some of these items in the federal patented easements can be moved, trailers, sheds and other movable structures.This is not a shade structure, it has a large roof with four walls all the way around.It is obviously encroaching into the easement and right up against the property line.There is concern it may even be encroaching beyond the neighboring property.At this point it becomes a civil issue between the property owners.If we were to proceed with extinguishing the roadway portion, knowing that an encroachment such as this exists, it opens up the city to exposure. Mayor Insalaco opened the public hearing on the items.There being no one wishing to speak, he closed the public hearing and reopened the items to council discussion.There being no further discussion, he called for a motion. Councilmember Waldron MOVED THAT RESOLUTION NO. 14-26, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, DECLARING THAT PORTIONS OF THE PUBLIC ROADWAY EASEMENTS LOCATED ON 14TH AVENUE FROM WAGON WHEEL ROAD TO GOLDFIELD ROAD, AND DESCRIBED IN EXTINGUISHMENT CASE EX -14-26, ARE NO LONGER NECESSARY FOR PUBLIC USE AS PUBLIC ROADWAY EASEMENTS AND ARE HEREBY EXTINGUISHED AS PRESENT AND FUTURE PUBLIC RIGHT-OF-WAY, AND AUTHORIZING ACCEPTANCE OF DEDICATION OF PUBLIC RIGHT-OF-WAY FRONTING 1470 SOUTH GOLDFIELD ROAD, BE APPROVED. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 7 OF 40 Councilmember Rizzi SECONDED THE MOTION. VOTE:Unanimous. The motion carried. Vice Mayor Barker MOVED THAT RESOLUTION NO. 14-25, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, DECLARING THAT PORTIONS OF PUBLIC ROADWAY EASEMENTS LOCATED IN THE EAST HALF OF THE NORTHEAST QUARTER OF SECTION 27, AND DESCRIBED IN EXTINGUISHMENT CASE EX -14-25, ARE NO LONGER NECESSARY FOR PUBLIC USE AS PUBLIC ROADWAY EASEMENTS AND ARE HEREBY EXTINGUISHED AS PRESENT AND FUTURE PUBLIC RIGHT-OF-WAY; AND AUTHORIZING ACCEPTANCE OF DEDICATION OF PUBLIC RIGHT-OF-WAY FRONTING 1132 AND 1238 SOUTH GOLDFIELD ROAD, AND AT THE REAR OF 1111 SOUTH WAGON WHEEL ROAD, BE APPROVED. Councilmember Rizzi SECONDED THE MOTION. VOTE:Unanimous; The motion carried. SPECIAL EVENT LIQUOR LICENSE FOR COMMUNITY ALLIANCE AGAINST FAMILY ABUSE FOR OCTOBER 25, 2014 )Deputy City Clerk Jan Mason briefed the council on the item. Ms. Sharon Stinard addressed the council on the item.She stated she is in attendance to encourage approval of the liquor license for their annual fundraiser, their signature event called Disco Fever.She extended an invitation to the council and community members to join them for a fundraiser that supports a worthy cause in the community. Councilmember Rizzi commented she has received many calls from people asking her when this is happening.They have gone in the past years and want to know REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 8 OF 40 when Disco Fever is coming up because they love it.They take their grandkids and it is a great family event.She hoped they will have a great turnout. Mayor Insalaco opened the public hearing on the item.There being no one wishing to speak, he closed the public hearing and reopened the item to council discussion.There being no further comments, he closed the discussion and called for a motion. Vice Mayor Barker MOVED THAT THE APPLICATION FOR A SPECIAL EVENT LIQUOR LICENSE FOR COMMUNITY ALLIANCE AGAINST FAMILY ABUSE FOR OCTOBER 25, 2014, SUBMITTED BY ELIZABETH GARMAN, BE RECOMMENDED FOR APPROVAL TO THE ARIZONA DEPARTMENT OF LIQUOR LICENSES AND CONTROL. Councilmember Wilson SECONDED THE MOTION. VOTE:Unanimous. The motion carried. Mayor Insalaco called for a ten minute break. Mayor Insalaco reconvened the meeting. DIRECTION TO STAFF ON EXTENSION OF THE CURRENT .2% CITY SALES TAX AND AN ADDITIONAL .2% SALES TAX DEDICATED TO FUND ROADWAY MAINTENANCE AND REPAIRS )Assistant City Manager Bryant Powell briefed the council on the item. Vice Mayor Barker asked what would happen if they no longer have the .2% for that purpose. Assistant City Manager Bryant Powell stated the thought for continuing the .2% is to invest in those areas that were soft capital.They would not have the REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 9 OF 40 funding the next time around to do HVAC units.They would have to go a little longer with their vehicles, but back in 2008-2009 when they had the general fund go from a $30 million revenue to $20 revenue they did that for a few years.They can only do that for so long as at some point the police vehicles will have to be replaced.They would have a tough prioritization as to what things they would or would not be able to do. Councilmember Waldron asked if they are going to talk about the other .2%. Councilmember Serdy commented they would discuss that after the public hearing. Assistant City Manager Bryant Powell stated tonight is an opportunity for a public hearing, discussion and then direction to staff to start the process.It is not a decision to do it.It is not a decision of anything of that nature.It is to have that discussion. Mayor Insalaco opened the public hearing on the item.There being no one wishing to speak, he closed the public hearing and reopened the council discussion. Councilmember Waldron commented he spoke to a lot of different council members at the League conference who are all facing the same issue with the legislature sweeping funds from the Highway User Revenue Fund monies that is designed for cities and towns.Flagstaff, for example, has implemented a secondary property tax for their roads.They are in pretty dire straits up there.Many of the cities are contemplating doing that.Until the legislature chooses to stop sweeping funds that are due the cities and towns, this is going to be an ongoing problem.We will not have the money to fix the roads.It is just pure and simple.We do not have the funds available.He does not remember the numbers right offhand.He thinks the city has been shorted $7 million since 2005 when this started. Assistant:City Manager Bryant Powell stated that is his understanding. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014. PAGE 10 OF 40 COuntilmember Waldron commented he has talked to many candidates and legislators. Every one of them opposed the sweeps And it is absolutely beyond him how it keeps going.If they are all opposed to it, he does not know why the cities keep getting penalized.One of the things he would like the council to consider, if they look at this two -tenths tax for roads only, is that they do put a sunset provision in it, but we sunset two years after the full restoration of Highway User Revenue Funds.It kind of empowers the citizens to say they do not like this tax, they want to get rid of the tax, and they are going to our legislators.We are fortunate that we have Representative Coleman who is obviously strongly opposed to this.If enough citizens go to the legislature and talk to the candidates, even the governor candidates, and tell them this has got to stop, we can sunset the tax.He would like to suggest they set that provision for two years after to make sure they do not come back, and by full restoration, he means they discontinue the sweeps, period.And then they need to ask the citizens to write their legislators, governor, or talk to whoever they run into.Then maybe they can stop what is essentially double taxation.The Highway User Revenue Fund money comes from vehicle tax, gas tax and even from licensing.Granted those tax revenues are lower because of electric car's and people driving cars longer.The registration is a little bit lower.Nonetheless, they are still sweeping those funds.That means we now have to look at implementing a tax to fix the roads that this tax money is already supposed to fix.By doing this, we can empower the citizens to say they can stop this tax by getting these sweeps stopped. Vice Mayor Barker asked if their costs would be covered if the Highway User Revenue Funds were fully returned at the rate it has been in the past, as it does not seem to be going up much as a fund. Assistant.City Manager Bryant Powell stated there are actually 3 portions of the Highway User Revenue Funds that have changed.There is the Highway User Revenue Fund tax portion, the'county portion, and the county- shared portion.He asked Matt Busby to elaborate more on that. Assistant to the City Manager Matt Busby stated HURF stands for Highway User Revenue Fund; it REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 11 OF 40 is essentially the gas tax.It is collected by the state and distributed to the counties who then further distribute it to municipalities based on population.Because it is based on population, it is not only the sweeps that take money away from our distribution, it is also growth of communities like Maricopa and Casa Grande.So when they grew a lot and we did not grow as fast, our proportionate share of the amount given to the county shrunk.The state sweeps did hurt us very much, but also the growth of other communities hurt us.Another bigger problem about Highway User Revenue Funds is people are driving more fuel efficient cars and, in some cases, especially during the recession, they drove less.So the collections coming in were less.That should give them a little information on how that works.From a staff perspective, to sunset it based on what the legislature does is a great idea, however, if by some miracle they did that next year, then we would only have 3 years of this fund.He does not think that will happen, but that would limit us.Even if they had restored the funds back to 2006 or 2007 levels and we got that $7 million, we have an $18 million to $20 million problem with the roads that need to be fixed.It is very likely we would need more than that anyway and that is what this discussion is about tonight, if they are willing to extend and then add this increment dedicated just to roads. Councilmember Serdy commented this is one of the more unpleasant things about being a council member.There are a lot of places he would rather be right now than discussing this.He thinks this has already been extended once.The first time, then the temporary was already made non- temporary. Assistant City Manager Bryant Powell stated the initial .2% went from 2000 to 2010.We were in the middle of the recession and council decided to keep it going for six years. Councilmember Serdy commented they should keep in mind that in his private life he is a merchant.People do throw these taxes at you all the time.He knows they did a survey of some merchants along the Trail and they are kind of for it now.If you do this again, it is going to hurt them, doing it on their backs, and people will avoid us. He spoke with Jeff Struble, who is on several boards for the REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 12 OF 40 town, everybody knows him,and he is an accountant in his private life.He ran a really bold alternative by him; cut the taxes below all the other Cities and then put a property tax on the ballot.By showing the public we are going to do this, we will make our city the most friendly business city in the whole valley.Give them the choice to pay an additional property tax. He does not know if that is the answer, but he would like to hear more about this.He saw him in passing and he ran it by him.He was fascinated by it and he would like to look more into that before he gets behind it.It is a bold and different strategy.His business is in the unincorporated county.The tax there is only 6.3%.He knows that some people come to shop at his store because of this.He questioned if it would make a difference if the whole city went below Mesa.He asked if they could do a study on that.He does not have the answers, he is just throwing these out there.He does not think the merchants would like this down the road and he questioned what the snowbirds would think, like Christa told him earlier. Councilmember Waldron commented he thought they were looking at the .2% for Apache Trail. Assistant to the City Manager Matt Busby stated that is correct.This discussion tonight has the option to discuss both; the current .2% which we are using for operating capital, and the additional .2% increment dedicated to funding only roadway maintenance, repairs and construction. Councilmember Waldron commented he was talking about the Highway User Revenue Funds in relation to the .2% that will be used for the Trail.He added the merchants are in favor of that additional tax. Councilmember Serdy commented as of now.He did mention that. Councilmember Waldron commented he was talking about the Highway User Revenue Funds for the Apache Trail fix, which he believes is $3 million. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 13 OF 40 Mayor Insalaco commented he was going back to what they were told by the public works director.It will take $3 million to fix the Trail now.If they do not lollygag and hurry up and get it done, and if we do not do something before those cracks get bigger and get into the under part of the road, that $3 million is $12 million.It would be nice to let the public vote, but if we put it off until it gets to a vote, and then they do not vote, we are a year -and- a -half, two years behind getting that road taken care of.He asked what would then happen to the merchants.People are right now bypassing the Trail.They bypass the Trail and go to the next intersection where they can cross.It is getting more washboard every day. Assistant City Manager Bryant Powell stated he wanted to remind the council that they had the retreat on April 12.They talked about a short term plan and a long term plan.He wanted to draw them back to that.The initial thought was to get going and provide an investment in the community that is for the business area.It would be for the economic development engine of our businesses.We have heard the predominance of evidence.They have gone out and in all the districts they have visited, Councilmember Wilson and he are going out to the Superstition Mountain Horsemens Association tomorrow, the residents understand that is where the investments need to go.There is support, significant support, for that investment there.They are talking about the new .2% there. They thought at this time they should bring up the existing .2% as well for consideration and direction at this time. Vice Mayor Barker commented nobody wants to increase taxes of any kind, shape or description, and nobody wants to pay them, and she understands that.She.is right there with them.But if someone spends $100 a week in this community on taxable items, just taxable items, not prescriptions or any of those types of things, they will spend 80 cents a -month in additional' sales tax, which is less than a hamburger.They would spend less than $10 a year on additional sales tax.Ten bucks a year is pretty darn cheap to get your road fixed.She thinks it is vitally important that they realize they are going in a circle.They are talking economic development on one hand and then they are saying, well, let us just let these roads lay here while we mull this and mull REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 14 OF 40 that.And so they get worse.The merchants say no one can get to their store anymore because they fall in a pothole.We go out maybe and patch it but, kind of like a pair of old blue jeans, there is no more fabric there to patch any more.The price goes up and it keeps going up and going up.It seems to her they need to face that one problem right now.We need to face Apache Trail.We need to decide are we going to fix it or are we not.If they are going to fix it they need to decide how they are going to do that.If they want to get rid of the original .2% then they would still be talking about chasing off economic development because at that point they would end up having to close down programs and maybe even close down things like the library and the multi-gen.Let us face it, when people move to a community they want a quality of life.They do not want a town that has a super-duper road but nothing else out there.She thinks it is important to look at the whole picture. Look at it holistically.The merchants have a choice, too. They can eat some of this if they wish, and she knows that is not a popular thing as she is a business person, too.She has to charge taxes like everybody else does.And we are dependent on the business community to be here.If the business community is not here, we are not here, personally.She understands how the business community might say hmmm.But we have some choices here. Councilmember Rizzi commented she would like to see a little bit more, she is curious to hear more about Mr. Strubie's thoughts.Her concern with putting this on the backs of the businesses is it is a temporary fix. She understands they have a dire need and we have to get something going with Apache Trail.The more time that passes the more costly it becomes.But she is concerned that if they do not seriously take a look at property tax, at least take a look at it and consider it, this is just a temporary fix and down the road we will be in the same position.She asked if anyone up there was in favor of more taxes.She does not want to pay any more.She does not want to be in a position of having to keep this .2% or make decisions on property taxes. They have some tough decisions to make and she would certainly like to hear more about Mr. Struble's thoughts on that.She has a hard time putting it all on the backs of our businesses.She feels it is a temporary fix. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 15 OF 40 Vice Mayor Barker commented she had a question on property tax.It was a thought that crossed her mind.It seems to her that when you raise a property tax, they would all pay this extra amount, whatever it might be, big or small, and those folks who come to our community, the snowbirds which Mr. Serdy brought up, and business people, etc., they are going to be paying that.And they will be passing it on to their renters, to their customers, etc.It seems six of one, half dozen of the other to her at this point.She may be dead wrong because she obviously knows nothing about property taxes except that she pays them every year. Councilmember Evans commented she had a couple of thoughts.She thinks the 2% that they are talking about. Mayor Insalaco commented it is .2%. Councilmember Evans commented the .2% is needed as we have to get the Trail fixed as soon as possible.We have to move fast; faster than even initiating a property tax as it would be a couple of years for that to come into effect. Vice Mayor Barker agreed. Councilmember Evans commented this fixes our immediate problem but she spent part of today going over our transportation study that was done in 2012.On safety items alone there is $4,765,000 and for flooding and drainage it is another $1.7 million.Two -tenths of a percent is not going to touch what we need.At the League, a lot of the people she spoke to, it almost amazed her about the different types of evaluations of property taxes and how they came to that conclusion.In selling real estate over this whole valley, she has not heard of one person not buying a house in one city just because they had a property tax.It has never happened. Historically everybody knows Pinal County's taxes are higher than Maricopa's, Gilbert's taxes than Mesa's, or used to be.It is common knowledge but it does not prevent one from moving there.But if the infrastructure is not there, it does prevent REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 16 OF 40 one from moving there.One wants to move where the roads are good and accessible.The one statistic that they had on the infrastructure financing was bad roads cost every driver $207 per year in maintenance to their car.We can pay to have the roads fixed or we can keep paying to have our cars fixed and not drive the Trail.They have the not popular decision to make doing this and she thinks every one of them up there hates the idea of more taxes.But the reality is how else can they fund the city.All last winter they went to mobile home parks and talked about this to the residents and asked them if they had any creative ideas, any way the residents would like the council to do this.They asked for ideas on how they could do this without raising taxes.She did not hear from anybody. Unfortunately nobody had any other ideas.It is a tough decision but she does not mind, and she does agree with Jeff that she would rather pay a property tax and live here than pay a higher sales tax.She thinks a lot of people do not understand that of our sales tax the city only gets a very small portion of it, the county and state get the rest. Assistant City Manager Bryant Powell stated 2.2% of the 8.9%.That funds half of the general fund which is operations, police, library and parks and recreation. Mayor Insalaco commented he does not think anyone thinks they are crying wolf with the road breaking up.Just remember when construction was done on Ironwood and how long the street was torn up.He wondered how long it will take once they tear the Trail up.People will completely leave the business here in Apache Junction.They are talking three lanes of traffic on each side that will have to be torn up.They will not be able to cross over or they will have to go three exits down to cross over.We have a public works director whose advice they are supposed to take when it is sound.He believes his advice is sound on this road.He urged them to get out and walk the Trail and look how wide those cracks are.If we have a heck of a rain storm that road bed will be gone.It is going now.He thinks they are at a time where, although there might be better options, if they wait for those better options the property tax will never get enough money to take care of that road.He thinks they are at that point where they have got to do something now. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 17 OF 40 Councilmember Evans commented she wanted to add one more thing.She absolutely agreed that we have to do something and right now for the Trail.She attended a session at the League conference on innovative ways to finance infrastructure.There is a special district tax that is tied to license plates for people who live within a certain city.It is a tax added to your car tags that goes just for road improvements in that community.It is another way but it is still a longer term solutions where we have to do something now for the Trail. Vice Mayor Barker commented she wanted to clarify what she seems to be hearing.Council members are willing to look at the possibility of a property tax but that possibly the length of time it would take us to actually look at that is too long to hold off on the Trail itself.She asked if that is what she is hearing. Councilmember Evans commented absolutely. Vice Mayor Barker asked if that is pretty much the synopsis. Mayor Insalaco commented there is one thing he and Councilmember Waldron were looking at. The City of Flagstaff is going for $96 million for roads because their roads are so bad.They have to take up sewers because the roads have been so damaged by water.It is a 20 year loan they will be paying back.They went to a property tax.They have been after this for 4 years trying to get this passed.And what has happened in the four years they have been trying to get this passed is the roads are at the point where it is really bothering the infrastructure now.The first couple of times it did not pass.That is the problem he is having.Even though it is only $10 or whatever it is, the people will not see it that way.It is a forever property tax once it gets on there.We do not have the time to wait. Councilmember Waldron commented that is why he would like to see the .2% for roads sunset.They should have some type of trigger mechanism.If they do something like two years after the full restoration of REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 18 OF 40 Highway User Revenue Funds that would give themsome time. He believed Highway User Revenue Funds are still behind. Assistant City Manager Bryant Powell stated the Highway User Revenue Funds are an intergovernmental revenue but they are not like state -shared revenues.He does not think they are two years behind. Councilmember Waldron commented but there is a delay. Assistant City Manager Bryant Powell stated they can define what full restoration means.It can be their definition.We have gone from $7 million a year in Highway User Revenue Funds to about $4.5 million a year in Highway User Revenue Funds.It could be when all three revenue streams are fully restored.It is up to the council on how to define it. Councilmember Waldron commented at the last meeting he was at about the Arizona Department of Transportation, the Highway User Revenue Funds are at the 2005 levels.By full restoration he does not mean they will get all of their money back.When he is talking about the full restoration of Highway User Revenue Funds, he is talking about the sweeps are no longer being done.They are discontinued.They are stopped so that we are not losing additional funds.By giving us a two-year time difference we are able to continue to fund the repair of Apache Trail and whatever roads need to be done because there is still some Highway User Revenue Funds money coming in.He questioned if they would get back to the 2014 levels and answered no.It will not happen right away.It will be quite some time because of the electric cars and people driving cars longer. Assistant City Manager Bryant Powell stated they could state the fiscal year when they want it, whatever level they want to get the restoration at. Councilmember Waldron commented they can define some type of triggering event.It is also important to know that the city cannot tax gasoline.We are precluded by the state to tax gasoline.That is why this REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 19 OF 40 fund was developed, because we cannot tax gasoline.So thy said, okay, they would share that with the cities and towns. They do not share very well, but they •take it. Councilmember Serdy commented the .2% was already supposed to sunset and it keeps getting extended. Councilmember Waldron and Vice Mayor Barker commented they are talking about the roads two -tenths.That is all they are talking about. Councilmember Serdy commented a future council could just extend it again, just like the last one keeps getting extended. Councilmember Waldron commented they can put in a triggering event that will preclude that.It is easy to do. Councilmember Evans commented that still does not help with Maricopa and Casa Grande having a faster growth so they are getting a larger proportionate amount of it.She thinks this is a good short term and she agreed with the concept of it.But she questioned how they pay for the roads in the long term.They cannot keep doing it from just the sales tax.Most of the cities do seem to have some type of not only a primary property tax but also a secondary property tax. It is as we discussed in our retreat; the secondary is great except that it does sunset.If the roads would sunset, then it would be cool.It will be an ongoing problem.One is an immediate need and we definitely need to have the Trail fixed for our businesses there.But she thinks they need to continue looking at the most unpopular which is the primary property tax. Councilmember Waldron commented he is talking about the immediate need and that is what these meetings have been focused on.They have the possibility that San Tan may incorporate which will also take a chunk. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 20 OF 40 Councilmember Serdy commented if this development services director gets his way everyone will be riding bicycles, from what he hears. Councilmember Waldron commented there are long term issues they really need to consider.He agreed with that.There are still more meetings to come.He spoke about the two -tenths for Apache Trail and that is what his comments are focused on. City Attorney Joel Stern stated this is a little off the subject but it is related.The California State Assembly passed a 68 cents additional gas tax that takes place sometime next year.When you gas up in California you will be paying another 68 cents per gallon. Vice Mayor Barker commented she knows our legislature will not do that. City Attorney Joel Stern stated it is based on green series of what needs to be fixed, the air, so it is not rally related to infrastructure that is crumbling but it is related to environmental infrastructure. Our state legislature can do something similar.And what happens in California sometimes follows in Arizona.It may take 20 years but it does happen. Councilmember Rizzi commented she does not think they can depend on the Highway User Revenue Funds. Vice Mayor Barker agreed. Mayor Insalaco asked where they go from here. Assistant City Manager Bryant Powell stated in their packets they have provided lots of options to look at in terms of how many years they want to go and which taxes.That was the intent and he did not know if they wanted to add anything. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 21 OF 40 Assistant to the City Manager Matt Busby stated just to clarify, there are two issues at hand here.One is the .2% that is currently designated for operating capital which Councilmember Serdy has been referring to.It is the one that had been extended.In 2010 the city council extended it for 6 years and it will sunset a year from now in 2016.They thought it might be appropriate to bring it forward with this discussion now while we are talking about a separate .2% increment just dedicated to roads so they would not have to keep coming back for these different .2%s.That is why you see both of these items under one possible motion tonight. Councilmember Evans commented she had one quick question.She asked if they know or can they somehow get the information on both of the .2% taxes if they initiated a primary property tax or if it was voted and approved.She asked if both of those could go away. Assistant City Manager Bryant Powell stated they can absolutely do the analysis and bring that forward. Councilmember Evans commented she thinks that would be good information. Councilmember Serdy commented they would not be voted on unless they are being given something, unless something is cut.They will not do this and the property tax.They need to be shown the city is ready to trade off. Councilmember Evans commented it would take several years to get the property tax even on the ballot.It is a great future change. Assistant City Manager Bryant Powell stated it would take a couple of years to get it on the ballot and another year for the county to collect it and bring it in. Councilmember Evans commented they could possibly eliminate both of these .2% which would then really decrease the sales tax. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 22 OF 40 Assistant City Manager Bryant Powell stated it is currently at 8.9% and it will go to 9.1%. It would be 8.7% with the decrease of both. Assistant to the City Manager Matt Busby stated there are issues with the timing of it.The council has the ability to vote on any sales tax increment, but any primary property tax has to go to the voters.If they cut the sales tax before they know the property tax is in place, they would have the chance of losing it all.If they have the property tax come first, they have the voters a little wary of if they are really going to discontinue the .2% or decrease the sales tax by such and such amount.Another important point about primary property tax is they have to establish the levy, the total amount they want to collect.State statute will determine how much that levy is.It is a fixed amount that will increase each year.That is what they are stuck with for the life of the primary tax.They have to get that number right. Councilmember Serdy commented the next election would be in 2016 as there is nothing in 2015. Assistant City Manager Bryant Powell stated that is correct. Assistant to the City Manager Matt Busby agreed. Assistant City Manager Bryant Powell stated when he is talking about a couple of years to get on the ballot it will be November of 2016. City Attorney Joel Stern stated it would be a November election.It would be the presidential election. Mayor Insalaco commented they would be at the bottom of the voting page. City Attorney Joel Stern stated yes, but it is the president, it is the senate. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 23 OF 40 Vice Mayor Barker commented it is the presidential election. City Attorney Joel Stern stated yes, and all the county offices. Councilmember Waldron commented he appreciates their trying to be efficient with the two taxes, but he asked if they could separate them from the .2% that is currently in place and the .2% that they are talking about to fix the Trail.It gets a little bit confusing. Whenever someone says .2% they are going which one are you talking about.He appreciates the efficiency but if they could separate them out he thinks it would be a lot easier. Assistant City Manager Bryant Powell stated absolutely.It is up to the council how they want to approach it.For him, it will come back up.He will need to find a million dollars from a $20 million revenue, as we do a class and comp plan, as we continue to worry about public safety retirement system, we have some real headwinds ahead.He wanted to bring this up, that is why they are bringing this up, to remember that because it will be that time period real quick. Yes, they can absolutely separate it, but they will want to continue this with the budget or bring this up because that .2%, it is going to seem like it is something we will have to do.We will do those things in soft capital and we will have to look at other areas. Councilmember Waldron commented he agreed we need to address both of them.The Apache Trail fix is a fairly immediate need, but we cannot drop the discussion on the .2% that is currently in place that will sunset. Assistant to the City Manager Matt Busby stated the question for Joel is they had prepared some example motions of these two things combined.He asked if they could have two different motions tonight, one for the .2% operating and one for the .2% roads. City Attorney Joel Stern stated absolutely because they would be separate ordinances that REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 24 OF 40 staff would ask the council to direct them to create rather than one for both.They do not want to take the risk of something happening when they are all in one ordinance. Mayor Insalaco commented they have the rest of 2014, all of 2015 and the first part of 2016 to see how they want to continue the other one if they voted on the .2% additional tax that they are talking about today, tomorrow, next week or whatever and the other one does not sunset until October 2016.It does not change the taxes any more than what the people are already paying.Instead of trying to hit them both right now, they are going to extend this one right now and add this. City Attorney Joel Stern stated they should remember this is just a direction to staff. They would not be voting on the actual tax tonight because there is no ordinance. Assistant City Manager Bryant Powell stated this starts the process of getting city clerk staff and city attorney staff trying to work the paper work. Mayor Insalaco commented the process of doing it this way is a lot quicker than going through a property tax. Assistant City Manager Bryant Powell stated that is correct. City Attorney Joel Stern stated another option would be to send this to the voters, too. They could send the sales tax issue to the voters.They can do that if they want to do that, but there would be a delay on that also. Councilmember Wilson commented in the meantime the road gets worse. Mayor Insalaco commented that would not be until 2016 and if they turn it down then they are up the creek without a paddle. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 25 OF 40 Assistant City Manager Bryant Powell stated $12 million.They would be past sub -base and into construction.If Giao was here he would be able to explain that but he thinks they have gone over that with Shane and Giao over the years and what happens if they wait. Councilmember Wilson commented one of the things he was wondering about was they had talked about possibly looking at the idea of going to the voters for a real estate tax.He asked if they could put in the words in this that either full returning of the Highway User Revenue Funds or implementation of a real estate tax or its equivalent. Something along that line so in other words it is saying it is good until they do one or the other, achieve one or the other. meant the existing one. Mayor Insalaco asked if he Councilmember Wilson commented it would be for the roads.One of the problems we have is not only the Trail.We have a lot of other roads that need help. Mayor Insalaco commented they have Delaware. Assistant City Manager Bryant Powell stated they have Southern, Delaware, and we have $18 million of road projects out there. Councilmember Wilson asked if there is a way of wording that so they could continue looking at the idea of going to the voters for a real estate tax. City Attorney Joel Stern stated he is getting at a conditional motion, a conditional sunset clause. Councilmember Wilson stated that is correct. City Attorney Joel Stern stated they can look into that.To come up with that language REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 26 OF 40 right now for the direction to staff, we could attempt to do that but he has those concepts.He thinks he knows what he is talking about.He would have to look at the language to see if they can do it at the end.It would have to be very carefully crafted language. Councilmember Wilson commented he has that ability. City Attorney Joel Stern stated this is a policy decision. Councilmember Waldron commented if they can, on the .2% roads, if they can look at whatever wording is necessary for what Chip is talking about, as well as some wording that sunsets on the restoration of Highway User Revenue Funds.He would like a couple of different sunset scenarios to look at.The language involved would be very helpful.He thinks everyone agrees they want it to sunset, it is just how and when. Vice Mayor Barker commented she is trying to get her mind wrapped around this.In other words, what he is saying is he is looking for a motion on only the roads, the additional, at this point, leave the other where it is, leave it alone, with numerous possible sunset options. Councilmember Waldron commented that is correct as he said it would take a little bit of language crafting. City Attorney Joel Stern stated for the direction to staff he thinks that would be fine. They are looking for conditional sunset triggers. The consensus of the council was they approved of that terminology. City Attorney Joel Stern stated that is good, especially for a tax situation. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 27 OF 40 Vice Mayor Barker commented she believes she has the motion.She asked if she would have to address the other .2% in this motion at all. Assistant City Manager Bryant Powell stated if she does not they can put it as another work session item at another time. Mayor Insalaco closed the discussion and called for a motion. Vice Mayor Barker MOVED THAT THE FOLLOWING DIRECTION BE GIVEN TO STAFF REGARDING AN ADDITIONAL TWO -TENTHS OF A PERCENT SALES TAX DEDICATED TO FUND ROADWAY MAINTENANCE AND REPAIRS:THAT STAFF BE DIRECTED TO PREPARE AN ORDINANCE FOR A TWO -TENTHS OF A PERCENT INCREASE IN THE LOCAL SALES TAX DESIGNATING IT AS DEDICATED TO ROADWAY MAINTENANCE, REPAIRS OR CONSTRUCTION, THAT STAFF BRING BACK NUMEROUS CONDITIONAL SUNSET TRIGGERS OF SAID TAX. City Attorney Joel Stern stated for clarification he asked if she could say such as Highway User Revenue Funds restoration. Vice Mayor Barker continued her motion with SUCH AS HURF RESTORATION, THE ONSET OF PROPERTY TAX, AND ANYTHING ELSE DEEMED WORTHY. City Attorney Joel Stern stated she can strike that last one and add or other staff recommendations. Vice Mayor Barker continued her motion with STRIKE AND ANYTHING ELSE DEEMED WORTHY AND ADD OR OTHER STAFF RECOMMENDATIONS. Mayor Insalaco asked if she was going to put that down especially for Apache Trail or does that necessarily need to be under construction. Vice Mayor Barker asked if the sales tax is dedicated only to Apache Trail. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 28 OF 40 Councilmember Waldron commented that is what they have been doing in the meetings. Assistant City Manager Bryant Powell stated he would argue they have been presenting to the community all the $18 million in road projects. Vice Mayor Barker commented she would argue the same. Assistant City Manager Bryant Powell stated he does not know what that means; he was at the League conference as well. Vice Mayor Barker continued her motion with AND ADD TO THIS THAT APACHE TRAIL COME FIRST. Powell agreed. Assistant City Manager Bryant Mayor Insalaco agreed. Vice Maor Barker amended her motion to THAT APACHE TRAIL BE THE PRIORITY. Councilmember Waldron commented they did the video on fix Apache Trail and the fact sheet out there says fix Apache Trail. Vice Mayor Barker commented but the presentations, as people have talked, have covered the entire community for maintenance purposes especially.But the Trail portion of it has been to completely redo it, from what she understood from the presentation and maintenance for the rest of the city. Assistant to the City Manager Matt Busby stated in all their communications it has been focused with the priority being Apache Trail but they have been communicating to the public and the business,gyners that there is still a larger problem with a backlog of million for our roadways. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 29 OF 40 Councilmember Waldron commented but is it being presented that the .2% would handle that $18 million over the years. Assistant to the City Manager Matt Busby stated it depends on how long it is entitled. Councilmember Waldron commented that is what his question goes to.If they presented it in this way, he apparently missed that part.If they presented they would cover the $18 million, then to sunset with the Highway User Revenue Funds will not work. Mayor Insalaco commented it will not because they will not get that much money. Councilmember Waldron agreed. Assistant to the City Manager Matt Busby stated it all depends on if and when the legislature ever would do that. Assistant City Manager Bryant Powell stated his biggest worry is that may never happen. Councilmember Waldron commented that is his concern, too. Assistant City Manager Bryant Powell stated this is an option for this council and this community to step up and take control of its destiny in moving forward and investing in itself. Mayor Insalaco commented this is nothing.Of all the 18 or 19 neighborhood meetings they have gone to in the last year, the Apache Trail came up almost every time. Assistant City Manager Bryant Powell stated it is very clear. Mayor Insalaco commented he has been to a few of them. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 30 OF 40 Assistant City Manager Bryant Powell stated it was said at the citizen's institute and any homeowners association meeting he has been to, and they are all asking when are they going to do it or why it has not already been done. Mayor Insalaco commented they are customers but they are also residents.They do not have to worry about the customers but they do have to worry about the residents.They are the people that they serve. Assistant to the City Manager Matt Busby asked if they need a time frame as part of the motion or if it is permanent. Assistant City Manager Bryant Powell stated he was thinking the same thing.If they were to say not to exceed ten years that helps staff know as it gets into the idea of financing. Vice Mayor Barker asked if that is part of the possible conditional sunsets, is to give them a time certain as one of the options. Assistant City Manager Bryant Powell stated if none of those things happen, he would like their outside sunset. Vice Mayor Barker commented that would be another option since she asked for options.It would bring an option for a time for sunset rather than Highway User Revenue Funds coming back or a property tax being started or whatever. City Attorney Joel Stern stated that is more of a policy decision by council on the outset if none of these other things happen. Vice Mayor Barker commented that is correct.He could just have a line. City Attorney Joel Stern stated it would say then how long they want to make this. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 31 OF 40 Mayor Insalaco called for a second. Councilmember Wilson SECONDED THE MOTION. VOTE:Unanimous. (During the motion Councilmember Serdy asked for clarification that this was just for direction to staff to come back with different solutions and was advised that was correct.) The motion carried. OLD BUSINESS None. NEW BUSINESS CITY'S REQUEST FOR PROPOSALS FOR PR14-03 LANDSCAPING CONTRACTS FOR THE PARK SYSTEM )Parks Superintendent Nick Blake briefed the council on the item. Councilmember Evans asked if they are happy with Somerset Landscaping. Parks Superintendent Nick Blake stated they are.Overall they have done a good job. Pretty much any contractor they have had has had their issues, Somerset has been well above average when it comes to that. Those issues they have had they have responded to and corrected them. Vice Mayor Barker commented they are contracted with Renaissance and the others so she presumes they pay us. Parks Superintendent Nick Blake stated they do not.Those were lands deeded to us at the time those subdivisions were created. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 32 OF 40 Vice Mayor Barker commented how lovely for them. Parks Superintendent Nick Blake stated yes, they learned. Councilmember Serdy asked if they have looked at doing this in house.If a storm occurs and something breaks, they go out and take care of it anyway in these same areas.So for $96,000, they could say two staff members and a truck full time.He asked if they have done a study in the past about doing it in house and how it would come out that way. Parks Superintendent Nick Black stated they have not done a study per se.Prior to 2001 they were taking care of it in house.At that time they were keeping two full time people busy.Since that time they have added three of the highway ramps, Plaza Drive, Old West Highway and North Apache Trail. Councilmember Serdy commented and staff has been cut. Mayor Insalaco commented staff has been cut quite a bit. Assistant City Manager Bryant Powell stated they looked into this earlier and going to the private sector was the answer.They have added significantly to this and he would say it would be double the cost if not more if they had to go in house. Parks Superintendent Nick Blake stated when they bid this out four years ago, they got a price of $84,000.They are seeing a significant increase but they have had that price for four years because they continued to renew with the company.They have had a 15% increase over what they had four years ago.Prior to that, the bid they got when the economy was booming was around $120,000 to $130,000 a year for fewer properties.Even with this $96,826, they are in much better shape than they were 7 or 8 years ago. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 33 OF 40 Councilmember Serdy commented they had an issue today with Idaho Road being completely covered with trash.It is unknown where it came from.They went out with community service workers.He knows that is not the solution, but he questioned if there any opportunities through volunteerism.When he first got on the council, they talked about having citizens take care of the median on Royal Palm. They had a lively discussion.There were people interested and then it kind of stopped.He knows there is a danger factor in having citizens out in the street; that was one of the things. He asked what the city does and what the state does for the freeway ramps.The city does not own the freeway.He asked him to explain what gets done on the freeway ramps. Parks Superintendent Nick Blake stated the freeway ramps are basically kept litter free. They have no irrigation systems out there and no plants.It is just artwork.It is basically weed control and litter control. Councilmember Serdy commented that is off the highway thing.He asked why Roadhaven would not want to do a ramp and Rock Shadows want to do a ramp.With one person on staff coordinating, he thinks they would love to do that. Assistant City Manager Bryant Powell stated the last time he checked Arizona Department of Transportation did not want them on the ramps.Secondly, he thinks it is a contractual agreement with them when the granite was accepted on the ramps that we would maintain and keep the weeds down. Parks Superintendent Nick Blake stated that is correct. Assistant City Manager Bryant Powell stated the city used to have trouble keeping the freeways clean when it tried to do it. Mayor Insalaco commented we tried. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 34 OF 40 Parks Superintendent Nick Blake stated they will be getting an attachment two weeks from now when they do their actual consideration that has a breakdown of each of the areas here showing how much each of those areas are being charged.They will notice the ramps for the freeways are the lowest in cost.They are the least amount of work to do.It is reflected in the price from the contractor. Councilmember Serdy commented he would be interested to see those breakdowns because he thinks there are some solutions there with volunteerism if it is done correctly.Even if they. approve this, he would like to know more in the future about this.There are a lot of people who come here with nothing to do.In the summer there are not as many volunteers and it is also 180 degrees.He would like to know more about these. Mayor Insalaco asked how that would work with the insurance policy in case anyone gets hurt. City Attorney Joel Stern asked if he meant the volunteers. Mayor Insalaco commented that is correct.A lot of these places have to be trimmed with chainsaws and trimmers.They are talking about people from Roadhaven that are in their eighties. Parks Superintendent Nick Blake stated if he is talking about volunteers going in and trimming the shrubs and trees, he would recommend against that. He has seen that go bad in the past.They even have a hard enough time with the so-called professionals in getting it right.They just recently massacred the trees on North Apache Trail.One probably would not notice it unless one is a professional, but some of the pruning that was done was terrible.He could not imagine what would happen if they had someone out there as a volunteer with no training.He would not recommend that part of it. City Attorney Joel Stern stated our insurance policy has premises liability for our city streets.If we send someone out there, the city will probably REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 35 OF 40 have to cover those individuals.If they do something outside the scope of what they have been asked to do, if they are running around in the street and they are not supposed to be, and they do not have their safety vests on, he thinks there could be a coverage problem.If Southwest Risk does not cover it, then the city will be held liable if something bad happens. That would mean city general fund money.There is also a deductible under our current insurance policy and he believes it is $75,000.The city would pay the first $75,000 for damages that are adjudged by a court.Attorney fees are covered under our coverage, but if the city is found liable for something, if a volunteer drives a truck into another person or a person's vehicle, the city is liable.If the city fights it and loses, the city pays the first $75,000. Mayor Insalaco commented they would have to have a truck or something to pick up the weeds and everything and take them to the dump.He asked who would be paying for that. City Attorney Joel Stern stated he can tell you what the process would be but there are all kinds of possibilities that would come up for different landscaping tasks.Yes, the city would have to pay for that. Councilmember Serdy commented they have community service people do it. City Attorney Joel Stern stated they do, and he thinks if something happened to those workers, remember when he says community service he thinks he means people from the court paying off their fines, if something happens to them on a right-of-way, our insurance would cover it, depending on what they did.If they are out of the scope of what they were supposed to be doing, then no.But still they are acting as our agents so the city itself would have to cover it.There may not be coverage under our policy. Councilmember Waldron asked if the community service people are doing chainsaw work. Assistant City Manager Bryant Powell stated they are not.Community service does litter pick REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 36 OF 40 up and hoeing and they try to keep them out of the right-of-way. They give them as minimal to do as possible.They also wash police department vehicles and other things on city property. Councilmember Rizzi asked how it works with adopt a highway people.When she worked for the boys and girls club they went out and got a portion of the road. The kids and she went out and picked up trash and they signed waivers.She asked if the city is not protected by that. City Attorney Joel Stern stated if it is an Arizona Department of Transportation Adopt A Highway program (he was interrupted by Assistant City Manager Bryant Powell). Assistant City Manager Bryant Powell stated they do not have an Arizona Department of Transportation Adopt A Highway program.They have an Arizona Department of Transportation Sponsorship Program.They were real clear with us.When he first started they went out and started cleaning up on the freeway and immediately got a call from the Arizona Department of Transportation.They do not want us out there.The city initiated a joint sponsorship with Allied Waste and Mediacom and each year, for 12 years, they have invested in our community and we have sponsorship programs.It is a contract or similar to what is being proposed.They go out and clean on the freeway.They do have an Adopt A Highway Street Program. City Attorney Joel Stern stated as for the waiver she is talking about, if something happens, he is sure that waiver will be scrutinized by a very good plaintiff attorney.That is all he will say publicly on that. Mayor Insalaco asked if they want to leave themselves open to problems like that. City Attorney Joel Stern stated that is a policy determination.It is a night of policy decision making. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 37 OF 40 Parks Superintendent Nick Blake stated he would recommend that any of the landscape maintenance that involves anything with the care of the plants in terms of pest control, herbicide control, pruning, or anything to do with the irrigation systems they not use volunteers.They do not have the skills for it and they will pay a heavy price.Litter control and a certain amount of weed control with a hoe could be considered. Mayor Insalaco commented all these landscaping places have a bunch of money in those plants. Parks Superintendent Nick Blake stated that is correct.They have even had them hula hoe out the wrong plants.Even that he is a little bit leery of, depending on the site. City Attorney Joel Stern stated they do have some trees that have grown to a caliber that are huge and they are great specimens. Mayor Insalaco commented a few weeks ago they did Phelps Drive and they had the guys climbing with the equipment.He would not want to be responsible for something like that.He asked where they go from here. Vice Mayor Barker stated it comes back in two weeks.This was for information. Assistant City Manager Bryant Powell stated this was an item because we did not have a work session last night.It is for presentation and discussion. Mayor Insalaco closed the discussion and moved on the next item. DIRECTION TO STAFF None. SELECTION OF MEETING DATES, TIMES, LOCATIONS, AND PURPOSES REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 38 OF 40 Vice Mayor Barker MOVED THAT AN EXECUTIVE SESSION AT 5:45 P.M. AND A WORK SESSION AT 7:00 P.M. BE HELD ON MONDAY, SEPTEMBER 15, 2014, IN THE CITY COUNCIL CONFERENCE ROOM AND CITY COUNCIL CHAMBERS RESPECTIVELY; AND THAT AN EXECUTIVE SESSION AT 5:45 P.M. BE HELD ON TUESDAY, SEPTEMBER 16, 2014, IN THE CITY COUNCIL CHAMBERS. Councilmember Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. CALL TO THE PUBLIC: None. (Kim Tunstall turned in a request to speak form but left the meeting before the item was called.) ADJOURNMENT Mayor Insalaco adjourned the meeting at 9:20 p.m. Consent Agenda Items are as follows: 1. Acceptance of Agenda. 2. Approval of Minutes of Regular Meeting of August 19, 2014. 3. Consideration of proposed contract with Visus, Inc. for PWC2013-10 Pueblo del Sol Roadway Improvements - Phase 1 in an amount not to exceed $269,550.00. 4. Consideration of proposed Resolution No. 14-35, authorizing the city to enter into an intergovernmental agreement with Arizona Department of Transportation for a citywide Intelligent Traffic System study in an amount of $21,550.00. ACCEPTED THIS 16TH DAY OF SEPTEMBER, 2014, BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 39 OF 40 SIGNED AND ATTESTED TO THIS 16TH DAY OF SEPTEMBER, 2014. ATTEST: KATHLEEN CONNELLY City Clerk JOHN 45; IN ALACO Mayor CITY COUNCIL MINUTES 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 the City of Apache Junction, Arizona, held on the 2nd day of September, 2014.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 10th day of September, 2014. KATHLEEN CONNELLY City Clerk REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 2, 2014 PAGE 40 OF 40