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HomeMy WebLinkAbout2014-09-16 City Council Regular MinutesCITY COUNCIL REGULAR MEETING SEPTEMBER 16, 2014 The regular meeting of the City Council of the City of Apache Junction, Arizona, was held on September 16, 2014, at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Vice Mayor Barker 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 (telephonically) Vice Mayor Barker Councilmember Evans Councilmember Rizzi Councilmember Serdy Councilmember Waldron Councilmember Wilson Staff Present: Others Present: Assistant City Manager Bryant Powell City Attorney Joel Stern Public Safety Director Tom Kelly Deputy City Clerk Jan Mason Principal Economic Development Specialist Janine Salley Economic Development Specialist E'Lan Vallender Public Information and Marketing Communications Specialist REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 1 OF 29 Constance Halonen-Wilson Vide Mayor Barker commented since Mayor Insalaco is on the phone, she requested everyone to make an effort to speak into their microphones so that he can hear everything. ACCEPTANCE OF CONSENT AGENDA )Councilmember Evans MOVED THAT THE CONSENT AGENDA BE ACCEPTED; AND THAT APPROVAL BE GIVEN FOR THE CONTRACTS BETWEEN THE GOVERNOR'S OFFICE OF HIGHWAY SAFETY AND THE CITY OF APACHE JUNCTION FOR REIMBURSEMENT OF PERSONNEL SERVICES AND PROCUREMENT OF EQUIPMENT UNDER CONTRACT #GOHS 2015-164-004 IN THE AMOUNT OF $2,000 FOR EQUIPMENT, CONTRACT #GOHS 2015-164-007 IN THE AMOUNT OF $47,000 FOR THE PURCHASE OF A FULLY-EQUPPED MARKED DUI ALCOHOL ENFORCEMENT POLICE PACKAGE SUV, CONTRACT #2015-HV-001 IN THE AMOUNT OF $10,000 FOR PERSONNEL SERVICES AND RELATED EXPENSES AND CONTRACT #2015 -PT -002 IN THE AMOUNT OF $10,985 FOR PERSONNEL SERVICES AND RELATED EXPENSES AND EQUIPMENT FOR A TOTAL AMOUNT OF $69,985; AND THAT AUTHORIZATION BE GIVEN TO THE PUBLIC SAFETY DIRECTOR AND THE CITY MANAGER TO SIGN THE CONTRACTS PENDING APPROVAL AS TO FINAL FORM BY THE CITY ATTORNEY; AND THAT APPROVAL BE GIVEN FOR THE SECOND AMENDMENT TO THE EASEMENT -AGREEMENT BETWEEN VERIZON WIRELESS AND THE CITY OF APACHE JUNCTION FOR LOCATION OF COMMUNICATION EQUIPMENT ON CITY PROPERTY, EXTENSION OF THE AGREEMENT FOR FOUR ADDITIONAL TERMS OF FIVE YEARS EACH, INCREASING THE ANNUAL RENT THREE PERCENT ANNUALLY WITH THE CURRENT ANNUAL RENT BEING $9,240, A ONE TIME PAYMENT OF $20,000, NEW ADDRESSES FOR NOTICES BEING SENT TO PARTIES OF THE AGREEMENT, REAFFIRMATION OF TERMS OF THE ORIGINAL AGREEMENT, AND CLARIFICATION THAT ALL ADDITIONS, VARIATIONS AND MODIFICATIONS TO THE AGREEMENT BE IN WRITING; AND THAT AUTHORIZATION BE GIVEN TO THE CITY -MANAGER TO SIGN THE AGREEMENT PENDING APPROVAL AS TO FINAL FORM BY THE CITY ATTORNEY; AND THAT THE AWARD OF BID FOR PR14-03, LANDSCAPE MAINTENANCE FOR RENAISSANCE POINT, ARROYO VERDE, PHELPS DRIVE PHASE I AND PHASE II, IRONWOOD COVE, ROYAL PALM ROAD, IRONWOOD- DRIVE AND US 60 EXIT, GOLDFIELD ROAD AND US 60 EXITE, TOMAHAWK ROAD AND US 60 EXIT, IDAHO ROAD AND US 60 EXIT, PLAZA DRIVE, OLD WEST • HIGHWAY REGULAR MEETING OF.THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 2 OF 29 MEDIAN AND NORTH APACHE TRAIL, BE AWARDED TO SOMERSET LANDSCAPE MAINTENANCE, INC., IN THE AMOUNT OF $96,826 WITH AN ADDITIONAL 10% IN THE AMOUNT OF $9,682.60 FOR CONTINGENCY FOR A TOTAL AMOUNT NOT TO EXCEED $106,508.60 FOR A PERIOD OF ONE YEAR WITH THE OPTION TO RENEW WITH THREE ADDITIONAL ONE-YEAR PERIODS. Councilmember Waldron SECONDED THE MOTION. VOTE:Unanimous. The motion carried. AWARDS, PRESENTATIONS AND PROCLAMATIONS Vice Mayor Barker read a proclamation designating September 17 through September 23 as Constitution Week.She then presented the proclamation to Regent Carol Pearson, Chairman of the Constitution Week Committee Karen Barks and Carol Shepherd. ANNOUNCEMENT OF CURRENT EVENTS Councilmember Waldron commented Vice Mayor Barker, Councilmember Wilson and he attended an emergency services exercise on Friday afternoon where the police department, fire district and Pinal County collaborated on a storm scenario.It was a good exercise. Vice Mayor Barker commented the exercise called for 80 miles per hour winds.Her house would have blown away. Councilmember Wilson commented a week ago D & H Auto Repair and Towing contacted Paws and Claws Care Center to pay it forward. Their donation paid for the adoption of five dogs.He thanked them personally for doing this. CITY MANAGER'S REPORT Assistant City Manager Bryant Powell commented on September being National Preparedness Month, public works being called out on September 6 for numerous flooded intersection calls, and public works cleaning up the drainage areas to prepare for REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 3 OF 29 tropical depression Odile.He then showed a video on the emergency preparedness services exercise. PUBLIC HEARINGS DRAFT ORDINANCE FOR AN ADDITIONAL .2% SALES TAX DEDICATED TO FUND ROADWAY MAINTENANCE AND REPAIRS )Assistant City Manager Bryant Powell briefed the council on the item. City Attorney Joel'Stern briefed the council on the draft ordinance language and its possible effect on bonding in the future. Assistant City Manager Bryant Powell asked if he was talking about the language of the conditions.The language they have before them states ten years no matter what. City Attorney Joel Stern stated that is correct.He continued with his briefing. Councilmember Serdy asked if they can ask questions at will or if they have to wait. Vice Mayor Barker commented this is a public hearing.She suggested they let the public address them first and then they can discuss this. The consensus of the council was to go ahead with the public hearing. Vice Mayor Barker opened the public hearing on the item. Mr. William Rollins, 574 W. Greasewood, Apache Junction, addressed the council.He stated he has lived here for 28 years and the previous .2% to get the buildings they'are now sitting in is greatly appreciated.He does not see anything wrong with sales tax because it is the most fair tax this city could have.It affects everyone.The streets are used by everybody that comes into town.He is. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 4 OF 29 totally against the property tax as it means the public can drive on a street that he has no say so over.If they are looking for fair representation of tax money, there is nothing more fair than sales tax. Mr. Clark Smithson, 1700 S. Weaver, Apache Junction, addressed the council.He stated no one likes taxes but they do like the services they provide. These are services that are desperately needed.He does not want to see it put off any longer than necessary.He commends the council for considering a minimal sales tax increase.They discussed a bond issue 3-4 years ago to bring the streets up to par and then the number was $10 million.Fourteen million does not surprise him at all; in fact he is surprised it is not higher.As the Highway User Revenue Funds are not here they need something to do it.He likes the idea of a sunset clause. He personally does not feel the property tax would hurt him but he feels it will hurt the businesses.He would be opposed to a property tax.He suggested considering going out for a bond to be funded by the sales tax so that more could be done considerably sooner.He liked the idea of lowering the sales tax when the Highway User Revenue Funds come in. Mr. Carlos Rivera, 2096 E. 37th Avenue, Apache Junction, addressed the council.He stated he is for the sales tax increase to improve the streets.The property tax could hurt businesses but when he goes down the Trail, it is rough.We need to improve the road and get the people to come back into Apache Junction. Mr. R.E.Eck, Jr., 2106 W. Roundup, Apache Junction, addressed the council.He stated it is the choice between two evils and the sales tax would be more fair than the property tax.In talking with people, they do not realize how much tax we pay, including utility taxes and rental taxes on buildings.He commented there is an exercise tax where the city charges people to exercise.With the capital facilities plan the tax went from 8.7 to 8.9 and the city raised $6 million to $7 million,it was a great investment for the buildings that was kept going for the police department.He is not saying he does not agree with the tax but he wants everyone to know where we are at.He is concerned about the small businesses.A 9.1% tax sounds extremely high to him. REGULAR MEETING OF THE CITY COUNCIL. SEPTEMBER 16, 2014 PAGE 5 OF 29 Mr. Randy Blount, who does not reside in the city but is relocating a business here, addressed the council.The raise in the sales tax made him think about how it might affect his business.There is perception that it would, but when thinking about his own business spending, he rarely considers the amount of sales tax. He does transactions in Buckeye and Goodyear and never looks at the sales tax.He does not feel it is a threat to him.If he provides a good service they will transact with him.Most of the spending is done where they are at.Most of the people on the way to the lake will stop here.He questioned if the increase was enough to combat the problem.A bond would be helpful but he suggested they consider a .4% increase to resolve the issue quicker.There is a perception with Apache Junction and some of that is road conditions.Scottsdale spends a lot of money on roads and median improvements.It really changed the perception of Scottsdale.It is the right move but he is concerned that it is enough and will they be able to improve the image of the city.Improving the overall image will bring a lot of potential customers to the city. Ms. Tess Nesser, 1511 S. Cactus, Apache Junction, addressed the council.She stated if her math is correct, it would be two cents on a ten dollar purchase or twenty cents on a hundred dollar purchase.It would be $2 on a $1,000 purchase, $20 on a $10,000, and if buying a house for $100,000 it would only be $200.She asked who could complain about getting that in exchange for roads.She agreed with the last gentleman in that is .2% enough.She wants to get the roads fixed. Mr. Steven Keel, 3274 S. Bowman, recently from South Texas, addressed the council.He asked what the original .2% tax was put in place for. Vice Mayor Barker commented it was for where he is right now. Mr. Steven Keel stated it was to pay for this building.He asked if it was for more than one year's revenue or several years.He asked what year it was. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 6 OF 29 City Attorney Joel Stern stated he would have to interrupt this as this is for public comment only.The council an answer the questions afterwards. Vice Mayor Barker commented they can answer his questions afterwards. Mr. Steven Keel asked the assistant city manager for his name. Assistant City Manager Bryant Powell stated he would give him his card later. Mr. Steven Keel asked if he could have just his name. Assistant City Manager Bryant Powell told him his name. Vice Mayor Barker commented they would be happy to answer the questions after the public hearing portion of the meeting. Mr. Steven Keel stated he had two more questions.In Texas any through street going through the city is owned by the state.He asked if it is the same way in Arizona.All the highways leading to the lake should be owned by the state. Vice Mayor Barker commented they would be happy to answer those questions after the public hearing.She is writing them down. are on the same subject. they are but the rules answer him while he is down so that the he is seated. Mr. Steven Keel stated they Vice Mayor Barker commented of a public hearing are that we cannot talking.She is writing his questions council as a whole can address them as soon as REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 7 OF 29 Mt. Steven Keel asked if the $18 million needed for paving is for all the streets in the city or just the Trail.He asked if she cOuld answer that question or not. City Attorney Joel Stern asked if he was being timed. Vice Mayor Barker stated he was not being timed. City Attorney Joel Stern stated the law is they can answer the questions after he sits down.The .law does not allow them to answer right now. Mr. Steven Keel asked again about the $18 million. City Attorney Joel Stern stated he is answering his question.He added he can ask questions and they will take notes. Mr. Steven Keel asked if they could answer the question if all the streets in the city have to be paved at the same time. Vice Mayor Barker commented she would explain it one more time.The council cannot answer his questions at this point.They can after he sits down.She has written both of those questions down.She asked if he had other questions. Mr. Steven Keel stated he had other questions that they do not have to answer. Vice Mayor Barker commented she would let him ask two more questions.After the meeting Mr. Powell would be delighted to speak with him and answer any questions he has. Mr. Steven Keel stated they do not have to answer them.He asked if they want to have ideas on how to come up with $18,000.He can come up with ideas for REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 8 OF 29 that.He asked if anyone wants to hear his suggestions, and, if so, to raise their hands. City Attorney Joel Stern stated he believed they are beyond the scope of open meeting law. Vice Mayor Barker commented they are beyond the open meeting law at this point and asked him to please be seated. could have one question. Mr. Steven Keel asked if he Vice Mayor Barker refused. Mr. Steven Keel stated she said he could have two more questions. he overstepped it. more. requested a break. a two minute break. Vice Mayor Barker commented Mr. Steven Keel asked for one City Attorney Joel Stern Vice Mayor Barker called for Vice Mayor Barker reconvened the meeting and called for anyone else who would like to address the council. Mr. Peter Heck, 1390 N. San Marcos, Apache Junction, addressed the council.He stated he understands from the slide presentation that the revenue would be in the neighborhood of $1 million.That is significantly less than what is needed for the time frame for the work ,that needs to be done.He is hoping there will be some additional discussion on how to go about generating more revenue, whether REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 RAGE 9 OF 29 through a bond issue or something else.He recognizes the sales tax revenue will be inadequate to cover the costs. Mr. Mark LeResche, 2910 W. Apache Trail, addressed the council.He stated he is a small business owner in town.He was part of the retreat in April where he sat on the sidelines being a listener.In April the entire council was miles apart on this issue.Now they are a team. Vice Mayor Barker closed the public hearing with no one else wishing to speak.She reopened the item to council discussion.She commented she believes Steve, being new to the community, did have some questions that perhaps those new to the community would wonder about, such as what was the original .2% designated for.It was an excellent question.She sees no problem with that type of thing.They got a little off the rails with the amount but that and the state roads were good questions.Apache Trail is not a state road.It is important to know.She is sure there are those who have been in Arizona a long time who drove from Florence to Mesa on Apache Trail and presumed it was all state highway.They may not realize it is a city -maintained road. Councilmember Waldron commented the rental tax is actually gone now.He asked if we .no longer collect rental tax.He believes the state took that away. City Attorney Joel Stern stated they are in a discussion part of the council meeting and they cannot get someone to answer. Councilmember Waldron commented he suggested they do a trigger on the Highway User Revenue Funds.There are some inherent problems with that. They could cease the sweep one session and start it -all over again the next session or a couple of sessions later.In thinking it through, it is probably not a good trigger point. He knows there will still be some Highway User Revenue Funds coming in and hopefully they will stop the sweeps so that the city gets more of that money.His concern is they would continue the sweeps if.the city were to trigger the sunset on REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 10 OF 29 the sales tax with the Highway User Revenue Funds.It is a suggestion he would like to withdraw. Vice Mayor Barker commented the Highway User Revenue Funds, as they were in 2006 and 2007, may not be enough if it is completely reinstated five years from now.In dollars, five years from now, it may not be anywhere near what the city would need at that point. Councilmember Serdy asked why gasoline is off limits to the city and only the state can tax gasoline.He asked why they could not do their own little gasoline tax here. City Attorney Joel Stern stated they are preempted by the state in the statutes.It is reserved for the state.It is different in some states, other states can.California has a whopping state tax coming.He does not believe California allows cities to tax either.It might be a carryover from the federal government.It is in the statutes that they cannot put a tax on gasoline. •Councilmember Wilson commented the sunset on the Highway User Revenue Funds will be a discussion for the council at that time to discuss and bring about.This is about deciding to bring it back to the council at that time.They can make a determination to continue it or have it sunset at that time.He had two interesting conversations One was today with a business owner here in Apache Junction.She owns her own business, owns the facilities and land, and owns her own home and resides in Apache Junction. She does not feel a property tax would be fair to her as it would impact her business as well as her personal home.She feels she would be paying twice as much as others would.She is for the .2% as she feels it would not be impacting her business. It would increase her drive to encourage people to come into the community to spend their money.The second was a conversation he had the other day from a concerned citizen who stated if the council passes this, she would drive over to Mesa and spend her money there instead of in Apache Junction.He also heard this from other people.He dot into a conversation with this person concerning that and brought up the price of gasoline.He asked how many miles she would drive and she answered ten miles for REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 11 OF 29 • the round trip.He asked her what kind of mileage she gets and was told she drives a truck averaging 15 to 18 miles per gallon. He told her she would spend $3.27 for that gallon of gasoline and possibly spend more to save one cent on a five dollar bill. He is very torn with the idea.He is not a person who enjoys paying sales tax as well but he does see the benefit in this one.He is still looking to the people of the community, especially the business community, on what they feel impacts them and how it should be resolved.The city needs to do something and needs to do something soon. Mayor Insalaco commented they have been told by staff that the Trail will not last much more than a year -and -a --half.If it is not fixed now, there will not be a road for the people to come to the businesses on.Every day the road gets torn up worse and worse.He asked how about the people that drive that road going to the local businesses if the city loses one, two or ten customers to go out of town because they want to be vindictive and not spend their money in town.If one wants to talk about businesses suffering, look at what will happen if the road gets so bad that people will not want to go to those businesses.It is a catch 22.He asked what they should do.he thinks their obligation is to get the road fixed.When Peter Heck commented on it being $1 million, he may not have realized it is $1 million a year or $10 million for the life of the bond.He does not know if Mr. Heck understood that or if he misunderstood him.If the city goes to a property tax, people will have to understand the city just cannot have an election, it would have to wait until November 2016 before we can do anything, with another year after that of waiting to get the money.The road will not even be around.He asked what would happen if the people of Apache Junction turned that vote down.They are back to square one, in fact, below square one.He is all for it, and the people he has talked to do not have a problem with the .2%. Councilmember Evans commented she truly believes they have to do this and do it right now for all of our immediate needs.As the mayor just said, to do a property tax we would be a year -and -a --half to two years out before we could receive any funds whatsoever.Her concern is with the sunset clause.If they do lust this for just the roads, she asked what they would do when this sunsets.This is REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 12 OF 29 like a patch to get them going right now... Even to rely on the Highway User Revenue Funds, if they all go back to driving Corvettes and Cheveiles and. the really nice, big, fun cars, they will be spending that gas money to get the Highway User Revenue Funds back in.But they are not.Our cars are becoming so energy efficient, we are using less and less gasoline.The Highway User Revenue Funds have to decrease, even if they set it back to the same level we were receiving, the funds will still be less.When the council originally had their retreat and talked about a property tax, she believes she has the numbers right, a $125,000 house for one year's property tax would be approximately two cups of coffee at Starbuck's a year.They were talking about an extremely low amount.They recently attended the League of Cities and Towns Conference and she sat in on a financing infrastructure seminar to learn new ways different communities and different states have come up with, having the same problem with the gas tax and the roads deteriorating, and as a council they have to investigate these other avenues besides just the .2%.They need to do that right now as this is not going to fix our problem.It will be an ongoing problem..They need to really look at how they can solve it.For example, one city created a transportation tax district where they pay an additional tax on their license plates. Whenever the plates are renewed, it is a new tax district on there.That is a direct effect on the roads.The person lives there, owns a vehicle and it will be funded that way.There are new mechanisms out there they have to investigate further. Flagstaff has just gone through a huge study to figure out how they can obtain $64 million.This is okay for now, and we have the immediate now, but to fix the Trail, they have 22 safety issues • on their list now. Mayor Insalaco requested Councilmember Evans talk into her microphone. Councilmember Evans commented they have 22 safety issues for the roads that total $4,765,000. To fix the Trail and the safety issues this Wouid be the most immediate way for them to raise the funds for it. •Councilmember Serdy commented sometimes we have more questions than answers.He will probably bring up more questions.He knows they are not here to debate REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 13 OF 29 , the commenters, be he iS cutiaus how they Would think a property tax will hurt business and not sales tax.They will both hurt. By lost business, it will possibly hurt them more than the property tax.A lot of them will choose to go other places.We all get input from different types of people.He is trying to put it out there that he is against this so that may be why businesses have sought him out.He is hearing from businesses, especially along the Trail, that they are against it.They got a survey from staff and he tried to interpret it.He put a plus if they were for it, incomplete if they did not say and a lot of them were just managers who do not live in our community and stated they would report it and would have a job regardless, and he put a negative sign if they were against it.He came up with 18 for, 13 against and 33 incomplete.Some of them are vehemently against it.They will be punishing the people that follow the Shop Local program.To use a phrase from one of his most unpopular politicians about everyone paying their fair share, people that do not shop here will not pay anything for this road.The ones that get on the freeway and go to Signal Butte or Power Road will not pay at all.If they do a little bit of a property tax that these voters vote for, then everyone will be paying for all the roads that everyone uses.He is throwing that out as a question, not a solution.They are leaving self -governance to the people.As for sunsetting, he is not hearing anything about mandatory sunsetting.It is about they should sunset it.He thinks they are dealing with a rolled over sunset right now on one of them.He thinks if they are going to do this there has to be wording in there that it is mandatory non-renewable sunset.No one is saying that.Or, if it is, they would have to do a whole new tax.Even a supermajority would not do it.He wants to hear something about mandatory sunsetting.Like Councilmember Evans stated, Bryant just talked about the other priorities.If they are going to dedicate this only to the Trail, it is a temporary .fix.A perpetual property tax to do nothing but roads that we cannot rob to start doing public safety and everything else is how it should be worded.If the people want -to do it then they will vote for it.Those are all of his points for now. Councilmember Rizzi commented one of her concerns is, like Councilmember Serdy said and a few of them have mentioned, that this sales tax is not going to be enough to fix all of our needs.She asked what comes next if REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 • PAGE 14 OF 29 they do not have an alternative solution.She asked if they raise it again or keep it and then keep it going.She asked when it would end.As a small business owner she is not for it. She talked to a lot of small business owners that are very upset about it.They feel like this being put on them and that the property owners are not sharing the burden.As a property owner we have a vested interest in our community and part of that interest is to take care of our roads.We have a responsibility.She feels like this is putting it just on the businesses.Another concern she has is they are estimating it will bring in $1 million per year, but we do not know that.If people do not shop here, more and more people look to other places to shop, then what.They already know it will not be enough.If people shop somewhere else, then what.She asked what the city would do then.There is no easy fix.There are no easy answers.None of us want to have a property tax, none of us want to have the .2%.It may look like a quick, easy fix but she does not feel that.She feels they need to come up with other solutions and she does not feel they are doing the business community justice. Mayor Insalaco commented there is one thing they have to realize.It is not only the residents, the homeowners that will be paying taxes, the businesses that own their own property, who own thelousiness, there will be a property tax put on them.if they have a landlord that property tax will be put on the landlord.He asked what the landlord is going to do.The landlord is going to raise their rent or lease payments.As far as other solution's, they have two solutions to collect money like almost every other city.Sales tax or property tax.When he hears that they are going to run businesses out of the city, they will be running businesses out if they put a property tax on the business people.Instead of having everybody coming through town paying the tax, it would be the business people paying the tax.Either the business people or the people who own the property where business is located. Vice Mayor Barker commented it seems to her what they have here is a fundamental difference in philosophies.Some of them up here apparently adhere to notion that what is good for business is good for the community. She feels the opposite.She feels that what is good for the REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 15 OF 29 community is good for business.It is their job to build and maintain infrastructure andcreate a quality of life that will bring people into this community.Tho'S.e people will become the customers that keep the businesses here and make them thrive. We all know that businesses do not locate in a vacuum.They do not go out and locate twenty miles from a community because they will not have a customer.It is a very poor business plan. What they do is wait until there are people and then they locate because that is where their customers are.We have looked at the possibility of getting chain restaurants here.They have all told the city they need "x" number of rooftops before they will consider locating in this community.What is obvious to her is they need to repair this infrastructure and she agrees it is a short term solution for a long term plan.She agrees with that entirely and she thinks this council is definitely going to have to work very hard to come up with other solutions that will -take this city years of building and creating infrastructure. Either tax that is put on will be paid by the whole community. Sales tax will be paid by everyone.We all know that.Property tax will be paid by everyone.If a business owner has an increase in property tax that becomes part of his overhead.She is a business owner; she knows what happens with that.They will either take it out of their employees' pockets by cutting hours or by cutting an employee, or they add a little, maybe .2% to their product.It seems to her that sales tax is a more honest tax.People know it is there.There it is.Like Mr. Blount stated, she rarely looks at the sales tax.She is not at all sure what kind of sales tax the cities around Apache .Junction have.If, as Mr. Wilson stated, somebody is willing to pay $3.27 to drive into Mesa to save less than fifty cents, they are doing it already.They have been doing it all along because they did not like the original .2%.She does agree they need to come up with something else to go along with this.For right now, Mr. Serdy, this is not just for the Trail.The ordinance thac Joel wrote says streets.It does not designate the Trail period, it says streets. Mayor Insalaco commented the Trail is supposed to be done first. Vice Mayor Barker commented that is what they talked about: REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 16 OF 29 Assistant City Manager Bryant Powell stated that is correct.Once they get the revenue stream in place he can go talk to the financial advisor about different methods, including the Greater Arizona Development Authority which is similar to general allegation bonds.It is how they paid for this facility.They paid it off on time with a very, very low interest rate.The cost of money is as low as it has ever been.He will come back at another time with staff and give them the options if they were to move forward in this manner and how to bring in $9 million up front. Vice Mayor Barker commented Mr. Serdy came up with an interesting idea •a couple of weeks ago about lowering cur sales tax and putting in a property tax that was dedicated to roads.She was thinking about that for awhile. The more she thought about it, she thought it was pretty counterproductive because thevast majority of our general fund •is funded by sales tax revenues, which would cut services, would cut programs and the quality of life that we are trying to create would suffer.We would have really great roads but no one would want to live •here because there would not be a library, multi-gen center, at cetera.She wanted to comment on that.She gave it a lot of thought. Councilmember Serdy commented he was referring to one of the surveys the city had done about how a lot of the people, if they were going to pay a tax, would want it focused on the Trail first.That was an earlier survey. He thinks they have since moved on from that. Councilmember Evans commented at the beginning of the item the city attorney stated he had a concern about the way this was written if we had to go after a bonding issue:She asked if that is correct as it kind of got a little muddy for a few .minutes.She asked what he would suggest to change the way that sunset was written so it would not conflict down the road if they have to go for a bond. •• City Attorney Joel Stern stated he is not sure it conflicts.He thinks it may cause a bond attorney, and remember, Mr. Powell is correct, we have a large bond capacity. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 27 OF 29 •Assistant City Manager Bryant Powell stated the city effectively has zero debt.The assessed valuation is tremendous capacity.This is only $10 million; we have hundreds of millions ability. Councilmember Evans commented it is the sunset provision that causes the problem. City Attorney Joel Stern stated if it is passed. Vice Mayor Barker asked if it is because it is conditional. City Attorney Joel Stern stated it is not really conditional.It is saying it will -sunset, however, if one or both of these things happen, the council could have a meeting to talk about the sunset.They do not have to have that in here but last time they directed him to put that in there for public disclosure to let the public know. They do not even need that in there.They could still do that without having that in there.If a Highway User Revenue Fund increase happened and if a property tax passed, they do not have to wait until the sunset date.Say it happened in year eight that the voters approved a property tax.Right after that happened the council could have a hearing on sunsetting or terminating the .2%.They can do that.They do not have to have it in the ordinance.He was directed to do it last time and that is the only reason it is in there.He would recommend they take out B completely and say it is going to sunset in 10 years.But they could still bring it back before that. Councilmember Serdy asked how they could make it a guaranteed sunset and not just another vote •of council. City Attorney Joel Stern stated it sunsets if they leave in A, however, under municipal law the council could still come in and make it less than that date. Vice Mayor Barker commented the coundil can also recreate it.A mandatory sunset does not REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 18 OF 29 necessarily mean it actually sunsets.This particular one would sunset but it does not stop a future council from reinstating it or something different or extending it City Attorney Joel Stern stated that is correct. Mayor Insalaco commented ten years from now a whole new council can reinstate it.He questioned putting the clause in Until the time comes.It is supposed to sunset in ten years.If they cut it off right there and a future council is in the same predicament we are in right now or'worse, it takes away.their leverage.He is actually predicting to a future council they cannot do anything.He asked if he was correct. City Attorney Joel Stern stated he is on Washington time so he did not understand what he was saying.He requested the mayor to repeat what he said. Mayor Insalaco commented if they make it mandatory to sunset, in ten years they would have a whole new council and they get into the same shape the current council is now, it would tie their hands down by not letting them take over and say they need to continue it or sunset it. City Attorney Joel Stern stated even though he says to sunset it, a council can still ,come in and say it is too long, they did not like what happened on January 1, 2015.Now it is January 1, 2018 and they wish to get rid of the tax. Mayor Insalaco commented that is correct.To put that in there is almost not necessary. City Attorney Joel Stern stated this gives the public notice that it can go on until January 1, 2025, unless it is sunsetted or terminated earlier by a council action. Assistant City Manager Bryant Powell asked if it takes a proactive action by the council.He recalled the council did do a proactive approach in 2009. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 19 OF 29 City Attorney Joel Stern stated it could be extended for that.He does not know where this discussion is going tonight, but he thinks the January 1 date is going to be quick.What has to happen is they say go ahead and draft this, they want to have tull consideration and vote on "x" date, once they know that date they have to publish something in the paper that says this is going to be considered and it has to be 60 days before that date.He wanted them to know that.They are pushing the time a hit. Mayor insalaco commented he thinks they fooled around with it long enough.Personally, he thinks they should go ahead with this but he is only one vote. Assistant City Manager Bryant Powell stated tonight was a public hearing and discussion on a staff perspective as based on tonight, get that direction to fine tune the language and come back at the first meeting in October if they are in alignment.They will then bring that for a vote.He thinks they have plenty of time for the 60 days. For purposes of communication with the public, a January 1 date would be the start date so that the business owners know and can work with Kathy's staff on coordination of the net new change. It is a natural time of year for a new thing.It could be February 1 or whenever Council wants. City Attorney Joel Stern asked if he meant direction when he stated for it to come up for a vote. Assistant City Manager Bryant Powell stated that is correct. Vice Mayor Barker commented they still have a direction on the ordinance to give: 'Assistant City Manager Bryant Powell statec a direction on the ordinance to take place on October 7 any maybe the vote on October 21. City Attorney Joel Stern stated the problem is they have to do the 60 day notice before they have the vote. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 20 OF 29 Assistant City Manager Bryant Powell asked what the law says about starting the 60 day notice. He thinks they could start that today. City Attorney Joel Stern asked if he knows the date they are going to pass it. Vice Mayor Barker asked if it has to be a date certain. City Attorney Joel Stern stated he would ask the city clerk or the deputy city clerk what would be done mechanically for posting. Deputy City Clerk Jan Mason stated she could get a notice done tomorrow and get it posted but it would not be published until the following week.If they need to have 60 days after the publishing date then that is what they are looking at. City Attorney Joel Stern stated that is when the clock starts by statute.They have to know what date they want to act on the ordinance, which would be a Tuesday night, and they pick the date.From that point, it has to go out at least 30 days, except this has an emergency clause so there is no 30 day period.It takes effect after they vote on it.By the way, this is not a referable act because it is a tax matter.There is case law on that in case someone decides they want to refer this to the voters: Assistant City Manager Bryant Powell stated he is saying they will have meetings on October 6, October 7, October 20 and October 21. City Attorney Joel Stern stated he would propose there be another public hearing on this since there is more discussion and then they direct who is to create the ordinance, with an ordinance number because we do not have an ordinance number attached, and they also pick a date next time, whatever date it is, for the date they vote. Vice Mayor Barker commented the public hearing should be on October 7. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 21 OF 29 City AvEorney Joel Stern stated the next public hearing would be October 7.That is the next date for a public hearing. Councilmember Serdy commented they are also not limited to meeting every two weeks. Vice Mayor Barker stated they are not.They can have a special meeting. City Attorney Joel Stern stated they can. Assistant City Manager Bryant Powell stated this is the second public hearing but they have had many public discussions.His thought was tonight would be the night to give direction to staff on moving forward. Mayor insalaco commented that is what he thought they were going to do, too. Vice Mayor Barker commented they do not have that direction. Assistant City Manager Bryant Powell stated he thought tonight was directional. Vice Mayor Barker commented that is not what is in their packet.We have a discussion item only.There is no direction to staff here.Any direction to staff would have to be on October 7. Deputy City Clerk Jan Mason stated if they want the notice to be gotten ready so that it can be published next week, they are looking at 60 days or December for a vote. Vice Mayor Barker agreed. City Attorney Joel Stern stated they may want to think about it over the next two -and -a- half weeks to come up with those dates.It might push it, pbssibly, into February for an effective date. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 22 OF 29 Mayor Insalaco asked if they cannot go ahead and do it, as they said, on the next meeting date. Vice Mayor Barker asked if he meant give direction to staff. Mayor Insalaco commented to give direction to staff. City Attorney Joel Stern stated they could after a public hearing. Mayor Insalaco asked if it would be on the same night. City Attorney Joel Stern stated they could do both on the same night. Deputy City Clerk Jan Mason stated she believes once they have the 60 day notice posted they can do whatever they want within those 60 days, as long as they do their vote in December.They just cannot do their vote until the 60 days are up. City Attorney Joel Stern stated that is correct. Deputy City Clerk Jan Mason stated they could do the vote in December to have it ready for January. Councilmember Waldron stated they would have direction on -October 7. City Attorney Joel Stern stated it would be a public hearing and direction. The consensus of the council was to have the direction to staff and public hearing on October 7. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 23 OF 29 Vice Mayor Barker closed the discussion with no further comments and moved on to the next item. OLD BUSINESS None. NEW BUSINESS PROPOSED RESOLUTION NO. 14-36, ADOPTING A NOTICE OF INTENT TO ENTER INTO A RETAIL DEVELOPMENT TAX INCENTIVE AGREEMENT WITH BLOUNT RENTAL EQUIPMENT, LLC )Economic Development Specialist E'Lan Vallender briefed the council on the item.He thanked the city attorney for his assistance and introduced Sarah Murley of Applied Economics to present her findings on whether the agreement meets state requirements. Ms. Sarah Murley, Applied Economics, briefed the council on her findings.Her conclusion was the agreement does meet the requirements of the statute for sales tax incentives. City Attorney Joel Stern stated Ms. Murley did an excellent job summing this up.He thanked E'Lan for pursuing this.It took a while to get here but;: we got here.He did an excellent job with the developer and also in facilitating it with the city manager.The resolution does not say the agreement is in place tonight.Under the law the council has to pass this resolution that has two exhibits. The first exhibit is a notice to the public that tells the public the city intends to enter into this retail development tax incentive agreement.This is a change in the law back in 2007.Before this did not have to be done.It has to be at least 14 days before the city actually passes the development agreement.Exhibit B is the actual draft development agreement. The intent is to pass this tonight, the notice is now good, and they go out 14 days but our next meeting is well beyond that to October 7, making it 21 or 22 days beyond.He thanked E'Lan again and Sarah for coming out. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 RAGE 24 OF 29 Vice Mayor Barker called for a motion. Councilmember Waldron MOVED THAT RESOLUTION NO. 14-36, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, PINAL COUNTY, ARIZONA, ADOPTING A NOTICE OF INTENT TO ENTER INTO A RETAIL DEVELOPMENT TAX INCENTIVE AGREEMENT WITH BLOUNT RENTAL EQUIPMENT, LLC, BE APPROVED. Councilmember Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. APPOINTMENTS OR REAPPOINTMENTS TO FILL VACANCIES ON THE SEWER DISTRICT BOARD )Vice Mayor Barker commented they interviewed the applicants last night.She called for any discussion.There being no discussion, she called for a motion. Councilmember Rizzi MOVED TO NOMINATE JEFF STRUBLE TO THE SEWER BOARD. Vice Mayor Barker asked if she would like to reappoint him for a term certain. Councilmember Rizzi MOVED TO REAPPOINT JEFF STRUBLE TO THE SEWER BOARD FOR A TERM TO EXPIRE JULY 7, 2020. Councilmember Wilson SECONDED THE MOTION, VOTE:Unanimous. The motion carried. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 25 OF 29 Councilmember Evans MOVED THAT KATHLEEN WALDRON BE REAPPOINTED TO THE SUPERSTITION MOUNTAINS COMMUNITY FACILITIES DISTRICT NO. 1 BOARD OF DIRECTORS FOR A TERM TO EXPIRE JULY 7, 2020. Councilmember Rizzi SECONDED THE MOTION. VOTE:6-0 (Councilmember Waldron declared a conflict on the item.) The motion carried. Vice Mayor Barker commented she appreciated Mr. Buzzin applying for this position.She thinks where the council is at this point is because of the massive changes, et cetera, which are occurring at the sewer district.It would appear the council felt the folks who had been involved in that would be better able to handle these changes as they continue.She certainly hoped this would not dissuade him from applying again. DIRECTION TO STAFF ANNUAL BOARD AND COMMISSION APPOINTMENTS AND REAPPOINTMENTS )Deputy City Clerk Jan Mason briefed the council on the item; Councilmember Evans MOVED THAT THE FOLLOWING DIRECTION BE GIVEN TO STAFF REGARDING ANNUAL BOARD AND COMMISSION APPOINTMENTS AND REAPPOINTMENTS:THAT STAFF SEND LETTERS INVITING ALL APPLICANTS AND THOSE WISHING TO BE REAPPOINTED TO ATTEND INTERVIEWS FOR THE POSITIONS:THAT THE BOARD OF ADJUSTMENT, LIBRARY BOARD, PARKS AND RECREATION COMMISSION, AND PLANNING AND ZONING COMMISSION APPLICANTS BE INTERVIEWED AT THE WORK SESSION OF OCTOBER 6, 2014 WITH APPOINTMENTS BEING MADE AT THE REGULAR MEETING OF OCTOBER 7, 2014; AND THAT THE CONSTRUCTION CODE BOARD OF APPEALS, HEALTH AND HUMAN SERVICES COMMISSION, INDUSTRIAL DEVELOPMENT AUTHORITY, MUNICIPAL PROPERTY CORPORATION BOARD AND PUBLIC SAFETY PERSONNEL RETIREMENT BOARD APPLICANTS BE INTERVIEWED AT THE WORK SESSION REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER•16, 2014 PAGE 26 OF 29 OF OCTOBER 20, 2014 WITH APPOINTMENTS BEING MADE AT THE REGULAR MEETING OF OCTOBER 21, 2014. Councilmember Rizzi SECONDED THE MOTION. VOTE:Unanimous. The motion carried. SELECTION OF MEETING DATES, TIMES, LOCATIONS, AND PURPOSES Councilmember Waldron MOVED THAT AN EXECUTIVE SESSION AT 5:45 P.M. AND A WORK SESSION AT 7:00 P.M. BE HELD ON MONDAY, OCTOBER 6, 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, OCTOBER 7, 2014, IN THE CITY COUNCIL CHAMBERS. Councilmember Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. CALL TO THE PUBLIC: None. ADJOURNMENT )Mayor Insalaco adjourned the meeting at 8:40 p.m. Consent Agenda Items are as follows: 1. Acceptance of Agenda. 2. Approval of Minutes of Regular Meeting of September 2, 2014. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 27 OF 29 3. Consideration of approval of contradts between the Apache Junction Police Department and the Governor's Office of Highway Safety for reiMbursement of personnel services and procurement of equipment.The contracts are as follows: Contract #GOHS 2015-164-004 - $2,000 for equipment; Contract #GOHS 2015-164-007 - $47,000 for the purchase of a fully equipped marked DUI Alcohol Enforcement Police Package SUV; Contract #2015-HV-001 - $10,000 for personnel services and related expenses; and Contract #2015 -PT -002 - $10,985 for personnel services and related expenses and equipment.The total of these four contracts is $69,985. 4. Consideration of the second amendment to the easement agreement between Verizon Wireless and the City of Apache Junction for location of communication equipment on city property. 5.. Consideration of an annual maintenance agreement with Somerset Landscaping for PR -14-03 Landscape Maintenance for Renaissance Point, Arroyo Verde, Phelps Drive Phase I, Phelps Drive Phase II, Ironwood Cove, Royal Palm Road, Ironwood Drive and US Highway 60 Exit, Goldfield Road and US Highway 60 Exit, Tomahawk Road and US Highway 60 Exit, Idaho Road and US Highway 60 Exit, Plaza Drive, Old West Highway Median and North Apache Trail for a price of $96,826 with an additional 10% contingency of $9,682.60 resulting in a total price of $106,508.60 for a period of one year with the option to renew for three additional one-year periods. ACCEPTED THIS 7TH DAY OF OCTOBER, 2014, BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA. SIGNED AND ATTESTED TO THIS 7TH DAY OF OCTOBER, 2014. N S. INSALACO ayor REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 28 OF 29 ATTEST: KATHLEEN CONNELLY City Clerk 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 16th day of September, 2014.I further certify that the meeting was duly called and helo and that a quorum was present. Dated this 30th day of September, 2014. KATHLEEN CONNELLY City Clerk REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2014 PAGE 29 OF 29