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HomeMy WebLinkAbout2012-01-03 City Council Regular MinutesCITY COUNCIL REGULAR MEETING JANUARY 3, 2012 The regular meeting of the City Council of the City of Apache Junction, Arizona, was held on January 3, 2012, 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 7:07 p.m. INVOCATION Councilmember Wilson gave the Invocation. PLEDGE OF ALLEGIANCE Councilmember Coleman led the Pledge of Allegiance. ROLL CALL Councilmembers Present:Mayor Insalaco Vice Mayor Dietz Councilmember Barker Councilmember Coleman Councilmember Serdy Councilmember Smithson Councilmember Wilson Staff Present:City Manager George Hoffman Assistant City Manager Bryant Powell City Clerk Kathleen Connelly City Attorney Joel Stern Public Safety Director Jerald Monahan Interim Public Works Director/City Engineer Giao Pham Library Director Spencer Paden Others Present:Program Coordinator Heather Patel REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 1 OF 35 Public Works Manager Shane Kiesow Senior Project Engineer Emile Schmid Business Advocate Janine Solley ACCEPTANCE OF CONSENT AGENDA )Vice Mayor Dietz MOVED THAT THE CONSENT AGENDA BE ACCEPTED AS PRESENTED; AND THAT RESOLUTION NO. 11-53, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, RETROACTIVELY AUTHORIZING THE CITY OF APACHE JUNCTION TO ENTER INTO A PERFORMANCE CONTRACT AND RELATED FINANCIAL AGREEMENT WITH SIEMENS INDUSTRY, INC., BE APPROVED; AND THAT THE APPOINTMENT OF LIBRARY DIRECTOR SPENCER PADEN BY THE CITY MANAGER PURSUANT OT APACHE JUNCTION CITY CODE SECTION 3-11- 1(B), BE RATIFIED. Councilmember Coleman SECONDED THE MOTION. VOTE:Unanimous. The motion carried. AWARDS, PRESENTATIONS AND PROCLAMATIONS City Manager George Hoffman gave a presentation on Library Director Spencer Paden receiving his 25 -year service award. Mayor Insalaco presented him with a certificate, a certificate for time off and a digital frame with some pictures. ANNOUNCEMENT OF CURRENT EVENTS Councilmember Wilson commented on the horses the city had acquired, the assistance given to the city from businesses and private citizens on behalf of these horses and that they now have new homes. CITY MANAGER'S REPORT City Manager George Hoffman read a note regarding a phone call from the manager of the Lamplighter Mobile Home Park thanking REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 2 OF 35 public works staff for their work, commented on the 2011 Salt River Project Community Involvement Report noting Arizona Project WET and the December 2011 East Valley Gateway Magazine article on volunteers, the city explorer program, an article on city projects, the Legends advertisement and a plug for Lost Dutchman Days. PUBLIC HEARINGS APPLICATION FOR A LIQUOR LICENSE FOR CIRCLE K STORE #3442 )City Clerk Kathleen Connelly briefed the council on the item. Mayor Insalaco requested the applicant address the council. Mr. David Cerchevski, representing Circle K Corporation, addressed the council.He was there to answer any questions on the project. Mayor Insalaco asked when they will start building it. Mr. David Cerchevski stated they hope to be in to get the building permits within the next couple of weeks, start construction in mid -spring and be open mid -summer. Councilmember Barker asked what would be happening to the huge billboard. Mr. David Cerchevski stated it would be coming down as part of the project. Mayor Insalaco opened the public hearing on the item. Mr. Elliott Fisher, 547 E. Quail, Apache Junction, addressed the council.He was glad to see Circle K expanding in Apache Junction and hoped they would keep up the level of cleanliness of some of their competitors. REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 3 OF 35 Mayor Insalaco closed the public hearing with no one else wishing to speak and reopened the item to council discussion.There being no further discussion, he called for a motion. Councilmember Coleman MOVED THAT THE APPLICATION FOR A LOCATION TRANSFER, CORPORATION, SERIES 9 LIQUOR LICENSE FOR CIRCLE K STORE #3442, SUBMITTED BY KIM KWIATKOWSKI, BE RECOMMENDED FOR APPROVAL TO THE ARIZONA DEPARTMENT OF LIQUOR LICENSES AND CONTROL. Councilmember Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. CONTINUATION OF PUBLIC HEARING ON RESOLUTION NO. 11-49, AUTHORIZING THE SUBMISSION OF APPLICATION FOR FISCAL YEAR 2012 COMMUNITY DEVELOPMENT BLOCK GRANT AND FISCAL YEAR 2012 STATE SPECIAL PROJECT PROGRAMS )Program Coordinator Heather Patel briefed the council on the item. Vice Mayor Dietz asked if they had settled on the $300,000 grant. Program Coordinator Heather Patel stated they did have a decision on that but it will be formally voted on tonight. Vice Mayor Dietz commented they formally decided one but put off the other. Program Coordinator Heather Patel stated they could not separate them out as they are in the same resolution.She continued on with her briefing. REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 4 OF 35 Mayor Insalaco opened the public hearing on the item. Mr. Elliott Fisher, 547 E. Quail, Apache Junction, addressed the council.He was concerned that they would lean towards the commercial areas that could get investors.He would favor them putting the money into the neighborhoods for the drainage issues.If they go into the commercial areas with this money he would like to see it limited to something with public benefit, such as the sewer or disability access.He would not like to see the sidewalks put in for the commercial projects on Apache Trail. Mayor Insalaco closed the public hearing with no one else wishing to speak and reopened the item to council discussion. Councilmember Serdy commented he had pondered this for a long time and he would like to get the most use for the most people.If they get the businesses to thrive down there a little more, as they just had the gallery close and there is a new restaurant opening in that area, he would like them to be successful.It needs to be more vibrant and useful down there, in which case hundreds of thousands of people would get to use this each year.As it sits right now, only a few hundred would use it.Once it gets successful, then thousands would be using the crosswalks as there would be more things for them to do down there.If they could pull more lake traffic from Idaho, they would get more tax dollars.He is still leaning towards the commercial rehabilitation.Some of the concerns that came up are definite concerns.We do not want this to just go into the pockets of the people.The people that are starting these businesses are far from one percenters and are struggling to even make it.We do not have to worry about that. Councilmember Barker commented Councilmember Serdy had thought earlier that he would not be here this evening and the city manager had written down and distributed his thoughts and some of them were excellent points.Her concern on the commercial rehabilitation on this particular round of the Community Development Block Grant is all of the criteria decisions that have to be made prior to going REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 5 OF 35 out for this grant.We have to know how they are going to hold these folks accountable and how they are going to make sure it benefits the most people.It seems they have a job ahead of them to come up with criteria before we decide to do this.It seems like they are putting the cart before the horse. Councilmember Serdy commented it is too vague the way it is drawn up. Councilmember Barker commented it is very vague right now. Councilmember Serdy commented they would love to be able to do all of these projects right now.They are all worthwhile. Mayor Insalaco and Councilmember Barker agreed. Vice Mayor Dietz commented that is kind of the reason why we like to have things put together and put on a shelf.They then have projects for the next one, the next one and so on.They have some of these things ironed out beforehand.They will have this pretty much laid out for the next one.They could do it and proceed with the project. Councilmember Barker stated it would be a good idea to have it done. Councilmember Serdy commented one of the things they looked into was demolition.They get asked all the time if the city can tear some of that ugly stuff down there.They checked and it is not eligible for this.It would have been of great use if they could tear some stuff down and let people start over.If they did go for the commercial rehabilitation, which he gets the feeling they are not going to, the improvements need to stay and should not be able to leave. Councilmember Barker stated they have to do some kind of measurable accountability of those business owners that would guarantee that the funding they were assisted with, be it a loan or in whatever form, that there REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 6 OF 35 would be some way for the city to make sure that the business is still there and they do not take advantage of this and put it up for sale.We would then have another empty building sitting there.The building has been wonderfully rehabilitated but it is not doing anyone any good; it is not helping anyone in the community to do that.That particular project is a very worthy project wherein they need to take the next couple of months and determine some criteria that could be used and be fair for big businesses and small businesses and have the most impact for the community, not just the businesses. Councilmember Smithson stated he has an uncomfortable feeling with spending public funds on private property to benefit private individuals.He thinks it is a great idea to help them, if what they do is to make public improvements on a public right-of-way that will encourage people to do more with their property to improve it.Eventually the benefit of that is businesses coming in, improving the area and our sales tax revenue increasing.Businesses would grow and increase.He would be more comfortable with private individuals owning the private property taking the risk and putting the money in.He would be in favor of public improvements that would encourage that.Contrary to what he just said, he could see some benefit with, although he is still uncomfortable with it, helping individuals with housing rehabilitation.It does not feel as uncomfortable to him as helping businesses. Councilmember Barker commented he mentioned he was more comfortable with projects in the public right-of-way that might encourage businesses.There are several projects on this list that might meet that.They could put both grants towards North Apache Trail.There are the ramps and sidewalks across the Focal Point intersection.She agrees with Elliott that the sidewalks down Winchester are not being used.It would be foolish right now, but 10 years from now when the college finishes all their improvements and they get a huge influx of students and they have a lot of places that students would want to walk to from the college, then it would be a great place for a sidewalk. Vice Mayor Dietz commented he likes the idea of using both grants for North Apache Trail.If they use just the State Special Project, it is $300,000.Our REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 7 OF 35 leverage would be $157,600.If we use both of the grants, that brings our leverage down to $37,600.That is a lot more affordable for out of pocket for the city. Mayor Insalaco commented he knows it is a lot of money, but his heart lays with the four streets south of the Trail that are continuously flooding.He knows it is a big drainage problem, but sooner or later they cannot let it get any worse.It is something that needs to be done. he could not agree with that more. Councilmember Smithson stated Councilmember Barker agreed. Mayor Insalaco stated you go by there and it looks like slums.He cannot blame those people that live in those homes.It is terrible. Councilmember Smithson stated it is embarrassing and awful. Vice Mayor Dietz commented this is at Ocotillo, Main and Palo Verde.The phasing is not recommended by the city engineer. Councilmember Barker stated it is a $1.3 to $1.4 million project.They are talking about $120,000.It is literally a drop in the bucket. Councilmember Smithson stated the graph indicates $100 million.He assumes that is a typo. Vice Mayor Dietz commented they could probably spend $100 million on drainage in the city. Councilmember Serdy commented they need to keep in mind that the city has no income and they cannot run the city on grants forever.They will be drying up. They need the tax dollars to come in down there and they may not have many more chances to do something down there. REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 8 OF 35 Vice Mayor Dietz commented he thinks North Apache Trail will help with the redevelopment in the area.They have Phelps and Plaza done, and if they can get this done it could draw everything into the area.It shows commitment by the city in that area.He is sure it will look good in developers' eyes. Councilmember Barker commented he brought up an interesting point when he said that if they throw both of these into North Apache Trail it comes out to $37,000. Vice Mayor Dietz commented it is $37,000 instead of $157,000. Councilmember Barker commented that is quite a chunk.The crosswalks would also have a leverage of $30,000.It is very close and one is a much larger project. City Manager George Hoffman asked if they would try and punch out the entire project if both grants were applied to this.He asked if they have non -general fund money that can be used for that.He hears the council saying they can be frugal with our match, but from a staff perspective, he asked if they trying to bite off the whole thing or not. Assistant City Manager Bryant Powell stated staff has talked about this several times with public works.We feel like it would be in the best interest to do the project all at one time, from mobilization of the contractor and so on. Interim Public Works Director/City Engineer Giao Pham stated when they bid out for projects they usually like to bid it out all at once.When you phase it in, the contractor has to mobilize his equipment. There is a charge for each time you mobilize his equipment or a staging area.They have to set up traffic control.When they go out to bid, phase one is the earthwork.The contractor has to locate the site, mobilize his equipment and do traffic control.Once they do that, if they are doing it in phases, he REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 9 OF 35 then has to take the site down and remobilize his equipment.We are not guaranteed we will be using the same contractor.We might not get a cost savings there.When they look at the projects, they try to bundle them up as one or two projects to keep the phasing to a minimal and have a cost savings overall. Vice Mayor Dietz commented if they submitted both of these for North Apache Trail and they have already got phase one, which is $330,000, we are almost there at $700,000 on a million dollar project.Material cost and everything else will keep going up if we have to wait another couple of years.If we have got the funds available in another account, redevelopment money somewhere, we might be able to use it to complete it. City Manager George Hoffman stated that is correct.One scenario could be that they use these two grants plus the one he mentioned to punch out North Apache Trail.They could then come back at a separate council meeting to get direction to staff to pursue the commercial rehabilitation grant and begin working for the multi -month period of time it will probably take to work with the council to develop the guidelines for that for a subsequent grant.Should they choose to do so at that time, they would be prepared to have those guidelines in place. Councilmember Wilson commented they have a total cost of $1.3 to $1.4 million on the drainage costs.He asked if that excludes or includes the grant monies. Interim Public Works Director/City Engineer Giao Pham stated that is the total amount of the project, excluding the grant money.Their rough estimate is based on $1.3 million for the storm drain, curb, sidewalk and the whole bells and whistles.With the grants being applied, the project would cost roughly $800,000 to $900,000.We would put a large chunk of it down.We would do the initial improvements.They have not done the design.They have looked at it from a planning part of it, but when they go into the design they will look into what is feasible out there and what is acceptable, such as do we need storm drains or can they use inverted roadway pavement.There are alternatives they can look REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 10 OF 35 at as far as how they want to handle the water or storm drain out there. Councilmember Smithson stated he recalled the last time they discussed this that construction had to be done within a certain time period and they could not get all the design done so it would not work. Interim Public Works Director/City Engineer Giao Pham stated that is correct. Councilmember Smithson stated if there was a way we could make it he would vote for this over anything else. Interim Public Works Director/City Engineer Giao Pham stated right now they are tasked with getting some sort of funding.They are basing it roughly on what was done on Plaza and what they are currently doing on Saguaro.They have some money left over and set aside to pave those roadways.They are trying to determine if they have enough money to accommodate some drainage options to see if they could do it now versus waiting it out and doing the ultimate design and ultimate construction. Mayor Insalaco commented if they wait any longer there will not be any roads there to work on. Councilmember Smithson agreed. Councilmember Barker asked if what he was saying was if they were to apply the money from this grant to this project they would not be able to meet all the criteria of the grant and get this plan finished, or was he saying that they are already doing something over here that will take care of it. Interim Public Works Director/City Engineer Giao Pham stated if the council decides to go ahead with the neighborhood drainage improvements as a priority he would hold off on paving the roadway now and save REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 11 OF 35 the $60,000 to $70,000 that they have set aside for the paving project.They would then put it into the design configuration. Then they would put that $56,000 and add the $300,000 to the project, bid it out and try to get as much of those improvements in that neighborhood as possible.They would try to phase that in.Since they have that money set aside, they want to spend it as soon as possible as they do not know what the budget outlook will be for next year. Mayor Insalaco commented he is saying they have the money to take care of those roadways so they will not be in such bad shape. Interim Public Works Director/City Engineer Giao Pham stated that is correct.They need to keep in mind that when they pave it, it will not last as long. Councilmember Smithson stated it will get ruined again as soon as we have a heavy rain. Interim Public Works Director/City Engineer Giao Pham stated it is basically throw away money. Councilmember Smithson stated it is throw away money but it will let them know we love them and we are trying to do something for them, but it will not last forever. Interim Public Works Director/City Engineer Giao Pham stated that is correct.That is the dilemma we are in. Councilmember Smithson stated he thinks they need to let the residents in that area know what we are trying to do, why it is taking so long, and why we are doing it. Interim Public Works Director/City Engineer Giao Pham stated that is why they have gone out there with multiple departments.He has gone out there with Bryant, Joel, and also DSD.They are talking to people REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 12 OF 35 about changing the drainage patterns out there.They have already spent $10,000 on surveying to understand where the water is flowing, so that when they do a storm drain or raise the profile on the road they have a basis on what they are trying to do from that design.We are spending bits and pieces of money there looking into the design.Once they have the design, they can figure out how to phase that construction. Councilmember Smithson stated he is still saying these grants are not a good use for that money.He asked what they could get done if they could use the funds within the provisions of the grant and the time limits that we have. Interim Public Works Director/City Engineer Giao Pham stated they can get the design and the majority of it done.They could complete at least 50% of the construction needed out there. Councilmember Smithson asked if that would meet the requirements of the grants. Interim Public Works Director/City Engineer Giao Pham stated from his understanding it would.They are eligible for Community Development Block Grant and State Special Project funding; that is why they were nominated by staff. Councilmember Smithson stated his position is as much as he would like to help the overall city and improve the commercial area, we have a greater . responsibility, in his opinion, to the residents of those 4 streets to do everything we can to improve the situation there. Vice Mayor Dietz commented he knows he has discussed bonding out for roads with the city manager again.He asked if this would be something they could do all at one time with bond funding. City Manager George Hoffman stated they could.The council would have to communicate that policy preference.There would be a multi -million dollar road maintenance effort.If they want that done as a part of that REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 13 OF 35 outlay, then they would have to give that direction.It would certainly be bond eligible. Vice Mayor Dietz asked what be the total engineering, planning and costs involved before they even did anything on the drainage improvement. Interim Public Works Director/City Engineer Giao Pham stated typically a rough estimate is 10% of the construction costs for the design.They are talking about $130,000 for the design.Because of the economy, they have been able to negotiate and get it for less than 10%; it is usually between 7% and 8%.They know that when he works with them that he has been on the design side so he knows how much it costs.There is no fluff.They cannot charge for 10 meetings when we can meet on the phone or go to their office instead of them coming here.It is partially understanding the scope of work and the design of what we have; they can then cut the bells and whistles.They can tell them they do not need to meet 10 times; they can get it done in 3 meetings.They can cut the printing costs by forwarding emails. It is being smart with our money. Vice Mayor Dietz commented the remaining $200,000 to $300,000 would take care of the immediate problem on the drainage and draining of these streets. Interim Public Works Director/City Engineer Giao Pham stated if they could get the $60,000 to $70,000 for a roller payment, plus the 2 grants, we would probably still need probably $300,000 to $400,000 to get it done.However, if they can proceed with the design, he believes they can look at the budget to see what is workable. He could then work with Bryant and George on the funding mechanism to get the remaining funds for this project. Councilmember Smithson asked what he meant when he thought they would be halfway done with it.The money we are talking about does not get us halfway to $1.3 million. Interim Public Works Director/City Engineer Giao Pham stated when they do the initial REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 14 OF 35 concepts or rough estimates they do not know what the climate will be when they go out to bid.They always get the latest numbers from the City of Phoenix and the City of Chandler for some of our recent projects.They do not understand thoroughly where the flooding is coming from exactly.They do not know the contributing factors, such as an upstream issue.They may be looking at storm drains, inverted crown roadways, they may not need the sidewalks and could just get away with curb and gutter, and they may not need lighting right away.Those are the things that they look at when they do design.They look at what they need right away versus what they can live without for the time being.The $1.2 million is the rough estimate.When they look closely at the design, they can see if it is $800,000.As they get nearer to the bid, they will get more detailed answers as to what they think the anticipated cost is.It is a rough estimate without doing the design. Councilmember Smithson commented he is assuming they can come up with a design that will be less expensive, still not be throwing money away, and give us something worthwhile for almost half of what he has been talking about. Interim Public Works Director/City Engineer Giao Pham stated that is correct. City Manager George Hoffman stated he thought that utilization of State Special Project monies for design was not met with favor. Program Coordinator Heather Patel stated the design would have to be completed before the application was submitted for State Special Project funds. Mayor Insalaco commented they are back to square one. Councilmember Barker commented she had said that at the last meeting but she spoke just before he spoke so it fit together.At this meeting they were kind of disjointed. REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 15 OF 35 Councilmember Wilson asked if they could request that they go ahead with as much of the design ahead of time so they can get that done and accomplished.He is looking towards the future. City Manager George Hoffman stated he believes they need to grapple with the overall city- wide issue of road maintenance.The issue they are struggling with at the staff level is quite clear that they need to make the investment sooner rather than later in road maintenance. The challenge is a declining revenue base from which they can use to pay for potential bond indebtedness.It is absolutely rational to invest the money now.The question is if they will have the revenue to pay off the bond indebtedness.That is what they are struggling with.He thinks it would be beneficial for the city engineer to guide them through a discussion of this project and a city-wide discussion for drainage purposes.It is easy to focus on one problem and say they must fix this problem. But, if he gave Giao $10 for every drainage problem that we have in the city or road maintenance problem, he would go bankrupt. They would be here for another couple of hours. Vice Mayor Dietz commented the longer they wait on the road maintenance, the worse the roads are going to get.Instead of just doing an overlay, they will have to rip out the entire road and have to lay a new 3" with the base and everything else. City Manager George Hoffman stated Shane is fond of telling us that instead of $5 to $10 per square yard they would be doing multiples of that. Councilmember Smithson commented they do not want a lot more streets that look like these four. City Manager George Hoffman stated that is correct. Mayor Insalaco commented they are going to have to get on their soap box and get this out to the public to find out what they want them to do:the roads REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 16 OF 35 turned to dirt or get fixed.They need to let them know what the situation is. Councilmember Barker commented it appears to her that there is a great deal of interest in the drainage improvements but unfortunately the plan and design must be completed before we submit.We do not have a plan and design and it will not be completed before that time. We have to put that aside.They talked about the commercial rehabilitation.Some are uncomfortable with it; others think it is a good idea.Either way, there has to be some sort of guidelines set aside before we can even think about doing that. They can then put that one away.That leaves us with the Winchester to Idaho sidewalk which she would personally like to put away, but someone may be interested in that.There is also the American Disability Act compliance for the Focal Point intersection, North Apache Trail and housing rehabilitation. She asked if we already have housing rehabilitation grants. Program Coordinator Heather Patel stated that is correct. Councilmember Barker commented we already have those grants so we need to make a decision of where we want to send this specific money. Councilmember Smithson commented he has been all over the map and he would go for the North Apache Trail improvements at this point. Vice Mayor Dietz agreed they should get North Apache Trail done. Mayor Insalaco closed the discussion with no further comments and called for a motion. Vice Mayor Dietz MOVED THAT RESOLUTION NO. 11-49, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AUTHORIZING THE SUBMISSION OF APPLICATIONS FOR FISCAL YEAR 2012 STATE COMMUNITY DEVELOPMENT BLOCK GRANT REGIONAL ACCOUNT ("CDBG RA"), FISCAL YEAR 2012 STATE SPECIAL PROJECT ("SSP") FUNDS, AND CERTIFYING THAT THE APPLICATIONS (1) MEET THE IDENTIFIED HOUSING AND REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 17 OF 35 COMMUNITY DEVELOPMENT NEEDS; AND (2) IS NECESSARY FOR IMPLEMENTATION AND COMPLETION OF THE ACTIVITIES OUTLINED IN THE CDBG RA AND SSP APPLICATIONS, BE APPROVED WITH THE FOLLOWING AMENDMENTS:THAT BOTH THE SSP AND CDBG RA PROJECTS BE SUBMITTED FOR THE NORTH APACHE TRAIL PROJECT. Councilmember Smithson SECONDED THE MOTION. VOTE: 6-1 (Councilmember Serdy voted in opposition.) Councilmember Serdy commented he loved the project but voted no to keep the other one alive. Councilmember Wilson commented he agrees wholeheartedly that they need to work on the commercial area to encourage the use of it but he does not feel they have enough written down to administer it.He would like to see that done as quickly as possible so it is ready for the next time around. The motion carried. OLD BUSINESS None. NEW BUSINESS DISCUSSION ON PUBLIC WORKS ON -CALL SERVICES )Senior Project Engineer Emile Schmid briefed the council on the item. Councilmember Smithson asked how consistent the evaluations were. Senior Project Engineer Emile Schmid stated there was some consistency in the lists they had. They would have three or four out of the five on their lists. Only one or two were different.They knew they were all on the same page.If they had been all over the board, he would have worried about the consistency. REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 18 OF 35 Councilmember Smithson asked how successful they were in getting the consultants' fee schedules somewhat comparable. Senior Project Engineer Emile Schmid stated the vast majority of them are in the range of what they feel is representative of industry.They have a few he will call tomorrow and tell them there is nothing that justifies those types of rates that they are proposing.They had to do the same thing 3 years ago and it was not an issue for them to back down. Councilmember Barker asked why they chose 5 in each category. Senior Project Engineer Emile Schmid stated it gives the flexibility to rotate among different consultants.Sometimes they might have a consultant that is loaded with a lot of work and the city has a task they have to start right away.Either they cannot start it right away or their initial fee comes in too high.It gives the city an opportunity to move to another consultant.Also, in the general civil engineering category, they would ideally like to find consultants that can do everything - road, water, sewer, storm drain, hydrology, hydraulic and storm water management.Some of the firms may specialize in two or three of the areas and other firms may specialize in other areas.Between those five, they want to make sure they have all possible areas of design covered.They feel that they do with the consultants that they have.The last go round they had three, this go round they have five. Councilmember Barker asked if they used all the consultants that they had on their list the last time. Senior Project Engineer Emile Schmid stated they used the majority of them.They only had four service areas last time and they used all but one service area last time.The area they did not use was environmental and archeological.They used the general civil engineering and right-of-way services quite a bit, and they used one of their architects and planning. REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 19 OF 35 Councilmember Barker commented that is a lot of total money in these contracts. Senior Project Engineer Emile Schmid stated the purpose of these on -call consultants is so that we can improve our responsiveness and completion of the various tasks that we do.It provides flexibility to rotate tasks among different consultants.The big thing for us is to minimize delays with individual contracts.Under the on -call contract umbrella, if a task comes along they can assign it right away to one of the on call consultants instead of coming back with individual contracts for each job. Councilmember Serdy commented this is what is partly wrong with government.It would be nice if we could do more of this in house.They could hire staff for this price. Councilmember Barker commented it is heavy when you add them all up.When you look at each contract, each general civil engineering is no more than $300,000 and the rest of them are no more than $100,000.You have got 20 contracts for no more than $100,000 and five for $300,000.It is a lot of money. Interim Public Works Director/City Engineer Giao Pham stated when he and Shane go through the budget, there is actually only $300,000 to $400,000 for the next fiscal year.The reason why they have these contracts to $300,000 is just in case we get a windfall of federal money or Arizona Department of Transportation money.If a firm works on a $300,000 design, that eats up their contract for the entire year.It gives us flexibility to where they can handle that task by themselves and we do not have to break it up.He asked them not to look at the contracts and think they are going to spend one million or two million.We do not have that much money in our budget as far as possible.There is $300,000 to $400,000 total to spend among the five service areas and the five different consultants.The reason why they are broken up into those lists is because of federal requirements. Environments are a big deal.Survey and geotechnical are used in the federal process for right-of-way clearance.They are anticipating that if they get federal projects, they want to REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 20 OF 35 have these guys on call so that way they can start work right away. Councilmember Barker commented when you give a great, big book with all the contracts in them, we read them.And then we add all that up. Interim Public Works Director/City Engineer Giao Pham stated he wished they had that problem of spending that much money, but we just do not have that much money. Senior Project Engineer Emile Schmid showed the council a slide summarizing the contract limits per consultant per year.These agreements will allow us to work at it, but it does not necessarily mean they will spend that amount each year.The terms of each contract are for one year and they will be renewed annually for an additional two years for a total of three years.They will be renewed administratively within our department. Councilmember Wilson commented they did not use the archeological last time.He asked if they would be spending the $100,000 only if they are used. Senior Project Engineer Emile Schmid stated it is only spent if they are used. Councilmember Coleman asked what the total amount is that they have in the budget. $300,000. commented that is total. that is one civil engineering firm. Mayor Insalaco stated it is Councilmember Coleman Councilmember Barker stated City Manager George Hoffman stated Councilmember Serdy raised a good point in questioning REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 21 OF 35 why they cannot do it in house.We have also heard loud and clear that there are times to privatize services.We privatize a great many services.It is a continual process of determining when it is best privatized and when to seek to do it with in house services.Some of the things they are looking at are very narrow, specialized niche services.They did not use environmental last year.They would not want to retain that capacity on staff nor could we necessarily get all the sudden niches within that by having a staff person available as a resource to do that.It is a very good and legitimate policy question and it is one we are continually assessing.In many instances they have found that it is more frugal and effective to privatize the services.An example is the janitorial services that used to be provided by in house staff; we are able to do it more cost effectively by going out of house.There is also landscaping and a variety of those things.Another area is partnering with other organizations.He passed them something a while back where Queen Creek was looking to partner with Gilbert for an in house function. Senior Project Engineer Emile Schmid finished his briefing with a slide showing the five categories and the five consulting firms in each category. This was a discussion item only with no action to be taken at this time.Mayor Insalaco closed the discussion with no further comments and called for a five minute break. Mayor Insalaco reconvened the meeting. DISCUSSION ON THE AMENDMENT TO THE AGREEMENT (CONTRACT NO. R016-10-01) WITH THE GOVERNOR'S OFFICE OF ENERGY POLICY )Public Works Manager Shane Kiesow briefed the council on the item. This was a discussion item only with no action to be taken at this time.Mayor Insalaco closed the discussion with no further comments and moved on to the next item. REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 22 OF 35 AGREEMENT WITH ARIZONA REPUBLIC FOR LEGAL ADVERTISING FOR 2012 )City Clerk Kathleen Connelly briefed the council on the item. Mayor Insalaco called for a motion. Councilmember Barker MOVED THAT THE AGREEMENT BETWEEN THE ARIZONA REPUBLIC AND THE CITY OF APACHE JUNCTION FOR LEGAL ADVERTISING FOR 2012 IN THE AMOUNT OF 33 CENTS PER LINE PER DAY IN THE MESA REPUBLIC, 25 CENTS PER LINE PER DAY IN THE ARIZONA BUSINESS GAZETTE, AND 80 CENTS PER LINE PER DAY IN THE ARIZONA REPUBLIC FOR THE TERM OF JANUARY 1, 2012 THROUGH DECEMBER 31, 2012, BE APPROVED, AND THAT AUTHORIZATION BE GIVEN FOR THE MAYOR TO SIGN THE AGREEMENT. Vice Mayor Dietz SECONDED THE MOTION. VOTE:Unanimous. During the vote, Councilmember Coleman commented more and more of the newspapers are going to where they do not have subscribers. City Clerk Kathleen Connelly stated more than once several organizations, including the municipal clerks' organization, have worked with the League to have legislation introduced that would allow these types of legal notices to be posted online. So far it has not been successful.The legislation will be reintroduced again this session. The motion carried. COUNCIL DIRECTION TO STAFF MEDIAN ENHANCEMENT PUBLIC ART COMMITTEE'S RECOMMENDATION FOR THE MEDIAN ENHANCEMENT PROJECT PEDESTALS ON OLD WEST HIGHWAY )Business Advocate Janine Solley briefed the council on the item. REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 23 OF 35 Councilmember Coleman asked if a dedicated funding source would be something like the bed tax used to build stadiums. Business Advocate Janine Solley stated they can bring different options to the council at a future date and structure that however they like. Councilmember Coleman asked if it would be something like 1% of the city's budget. Business Advocate Janine Solley stated it would not.A lot of cities might do a percentage for public art from new construction projects.There might be a percentage for public art from public improvement projects.She can bring all of those options back to them. That is something that is long term for the future. City Clerk Kathleen Connelly commented after the presentation on December 5 she pointed out to Janine that perhaps the solicitation for the artwork did not meet city code.She did not know if she had the chance to talk to the city attorney about that. Business Advocate Janine Solley stated this is the first she has heard of that.She asked if it was regarding the professional services agreement. City Clerk Kathleen Connelly stated that is correct. Business Advocate Janine Solley stated it was a sample professional services agreement that was in the packet.It was a sample only that had a couple of modifications in it. City Clerk Kathleen Connelly stated there were some sections referenced in there that from her understanding of the process to solicit this artwork would not be consistent with the city code. City Attorney Joel Stern stated he does not remember which provisions.Typically we have REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 24 OF 35 professional services agreements with standard provisions.He does not know if there were any clerical issues but we can take a look at it. City Clerk Kathleen Connelly stated her suggestion is rather than go ahead and do it they should actually confirm that it met the requirements. Councilmember Barker commented that would be the immediate term. City Clerk Kathleen Connelly stated it should be a very simple one to check on. Councilmember Barker commented when they saw the presentation by Mr. Coplin the price tag appeared to be pretty steep.She asked if they made any decisions on how that might be paid.In her presentation she understood her to say that a short term goal might be to research possible funding for future projects.She asked if it is also for this one. Business Advocate Janine Solley stated his projects are estimated to be about $10,000 per piece.Our grant from Fort McDowell is $2,000 and we had anticipated utilizing some funding for downtown projects for the remainder of the first piece.There are 3 pedestals.If they want staff to look at pedestals 2 and 3, we need to explore some other funding avenues. Assistant City Manager Bryant Powell stated we had planned for $10,000 in the budget, thinking they could do all three. Councilmember Barker commented that clarifies it. Assistant City Manager Bryant Powell stated we can get started. Councilmember Barker commented we already have enough budgeted for the one piece. commented that clarifies it. Powell stated we can get started. REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 25 OF 35 Assistant City Manager Bryant Powell stated that is correct.Last April/May we thought $10,000 would be enough. Mayor Insalaco closed the discussion with no further comments and called for a motion. City Manager George Hoffman commented this is the first he has heard of Kathy's question on this matter.He suggested they not ask for a motion right now. They need to go back and make sure everything is correct and then they can come back to the council with it.He asked if that is what she is encouraging. City Clerk Kathleen Connelly stated her only concern is with the procurement process.Rather than have the council do an agreement, she believes it will be better if they researched it. Councilmember Barker commented the short and long term goals would not be complicated by the researching for art grants and that kind of thing. City Attorney Joel Stern stated they can check into that.He does not think it is a problem. Business Advocate Janine Solley asked if this is a minor technicality and should she move forward on the other item. Councilmember Barker commented she is not comfortable with that.They would first want her to research the compliance with city code for the procurement process and then go forward with the short and long term.If we find the process was alright, or if they have to change it in anyway, they can come back and formalize the contract with him at that point. City Attorney Joel Stern asked if there would be time issues if they wait two weeks. REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 26 OF 35 Business Advocate Janine Solley commented she had asked Roger if they have to spend the grant money within a certain period of time and he said they are flexible with that if we can give them an explanation.The artist still needs to do some finalizing on the design and things like that would be reasons for them to give us extra time. Councilmember Barker asked if two weeks would be okay. Business Advocate Janine Solley stated two weeks would be okay. City Attorney Joel Stern stated he believed the motion could go in two weeks. Councilmember Barker MOVED THAT THIS ITEM BE RETURNED IN TWO WEEKS. Councilmember Coleman SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISABLED PARKING SANCTIONS briefed the council on the item. )City Attorney Joel Stern Mayor Insalaco commented the change would cover the cost of the officer and expenses. City Attorney Joel Stern stated it does.He has prosecuted these cases in the past where you start seeing a pattern of individuals who have the same excuse.That is a concern but he believes they can keep track of that.These are civil violations, not criminal. Councilmember Barker asked if he was considering that to be the top sanction.There are 3 sanctions here. REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 27 OF 35 City Attorney Joel Stern stated that is correct.The first one is $300 if it is paid within 7 calendar days. Councilmember Barker stated that is 1238.There is also 1257 here. City Attorney Joel Stern stated 1257 is where the text would go to reduce the amount.It would be reference to a reduction in that amount in that section, or it could be a new section. Councilmember Barker commented he is just adding that 1257. City Attorney Joel Stern stated that is correct. Councilmember Barker asked if he was adding 1257 and getting rid of 1238. City Attorney Joel Stern stated he would not get rid of it.He would reference it with an asterisk or something to look at this note.There is not discretion for the judge to reduce that amount.We can create something that does that in 1257.The direction would for his office to come back with an ordinance that changes that. Councilmember Barker stated he can do some wording right now. City Attorney Joel Stern commented he would rather not do that as he would like to meet with the judge to get the exact wording on how he would like to see it for future cases. Councilmember Barker commented he is basically asking for direction to go to the judge to get wording for this. City Attorney Joel Stern stated he is asking for direction from the city council to come REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 28 OF 35 back with an ordinance that accomplishes the discretion to be allowed. Councilmember Coleman commented he thought the judge always had to have discretion. City Attorney Joel Stern stated in city code cases, in 12-5-7, it states the sanctions listed in the following schedule are the minimum of sanctions that may be imposed for violations of the article of the city code listed therein.That means there is no discretion for the judge.It is the minimum that has to be charged for that violation. Councilmember Coleman asked if he had discretion to charge more than that. City Attorney Joel Stern stated he could. Councilmember Coleman commented he is asking if the law requires the judge to have some sort of discretion.The legislative body cannot dictate what the judge can do. City Attorney Joel Stern stated not necessarily.Sometimes the legislature, as with felonies and drug cases, state the person shall serve so many years.The judge cannot go down any further.There are mandatory sentencing provisions.This should clean that up. Councilmember Smithson asked if these are all of the parking violations.He asked if it is illegal to park on the wrong side of the street. stated it is. he did not see it here. just for handicapped parking. REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 29 OF 35 City Attorney Joel Stern Councilmember Smithson stated Mayor Insalaco stated this is City Clerk Kathleen Connelly stated the schedule covers some of the violations.If they look at the last sentence, Joel read the first part and the second part says any person violating the provisions of this code other than those specified in the following schedule, shall be liable for the imposition of a civil sanction not to exceed $250, which goes to the judge's discretion.There could be others scattered in the code. Mayor Insalaco closed the discussion with no further comments and called for a motion. Councilmember Barker MOVED THAT STAFF BE GIVEN THE FOLLOWING DIRECTION REGARDING DISABLED PARKING SANCTIONS:TO COME BACK WITH AN ORDINANCE WHICH WILL GIVE THE JUDGE DISCRETION IN THIS AREA. Councilmember Smithson SECONDED THE MOTION. VOTE:Unanimous. The motion carried. CREATING POLITICAL SIGN -FREE ZONES IN THE CITY briefed the council on the item. City Attorney Joel Stern Mayor Insalaco commented they have the Focal Point and the new sign that will be landscaped. He does not want to see 8' by 4' political signs covering up that new sign and distracting from the beauty of the downtown. This is basically a certain zone in the city that we will be doing this in. City Attorney Joel Stern stated if that is the council's desire. Councilmember Serdy commented there can be other areas, such as the gazebo. REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 30 OF 35 Mayor Insalaco stated that is correct.This is for three square miles. City Attorney Joel Stern stated that is correct.They could have two zones in the city if they desire.They would also have to amend the sign code. This would be two parts: a resolution that would declare the zone, and an ordinance to change the sign code to meet the requirements of this statute. Councilmember Barker stated the more she reads Section F of this, the more she thinks we do not need it.We need the last part of it, but not the first. City Attorney Joel Stern commented assistance from Janine Solley would also be helpful as she is with the economic development department.That might shed more light on that. Councilmember Barker asked what kind of direction to staff could be given to research the areas in the community that this could possibly apply to. City Attorney Joel Stern asked if she meant those that would be candidates for certain areas that they might want to set aside for sign -free zones. Councilmember Barker stated that is correct. City Attorney Joel Stern stated they can do a direction on that.They would not have to come back with an ordinance right now. Councilmember Barker asked if it needed to be site specific at this point because she would like some input as to how well we answer this particular piece of legislation in those areas.She could see we could definitely answer it in the future, but she does not quite know that we do now. City Attorney Joel Stern stated there could be direction to staff that requests REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 31 OF 35 recommendation from the different departments.He believes it was the planning department in Scottsdale that came up with the recommendation on what particular zone and what area should be covered.He believes he saw that paperwork when he looked at it online.They need to keep in mind that state highways or state routes are specifically excluded from this statute, which is anything along Idaho Road up to the cutoff to the lake, if it is within the Idaho right-of-way. Mayor Insalaco commented if the State wants to take the signs down, they can do so. City Attorney Joel Stern stated it is their right-of-way.They can take them down anytime they want and they do not have to inform anybody.There is a requirement here that if you do take them down you have to give notice to the candidate or the group that is putting out the signs for initiative or referendum. Councilmember Serdy asked how big the right-of-way is on Idaho. City Attorney Joel Stern stated he would guess 300', but he might be mistaken.It might vary depending on where you are. Councilmember Serdy asked if that is from the center. City Attorney Joel Stern stated that is 300' total.He asked the city engineer if that is correct. There was general discussion between the city attorney and the interim public works director/city engineer and it was estimated at 150 feet. Mayor Insalaco closed the discussion with no further comments and called for a motion. Councilmember Barker MOVED THAT STAFF BE GIVEN THE FOLLOWING DIRECTION REGARDING CREATING POLITICAL SIGN -FREE ZONES IN THE CITY:THAT STAFF GATHER REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 32 OF 35 RECOMMENDATIONS FROM VARIOUS DEPARTMENTS WHICH WOULD BE AFFECTED BY THIS FOR POSSIBLE AREAS THAT COULD MEET THE STATE LAW FOR SIGN -FREE. Councilmember Wilson SECONDED THE MOTION. VOTE:Unanimous. The motion carried. SELECTION OF MEETING DATES, TIMES, LOCATIONS, AND PURPOSES Vice Mayor Dietz stated the executive session and work session on Monday, January 16, 2012 has been cancelled due to the Martin Luther King Holiday.He MOVED THAT AN EXECUTIVE SESSION AT 5:45 P.M. AND A WORK SESSION AT 7:00 P.M. BE HELD ON TUESDAY, JANUARY 17, 2012, IN THE CITY COUNCIL CONFERENCE ROOM AND CITY COUNCIL CHAMBERS, RESPECTIVELY. Councilmember Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. CALL TO THE PUBLIC: Mr. John Draper, 9710 E. Obispo Avenue, Mesa, addressed the council on behalf of the Apache Junction Mounted Rangers to show them the Arizona Centennial Buckle raffle project to be raffled off at Lost Dutchman Days and ask for assistance in promoting it. Mr. Slade Gallagher, 1428 S. Valley Drive, Apache Junction, addressed the council to propose the council waive a 2.5% tax on new and used vehicles purchased by severely disabled veterans. Mr. Elliott Fisher, 547 E. Quail, Apache Junction, addressed the council regarding his disappointment in their putting the grant money into the commercial projects and a freedom of speech issue with the sign -free zones. REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 33 OF 35 Councilmember Wilson asked why there was a motion for a work session at the next Tuesday meeting. City Clerk Kathleen Connelly stated we always do that just in case there is a need for a work session prior to the Tuesday meeting.We do not have the Monday meeting, so we cover ourselves by having the motion for Tuesday. Councilmember Coleman commented he does not believe that Mr. Serdy knew how he was going to vote, he believes he was just guessing by the evening's discussion.If Mr. Fisher is making any kind of accusation, he is wrong. Mayor Insalaco commented this is not just for local politicians. There are national elections coming up.It is for all elections. ADJOURNMENT ) )Mayor Insalaco adjourned the meeting at 9:18 p.m. Consent Agenda Items are as follows: 1. Acceptance of Agenda. 2. Approval of Minutes of Regular Meeting of December 6, 2011. 3. Consideration of Resolution No. 11-53, retroactively authorizing the City of Apache Junction to enter into a performance contract and related financial agreement with Siemens Industry, Inc. 4. Ratification of Appointment of New Library Director by City Manager pursuant to Apache Junction City Code Section 3-11- 1(B). ACCEPTED THIS 17TH DAY OF JANUARY, 2012, BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA. SIGNED AND ATTESTED TO THIS 17TH DAY OF JANUARY, 2012. REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 34 OF 35 ATTEST: KATHLEEN CONNELLY City Clerk HN S. INSALACO 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 3rd day of January, 2012.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 10th day of January, 2012. KATHLEEN CONNELLY City Clerk REGULAR MEETING OF THE CITY COUNCIL JANUARY 3, 2012 PAGE 35 OF 35