Loading...
HomeMy WebLinkAbout2008-09-16 City Council Regular MinutesCITY COUNCIL REGULAR MEETING SEPTEMBER 16, 2008 The regular meeting of the City Council of the City of Apache Junction, Arizona, was held on September 16, 2008, 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 7:09 p.m. INVOCATION Councilmember Wilson gave the Invocation. PLEDGE OF ALLEGIANCE Councilmember Barker led the Pledge of Allegiance. ROLL CALL Councilmembers Present:Mayor Insalaco Vice Mayor Eck Councilmember Barker Councilmember Dietz Councilmember Serdy Councilmember Severs Councilmember Wilson Staff Present:City Manager George Hoffman Assistant City Manager Bryant Powell City Clerk Kathleen Connelly City Attorney Joel Stern Public Safety Director Jerry Monahan City Engineer Giao Pham Library Director Pam Loui Public Works Director David Fern Planning Manager Fred Baker Economic Dev. Director Steve Filipowicz Assistant to the City Mgr. Matt Busby REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 1 OF 32 Others Present:Grants Specialist Roger Hacker Senior Planner Rudy Esquivias Public Works Manager Shane Kiesow Library Manager Spencer Paden Finance Manager John White ACCEPTANCE OF CONSENT AGENDA ) )Vice Mayor Eck MOVED THAT THE CONSENT AGENDA BE ACCEPTED AS PRESENTED; AND THAT LORETTA NIELSON BE APPOINTED TO THE LIBRARY BOARD FOR A TERM TO EXPIRE OCTOBER 31, 2009; AND THAT JOE DURBALA BE APPOINTED TO THE MUNICIPAL PROPERTY CORPORATION FOR A TERM TO EXPIRE OCTOBER 31, 2009; AND THAT RESOLUTION NO. 08-28, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AUTHORIZING SUBMISSION OF A GRANT APPLICATION TO THE ARIZONA DEPARTMENT OF TRANSPORTATION FOR PARTICIPATION IN ITS FISCAL YEAR 2009 LOCAL TRANSPORTATION ASSISTANCE FUND II PROGRAM, BE APPROVED; AND THAT APPROVAL BE GIVEN TO THE STREET MAINTENANCE AGREEMENT BETWEEN THE CITY OF APACHE JUNCTION AND SUNLAND ASPHALT FOR THE SURFACE TREATMENT OF LOCAL STREETS WITHIN THE RENAISSANCE POINT SUBDIVISION IN AN AMOUNT NOT TO EXCEED $159,154.59; AND THAT AUTHORIZATION BE GIVEN FOR THE MAYOR TO SIGN THE AGREEMENT PENDING FINAL APPROVAL AS TO FORM BY THE CITY ATTORNEY; AND THAT BID PW 2008-09, PAVING MATERIALS, BE REJECTED DUE TO FAILURE OF BIDDER TO INCLUDE APPLICABLE TAXES IN COST PROPOSAL; AND THAT APPROVAL BE GIVEN TO THE ECONOMIC DEVELOPMENT AGREEMENT BETWEEN THE CITY OF APACHE JUNCTION AND APACHE JUNCTION MAIN STREET FOR FISCAL YEAR 2008-2009 IN THE AMOUNT OF $40,000; AND THAT AUTHORIZATION BE GIVEN FOR THE MAYOR TO SIGN THE AGREEMENT; AND THAT APPROVAL BE GIVEN TO THE ECONOMIC DEVELOPMENT AGREEMENT BETWEEN THE CITY OF APACHE JUNCTION AND APACHE JUNCTION COMMUNITY DEVELOPMENT CORPORATION FOR FISCAL YEAR 2008-2009 IN REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 2 OF 32 THE AMOUNT OF $9,500; AND THAT AUTHORIZATION BE GIVEN FOR THE MAYOR TO SIGN THE AGREEMENT. Councilmember Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. AWARDS, PRESENTATIONS AND COMMUNICATIONS City Manager George Hoffman introduced Rebecca Charlton, program vice president and Trudy Capor, president, of Apache Junction Soroptimists, who gave a brief history and description of their organization. Councilmember Barker commented she could attest to the goodness and wonderfulness of their organization as she was a recipient of one of their scholarships and that is what got her through her first semester of college. Vice Mayor Eck commented he has seen the work that they do and it is wonderful. City Manager George Hoffman presented Library Director Pam Loui with her 25 -year service award, which included 40 hours of vacation and a shadow box commemorating her work and hobbies. He gave a brief summary of her career. CALL TO THE PUBLIC: Mr. Charles Duffy, 768 S. Warner Drive, Apache Junction, addressed the council regarding homeland security training seminars. Mr. Steve Flynn, 305 N. Acacia, Apache Junction, addressed the council regarding the upcoming recall election and the weapons locker for city hall. Mr. Ryan Agler, 3487 S. Conestoga, Apache Junction, addressed the council regarding a semi -trailer parked on residential roads. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 3 OF 32 Mr. Ted Mueller, 3700 S. Ironwood Drive #55, Apache Junction, addressed the council regarding the recall challenge in superior court. Mrs. Shannon Flynn, 305 N. Acacia, Apache Junction, addressed the council regarding recall matters and committee members. Mr. Jim Stephens, 3700 S. Ironwood, Apache Junction, addressed the council regarding no salary increase as allegedly promised to the police officers for this year and no tuition reimbursement. Mr. John Kantowski, 835 W. Windsong, Apache Junction, declined to speak. Mr. Wayne Standage, 1920 E. 20th Avenue, Apache Junction, addressed the council regarding people helping others in the community. Vice Mayor Eck requested the homeland security training be checked out and requested an update on semi -truck issues enforcement on streets and public right-of-ways. Councilmember Severs commented he had heard of the bomb detection training in a couple of other towns and it is really intense training and detailed; it is a good thing and he encouraged people to contact Charles Duffy to get some really qualified individuals trained here.They never know when there might be an emergency and they need some help.He suggested anything they could do to get him to come in and give a presentation at city hall would be wonderful. ANNOUNCEMENT OF CURRENT EVENTS None. CITY MANAGER'S REPORT City Manager George Hoffman commented on the Habitat for Humanity homes each being LEEDS certified individually, the "Phestival on Phelps" being a finalist for "Best Special Event" in the 2008 Excellence in Main Street Awards, and the library grand opening on September 22, 2008. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 4 OF 32 Chief Jerald Monahan briefed the council on his first 90 days in the police department. Mayor Insalaco commented on Saturday morning he was at Habitat for Humanities helping with a dedication of a new home.He was told that Salt River Project has put over $500,000 of solar panels on the 17 homes so far.That is a big plus for Salt River Project.He called for a short break. Mayor Insalaco reconvened the meeting. Economic Development Director Steve Filipowicz gave an update on economic development around the city. PUBLIC HEARINGS ORDINANCE NO. 1322, CASE PZ-3-08, REZONING REQUEST BY QUIKTRIP FOR A PLANNED DEVELOPMENT AMENDMENT TO DEVELOP A SERVICE STATION AND CONVENIENCE STORE NORTH OF THE NORTHWEST CORNER OF IRONWOOD AND BASELINE )Mayor Insalaco read a letter from QuikTrip that requested a continuance of the public hearing of September 16, 2008 to November 18, 2008.They are re-evaluating their current site plan and are not in position to continue with the current site plan without making changes necessary to insure necessary access.He commented as this was advertised as a public hearing, he 'would now open the public hearing on the item. City Clerk Kathleen Connelly stated they would usually have a staff presentation.She asked if they were skipping that tonight. City Attorney Joel Stern stated that is up to the council.They should keep in mind that the applicant has asked to go to November 18, and that is a request.There would have to be a motion by the council to do that in order to avoid the publication costs. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 5 OF 32 Mayor Insalaco asked if they could still hear the public comment first. City Attorney Joel Stern stated they could.This is just a request to continue it.It is up to the council whether or not they want to do that.They have options tonight.They do have to have the public hearing and they have to allow the public to speak on how they feel about it. Councilmember Serdy commented they would want to see this presentation if they are going to change their concept. Mayor Insalaco called for a motion for continuance. City Clerk Kathleen Connelly stated they have to have the public hearing first. Mayor Insalaco opened the public hearing. Mr. Rene LeSueutre, 5775 E. 20th Avenue, Apache Junction, addressed the council.He believes the rezoning is a bad idea, stations should be across the street or two miles down the road, the people in the mobile home park are residents and voters, and QuikTrip will have many opportunities between Baseline and Queen Creek to build 4 or 5 different stations. Mr. Don Walker, 3700 S. Ironwood Drive #206, Apache Junction, addressed the council.He stated they do not need another gas station there, he would prefer something like a donut shop, a doctor's office or other shops there.He is not in favor of the access plan recommended by the city and he does not believe the owner of the station would be in favor of one entrance plan.He urged them to deny it when they vote. Ms. Alice Johnson, 3700 S. Ironwood Drive #5, Apache Junction, addressed the council.She stated she has not found anyone living against the wall that is REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 6 OF 32 in favor of this, is concerned about the safety issues of people climbing over the wall and stealing things, the additional convenience store will increase the chance for intruders, and requested they deny the zoning. Mr. Gary Gonzales, 1110 E. Cotello Drive, Scottsdale, addressed the coUncil.•He is the broker that handled the sale of the park.The previous owner of the park and land built the gas station, they bought the land so that the residents of the park would not be bothered, and would not have sold the land if the new owners were going to do this. The easement was given for emergency access to Idaho, not for blocking the access of the park residents or creating competition with the other convenience store.He urged them to stop giving extensions to QuikTrip and stop it tonight. Ms. Linda Pearson, 6540 E. Redmont, Mesa, addressed the council.She was the general contractor for the AJ Mini Mart project 9 years ago and general manager for 8 years.It is not made for two businesses' traffic to go through; there will be problems with their design regarding safety.It would be a perfect place for a medical building or small office building.She urged to say no more extensions tonight. Ms. Judy Krukow, 3400 S. Ironwood Drive #156, Apache Junction, addressed the council. She stated the planning and zoning commission were unduly influenced by Vice Chairperson Nesser telling them that objections lodged by manufactured homeowners could not be considered as they are not property owners; only the owner of Desert Harbor Mobile Home Park could be counted; and 90% of the owners within the 300' objected. Mr. John Switzer, 2208 W. Baseline #65, Apache Junction, addressed the council.He stated he was speaking on behalf of La Casa Blanca Mobile Home Park. He garnered 90 signatures that are not in favor of the rezoning due to the amount of traffic and the safety issues.He urged the council to make a decision, get it off the docket and move ahead.He urged them to deny the request. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 7 OF 32 Ms. Cynthia Schauer, 3700 S. Ironwood Drive #206, Apache junction, addressed the council. She is concerned with the safety issues of the site, specifically pedestrian injuries.She urged the council to reject the rezoning tonight. Mr. Ken Camp, 3700 S. Ironwood Drive #178, Apache Junction, declined to speak as his views had already been voiced by others. Mr. Dalon Morgan, 8955 E. Pinnacle Peak Road, Scottsdale, addressed the council.He stated there is no need for an extension as there are no set of circumstances that they can come up with in the change of design that would make this more palatable, it goes against the stated objectives of the planned development site, there is a need for diversification, and he urged council to deny the extension. Mr. Robert Pizorno, 4800 N. Scottsdale #6000, Scottsdale, addressed the council.He stated is with a law firm representing the Chevron station.They have asked for three extensions in total; it should have been done at the planning and zoning stage, and the applicant is taking the council's votes for granted by not being here.The continuance would be in the face of opposition to this site that has been in existence for months; the residents are here to show how much they care about their community.He questioned whether this is a good planning decision and if it is for the health, safety and welfare of the citizens.It would require either access through his client's property or 2 accesses on Ironwood.There are liability issues involved.He urged denial by the council. Mr. Thomas Krukow, 3700 S. Ironwood #156, Apache Junction, addressed the council.He stated it appears the deceleration lane would strictly benefit QuikTrip.He commented on other safety issues regarding deceleration lanes and at the car wash.The parcel needs a strip mall. Mayor Insalaco closed the public hearing with no one else wishing to speak.He reopened the item to council discussion. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 8 OF 32 Councilmember Barker asked what would happen if a motion were made not to accept the extension and it passed. City Attorney Joel Stern stated the hearing would go forward.Staff has a presentation if they would like to hear it.The other option would be to make a motion to deny the project.They have options tonight. Vice Mayor Eck commented as much as they can see the direction in which this item is going, in the 12 years he has been on the council he has never seen where the council has not extended an attempt at a business' due process of trying to go through a rezoning.The council has not extended this at the council level, but it apparently has been extended at planning and zoning.Whether it is looking favorable for the business or not, the council would have to sit through another public hearing on the item.He is not looking forward to that, but it is the process.They have the right to try to develop the property; the owner has the right to try to sell it.Whether it is something that is going to happen or not, they still have that process. Councilmember Severs commented he has a few concerns and things to clarify.One of the biggest oppositions that he is hearing is safety, that it would create a more dangerous situation on Ironwood Drive.He does not believe that slowing down the traffic will create more of a hazard.When people are driving faster, there is more of a chance for an accident.He worked for Queen Creek for four months in the past, and everyday he drove down that road early in the morning and late in the evening.Yesterday when he came home from work traffic was stopped after coming over Signal Butte.There was a two mile back up on the freeway to turn right on Ironwood Drive.There was a line all the way to the freeway with people with their right blinkers on for people trying to turn into the Chevron.There was a lot of people.He has been there and he has seen this.There are a lot of people that are trying to get into one gas station.To try to put in a second one would separate the business a little bit.He has heard so many people say that this was zoned for a hotel or restaurant, and they should put in a hotel or a restaurant or an office complex.The gentleman just now said they should make it REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 9 OF 32 a real destination location.Right now the traffic going past there is already going past there, whether it be for a QuikTrip and a Chevron or just a Chevron.It is the same traffic already going past there.He asked what it would do to the traffic if they were to build a McDonald's on that site.They would get more traffic, with people going there for that business and the gas station.It will create a bigger hazard.He asked what would happen if they put in a 4 -story hotel.It is zoned for it.They would not mind that.He is trying to figure it out because he wants what is best for the community.He does not want to see someone buying the property in six months because this is denied and they want to build a 4 -story hotel in their back yard.Hopefully when they build the hotel it will have amenities such as a swimming pool.If it has a swimming pool, they would have more noise than they have from the Chevron with people splashing around playing in the pool.Most of the parking at a hotel is behind it.At the Chevron most of the parking is in front of it.He just wanted to bring up a few points that he thinks the people in this neighborhood need to think about.He wondered if this is denied tonight, what else might come there, and would it be just as bad or worse.One of the things they have opposed the most is a liquor outlet.We do not need another store there selling liquor. City Attorney Joel Stern requested a brief recess. Mayor Insalaco called for a brief recess. Mayor Insalaco reconvened the meeting.He commented the council is having a discussion amongst themselves, and requested the audience please refrain from joining in.They can then get this done.If not, they will have to continue it to the next time.He called for any more discussion. Councilmember Severs commented the point he was trying to make was he did not want to see the council reject this issue because it is a gas station and convenience store, and then in 6 months or a year from now have someone come in and want to build a hotel there, only to have the council reject that as well, or they want to build a REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 10 OF 32 restaurant there and the council will reject that as well.All along this has been zoned for a restaurant or hotel.The packet is full of petitions asking why they are not building a hotel or restaurant on this property.The point he is making is that a hotel would bring more traffic to the area, a restaurant would bring more traffic to the area, and it could end up being a worse situation for those residents in that area.He does not want to see the same situation tonight with every business that tries to build on that lot. Vice Mayor Eck commented they would have to determine that when it happens. Councilmember Severs commented it is the perfect case of "I don't want this in my backyard" and he hopes that is not the case for any other businesses that try to come in. Councilmember Serdy commented all they got from QuikTrip was a letter.He asked if anyone knew what they are going to propose. Mayor Insalaco commented he understands the applicant is here so he will be able to talk to him. Councilmember Serdy asked if QuikTrip was going to ask for a big freeway sign so there could be enough business.They will be trying to draw business off the freeway as well, not just off of Ironwood. Mayor Insalaco requested the applicant address the council. Mr. Kelly Vaughn, director of real estate for QuikTrip, addressed the council.The continuance they are requesting resulted from meeting with several members from staff on September 5.They were trying to work on some of the issues that have been raised and come up with some solutions.That is currently what they are doing.It is not enough time to come up with some solutions.They have had some recommendations they are considering, but it has to be win -win for everybody.It does not do anyone any good to keep REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 11 OF 32 continuing it.If they can work with staff and come up with a solution that works for everybody, it is worth considering. Councilmember Severs asked if the public safety issue is the number one concern. Mr. Kelly Vaughn stated it is one of them coming from the neighbors.They are currently working with staff on that issue.They have met with the city engineer, Fred Baker, their planner and others.If they are able to come up with something based on their conversation, then there could be some solutions to resolve the issues.They have to keep working on the plan to see if they can get it to work. Vice Mayor Eck stated he has heard a lot of the comments.He asked if he thinks he can come up with any solutions to meet the concerns.He feels it is going to be a shortfall.Even if 6 out of 7 councilmembers pass this, there are people waiting to file a referendum on this. Councilmember Barker commented he said that safety was one issue amongst others.She asked what other issues they are looking at. Mr. Kelly Vaughn stated he meant that it was one of the concerns cited here.There are other concerns people have voiced tonight, with safety being obviously one of them. Councilmember Severs stated he was asking what the number one priority for QuikTrip is. Mr. Kelly Vaughn stated safety is absolutely a concern of theirs.It does not benefit anyone to put something in place that does not work.They did a traffic study, with an extensive one done on this location, but they will not do something if it will put peoples' lives in danger.Their business is not about that. Vice Mayor Eck commented if they could have found a different location on Ironwood they probably would have shopped for it. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 12 OF 32 Mr. Kelly Vaughn stated absolutely.There is no other location. Vice Mayor Eck commented people do not realize that there is no other location. Mr. Kelly Vaughn stated from Baseline to Ganzel it is state land. Councilmember Serdy asked what is the status of the two corners across the street; if it might ever open up and when. City Manager George Hoffman stated the Lost Dutchman Heights planning process is a little over 1,000 acres that have been purchased by Rhodes Homes.They are tasked with planning a 12 mile square area.That planning process is ongoing.Right now, and the city is being optimistic, in the next 60 days the city hopes to receive some land use plans and other documents from them.He does not know if the state would be looking to dispose small, corner parcels. Councilmember Serdy commented this is not in Rhodes Homes. City Manager George Hoffman stated this is in the overall planning process, at least the east side of Ironwood.He asked Fred Baker if the west side is in that planning area, too. Planning Manager Fred Baker stated all three corners are state land.Across the street is the golf course which is under lease, but all three corners plus the golf course will be included in the planning process. Councilmember Serdy commented there is no timetable.He added if it was going to open up in the next few years, he would think that QuikTrip would want to be patient and wait a few years and go across the street, but not if it is ten years. City Manager George Hoffman stated one of the products that Rhodes Homes is tasked with REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 13 OF 32 under the urban planning permit process is a proposal on a disposition schedule and sequence on when and in what sequence lands would be released.The city has not seen that yet so he would not speculate. Vice Mayor Eck commented opening that property up between Baseline and Southern is one of the things he asked for in the work plan.It is also in the 40- 50 year flood district lawsuit with the Flood District and State Trust Land. City Manager George Hoffman stated he was not certain on that. City Attorney Joel Stern stated he believed that lawsuit had been resolved. Vice Mayor Eck commented that prior to that it had been decades. City Attorney Joel Stern stated that case was filed in 2000 or 2001. Vice Mayor Eck commented it is not going to open anytime soon. City Attorney Joel Stern agreed. City Manager George Hoffman stated he does not anticipate the State Land Department would be selling a corner parcel to a convenience store operation.He believes they will be selling larger tracts to master developers who would then split off smaller parcels. City Attorney Joel Stern stated State Land could typically reserve that part for themselves and lease it.They could do that on major intersections and he believes this would be considered a major intersection, or potentially is.They may not do that for awhile. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 14 OF 32 Mayor Insalaco asked Planning Manager Fred Baker if he had any more information on this. Planning Manager Fred Baker stated QuikTrip called the meeting.They were very concerned from the work session that the staff was recommending a restricted right in/right out on Ironwood, otherwise known as a pork chop.They did not want that to happen.Staff said in the meeting, including the engineer, that it was necessary for traffic safety.They broke up into 2 groups, came back together, and one of the options staff gave was that if QuikTrip built the median at their cost, from Baseline to 36th Avenue, it would solve the restricted right in/right out for them and the properties south of the Chevron.They said they would take a look at that.Staff has not heard from them on that as of tonight.They are still considering it as an option.Staff thinks that is something the council should, at the right time with all the right details, take into consideration.They do not have the details tonight. Councilmember Barker asked if a median being put in at 36th Avenue would then create a u -turn area. Planning Manager Fred Baker stated it would. Councilmember Barker stated it would be a big time u -turn area.That is a safety issue. Planning Manager Fred Baker stated that is one of the details they would want to take a look at and consider. City Attorney Joel Stern stated it is possible no u -turn signs could be posted but he is not the city engineer. Councilmember Wilson asked if a new plan would have to go before the planning and zoning commission again. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 15 OF 32 Planning Manager Fred Baker stated it would come directly back to the council.The planning and zoning commission made a no decision, they did not recommend denial.They vote was 4-3 not to approve denial of this project.No other motion was made.It is being brought forward with that understanding from the planning and zoning commission. Vice Mayor Eck commented he understands why QuikTrip wants to go there as there are 25,000 vehicles a day on Ironwood.There is room for 2 convenience stores.But this is destined for failure.It is a shame because he believes both would succeed.Even 6 out of 7 of the council support this, they have already been notified through attorneys that they will go a referendum on it.He thinks they need to move on.He hopes that QuikTrip will come back to the city in another location. City Attorney Joel Stern suggested they recognize the receipt of the September 16, 2008 request for a continuance in the motion. There was general discussion on the wording of the motion. Vice Mayor Eck MOVED THAT ORDINANCE NO. 1322, CASE PZ-03-08, A REZONING REQUEST BY QUIKTRIP CORPORATION FOR A PLANNED DEVELOPMENT AMENDMENT TO DEVELOP A SERVICE STATION AND CONVENIENCE STORE NORTH OF THE NORTHWEST CORNER OF THE INTERSECTION OF IRONWOOD DRIVE AND BASELINE AVENUE BE DENIED AS OF SEPTEMBER 16, 2008. Councilmember Barker SECONDED THE MOTION. There was general discussion on the motion.It was determined the motion was denying the request for a continuance. VOTE:6-1 (Councilmember Severs voted in opposition.) During the vote, Councilmember Wilson commented he was very concerned about the safety issues.A lot of the arguments and REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 16 OF 32 concerns on the traffic for the immediate area have no basis at all.He is just concerned about the safety. Councilmember Serdy stated during the motion that he is very pro business and he believes there is room for another station there with all this traffic.He just wished it was in a better situation and he hoped that QuikTrip would come back with a better plan next time, hopefully across the street. Councilmember Severs stated during the motion that he feels that they are trying to address the situation and to give them the opportunity to bring it back and try to do that would be the fair thing to do. The motion carried. Vice Mayor Eck MOVED THAT ORDINANCE NO. 1322 BE READ BY TITLE ONLY AND THE READING OF THE ENTIRE ORDINANCE BE WAIVED. Councilmember Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. City Clerk Kathleen Connelly read the ordinance by title only. Vice Mayor Eck MOVED THAT ORDINANCE NO. 1322, AS READ BY THE CITY CLERK, BE DENIED. Councilmember Wilson SECONDED THE MOTION. VOTE:6-1 (Councilmember Severs voted in opposition.) The motion carried. OLD BUSINESS PRESENTATION AND DISCUSSION WITH REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 17 OF 32 REPRESENTATIVES OF TISCHLERBISE ON DEVELOPMENT FEES )Councilmember Serdy commented since there is a lull in the economy and with building, in order to try to entice some more building and infill, he thought it might work to cut the impact fees in half on infill to the north of the freeway for lots of less than 4 houses at a time.If there is a big 20 -acre development, anyone with that undertaking should be able to absorb the fees.In order to get some of these smaller projects going, he wanted to give a break in some locations.When the economy is bad, he thinks successful businesses lower prices, not raise them and drive more development off.He asked if they could do that and if there is precedent where it has worked before. City Manager George Hoffman stated he would call the TischlerBise representative up to see if he knows the legal issues associated with charging small projects a lower fee and larger developments the existing fee. Councilmember Barker stated that is pretty selective. City Manager George Hoffman asked if he phrased the question right. Councilmember Serdy stated he did for right now.There is nothing south of the freeway. There is really nothing going on right now.He asked how many permits there are. Councilmember Dietz asked what funds they would use for the capital facilities projects and things of that nature that they are trying to finish up, plus any future roadwork that they wanted to get accomplished if they cut these fees in half.To fund those projects, it would then have to come out of the general fund. City Attorney Joel Stern stated before they get into those questions, they need to let the consultant answer how lowering the development fees would affect a community, whether it should be done, if it has been REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 18 OF 32 done before, and if it has happened to other cities.They can then ask him questions. Councilmember Severs asked if it is even legal. City Attorney Joel Stern asked that they let the representative from TischlerBise speak first. Mr. Dwayne Pierce -Guthrie of TischlerBise stated they can do fees by geographic areas, but they cannot pick an amount or decide to lower the fees in one area without making some rational connection between the amount that they impose and why it is different in this area versus this area.He gave them the examples of Scottsdale and Surprise that have or had higher fees than another in certain areas, which were based on geographic areas of water and sewer.Apache Junction has citywide services.They could charge a higher impact fee for the library for the new branch going in down south, and they could for the roads but they would need to do a different methodology.It could be done, but the study would have to be re-evaluated.A simple solution for small commercial projects would be to set lower fees at 100,000 sq.ft. limit. They could also do it on offices.It would help the small, local businesses.They could also do the size threshold on the residential fees.The danger is to pick a percentage reduction. The people that just paid their fees could ask why they are not getting that lower fee, which happened in Kingman.It would be a tough position to not refund money if they did that.If they want to safely reduce the impact fees, pull certain components out of the study, such as the police by taking out animal control.They would not be arbitrarily lowering the numbers. It is not just an Apache Junction problem, it is national.It is a problem but they will just have to wait out the storm. Cutting their fees in half will not give them any more permits. Councilmember Dietz commented dropping the fees will not have them breaking down the door to build here. Planning Manager Fred Baker stated or even could as they cannot get the money. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 19 OF 32 Vice Mayor Eck commented there was a lady speaking from Tucson at the League Conference that said they were one of the most financially sound cities of their size in the nation, but commented because things are slow does one start dropping their development fees.She said one does not, they should just keep bonding.They were challenged by what future financing they were going to do.They do not have the answers to that, but they have to stay consistent it what they have for now.It is a speed bump and by year 2035 there will be 8.5 million in Arizona.He asked several towns and cities there about their impact fees and they were pretty much higher than Apache Junction and were continuing on with their development fees and some even increasing them at this time.The city used to make people pay a development fee for mobile homes that were replaced.Now they do not.That is an incentive.They used to have to pay a development fee for remodeling a percentage of a home.Now they do not.It is an incentive to have one of those lots over an empty lot.Our whole redevelopment area is an incentive area.They have had some tremendous road fees returned to developers; one did not even realize he was getting it back. Councilmember Serdy commented he is not going to be on the council in 2035 so he is wondering what they can do now. Vice Mayor Eck commented he does not think they can drop development fees. Councilmember Serdy commented they had talked about doing it for just a few years, trying to get people to get something started and get under the fence.It would maybe jump start some building. Councilmember Dietz commented he does not see how it will jump start any building. Councilmember Serdy commented he does not see where it will take anything away from the roads when there is no money coming in.If they are trying to sell a product for $100 and no one will buy it, then maybe they should lower the price to $40 and sell a bunch of them.At least they REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 20 OF 32 would have something coming in.Or they can leave the price at $100 and never sell one. Councilmember Dietz asked where they would pay their overhead from. Councilmember Serdy stated they would not be paying anything because they have nothing coming in. Councilmember Dietz commented he would then lose his shop. Councilmember Serdy stated they lose services because they have nothing coming in.We have no growth. Councilmember Severs commented he is saying it is better to get half than nothing. Right now we are getting nothing. Councilmember Serdy commented we are getting nothing, and we can get something.We can get new growth and citizens that are going to shop here. Mayor Insalaco asked if it would be legal. City Attorney Joel Stern stated they would be in uncharted waters.However, if they were going to make development fees half as much in this area, he would say it is not legal under the current A.R.S. statute that requires them to apply fair development fees to everyone.It is a legislative act, but based on the beneficial use language, it is probably unfairly distributed.However, he would need to have more time to look at it, but more likely than it will be held illegal.He has not talked to the Kingman city attorney. He could talk to him to find out what they did.He does not know if they cut it in half but they did cut some.He would have to do some research and find out what they did. City Manager George Hoffman stated from Councilmember Serdy's point of view, it is not just REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 21 OF 32 reducing the development fees, it is reducing the development fees for people doing small developments.They could have a situation where someone is putting in 2 homes and someone else is putting in 200 homes right beside each other.The methodology is based on the cost, the marginal impact of each home.The concern is that one would be charged half the amount of the other.It is a legal concern, and he has been told that it is a valid legal concern.It violates the fundamental methodology of the development fee system. City Attorney Joel Stern stated if they did it there would have to be a full-blown study on the affect it will have. Vice Mayor Eck commented he was told it would be illegal if someone built even one home in a year without the fee. City Attorney Joel Stern asked if he meant just waiving the fee. Vice Mayor Eck.stated that is correct. City Attorney Joel Stern stated if they waived the fee they would have to take the fee from another pot in the city budget to replenish the development fee fund.That is the law.Others will say they waived the fee on him so it should be done for them also. Councilmember Barker stated it seems to her to become selective enforcement of impact fees. They would only build one house and they would be charged this amount but if they build six houses they are charged this other amount.That creates a problem.If they are talking residential, at this particular moment, new residential homes are not selling.Used homes are selling because they are cheaper.The few people who are buying are buying as low as they can get.Those people who are in trouble, who really need to unload that home, are bringing the price down to zip to get rid of it.Those are the ones that are going.If they are talking about business, the infill areas he is talking about she presumes to be on Apache Trail.A lot of that is already REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 22 OF 32 covered by our various districts.She feels like we have an answer to part of the problem that he is suggesting, although business startups are also down by about 54% nationwide.We are in the same pickle everyone else is in.She is not convinced that selectively lowering impact fees on a limited basis would work.The legislature puts sunset clauses on every other bill they pass.She never saw a sunset clause that sunset; it always rose again within at least a day of its day of sunset.It would be terribly difficult and she feels they would be setting another council up for some big problems because, as he said, he will not be around in 2030. Councilmember Serdy commented the previous council raised the fees on them by about 70%.He would have liked them to be moved up a little. Councilmember Dietz commented the previous council increased the development fees by whatever percentage, but Apache Junction is still the lowest in the valley in development fees. Councilmember Severs commented it is one of the slowest in growth. Councilmember Dietz commented we do not charge near as much as anyone else. Assistant City Manager Bryant Powell stated Scottsdale had one permit last month. Councilmember Barker stated they should look at the statewide numbers.The state as determined that they will have to bring in 6.1% revenues in order to meet a budget that the based upon 1.9% increase.They are not getting it either. Mayor Insalaco commented the whole country is not getting it. Councilmember Serdy commented Mesa is less than us. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 23 OF 32 Councilmember Barker stated Mesa also charges them impact fees if they annex in to the city, whether they were built 20 years ago, 50 years ago or 100 years ago.All the little islands that want to go into Mesa must pay impact fees. City Manager George Hoffman commented Councilmember Barker raises an important point when we point to other communities and say look at their number.They communicated recently with Flagstaff.Flagstaff only implemented a portion of what they were looking at.He asked if they only have $700 in impact fees, how are they paying for their roads.By digging a little deeper, one finds that they have a dedicated portion of their sales tax that goes to roads. Digging deeper, one finds that they also have property tax. Councilmember Barker commented that they raised the property tax just recently to cover the economic problems. City Manager George Hoffman stated he does not believe anybody is advocating that we look at a property tax to supplement development fees.When you look at municipalities and how they are funding infrastructure, it is not enough to say their development fee number is lower than ours.Their whole system of finance must be looked at to understand what balance of finance they are using to achieve that infrastructure development. Councilmember Severs commented they need to start looking at something that is our community.He does not care what the rest of the cities are doing, the state is doing or the country.When you look at Bashas', the antique mall, the doctor's office, the hair and nail salon, pottery store, Cactus Club, Long John Silver's, A&W Root Beer, Famous Sam's and a list that goes on and on of businesses in our city that have closed and are gone.Then you look at the list of businesses that have been discouraged from coming here, such as the Value Place Hotel and now QuikTrip tonight.We are doing a couple of things.We are setting ourselves up for a horrible rude awakening when it comes to our tax base.We are already seeing how bad it is getting. He does not care what the other cities are doing.We need to do REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 24 OF 32 something, whatever it may be.He does not care if it only gets them one business, one house or a thousand.They need to do something to help encourage people to come here.We are discouraging businesses and people.We have built a reputation of being a council that does not want business.Tonight we helped that reputation grow larger. Vice Mayor Eck disagreed. Mayor Insalaco commented Councilmember Severs was right.He stated we are not Mesa or another city.He went to Brown and Brown Chevrolet in Mesa and dropped a vehicle off early in the morning.He walked all the way up to Country Club and found 19 businesses closed on one side of the street.He went into Subway and got something to eat and then went in to talk to one of his competitors.From Center Street to Country Club on Main Street there are 19 businesses closed on one side of the street and 21 on the other. Councilmember Severs stated he is correct. Mayor Insalaco commented we have to compare. Councilmember Severs stated they do not.It does not matter if 100 stores are closed in Mesa.He wanted to know what they can do to help Apache Junction.He does not care about Mesa. Vice Mayor Eck asked if he thinks dropping the development fee will do it. Councilmember Severs stated it might help. Councilmember Dietz commented we have the economic development program with the tool box that we have.We have projects coming up and things that are in the works.They have put some projects out there and tools out there to help development come to the city. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 25 OF 32 Councilmember Severs stated they are not helping.It is making Steve's job, Janine's job, everyone's job harder. Councilmember Barker asked why do we have all those new businesses that he showed us.One of the reasons he stated that he wanted QuikTrip there was that the competition would not hurt anybody.Famous Sam's did not close for lack of business, other than the fact that they built on top of two other restaurants.She had talked to them and that is why.They built in the wrong location. Councilmember Severs stated he heard that they had closed 13 stores in a couple weeks because of tax purposes. Councilmember Barker stated the guy out here closed because of the two other restaurants. He closed long before all that happened.He had a specific reason and it did not have anything to do with not being friendly to business.It did not have anything to do with not encouraging business.It had to do with his pocket and the fact that he chose to build on top of 2 or 3 other restaurants.They also have to keep that in mind. Councilmember Severs asked if another one comes in and wants to open up Famous Sam's would the council deny it. Vice Mayor Eck and Councilmember Barker commented they would not pay a development fee.It will be there all built up and ready for them to get their liquor license and open. Councilmember Severs stated they need to start thinking of ways, whether it be development fees or reduced permit fees or whatever it may be, they need to think of what they can do to start encouraging businesses to come here and start encouraging growth. Councilmember Barker commented she thought they had come up with some good ideas. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 26 OF 32 Mayor Insalaco commented he mentioned Long John Silver's and A&W Root Beer.When they came before the council, the council warned them they were putting two restaurants next to two other restaurants.They advised it would be no problem.Coming from the west to the east, you would pass their business without even seeing them because they were in the wrong location.That is why they closed.They chose to put the building there and they put it in the wrong location with two restaurants next to them and one across the street. Councilmember Dietz commented they can talk about what businesses closed until the cows come home.They are here to discuss development fees. There was general discussion on this just saying development fees and that they had been talking earlier about homes only, and then they got into commercial. Councilmember Serdy stated they are learning and they need to try something.He asked what he could do to help business and growth.He came up with this and threw it out for discussion.It appears that he would not have the votes for this. Councilmember Barker commented it appears to her that they have been given some possible alternatives.Although Councilmember Severs is not real hep on looking at other cities, if other cities have other ideas it would not be a bad idea to ask them what they are and see if they would work here. Councilmember Serdy stated he cringes when he hears that they have to do a study.He does not want to pay $20,000 to do a study. Councilmember Barker stated she is talking phone calls. Councilmember Serdy stated if they are to do a study he would like to see it done in house REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 27 OF 32 with phone calls.He does not want to pay a consultant.He does not like consultants. Councilmember Severs commented it appears from what has been said that if they reduce the fee for somebody and they get a family of four that moves in and did not have to pay a fee, that family of four is shopping at our stores, eating at our restaurants, buying our gas, and paying the tax on various items. Councilmember Dietz stated they would be doing that if they bought the house and paid the development fee. Councilmember Severs commented they would not move here if they could not afford to pay the development fee and they would not be shopping here. Councilmember Serdy commented with the products he sells, when times get slow you will see everyone start doing rebates.There is some kind of incentive to get some kind of sales.Otherwise people go out of business. Councilmember Barker suggested that the assistant city manager make a couple of phone calls and ask a few questions.Some options that are workable may show up.She does not want them to stay on the phone for 8 hours doing it. City Attorney Joel Stern stated he could to that.This is not a direction to staff item but he could inquire. Councilmember Severs asked the city manager to enlighten the council on how down the tax base is and what any help would do to encourage more businesses and houses to come here if it was in the form of rebates. City Attorney Joel Stern stated he was not sure that was a development fee issue. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 28 OF 32 Councilmember Severs asked how it would help our economy if we reduced our development fees since we are a tax -based city. City Manager George Hoffman stated the core of the question is can the municipal government's portion of the cost of buying a home influence the number of homes that are purchased.That is a very complex question.They have the national financial markets in absolute turmoil, some of the largest companies in America teetering on the brink of bankruptcy. Councilmember Severs stated that is not where he was going. City Manager George Hoffman stated if he is suggesting that development in this community is critical to our budget and our ability to provide services to the community, he would agree 100%.He is deeply concerned about our ability to continue providing the quantity and quality of services to our citizens that have been based on what he is seeing in the national, state and regional economies.To be aggressive about developing our local economy is something he agrees with 100%.Council direction to go out and turn over every rock for any ideas is time well spent.He is glad for that direction and embraces it.They will go out and look for any idea that they can that would try to stimulate the local economy. Mayor Insalaco closed the item with no further discussion and moved on to the next item. NEW BUSINESS None. COUNCIL DIRECTION TO STAFF INTERVIEWS FOR ANNUAL APPOINTMENTS TO BOARDS AND COMMISSIONS ) )City Clerk Kathleen Connelly briefed the council on the item. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 29 OF 32 There was general discussion on what applicant they wanted to interview.The general consensus was to interview all applicants, new and those wishing to be reappointed. City Clerk Kathleen Connelly stated in the past they have done the Board of Adjustment, Library Board, Parks and Recreation Commission and Planning and Zoning Commission at the first set of interviews.The balance of them would be done two weeks later. Mayor Insalaco closed the discussion and called for a motion. Councilmember Dietz MOVED THAT THE FOLLOWING DIRECTION BE GIVEN TO STAFF: AS PER KATHY'S DIRECTION. Councilmember Barker SECONDED THE MOTION. City Clerk Kathleen Connelly stated they wanted to interview everyone and flip as done in the past. VOTE: Unanimous. The motion carried. Mayor Insalaco thanked Wayne Standage for being willing to accept a position on a board that needed filling.He is already on other boards.He graciously bowed out when Joe Durbala decided he would like to have that position.He appreciated his honesty and support to the city. SELECTION OF MEETING DATES, TIMES, LOCATIONS, AND PURPOSES Councilmember Dietz MOVED THAT AN EXECUTIVE SESSION AT 6:00 P.M. AND A WORK SESSION AT 7:00 P.M. BE HELD ON MONDAY, OCTOBER 6, 2008, IN THE CITY COUNCIL CONFERENCE ROOM AND CITY COUNCIL CHAMBERS, RESPECTIVELY; AND REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 30 OF 32 THAT AN EXECUTIVE SESSION AT 6:00 P.M. BE HELD ON TUESDAY, OCTOBER 7, 2008, IN THE CITY COUNCIL CONFERENCE ROOM. THE MOTION. VOTE:Unanimous. The motion carried. ADJOURNMENT Councilmember Barker SECONDED )Mayor Insalaco adjourned the meeting at 10:28 p.m. Consent Agenda Items are as follows: 1. Acceptance of Agenda. 2. Acceptance of Minutes of Regular Meeting of September 16, 2008. 3. Appointment of candidate to fill one Library Board Commission. 4. Appointment of candidate to fill one vacancy on the City of Apache Junction Municipal Property Corporation (MPC). 5. Approval of Resolution No. 08-28, Authority to submit the Fiscal Year 2008-2009 Local Transportation Assistance Fund ("LTAF") II grant application. 6. Approval of a Street Maintenance Agreement with Sunland Asphalt in an amount not to exceed $159,154.59. 7. Rejection of Bid PW 2008-09, Paving Materials. 8. Consideration of Fiscal Year 2008-2009 Economic Development Agreement with Apache Junction Main Street Program. 9. Consideration of Fiscal Year 2008-2009 Economic Development Agreement with Apache Junction Community Development Corporation. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 31 OF 32 ACCEPTED THIS 7TH DAY OF OCTOBER, 2008, BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA. SIGNED AND ATTESTED TO THIS 7TH DAY OF OCTOBER, 2008.- 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, 2008.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 1st day of October, 2008. KATHLEEN CONNELLY City Clerk REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 16, 2008 PAGE 32 OF 32