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HomeMy WebLinkAbout2007-12-18 City Council Regular MinutesCITY COUNCIL REGULAR MEETING DECEMBER 18, 2007 The regular meeting of the City Council of the City of Apache Junction, Arizona, was held on December 18, 2007, at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Mayor Insalaco called the meeting to order at 7:00 p.m. INVOCATION Councilmember Wilson gave the Invocation. PLEDGE OF ALLEGIANCE Councilmember Severs 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 Interim Public Safety Dir. Tom Kelly Development Svcs. Director Brad Steinke Planning Manager Fred Baker Economic Dev. Dir. Steve Filipowicz Others Present:Grants Specialist Roger Hacker Program Coordinator Heather Patel REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 1 OF 28 Public Works Manager Shane Kiesow ACCEPTANCE OF CONSENT AGENDA )Vice Mayor Eck MOVED THAT THE CONSENT AGENDA BE ACCEPTED AS PRESENTED; AND THAT APPROVAL BE GIVEN FOR THE RENEWAL OF THE CONTRACT BETWEEN THE CITY OF APACHE JUNCTION AND GBI AND ASSOCIATES, LLC FOR BACKGROUND INVESTIGATION SERVICES ON PUBLIC SAFETY PERSONNEL APPLICANTS IN AN AMOUNT NOT TO EXCEED $50,000 FOR CALENDAR YEAR 2008; AND THAT AUTHORIZATION BE GIVEN FOR THE MAYOR TO SIGN THE CONTRACT PENDING FINAL APPROVAL AS TO FORM BY THE CITY ATTORNEY; AND THAT APPROVAL BE GIVEN FOR THE FOURTH AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF APACHE JUNCTION AND WILLIAMS AND ASSOCIATES FOR A 1 -YEAR EXTENSION TO GOVERNMENT RELATIONS SERVICES ON STATE AND FEDERAL LEGISLATIVE MATTERS IN AN AMOUNT NOT TO EXCEED $40,000; AND THAT AUTHORIZATION BE GIVEN FOR THE MAYOR TO SIGN THE AGREEMENT PENDING FINAL APPROVAL AS TO FORM BY THE CITY ATTORNEY; AND THAT APPROVAL BE GIVEN FOR A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF APACHE JUNCTION AND THE RETAIL COACH TO PROVIDE RETAIL EXPANSION AND RECRUITMENT SERVICES IN AN AMOUNT NOT TO EXCEED $48,500; AND THAT AUTHORIZATION BE GIVEN FOR THE MAYOR TO SIGN THE AGREEMENT PENDING FINAL APPROVAL AS TO FORM BY THE CITY ATTORNEY; AND THAT RESOLUTION NO. 07-55, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, APPROVING THE SUBMITTAL OF A GRANT APPLICATION TO THE AK -CHIN INDIAN COMMUNITY FOR PROPOSITION 202 FUNDS BE APPROVED; AND THAT APPROVAL BE GIVEN FOR THE EASEMENT TO BE PROVIDED TO SALT RIVER PROJECT FOR NEEDED ELECTRICAL SERVICE FOR THE CITY LIBRARY EXPANSION; AND THAT AUTHORIZATION BE GIVEN FOR THE MAYOR TO SIGN THE CONTRACT; AND THAT, AT THE REQUEST OF THE CITY MANAGER, ITEM 8 NOT BE CONSIDERED TONIGHT AND THAT STAFF BRING BACK THIS ITEM AT A LATER DATE; AND REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 2 OF 28 THAT RESOLUTION NO. 07-53, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AUTHORIZING THE CITY TO ENTER INTO AN INTERGOVERNMENTAL AGREEMENT WITH QUEEN VALLEY FIRE DISTRICT FOR TRANSFER OF OWNERSHIP OF USED CITY TRUCK BE APPROVED; AND THAT RESOLUTION NO. 07-56, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AUTHORIZING THE CITY TO ENTER INTO AN INTERGOVERNMENTAL AGREEMENT WITH PINAL COUNTY CONCERNING SHARED COSTS FOR THE REPAVING AND ENHANCEMENT OF A PORTION OF IRONWOOD DRIVE WITHIN THE CITY LIMITS OF APACHE JUNCTION BE APPROVED. Councilmember Severs SECONDED THE MOTION. VOTE:Unanimous on Items 1-4, 6-7 and 8-10.Councilmember Serdy voted in opposition on Item 5 which passed 6-1. The motion carried. AWARDS, PRESENTATIONS AND COMMUNICATIONS Mayor Insalaco presented certificates of appreciation to Economic Development Action Planning Team (EDAPT) participants. CALL TO THE PUBLIC Mr. Louis Babin, 2191 S. Belair, Apache Junction, addressed the council requesting Apache Junction businesses and retailers be given consideration when requesting conditional use permits and variances. Mr. Jimmy Eidson, 1309 W. 15th Avenue, Apache Junction, addressed the council in support of the council and against the recall efforts. Mr. Noel Benoist, 900 N. San Marcos #35, Apache Junction, addressed the council regarding people speaking their minds. Mayor Tom Rankin, 345 W. Highway 287, Florence, addressed the council on behalf of Central Arizona Association of Governments as its chairman to announce that Mayor Insalaco had been elected REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 3 OF 28 secretary/treasurer of the executive committee.He also spoke in support of the council and advised the people attempting the recalls would find that there will be gaps between the community members that will never heal as a result. Mr. Mike Weller, 471 W. 21st Avenue, Apache Junction, addressed the council to speak against having a recall. Mr. Wayne Standage, 1920 E. 20th Avenue, Apache Junction, addressed the council to speak against the recall efforts and in support of the contract for Chief Walp not being renewed. Mrs. Maria Ewell, 1330 W. Roundup, Apache Junction, addressed the council in support of the council. Mr. Robert Esposito, 3942 N. Rain Cloud Drive, Apache Junction, addressed the council to urge caution in the recall efforts and requested the council target the blight areas with the grants. Mr. Duane Buell, 612 E. Desert Avenue, Apache Junction, addressed the council to speak against Chief Walp and advise he was in support of the council. Mr. Tony Vehon, 7518 E. Elderberry Way, Gold Canyon, addressed the council in support of the council and advised he is the incoming chairperson for the Chamber of Commerce. Mr. John Melero, Kearny, representing the Copper Basin Lodge Fraternal Order of Police and speaking on behalf of a number of representatives of the Apache Junction Police Department, addressed the council to advise the Apache Junction Police Department employees were in support of the council, city manager and the recent non -renewal of the chief of police contract. Pinal County Supervisor Sandie Smith, 575 N. Idaho Road, Apache Junction, addressed the council to speak against the recall efforts. Mr. John Kantowski, 835 W. Windsong St., Apache Junction, addressed the council to speak in support of the council and against the recall efforts. REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 4 OF 28 Mr. Todd Olear, 2898 S. Arizona Road, Apache Junction, addressed the council regarding the renaming of Idaho Road to Fray Marcos de Niza Boulevard, thanked the council for putting together the regional economic council, and advised he likes the new website. Mr. Kris Sippel, 1893 E. 38th Avenue, Apache Junction, addressed the council in support of the council. Mayor Insalaco called for a ten minute break. Mayor Insalaco reconvened the meeting. ANNOUNCEMENT OF CURRENT EVENTS Councilmember Severs announced that for the past month or so a local paper and local critics have been targeting him, accusing him of being behind the recall, being the brains behind it and not caring about the city, fighting for the people who live outside our city, being vindictive and fighting for favors.The December 10 local paper states 70% of the people do not support a recall.On December 17 the same local paper stated 70.4% of the people want him out.He is sick and tired of all the crap. Anyone who has come to a meeting or watched one on television can see without a doubt what he stands for and who he fights for.The answer has never changed; it has always been the rights of the people and the citizens.He is tired of hearing how Gold Canyon people, county people, Mesa people, unincorporated county island people, et cetera, do not count. That is ridiculous.He asked if they shop, visit, drive, have a winter home or have a business here.If so, then they count. They count on our financial stability, our public safety, our public works, and our parks.He asked if they should be heard, and answered they should.He is not sorry for caring about them, too.He stated before they lost the chief that if they do not start listening, he could see a whole new council in January.He was wrong as it will not be in January.Because he can see things and he is not afraid to say it does not make him the ringleader.It makes him someone who cares enough to change things, stop things or make a difference.The people who think he is doing this because he wants to be mayor are wrong.He wants to help this community.When you try to help somebody or fight for an issue and it always turns into criticism or ridiculous accusations, it is frustrating.When a simple issue REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 5 OF 28 like the caretaker suites takes 11 months, it is not only frustrating but embarrassing.The resistance to change, growth, improvement, and compassion disappoints and disgusts him.He will prove that he is for the people.If 70.4% of the citizens think he is wrong for fighting for them for their rights, freedoms and personal property, then maybe he does need to go. Here is how easy it is.At 5:00 p.m. today another recall petition was pulled on him.He will fight for what the citizens and the people want right to the end.If they truly think that he is that horrible, that he is the problem, then call him and sign his petitions.He refuses to be crucified every time he tries to help someone.He is a caring person and he likes to help others.When this is all said and done and if he gets recalled, if someone needs help with something, call him.He will still help but as a citizen, not a city leader.One last note to the people who are starting rumors about him, he is not a drug dealer and he is not divorcing his wife. CITY MANAGER'S REPORT City Manager George Hoffman stated the Travel Channel has a program called the World's Best Lost Treasures.The lost dutchman's gold is number 8 on that list.It was mentioned verbally and in captions that the location is Apache Junction. The piece included interviews with Ron Feldman and showed some outstanding shots of the area.It will air again on January 6 at 2:00 p.m. and January 9 at 4:00 p.m.He did not know what time standard that is.The mobile on site mammography breast cancer screening will be here in the parking lot tomorrow from 7:00 a.m. to 4:00 p.m. and on Thursday from 8:00 a.m. to 5:00 p.m.It is being done for the employees but the public is encouraged to attend.They can contact MOM at 1-800-285-0272. PUBLIC HEARINGS APPLICATION FOR AN INTERIM PERMIT, PERSON TRANFER, LIMITED LIABILITY CO., SERIES 9 LIQUOR LICENSE FOR LUCKY LIQUOR )City Clerk Kathleen Connelly briefed the council on the item.She stated there are no objections from staff or the fire district to this request. REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 6 OF 28 The applicant has been notified of tonight's procedure in the event the council has any questions. Mayor Insalaco requested the applicant address the council. Ms. Bonnie Lee Reese addressed the council from the audience to advise she had nothing more to add.There were no questions from the council. Mayor Insalaco opened the public hearing on the item.There being no one wishing to speak, he closed the public hearing and reopened the item to council discussion.There being no discussion, he called for a motion. Councilmember Barker MOVED THAT THE APPLICATION FOR AN INTERIM PERMIT, PERSON TRANSFER, LIMITED LIABILITY CO., SERIES 9 LIQUOR LICENSE FOR LUCKY LIQUOR, SUBMITTED BY BONNIE LEE REESE, BE RECOMMENDED FOR APPROVAL TO THE ARIZONA DEPARTMENT OF LIQUOR LICENSES AND CONTROL. Vice Mayor Eck SECONDED THE MOTION. VOTE:6-0 (Councilmember Severs had stepped out.) The motion carried. PUBLIC HEARING ON POTENTIAL USE OF FISCAL YEAR 2008 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS AND STATE SPECIAL PROJECT FUNDS )Grants Specialist Roger Hacker briefed the council on the item.He stated this is a continuation of the public process started two -and -a -half months ago to get public input on how they would like to see these federal grants used.At the end of the hearing staff would like a short list of projects for both guaranteed funds of up to $270,000 and the competitive funds of up to $300,000. Administrative Assistant Heather Patel gave a powerpoint presentation on information that REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 7 OF 28 is required to be given out during the public hearing as this involves federal money.The presentation included the objectives of the program, the amount of funds available, the timeline, and eligible activities. •Vice Mayor Eck askel if the state special projects activities have to be more of a necessity than the biannual community development block grant project. Administrative Assistant Heather Patel stated that is correct.Because the program is statewide it is ranked and rated.They give special points for projects that are of a higher need, such as public health and safety or housing.They would also get extra points for projects that benefit a larger number of people.If the project addresses the entire community, it gets more points than one that addresses a single neighborhood.She continued with the presentation, including how previous funds have been invested in the community, the grievance procedure, and an open discussion on those projects that have thus far been suggested.Some of the projects suggested have been downtown developments, commercial rehabilitation, housing rehabilitation, street improvements, transportation, dog training, public facilities, housing specific to Habitat for Humanity, and transitional housing for people with disabilities and seniors.There are a few groups that have provided information to her to make sure their projects were listed.She is unaware if they are available tonight. Mayor Insalaco opened the public hearing on the item. Ms. Lynn Carter, 4759 S. Desert Dawn Drive, Gold Canyon, addressed the council.She was there on behalf of the Superstition Veterans of Foreign Wars Post 9399, located at 133 N. Saguaro in Apache Junction.They have filed an application for some of the funds available.The post has been located there since its inception in 1964.The post was enlarged in the 1980s to accommodate the expanding membership.She listed the various divisions of the post's 890 members; 95% are senior citizens and 30% are disabled.Most of the members are residents of Apache Junction.She commented on their programs that benefit residents of Apache Junction and REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 8 OF 28 their charity donations.They are requesting their 16,000 square foot parking area be paved.There are mandates coming down next year regarding dust control and the parking lot is not up to par.If this is approved, they would be happy to also pave the portion of the parking lot that is owned by the city. They have provided an estimated cost.They are also in need of upgrading their air conditioning in the building.This is one of the few exceptions to the smoking law in Arizona; they are in need of a new system for the comfort and protection of the more than 1,600 members, guests and winter visitors.She does not have an estimate on this and is sure it will require updating the entire electrical system to code.She does not believe a cost of $200,000 would be excessive.They are a nonprofit organization that does not have the funds for these upgrades. Mr. Roger Schwierjohn, president of Habitat for Humanity Valley of the Sun, addressed the council.He thanked the council for their partnership over the last year plus as they wrap up their 18 -unit single family subdivision on Ironwood.His organization stands ready to enjoy more partnerships with the city on community development block grant funds in the fields of downtown development projects, infill projects, or possibly the assemblage of land and the development of another subdivision. Mayor Insalaco closed the public hearing with no one else wishing to speak.He reopened the item to council discussion. Administrative Assistant Heather Patel commented another group that had brought up a project was public works for road paving projects. Vice Mayor Eck asked if she had those projects. Administrative Assistant Heather Patel stated she does not have any specific projects. They are working on their capital improvement plan that will identify the priority list. Vice Mayor Eck commented he got a phone call from the Twiggs and Blevins'.This has been an REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 9 OF 28 ongoing flood issue on a couple of homes that flood each time it rains.They wanted to make it known that they are still being flooded anytime there is more than an inch of rain. Administrative Assistant Heather Patel stated that finishes the list of projects.They have the two previous meetings and what was discussed this evening.She requested the council give them direction on a short list of projects to bring back to them on January 15, 2008.In February they will be asking for a final decision on which projects to move forward with in the application process for the grants. Vice Mayor Eck commented he is curious on what projects public works has.He believes the Habitat for Humanity project and the Veterans of Foreign Wars project would have a tough time with the State Special Projects grant since it has to be ready now for the planning.They only have 18 months to prepare for that. Administrative Assistant Heather Patel stated it is 18 months to complete it.Each project has its own requirements. Vice Mayor Eck asked how long they would have to come Up with the actual values of what they would be requesting to do. Administrative Assistant Heather Patel stated for council to make the actual decision in February, they would need the final information by then.She believes it is February 5, 2008.That information would be part of the research they would do if they are put on the short list this evening.They would go to the organizations and get the final information in detail and present it in January, with the final decision in February. Mayor Insalaco closed the discussion with no further comments and called for a motion. Vice Mayor Eck MOVED THAT THE FOLLOWING DIRECTION BE GIVEN TO STAFF REGARDING THE POTENTIAL USE OF FISCAL YEAR 2008 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 10 OF 28 AND STATE SPECIAL PROJECTS FUNDS:THAT THE CONSIDERATION BE GIVEN TO THE JOBS PRODUCED THROUGH OUR CITY OF APACHE JUNCTION PUBLIC WORKS, CONSIDERATION OF VFW POST 9399, HABITAT FOR HUMANITY AND ANY OTHER ITEMS THAT MAY HAVE BEEN OVERSEEN TONIGHT HERE BY STAFF OR ARE STAFF -RELATED PROJECTS. Councilmember Barker stated she needed some clarification.She did not understand the last part.She understood public works, the VFW and Habitat for Humanity.She is not sure what he said afterward. Vice Mayor Eck commented if he just says public works than they are just saying streets.If they have anything else that they are not aware of such as water needs or other needs through public works, that is what he was getting at.He asked if he should just say public works in general in order to cover it, or public works street projects. Administrative Assistant Heather Patel stated the more specific street projects would be good. Councilmember Dietz commented he does not know if they have any other flooding problem like they do have at the end of San Marcos. Vice Mayor Eck commented that is one of the issues he was considering under public works projects. Councilmember Barker commented that he should be specific about that and really say that. Vice Mayor Eck commented they are working on other projects and they were not told what they are specifically. Councilmember Dietz asked if staff could clarify in this case if it would be harder to receive that grant where they have flooding in just the one area. REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 11 OF 28 Administrative Assistant Heather Patel stated she is not familiar with the area but it would have to address the national objective of benefitting low to moderate income persons. Vice Mayor Eck stated he believes it does do that, but it would be more of a Community Development Block Grant than a State Special Projects. Councilmember Dietz commented it is basically benefitting a couple of people. Vice Mayor Eck commented it is affecting 5 homes at minimum in a serious nature. Councilmember Dietz commented it is a serious flooding problem that they have had for years. Administrative Assistant Heather Patel stated it would be less likely to be funded through State Special Projects. Vice Mayor Eck AMENDED HIS MOTION TO READ THEY WOULD BE CONSIDERING THE VFW POST 9399 APPLICATION, THE HABITAT FOR HUMANITY, AND ALSO ANY PUBLIC WORKS ITEMS INCLUDING THE FLOODING ISSUE AT THE END OF SAN MARCOS AND BUENA VISTA.HOWEVER, THERE ARE OTHER ITEMS THAT PUBLIC WORKS MIGHT BE WORKING ON AND HE DOES NOT WANT TO LEAVE ANY OF THOSE OUT. Administrative Assistant Heather Patel stated they have provided a preliminary list of streets to be paved and sidewalks.That is the extent of their information. Vice Mayor Eck ADDED THEY CAN ADD THAT PRELIMINARY LIST TO THE MOTION. Councilmember Wilson SECONDED THE MOTION. VOTE:Unanimous. REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 12 OF 28 The motion carried. RESOLUTION NO. 07-50, APPROVING A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF APACHE JUNCTION AND US60 AND IDAHO, LLC FOR APACHE JUNCTION GATEWAY DEVELOPMENT PROJECT )Economic Development Director Steve Filipowicz briefed the council on the item.He stated he is prepared to run through the information given at the last meeting, unless council is comfortable with the details and would like to move directly to consideration. The council consensus was for him to give a brief summary. Economic Development Director Steve Filipowicz stated this has been reviewed with council a number of times; they are not just rubberstamping it.This is a development agreement between the city and Diversified Partners who have representatives here tonight.The council is considering the resolution and the next item, the planned development, tonight.The agreement runs for 8 years, requiring them to build on an approximately 80 acre site at the southeast corner of Idaho and Highway 60, a retail power center consisting of not less than 450,000 sq.ft. of tax -generating space under roof. The agreement identified start and completion dates so that they can phase construction, with all construction completed by December 2012.They will be constructing public infrastructure the city would otherwise be on the hook for.The city will be using sales tax proceeds split 50/50 between the city's general revenue and as a reimbursement to Diversified for up to $6.64 million in street improvements on Idaho, Baseline and Winchester, plus a significant water line connection that has to go under Highway 60 to serve that area.If the project costs less than $6.64 million in infrastructure, the city only reimburses them for what has been spent.If it goes more than that, Diversified is on the hook for any overage.The independent analysis by Applied Economics estimates this project will pay for itself in 4 years.The city could not borrow the funds and do the work itself for any less.There is no reimbursement for the cost of interest over those years.This is a very significant growth in retail sales tax, estimated at REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 13 OF 28 $4 million when the facility is complete, online, and has at least 2 anchor tenants.Based on his experience, depending on whom the anchor tenants are, they are looking at between 300 and 700 new jobs in the community, traditionally filled by local residents. Councilmember Dietz commented he came across the engineer's estimate of probable costs.He asked why landscaping would be included in that as offsites, estimated at $475,000.He does not recall ever doing that before.He added there is a contingency of 20%, or $983,000. He asked what the escalation contingency of 15% for another $737,000 is. Economic Development Director Steve Filipowicz stated there is a significant cushion as they are looking ahead.There have been spikes in construction costs while this agreement was being negotiated.They typically cannot get a bid quoted for more than 30 days.This gives Diversified a safeguard in case the city has lowballed the material estimates. Councilmember Dietz asked if fire hydrants are offsite improvements as well. Economic Development Director Steve Filipowicz stated they are part of the street improvements that are required for spacing. Councilmember Dietz commented it is not fire hydrants, they are actually within the property. City Attorney Joel Stern stated they are all public improvements. Economic Development Director Steve Filipowicz stated they are doing all the interior work. Councilmember Dietz commented that the landscaping is included in that. Economic Development Director Steve Filipowicz stated it is in that portion. REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 14 OF 28 City Attorney Joel Stern stated he heard that from the developer as they put it together and it is their estimate.He believes it is all public improvement landscaping. Vice Mayor Eck commented he was not looking at the figures, as the water improvements alone were near $4 million. Economic Development Director Steve Filipowicz stated it is $3.6 million, a hefty percentage of it. Vice Mayor Eck stated that will tremendously help their system.He liked what Mr. Olear said earlier when he came up and circled that area and then circled the downtown.He circled the top two items.This is not something that will affect the downtown in anyway.It will compete with the freeway types of business where people would stop there instead of going on to Signal Butte or other exits outside our community.He does not think it will deaden the downtown. Economic Development Director Steve Filipowicz stated he truly believes this will grow the retail pie and add to our resource base.If they feel like further investment is needed in the downtown to further transition to a niche market of office professionals and redevelopment projects like what is happening at the Cobbs site, they would then have additional resources to do so.It also recaptures sales tax dollars that are passing us by on Highway 60 and stopping at Signal Butte or further.They can spend the dollars here.This is the largest deal in the city's history. It is a $150 million commercial investment.Of that, about $95 million is the investment by Diversified, the anchors traditionally own their own and that will total about $50 million between the two of them, and there is the public investment of no more than $6.64 million and possibly as low as $5 million. Mayor Insalaco requested the applicant address the council. REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 15 OF 28 Mr. Tim Dollander, principle in Diversified and principle in US60 and Idaho, LLC, addressed the council.He recognized staff members George Hoffman, Joel Stern, and Bryant Powell for working with them on the different aspects of the agreement.He also recognized his staff for their work on the agreement.They look forward to bringing the project to fruition in the city. Mayor Insalaco opened the public hearing on the item. Mr. Louis Babin, 2191 S. Belair, Apache Junction, addressed the council.He commented he used to work for a small armored car company that picked up $10 million a day for one small bank.There is a lot of money circulating around Arizona everyday and there is plenty of money for the businesses along the freeway and the businesses downtown.Anyone that says they will each kill the other off he does not agree with. Pinal County Supervisor Sandie Smith, 575 N. Idaho Road, Apache Junction, addressed the council.She commented the project is wonderful and wanted to say a few words about city staff.She has worked with Steve Filipowicz at the Northeastern Pinal Economic Partnership and he explains the project clearly, tells you what you get, tells you what they are investing back in, and makes everything very plain.He is an asset to the city staff, along with the ones who are here and the ones who have come in very recently.She is impressed with his ability to get the idea across as to what it is, and she is happy to see that it is Apache Junction's turn.It will be a pleasure to do her shopping in Pinal County and have her tax dollars get reinvested in the community and Pinal County.Part of that investment will allow Pinal County to build roads, instead of in another city.She congratulated all the partners. Mr. Robert Esposito, 3942 N. Rain Cloud Drive, Apache Junction, addressed the council.He thinks this is a big step forward for the city, and is good for the city, developer, and the people of the city.He asked if there is anything in this deal that has anything to do with the forgiveness of impact fees. REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 16 OF 28 City Attorney Joel Stern stated they tried to negotiate that and the city said no. Mr. Robert Esposito stated he thinks this is a good example of what a good hire Mr. Filipowicz has been.He asked if there was something that this group was willing to do that the downtown group was not willing to do.He asked why that one failed and this one succeeded. Mayor Insalaco commented they are developers, not land investors. Vice Mayor Eck commented they specified what they are going to do.The city knows what it is getting.They did not get that with the downtown group. Councilmember Severs commented they told us what, when, where, how much and for what. They did everything that should be done in a development agreement that the other group did none of. Mr. Robert Esposito commented he believes that was something that was probably on the minds of some of the public.With the limited exposure he had, it was something that came up to him in watching the project. they were talking to the developer. this is the vertical developer. Councilmember Dietz commented Mr. Robert Esposito asked if Vice Mayor Eck stated it is. Mr. Robert Esposito stated this is a huge step forward and it will keep a lot more money here.He would like to say that there was a locally famous man who said a few months ago that the future of Apache Junction was south of the freeway.He disagrees with that; it is not necessarily a symptom of there being a huge movement afoot to Keep promoting that.He asked them not to forget those to the north or the small developers.It seems they are setting a precedent here and it should not be a big guy kind of thing; REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 17 OF 28 perhaps small developers can enter into development agreements on a proportionate scale as long as they are willing to do what this group is willing to do.He thinks it is a great thing for the city and it will be borne out over the next several years. City Attorney Joel Stern stated in answer to Mr. Esposito's question on development fees, it is Section 3.3 Development Fees, the developer shall pay all then current impact, development and resource fees and exactions currently in effect or as may be adopted in the future. Vice Mayor Eck commented this is the first one where the city had to adopt the state -mandated law of getting a neutral party to come in.He asked him to briefly explain that. City Attorney Joel Stern stated Resolution No. 07-50 authorizes the city to enter into a development agreement.Fourteen days ago they had to pass a notice of intent to enter into this agreement.They did that correctly.The notice of intent was based on a third party basically saying what the city is giving up will be a lot less than what it is getting in return.The city is getting a good deal.It is paying for the infrastructure over time and it is based on the performance of what the developer has agreed to do. Vice Mayor Eck commented the key word is performance, which is what they have on this development agreement.They did not have it before. Mr. John Kantowski, 835 W. Windsong, Apache Junction, addressed the council.He stated they will have $6.64 million going back, but it is money they would not have right now if it was not built.It is coming from sales tax money that will be earned from that, given back over a certain amount of time.It is not a small mom-and-pop, Burger King, Carl's Jr. or whatever business they want to pick.They will not see this go away, it will be here for years to come and generations will use it.The $6.64 million is just a turnaround back to the developer; most of this will be in sales tax revenue.If it takes 6 years to give it back to them, they will be here a long time and the city will get a big benefit from it. Apache Junction needs big box development.They used to have to REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 18 OF 28 go to Power Road, now they have Signal Butte and Mesa is planning on building another center at Signal Butte and Southern.He believes Mesa has put in their general plan that they want land south of US 60 that is supposed to be Apache Junction land.They are making moves.If this developer makes a ton of money here, other developers will be looking at coming here, too.The more they can bring in, the better off they will be in the future. City Attorney Joel Stern stated there was one more item that went with the new law.It requires that they have to show the developer would not have come here but for the agreement.The developer has stated they would have come here, but it would have been 5 to 10 years in the future.Without the agreement, there would be more waiting time. Mayor Insalaco closed the public hearing and reopened the item to council discussion.He stated they have to take their hats off to the city manager for bringing in the recent additions to staff.The staff that we have acquired lately has been phenomenal.He then called for a motion. Councilmember Dietz MOVED THAT RESOLUTION NO. 07-50, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, APPROVING A DEVELOPMENT AGREEMENT WITH US 60 AND IDAHO, L.L.C. FOR APACHE JUNCTION GATEWAY DEVELOPMENT PROJECT, BE APPROVED. Councilmember Severs SECONDED THE MOTION. VOTE:Unanimous. The motion carried. ORDINANCE NO. 1313, CASE PZ-2-07, REQUEST TO REZONE 80 ACRES FROM LIGHT INDUSTRY AND WAREHOUSE ZONE BY PLANNED DEVELOPMENT TO GENERAL COMMERCIAL DISTRICT BY PLANNED DEVELOPMENT FOR THE APACHE JUNCTION REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 19 OF 28 GATEWAY DEVELOPMENT PROJECT )Assistant Planner Yanet Ochoa briefed the council on the item.She stated it is located on the southeast corner of US 60 and Idaho.The proposal allows a range of commercial uses and deviates from specified development standards.It will provide office, retail, ' restaurants and entertainment uses.The total square footage of the proposed buildings is 688,454.She listed the square footage of the shops.Preliminary architecture is included in the planned development request for the first phase.The amounts are conceptual.Preliminary landscape plans are included in this request.There will be four 'entrances on Idaho and two on Baseline.She described the site.There will be a 65' monument sign.The deviations are the open space requirements, which are normally 20% and are being requested at 10%, the minimum front setback of 25' and they are requesting 15' from the right-of-way line, the minimum side setback of 10' and they are requesting 10' from the interior lot line, and the minimum rear setback of 25' and they are requesting 10' from the right-of-way line.The landscaping setback varies with 30' on Baseline, 15' on the freeway and on Winchester, and 50' on Idaho.She stated the vehicle repair uses have been added to the palette of uses at the council's request.She listed the uses that would not be allowed for this project. Mayor Insalaco opened the public hearing on the item.There being no one wishing to speak, he closed the public hearing and reopened the item to council discussion.There being no discussion, he called for a motion. Vice Mayor Eck MOVED THAT ORDINANCE NO. 1313 BE READ BY TITLE ONLY AND THE READING OF THE ENTIRE ORDINANCE BE WAIVED. Councilmember Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 20 OF 28 City Clerk Kathleen Connelly read the ordinance by title Only. Vice Mayor Eck MOVED THAT ORDINANCE NO. 1313, AS READ BY THE CITY CLERK, BE APPROVED AND ADOPTED. Councilmember Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. OLD BUSINESS None. NEW BUSINESS RESOLUTION NO. 07-57, ECONOMIC DEVELOPMENT ACTION PLANNING TEAM (EDAPT) FINDINGS AND RECOMMENDATIONS )Economic Development Director Steve Filipowicz briefed the council on the item.He stated this resolution will adopt the findings and recommendations of the Economic Development Action Planning Team as the basis for the city developing an economic development strategic plan.Team members George Parker, chair, and Jim Nelson are prepared to give a presentation if requested.The findings and recommendations are broad based and address a wide variety of issues.It gives the city work for 10 years and encourages diversification of our economy so that people can live, work and play in the city and not have to commute to other places.It establishes priorities and it will involve partnering with other groups such as Pinal County, Northeast Pinal Economic Partnership, the state and Greater Phoenix Economic Council. Mr. Jim Nelson stated the team members were there to answer any questions and give them a REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 21 OF 28 brief review of the economic development strategy recommendations. Mayor Insalaco commented there has been a lot of work that has gone into this. Vice Mayor Eck commented he has personally heard this and he commended them for the amount of work that they had done. Councilmember Severs stated there is no down side to this.Everything is positive and he wished it had been done 10 years ago. Mr. Jim Nelson thanked them for their comments.He added, Mr. Parker, who had the original vision, and the team put a lot of work into it.They had good support from staff.He believes it positions the city well for moving forward and getting the most of the growth that is coming this direction, in addition to bringing in new growth. Mayor Insalaco stated most of them had meetings with Steve and Jeff and it is not something that will happen overnight.It is a big bang for our buck. Councilmember Dietz commented this was partnering, working together and coming up with a fantastic vision. Mr. Jim Nelson stated they have had conversations within the region with the Gold Canyon Business Association, the Chamber of Commerce, the Main Street Program, and the Community Development Corporation.He believes there will be a role for all of these organizations.They are suggesting that an early step be to bring all of these groups together and coordinate activities so that they are on behalf of the area, not just a part of the area.Taken together, the area is a much stronger market with 80,000 residents. Vice Mayor Eck commented he agrees with it being done as a region on the whole. REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 22 OF 28 Mayor Insalaco asked if there were any questions.There were none. Mr. Jim Nelson stated he would give them a printed copy of the presentation. Mayor Insalaco called for a motion. Councilmember Barker MOVED THAT RESOLUTION NO. 07-57, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, ADOPTING THE FINDINGS AND RECOMMENDATIONS OF THE ECONOMIC DEVELOPMENT ACTION PLANNING TEAM ("EDAPT") AS THE BASIS FOR AN ECONOMIC DEVELOPMENT STRATEGIC PLAN FOR APACHE JUNCTION, BE APPROVED. Councilmember Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. COUNCIL DIRECTION TO STAFF USE OF TAX INCREMENT FINANCING (TIF) FUNDS FOR DOWNTOWN DEVELOPMENT )City Manager George Hoffman briefed the council on the item.He stated they had an update on the focal point and median improvement project from Idaho to Phelps last night.He asked for permission to utilize TIF funds to advance the projects.They can ask for up to $350,000 of the funds to be invested into the downtown for landscaping and focal point improvements.It represents an upper limit of what is believed to be needed to do a first rate project. Councilmember Dietz asked if that includes the median. City Manager George Hoffman stated it does.They need to bring in fill dirt and they will REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 23 OF 28 use city dirt if they have it.They would like to shave the cost down in a meaningful way but they would like to ask for the upper limit so they do not have to come back.TIE' is a geographically based revenue source produced with the assistance of Supervisor Smith and the school district.It can only be utilized in the downtown area and cannot be used for the budget. There is about $750,000 in the account.They are also working on a health and human services complex with Supervisor Smith; she will come back at a later date with further information on that.She would like to use about $250,000 of the fund for infrastructure just south of the county complex on State Route 88. Councilmember Severs stated he thinks the project is amazing and the work put into it has been unbelievable so far.He is concerned about using that much of the TIE' funds in case of the possibility of purchasing some land for public use.He would also like to see them be able to use it for some of the infrastructure, such as road, curb, gutter, sidewalks and sewer; the things volunteers could not be used for.Councilmember Serdy has come up with a way to do this with fundraisers and donations.He would like as much of that done as possible.He knows they can get the dirt donated and he would like to see the fundraiser for selling the bricks implemented immediately.They might not have to buy the granite and replace it with the bricks; they could go directly to the bricks. City Manager George Hoffman commented he thinks part of thinking at this point is to move assertively to do a first rate project and do it in a timely manner so that as the fundraising groups go out and talk to corporate America and the businesses and community, instead of a few pictures showing what it might look like, they will have physical evidence showing the first segment has been built, that it is the vision, and they want to carry it on and expand it. He has heard nothing that they want to give up on the volunteerism and the contribution component.He believes they are looking for a catalyst to expedite that effort. Councilmember Dietz commented they are basically asking for up to the $350,000 mark. REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 24 OF 28 Vice Mayor Eck commented that would be the maximum. Councilmember Dietz commented they would like to have it allocated if it is needed. City Manager George Hoffman stated that is correct. Mayor Insalaco commented this is our downtown.The best that they can do for this will only help the businesses that are there and the future businesses that will come.If they have something nice to show people, the businesses will come.The people will then come to those businesses.We need it to be as attractive as Councilmember Serdy and staff have made it. Councilmember Dietz commented they need to make it top of the line. City Manager George Hoffman stated they did a demonstration with the Phelps Drive project, and they saw WaMu move in most recently.He thinks when an elected body makes an investment in their own downtown, their behavior speaks a lot more loudly and meaningfully than the happy words. Vice Mayor Eck commented he feels it is twofold.Initially it is the aesthetics which they have wanted for years and years.It will do nothing but benefit the downtown, and slowly following will be the economics, where the business folks are going to notice the city is putting some funds into the downtown that they want.The city is showing that they want something to happen here.He believes that they will not only get the aesthetic downtown that they have been looking for, the addition of the new focal point, the median and Idaho Road across the street will be phenomenal, but the future potential investors in the downtown will see the city is doing it.He believes this is the very high estimate and they should be able to save some dollars off the $350,000. City Manager George Hoffman stated if they vote to allocate grant resources into the REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 25 OF 28 downtown, they could bridge from those grants to other grants and be looking at a multiplier effect, combining outside monies with inside monies with private section monies.The potential is tremendous there.Unfortunately the infrastructure is very expensive and it will take all their best efforts. Vice Mayor Eck commented he understands what Councilmember Severs in saying in that they need the money for infrastructure and utilities, but they need businesses to come in and go after that area, especially the Grand Hotel area.They need to show them that the city will be there to help try to get something going.This is the first step in that direction. Mayor Insalaco closed the discussion with no further comments and called for a motion. Councilmember Serdy MOVED THAT THE FOLLOWING DIRECTION BE GIVEN TO STAFF REGARDING THE USE OF TAX INCENTIVE FINANCING (TIF) FUNDS FOR DOWNTOWN DEVELOPMENT: IN THE AMOUNT OF UP TO $350,000 TO START THE FIRST PHASE OF THE FOCAL POINT AND THE MEDIAN PROJECT. Councilmember Severs SECONDED THE MOTION. VOTE:Unanimous. SELECTION OF MEETING DATES, TIMES, LOCATIONS, AND PURPOSES Councilmember Dietz stated the work session for Monday, December 31, 2007, and the regular meeting for Tuesday, January 1, 2008, have been cancelled due to the New Year's Holiday.He MOVED THAT AN EXECUTIVE SESSION AT 6:00 P.M. AND A WORK SESSION AT 7:00 P.M. BE HELD ON MONDAY, JANUARY 14, 2008, IN THE CITY COUNCIL CONFERENCE ROOM AND CITY COUNCIL CHAMBERS, RESPECTIVELY; AND THAT AN EXECUTIVE SESSION AT 6:00 P.M. BE HELD ON TUESDAY, JANAURY 15, 2008, IN THE CITY COUNCIL CONFERENCE ROOM. Councilmember Severs SECONDED THE MOTION. REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 26 OF 28 VOTE:Unanimous. The motion carried. ADJOURNMENT )Mayor Insalaco adjourned the meeting at 9:28 p.m. Consent Agenda Items are as follows: 1. Acceptance of Agenda. 2. Acceptance of Minutes of Regular Meeting of December 4, 2007. 3. Approval of Renewal of Contract with GBI and Associates, LLC, •for Background Investigation Services on Public Safety Personnel Applicants. 4. Approval of Contract Extension for Government Relations Services in Calendar Year 2008 with Williams and Associates. 5. Approval of Professional Services Agreement with The Retail Coach in an amount not to exceed $48,500. 6. Approval of Resolution No. 07-55, to Submit Proposed Fiscal Year 2007-2008 Ak-Chin Indian Community Grant Application for Funding to Acquire a Vehicle for use by the Police Department's K-9 Unit. 7. Approval of Salt River Project Easement for City Library Expansion. 8. Approval of Resolution No. 07-51, to Support Pinal County Regional Significant Routes for Safety and Mobility (RSRSM). 9. Approval of Resolution No. 07-53, Authorizing the City to enter into an Intergovernmental Agreement with Queen Valley Fire District for Transfer of Ownership of used City Truck. 10. Approval of Resolution No. 07-56, Authorizing the City to enter into an Intergovernmental Agreement with Pinal County Concerning Shared Costs for Re -paving and Enhancements of a REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 27 OF 28 Portion of Ironwood Drive within the City Limits of Apache Junction. ACCEPTED THIS 15TH DAY OF JANUARY, 2008, BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA. SIGNED AND ATTESTED TO THIS 15TH DAY OF JANUARY, 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 18th day of December, 2007.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 7th day of January, 2008. KATHLEEN CONNELLY City Clerk REGULAR MEETING OF THE CITY COUNCIL DECEMBER 18, 2007 PAGE 28 OF 28