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HomeMy WebLinkAbout2004-02-03 City Council Regular MinutesCITY COUNCIL REGULAR MEETING FEBRUARY 3,2004 The regular meeting of the City Council of the City of Apache Junction, Arizona,was held on February 3,2004,at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Mayor Coleman called the meeting to order at 7:00 p.m. INVOCATION Vice Mayor Eck gave the Invocation. PLEDGE OF ALLEGIANCE Councilmember Insalaco led the Pledge of Allegiance. ROLL CALL Councilmembers Present:Mayor Coleman Vice Mayor Eck Councilmember Dietz Councilmember Insalaco Councilmember Milkey Councilmember Slope] Councilmember Waldron Staff Present: Others Present: City Manager George Hoffman Assistant City Manager Bryant Powell •City Clerk Kathleen Connelly City Attorney Joel Stern Interim Public Safety Director Steve Campbell Commander Brian Duncan Senior Commander Dan Scott Sergeant Garrett Elkins REGULAR MEETING OF THE CITY COUNCIL FEBRUARY 3,2004 PAGE 1 OF 9 ACCEPTANCE OF CONSENT AGENDA )Councilmember Waldron MOVED THAT THE CONSENT AGENDA BE ACCEPTED AS PRESENTED;AND THAT THE AWARD OF BID FOR DPS 2003-05,POLICE MOBILE COMMAND UNIT,BE AWARDED TO QUALITY VANS IN AN AMOUNT NOT TO EXCEED $221,574.51;AND THAT APPROVAL BE GIVEN TO THE AGREEMENT BETWEEN THE CITY OF APACHE JUNCTION AND ENERGY SYSTEMS DESIGN,INC.TO PROVIDE LEADERSHIP IN ENERGY AND ENVIRONMENTAL DESIGN (LEED)COMMISSIONING AUTHORITY SERVICES IN AN AMOUNT NOT TO EXCEED $55,000: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 None. CALL TO THE PUBLIC Ms.Tess Nesser,1511 S.Cactus Road,Apache Junction addressed the council to remind everyone that the Renaissance Festival starts on Saturday and she has some free coupons for this weekend and February 16 that will save on admission prices for the users.She also advised that Tempe Decorator Center and Earnhardt's have teamed up to donate a 2004 Ford Mustang convertible to the East Valley Boys and Girls .Club for a fundraising raffle.All the clubs will be selling tickets. Officer Keith Gabriel,Apache Junction Police Department,1001 N.Idaho, Apache Junction addressed the council regarding his being called to active duty by the Air Force from January 29 to November 11,2003.He was in the country of Oman during that time.He presented a shadow box to the city as a thank you for the city's support.He thanked the Current city council and the previous city council members that are no longer on the council as they elected to pay the difference in his salary while he was on active duty.He REGULAR MEETING OF THE CITY COUNCIL FEBRUARY 3,2004 PAGE 2 OF 9 also thanked the officers and:staff of the police .department,the human resources:department,the finance section,and others too numerous to mention. He read the inscription in the shadow box and Stated.the box also contained a- flag flown at the base in Oman during his deployment,a squadron patch and a squadron coin that includes the flags of the -United States,Canada,England and Oman,the countries that all had squadrons based at his location. Mr.Dan Wald,3400 S. Ironwood Drive,Apache Junction,addressed the council to thank Mayor Coleman for attending Avalon Academy. on January 29,2004,in celebration of the 100th day of school.He entertained the students with his yo-yo:tricks.The students had written letters of thank you which he presented to the mayor.He also announced the Avalon Academy will be having its first annual golf outing on May 15 with all proceeds going to the school. It will be held at Apache Creek Golf Course. CITY MANAGER'S REPORT City Manager George Hoffman commented the stand alone:gas station at the corner of Old West Highway and.Idaho just recently closed,following a large regional and national'trencL The city will continue to work to:fincrnew tenants for the structure:as soon as possible:However,the city isHpart:of a larger-economic:dynamit that is in transition right now.He also announced:he attended a meeting atthepublic works department where Steve Beach was: named , the Employee of the Year fbr 2003.He was the Employee of the -Quarter for the second quarter of the calendar year.He was elected by his:peers in the department.He publicly thanked Steve Beach. PUBLIC HEARINGS APPLICATION FOR BINGO LICENSE FOR APACHE JUNCTION:MOBILE HOME PARK City-Clerk -Kathleen .Connelly 'briefed the.council on the item_She stated:this is the park located to the west of_Bashas'Plaza.They are requesting they be allowed to have a- bingo function for their park.The applicant was notified of tonight's -meting and was asked to be present for any .questions from the council. Mayor Coleman requested the applicant address the council.Theapplicant,declined.Mayor Coleman opened REGULAR MEETING OF THE CITY COUNCIL FEBRUARY 3,2004 PAGE 3 OF 9 the public hearing on the item,There being no one wishing to speak,he closed the public hearing and.opened the item to council discussion. Councilmember Insalaco asked if this is the park with the entrance between Big 0 Tires and Arnold's. City Clerk Kathleen Connelly stated that is correct. Vice Mayor Eck asked if it would be for residents of their own park. City Clerk Kathleen Connelly stated that is correct. Mayor Coleman.closed the discussion with no further:comments and called fora motion. CouncilMember•Dietz MOVED THATTHE BINGO LICENSE APPLICATIONTORAPACHE JUNCTION MOBILE HOMEPARICSUBMITTEMY RICHARD DAVIS BE RECOMMENDED FOR: APPROVAL TO THEARIZONA DEPARTMENT OF REVENUE,BINGO SECTION: Vice Mayor Eck SECONDED THEHMOTION. VOTE:Unanimous. The motion carried. OLD BUSINESS, None. NEW BUSINESS PROPOSED RESOLUTION NO.04-02,APPROVING THE FORM AND AUTHORIZING THE EXECUTION AND DELIVERY OF A LOAN REPAYMENT AGREEMENT BETWEEN THE CITY AND GREATER ARIZONA DEVELOPMENT AUTHORITY FOR THE CITY HALL/ REGULAR MEETING OF THE CITY COUNCIL FEBRUARY 3,2004 PAGE 4 OF 9 MAGISTRATE COURT COMPLEX AND MULTI- GENERATIONAL/RECREATION CENTER )Assistant City Manager Bryant Powell briefed the council on the item.He commented this will allow the city council to authorize the execution of the loan repayment in an amount not to exceed $7,200.000.I t is the final step in the financing process.He stated council had some questions for the bond counsel at the work session last night;he has requested representatives from Greater Arizona Development Authority and Stone & Youngberg to address those questions. Mr.Tom Belshe,Greater Arizona Development Authority Executive Director,addressed the council.The council had a question last night as to whether the agreement had been structured in such a way that the city's future financing would not be restrained too much by what was included in this agreement.The city wants to be able to use its local sales tax and other monies in future deals.The underwriter's counsel', Michael Cafiso,put them through their paces so that the agreement is structured in such a way that the city has flexibility for future deals.I t was looked at very closely_They believe they have come up with a good structure for the city as far as flexibility for the future and the bonds were priced today and the interest is very good.The rate is very low. Councilmember Sippel asked for an estimate on how long they think it will take to sell the bonds. Mr.Tom .Belshe stated he will complete the pricing tomorrow and will then sign a .bond purchase agreement that will finalize it.The underwriters will then take anything that is left over.It will basically be closed and done on February 19 with.the money going directly to the city at that time. Mr.Grant Hammel].Stone & Youngberg Director,addressed the council.His firm is working with the Greater Arizona Development Authority in structuring the financing that will proVide moniesAo be lent to 3 communities,including Apache Junction.They haveAhe financing structured and have gone out in the market on a preliminary basis to test the demand for these bonds.Thus far the reception has been outstanding.The bonds have a. very solid investment grade rating of Al from Moody's and A from Standard &Poor's.They anticipate the city's bonds will mature from 2004to 2010.The 2010 date is to .coincide with the special capital improvements fund REGULAR MEETING OF THE CITY COUNCIL FEBRUARY 3,2004 PAGE 5 OF 9 sales tax that was mentioned earlier and sunsets in 2010.The tax rates on these -tax exempt bonds will range from approximately 1.25%in 2004 to about 3.15%in 2010.The true interest cost or yield will be 2.9%.I t is currently very attractive to sell bonds.They will offer the full amount of the bonds tomorrow with the council's approval tonight.He estimates that all of the bonds will be committed within 2 to 3.hours tomorrow.This has been very well reviewed by the investment bankers and the bond attorneys that are involved in the transaction.It will not handcuff the city in going forward on future borroWing.The excise tax pledge to this obligation will be taken into account in the future should the city elect to tap the -capital markets for another program in which they are pledging the sales taxes.There is outstanding coverage between the sales taxes that the city is pledging to what its annual debt service obligation will be.There is ample room in the point of view of the investment banking community should the _city desire to access the capital markets in the future. Councilmember Sippel asked if it is only one bond being sold off or are there multiple sections that equal the total amount. Mr.Grant Hammell stated i t is both. I t is one financing one series of bonds that has 3 -components which are the underlying loans to the 3 communities.Apache Junction comprises the largest portion of those loans at=about $7 million.I t is beneficial that the Authority is able to subsidize the issuance cost for the 3 communities to the tune of $100,000.As the city is the major participant,i t is the major beneficiary of that.I t is one of the outstanding attributes in working with the Authority.I t is a significant advantage;the city could not have borrowed on its own cheaper than what it can through this program. Mayor Coleman closed the discussion with no further comments and called for a motion.. Councilmember Waldron MOVED THAT RESOLUTION NO.04-02,A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA,APPROVING THE FORM AND AUTHORIZING THE EXECUTION AND DELIVERY OF A LOAN REPAYMENT AGREEMENT,A FINANCIAL GUARANTY AGREEMENT (IF NECESSARY)AND A CONTINUING DISCLOSURE UNDERTAKING;ACCEPTING A LOAN FROM THE GREATER ARIZONA DEVELOPMENT AUTHORITY PURSUANT TO SUCH LOAN REPAYMENT AGREEMENT IN THE AMOUNT OF NOT TO EXCEED $7,200,000;AUTHORIZING THE APPROVAL REGULAR MEETING OF THE CITY COUNCIL FEBRUARY 3,2004 PAGE 6 OF 9 OF THE PORTIONS OF AN OFFICIAL STATEMENT DESCRIBING THE CITY AND THE DISTRIBUTION AND USE THEREOF;DELEGATING TO THE CITY MANAGER OF THE CITY THE AUTHORITY TO DESIGNATE THE FINAL INTEREST RATE,MATURITY DATE,PRINCIPAL AMOUNT,PREPAYMENT PROVISIONS AND OTHER MATTERS WITH RESPECT TO SUCH LOAN REPAYMENT AGREEMENT;AUTHORIZING THE TAKING OF ALL OTHER ACTIONS NECESSARY TO THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS RESOLUTION AND DECLARING AN EMERGENCY,BE APPROVED. Councilmember Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. COUNCIL DIRECTION TO STAFF ON ANY OF THE ABOVE LISTED AGENDA ITEMS None. COUNCIL DIRECTION TO STAFF ON OTHER PROPOSED LEGISLATION OR ACTIONS None. SELECTION OF MEETING DATES,TIMES,LOCATIONS,AND PURPOSES Councilmember Dietz stated there would not be a work session on February 16 due to Presidents'Day holiday.He then MOVED THAT AN EXECUTIVE SESSION AT 6:00 P.M.AND WORK SESSION AT 6:00 P.M.BE HELD ON TUESDAY,FEBRUARY 17,2004,IN THE CITY CONFERENCE ROOM AND CITY COUNCIL CHAMBERS RESPECTIVELY. Councilmember Sippel SECONDED THE MOTION. VOTE:Unanimous. The motion carried. INFORMATION AND REPORTS REGULAR MEETING OF THE CITY COUNCIL FEBRUARY 3,2004 PAGE 7 OF 9 ViCeChairperson Eck commentedlie-wentto a.:Central Arizona Association of Governments meeting'lasUweek.It wasTa very_interesting-•meeting and he was again overwhelmed by theEamount of growth in -northern Pinal County south of Apache Junction:A:waste water utility wasHapproved -to service •approximately, fivemajor-subdivisions.One of the membersmentionedhaving: a soap box derby race Hand they did have one in'Superionwith'contestants from 4:different states.He-hascontacted -him -requesting more information for possibly holding_ one: in Apache Junction.He: is hoping it may be on the next agenda. MayorfiColeman commented he attended :a Maricopa Association of Governments meeting th&-same night the Vice mayor: was at: CAAG.It was a short meeting , with the big discussion item being theongoing negotiations with the legislatureHover the transportation legislation.He believes that is finally out of committee.He talked to:the Director -of the East Valley:Partnership after:the meeting whoAdvisedAhatHMesa is still interested incoming across the county line. ADJOURNMENT! )Mayor Coleman adjourned the _meeting at 738 p.m. Consent -Agenda Items -are as follows 1.Acceptance of Agenda . 2.Acceptance of Minutes of Regular Meeting of January20,20-04 3.Consideration of AWard-of Bid!for DPS2003:05 a grant funded Police Department Mobile Cbmmand Unit,to Quality: Vans in an amount including tax not to exceed 422L57451-. 4.Consideration Of agreement with Energy -Systems1Design;Inc.to provide ,- Leadership in Energy and Environmental Design (LEED)commissioning-:, authority services inan amount not, to exceed $55,0001 ACCEPTED THIS 17TH DAY OF FEBRUARY ,2004,BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA. SIGNED AND ATTESTED TO THIS 17TH REGULAR MEETING OF THE CITY COUNCIL FEBRUARY 3,2004 PAGE 8 OF 9 DAY OF FEBRUARY ,2004. ATTEST: KATHLEEN CONNELLY City Clerk DOUGLAS COUEMAN Mayor CITY COUNCIL MINUTES CERTIFICATION • I jhereby certify that the foregoing minute areHa true and correct 'copy of the minutes Of the,regular meeting of the City Council oftheCityj)f Apache:' Juncticiii;Arizona,held on the :3rd day of: February,2004.I further certify that the meeting waS dub/ callediand heid and that, a,quorum was present. Datedthis'5thday of February 2004. KATHLEEN CONNELLY City Clerk REGULAR,MEETING OF THE CITY COUNCIL FEBRUARY 3: 2004 PAGE9 OF 9 -.