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HomeMy WebLinkAbout2000-09-19 City Council Regular MinutesCITY COUNCIL REGULAR MEETING SEPTEMBER 19,2000 The regular meeting of the City Council of the City of Apache Junction, Arizona,was held on September 19,2000,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 Surra gave the Invocation. PLEDGE OF ALLEGIANCE Councilmember Durbala led the Pledge of Allegiance. ROLL CALL Councilmembers Present:Mayor Coleman Vice Mayor Surra Councilmember Durbala Councilmember Eck Councilmember Insalaco Councilmember Urich Staff Present: (Councilmember Dietz was absent.) City Manager Curtis Shook City Clerk Kathleen Connelly City Attorney Joel Stern Public Safety Director Robert Warner City Engineer Ron Grittman Library Director Pam Loui Public Works Director Doug Dobson Development Svcs.Director Glen Van Nimwegen REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 1 OF 26 Others Present:Associate Planner Rudy Esquivias ACCEPTANCE OF CONSENT AGENDA )Vice Mayor Surra MOVED THAT THE CONSENT AGENDA BE ACCEPTED AS PRESENTED,WITH THE EXCEPTION OF ITEM 16,I WOULD LIKE THAT REMOVED FROM THIS AGENDA AND PLACED AT A FUTURE MEETING, PERHAPS THE FIRST MEETING IN OCTOBER;AND THAT WE RECOGNIZE THE OUTSTANDING SERVICE TO THE COMMUNITY BY THE FOLLOWING CITY EMPLOYEES:LIBRARY EMPLOYEE GAIL GRAHAM-FISEL FOR REUNITING A FAMILY AFTER A TEN-YEAR LOSS OF CONTACT;THE PUBLIC WORKS DEPARTMENT FOR BEING EFFICIENT,COURTEOUS AND HELPFUL DURING CLEAN-UP WEEK;AND PARKS SUPERINTENDENT NICK BLAKE,PARKS SUPERVISOR KEITH GRAVES AND THE PARKS STAFF FOR THE COMPLETION OF THE NEW LIBRARY OVERFLOW PARKING LOT;AND THAT APPROVAL BE GIVEN FOR THE ANNUAL REPORT OF THE APACHE JUNCTION PUBLIC LIBRARY BOARD OF TRUSTEES;AND THAT THE AWARD OF BID FOR PROJECT NO.PW 2000-23,FUEL,BE AWARDED TO PHOENIX FUEL IN THE AMOUNT OF $0.9858 PER GALLON FOR DIESEL AND $1.1390 PER GALLON FOR UNLEADED GASOLINE;AND THAT RESOLUTION NO.00-25,A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA,APPROVING THE APPLICATION FOR RENEWAL FOR THE CONTINUATION OF THE PINAL COUNTY ENTERPRISE ZONE AND DESIGNATION OF STAFF REPRESENTATIVE;AND THAT APPROVAL BE GIVEN TO THE LEASE AGREEMENT BETWEEN THE DIOCESE OF TUCSON FOR ST.GEORGE PARISH AND THE CITY OF APACHE JUNCTION FOR THE PURPOSE OF RELOCATING THE SENIOR CENTER OPERATION;AND THAT ACCEPTANCE OF THE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDING JUNE 30, 1999;AND THAT AUTHORIZATION FOR THE CITY MANAGER TO NEGOTIATE AND EXECUTE THE RENEWAL OF THE SOFTWARE SERVICE AGREEMENT WITH VISIONAIR,NOT TO EXCEED $26,560, PENDING APPROVAL OF THE CIYT ATTORNEY,BE APPROVED. Councilmember Urich SECONDED THE MOTION. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 2 OF 26 VOTE:Unanimous. The motion carried. AWARDS,PRESENTATIONS AND COMMUNICATIONS None. CALL TO THE PUBLIC Mr.Tom Schuelke,1889 S.Palo Verde,Apache Junction,addressed the council regarding the use tax and Market Days.He commented a councilmember had stated that the sales tax increase for the capital facility plan would be voluntary.He is concerned that if a use tax is implemented,the tax would not be voluntary on big ticket items purchased in unincorporated areas.This tax targets full time residents and not tourists,visitors and seasonal residents.He commented he had given staff a information on repealing the sales tax rollback provision on big ticket items,and asked that i t be reviewed and for staff to create a flat tax rate.He requested the council to contact him on the fairness of the rental tax issue.He commented he was disappointed that the council would not wait to hear the issue of Market Days until all the winter visitors had returned,claiming the council was thwarting public input.He stated council is ignoring the planning and zoning commission recommendation on the issue,and safety measures of food sales could be monitored by the appropriate health authorities.Council appears to be denying commercial vendors for Market Days,and they should not give an advantage to any business over another.He added the city should not subsidize and protect the traditional merchants at the expense of the vendors. If the local merchant cannot compete,he should become a vendor.The council should not stop existing economic activity because of competition or the fear of loss of revenue. Mr.Elliott Fisher,547 E.Quail,Apache Junction,Greater Apache Junction Association for Effective Government,addressed the council regarding the clarification of his organization,his referendum,his inability to get some public records from the police department,and fire district cadet training responsibilities.He stated that his organization is separate from the Greater Apache Junction Association for Effective Government Policy,which is an ad hoc organization formed to promote the referendum.He urged the city to include that a referendum on the capital facilities plan is in appellate court REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 3 OF 26 when the city has advertising on the projects.He has been trying to get public information from the police department on charges brought against a sitting councilmember that have been dismissed,especially some photographs that were allegedly taken.He believes the citizens have a right to know the circumstances surrounding the charges,and the papers have not released much information.He requested assistance in getting the information.He suggested the junior college should be educating the public servants, including the training of the fire district cadets,claiming the fire district on the job training system is becoming an embarrassment for the city. CITY MANAGER'S REPORT City Manager Curtis Shook commented the third annual Leadership Institute will be starting November 16,2000.The program has been successful in informing the local citizens attending the institute on the processes of local government.There are some spots available but the sessions fill up quickly. The training sessions have good speakers from inside of and outside of city government.Anyone interested in attending should contact Public Information Officer Pat Brenner. PUBLIC HEARINGS PROPOSED RESOLUTION NO.00-17/AUTHORIZING CITY TO ENTER INTO AMENDMENT NO.2 TO PREANNEXATION AND DEVELOPMENT AGREEMENT WITH EARNHARDT PROPERTIES LIMITED PARTNERSHIP )City Attorney Joel Stern briefed the council on the item.This resolution has the emergency clause and it will amend the original agreement by allowing two separate companies,No Bull and Earnhardt Properties Limited,to be named in the agreement.There has also been a site plan modification in Exhibit D.In addition,there were a few irregularities in the previous filings by the county,and some deadlines had to be amended. Mr.Tex Earnhardt,777 E.Baseline Road,Tempe,commented they are ready to put the shovel in the ground.He was there to answer any questions.The city now has a complete set of plans,and they should be ready to start by November 1,2000.Every project they have had they usually run about six months to a year behind. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 4 OF 26 Mr.Jim Babe Earnhardt,777 E. Baseline Road,Tempe,commented they do not land bank,and they are anxious to get started.The big corporations like Ford,Dodge and Chrysler must approve their plans before they can go ahead with the plans.They now have Ford's approval.The building will be 42,000 sq.ft.,very similar to the building at Ray and Interstate 10,which is 65,000 sq.ft.Ford thinks this project is being overbuilt,but the Earnhardts believe this area will be built up in the future.It will be state of the art with all service indoors. Councilmember Eck commented he is frequently being asked by residents when Earndhardt Ford is coming,and these people all want to see the bull. Mr.Jim Babe Earnhardt stated they would get the bull out here.If the plans were approved today,they would be ready to start construction today.He commented that everyone will know that there is a Ford store in Apache Junction;they will be doing a lot of advertising. Mr.Tex Earnhardt stated he has been a Ford dealer for 49 years.Ford Motor Company and Chrysler Corporation have told him in the past that some of his new locations are too far out in the country.Every time this has happened,the stores explode.This one has not been easy because all the companies have zeroed in on Superstition Springs. They will be investing $8 to $10 million dollars in this project.He added the Ford store will be the first one coming in,and they will be coming in with something else out here.He believes they will give Superstition Springs tough competition.He commented the tax revenue from the sale of the cars will belong to Apache Junction. City Attorney Joel Stern asked i f the anticipated opening date is September 28,2001. Mr.Bill Walters,the project manager for the Earnhardt stores,stated everything has been moved back a little bit.He anticipates they will be opening sometime around the middle to end of October. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 5 OF 26 Mr.Tex Earnhardt stated i t is not being built fast enough for him.He wants to get in and get moving.If they can get i t done faster,they will open sooner. Mr.Jim Babe Earnhardt stated they are using the same builder they have used for their last few buildings.All of these are similar so i t should be easier to build. Mr.Tex Earnhardt stated their dealership in Tempe,which is the largest in the world,was a year late. Something always came up. Mr.Bill Walter commented he thought they could get it done in August if everything goes according to schedule. Mr.Tex Earnhardt stated he likes projects where everyone says he is in the wrong place at the wrong time.He believes he has the best product in the world,and he would like to open this on his 50th anniversary,which will be September 14,but he doubts they will. He believes they will light a fire in Apache Junction along the highway. likes to prove everybody wrong. Councilmember Insalaco commented he Mr.Tex Earnhardt stated he has to. Mr.Jim Babe Earnhardt stated they just opened up a store in Glendale and more than tripled their sales.They know what they can do,and they will get started as soon as they get approval from the city.Everyone will know there is a store in Apache Junction,and they will be going overboard on the advertising guidelines given by Ford. Mr.Tex Earnhardt commented as soon as they start construction,land prices around them will start going up and other businesses will want to start moving in.I t has happened where ever they have built a store.He asked if he had answered the corporate questions regarding No Bull and Earnhardt Properties Limited. City Attorney Joel Stern stated there are some tax issues within the Earnhardt corporate membership wherein REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 6 OF 26 they divided up some of the properties.It does not matter to the city because the city will be calling both companies the developer.Both companies will be responsible under the agreement for any of the development. Mayor Coleman opened the public hearing on the item. Mr.Elliott Fisher,547 E.Quail, Apache Junction,Greater Apache Junction Association for Effective Government, asked if Mr.Earnhardt is a member of the Arizona Automobile Dealers Association. Mr.Tex Earnhardt stated he is,and has been for 49 years. Mr.Elliott Fisher commented he is concerned about Internet auto sales.The Arizona Automobile Dealers Association is in court on this issue,and Mr.Earnhardt is on the Internet. He asked what that would mean for "brick and mortar"retail businesses. City Attorney Joel Stern stated this issue has nothing to do with the agreement or the resolution. Mr.Tom Schuelke,1889 S.Palo Verde,Apache Junction,addressed the council.He commented the city has been good to this development so far.The city is rebating all construction taxes, i t is not requiring local material purchases,the city is building a road on the developer's property,and i t has waived all permit and development fees. Land has been granted for a police station,but waivers have been granted for setback requirements that if extended for the whole plot will exceed the value of the donated land.The developer had committed to an opening date,a date wherein the city would start to recoup its investment in this property.The developer is asking for a change in the contract and is offering no consideration.He would think they would make whole any lost interest on behalf of the city for their investment.He thinks the city should ask for some consideration in this matter due to the delay.He found this agreement to be extremely one-sided and he wondered what other questionable development agreements the city will enter in its quest for sales tax revenue. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 7 OF 26 City Attorney Joel Stern stated agreements are changed many times in the construction industry due to construction issues,such as unavailability of contractors.There is consideration within the original agreement,and this is just a modification of the original agreement. Mr.Tom Schuelke stated there is no consideration for the modification.If a change impacts another party,there should be a fair way to modify the contract so there would be no disadvantage to the party not at fault or responsible.That is the city in this case. City Attorney Joel Stern stated the consideration is that some of the deadlines that the city was obliged to control are also being changed.There is adequate consideration for this modification. Mayor Coleman closed the public hearing with no one else wishing to speak.He reopened the item to council discussion. Councilmember Eck stated he is getting confused by the comments.The same people come up and state we need jobs here,we need to be able to shop here,and then they complain when something comes in.They keep "flipping the coin".He commented i t gets old after awhile.If they were not building they would complain because they are not going to build:if they build,they complain because they are building. Councilmember Durbala commented they have had other developers come in and have to change dates for the same things that are happening here.He does not see a problem and sees no reason for additional compensation.We are looking at bringing in jobs to the community. The complaint has been that a rail system is needed to bring people into Maricopa County for their jobs.Now the jobs are being brought out here and they complain about the jobs being brought out here.It makes no sense to him. Vice Chairperson Surra commented she trusts the city attorney to look out for the best interests of the city in all contractual agreements.If he approves of this agreement,she is content with the way i t reads. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 8 OF 26 Mayor Coleman commented Mr.Schuelke refers to the council's greed for sales tax dollars as though their salary is going to be impacted,that his mayoral salary will increase for that.The sales tax dollars are being translated into additional police officers and additional facilities.It does not sound so greedy.Any business looks out for their revenues if they are wise,and the city has been referred to as a business.This is what the city is doing here,and he considers this a very big investment in the future of the city.He then closed the discussion and called for a motion. Councilmember Durbala MOVED THAT RESOLUTION NO.00-17,A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA,AUTHORIZING THE CITY TO ENTER INTO AMENDMENT NO. 2 TO THE PREANNEXATION AND DEVELOPMENT AGREEMENT WITH EARNHARDT PROPERTIES LIMITED PARTNERSHIP:AUTHORIZING THE MAYOR TO EXECUTE ANY AND ALL DOCUMENTS TO ACCOMPLISH THE ABOVE;AND DECLARING AN EMERGENCY,BE APPROVED. Councilmember Insalaco SECONDED THE MOTION. VOTE:Unanimous. The motion carried. Mayor Coleman called for a ten minute break. Mayor Coleman reconvened the meeting. REQUEST BY YAVAPAI COUNTY FAIR ASSOCIATION FOR APPROVAL OF AN OFF-TRACK WAGERING FACILITY AT ARIZONA JOE'S RESTAURANT ON BEHALF OF PRESCOTT DOWNS )City Clerk Kathleen Connelly briefed the council on this item.Council recently passed a similar request on behalf of Turf Paradise.Due to a change in ownership,Turf Paradise is no longer requesting approval for Turf Paradise and Prescott Downs,resulting in Prescott Downs having to seek its own approval. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 9 OF 26 Mr.Scott Risley,attorney for Yavapal County Fair Association,addressed the council.He was there to answer any questions the council might have. Councilmember Durbala asked when the new track would be opening in Prescott. Mr.Scott Risley stated it would be opening in May of 2001.Ground has been broken and construction has been started.They hope to open the racing season in the new facility. Councilmember Durbala commented he had heard it would be a state of the art facility with a dining room. Mr.Scott Risley stated that is correct.The facility will have a much larger oval that will hopefully allow them to draw better competition. Councilmember Durbala commented i t is supposed to have an updated tote board. Mr.Scott Risley stated that is correct. Councilmember Durbala commented he thought the council should know that the voters approved a new race track which should help their businesses up there. Mr.Scott Risley stated the new track will be called Yavapal Downs. Mayor Coleman 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 further discussion,he called for a motion. Councilmember Urich MOVED THAT THE REQUEST BY YAVAPAI COUNTY FAIR ASSOCIATION FOR APPROVAL OF AN OFF-TRACK WAGERING FACILITY AT ARIZONA JOE'S RESTAURANT ON BEHALF OF PRESCOTT DOWNS BE RECOMMENDED FOR APPROVAL TO THE ARIZONA RACING COMMISSION. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 10 OF 26 Councilmember Insalaco SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROPOSED ORDINANCE NO.1137/ANNEXATION OF PRIVATE LAND OWNED BY ALBERT & BILLIE THOMAS AT SOUTHWEST CORNER OF IRONWOOD AND SOUTHERN;PROPOSED RESOLUTION NO.00-31/ GRANTING PERMISSION TO THE SUPERSTITION MOUNTAINS COMMUNITY FACILITIES DISTRICT NO.1 TO PROVIDE SEWER SERVICE TO PROPERTY LOCATED ON THE SOUTHWEST CORNER OF SOUTHERN AND IRONWOOD;PROPOSED ORDINANCE NO.1138/REZONING OF 13 ACRES AT SOUTHWEST CORNER OF IRONWOOD AND SOUTHERN BY ALBERT & BILLIE THOMAS ) Associate Planner Rudy Esquivias briefed the council on this item.The applicant has requested these items be continued to the meeting of October 3,2000.There is a right-of-way issue that Evergreen needs to work out with Walgreen's.It deals with off -site improvements for the betterment of Southern Avenue.He asked if council would like the full presentation at this time or on October 3. Mayor Coleman stated they would hold the public hearing but they would hear the presentation on October 3.The council agreed. City Manager Curtis Shook stated the applicants were concerned that the annexation item showed them going from two zoning designation into two zoning designations.The property is supposed to end up entirely zoned C-3/PD.When an annexation occurs,i t is originally zoned with the same zoning as it was in the county.The rezoning would occur in the rezoning ordinance. Mayor Coleman opened the public hearing on the item. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 11 OF 26 Mr.Tom Schuelke,1889 S.Palo Verde,Apache Junction,addressed the council.He asked if the city could put a provision for not allowing liquor sales in the annexation or rezoning documents if the city wanted to disallow liquor sales at this location.He urged the council to do this if possible. City Attorney Joel Stern stated alcohol is regulated under Title 4 of the Arizona Statutes and only the State can give out alcohol permits.He did not recommend the council put any stipulation in the agreement regarding alcohol use on the property.I t is not a use associated with the property.The city does not have the power to enforce this request. Mr.Tom Schuelke asked if the sale of alcohol as a permitted use could be taken out of the zoning. Councilmember Eck commented he does not want i t taken out. Councilmembers Durbala and Insalaco agreed. Mr.Tom Schuelke commented the council would prefer to have liquor sales across the street from the high school. City Attorney Joel Stern stated the liquor control board states the sales have to be at least 300 feet away from any school.Diamond Shamrock is 301 feet away. Associate Planner Rudy Esquivias stated Diamond Shamrock is over 300 feet away. City Attorney Joel Stern stated Walgreen's would not have to go much farther back to beat 300 feet. Councilmember Durbala commented the council does not approve whether liquor is sold there:i t can only make a recommendation to the liquor commission. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 12 OF 26 City Attorney Joel Stern stated that is correct. Councilmember Eck commented they would be purchasing it only;it would not be for consumption on the property. City Attorney Joel Stern stated that is correct. Mr.Tom Schuelke stated he is referring to the sale or purchasing of liquor.The council does control through zoning where liquor can be purchased.Liquor cannot be sold in a residential area,therefore council can control liquor sales through the zoning. City Attorney Joel Stern commented this is a commercial zone.Alcohol can be sold in commercial zones. Councilmember Eck commented it does not mean that they will consume it on the property. Mr.Tom Schuelke stated he was not worried about consumption on the property.He is worried about the sale as these are high school kids that can pass for being of age.They will have three opportunities to buy liquor within 400 feet of the high school. Councilmember Durbala stated that is up to the individual business establishment.He believes Walgreen's is doing the same as Osco,which is to card everyone.The State is pushing that policy in a lot of carryout businesses. Mr.Tom Schuelke commented he has seen in the past where the laws were not upheld,especially in the case of Osco;he is just trying to avoid temptation.He is trying to head off problems and he is distraught that the council does not care that liquor sales are made available so close to our children. City Attorney Joel Stern stated the Osco issue involved multiple stores across the country.The amount of alcohol REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 13 OF 26 that was accidentally given out to children was miniscule compared to the amount of their stores in the country.The statistic does not hold up. Mr.Tom Schuelke commented he would like to see some kind of restraint put on corporations,as they have multiple outlets in town and they do not need that many.The city does not need liquor sales on every block. Councilmember Durbala commented first Mr.Schuelke is saying there are not enough stores,now he is saying we do not need another Walgreen's.He added he does not have the information on the profit margin and where they should put their stores,and he does not believe Mr.Schuelke does either.He believes the stores do market research to determine where the next store should be built.If the corporation is looking to put a store there,they must feel they can make a profit and benefit the community through their tax dollars.He commented Mr.Schuelke has never been positive about anything the city is doing;all of his comments have been negative. Mr.Tom Schuelke commented he never wants the council to forget that i t is our tax dollars that are being collected.Secondly,the paper has reported that the Walgreen's chain is not actively seeking to sell alcohol at this site.He just wants to be sure should they try to change i t in the future. Councilmember Durbala stated he should not be worried about i t if they have come out and said that. Mr.Tom Schuelke stated he is worried because they may change their minds. Vice Mayor Surra stated they have a right to do that. Councilmember Durbala commented that if they do he would probably look at i t favorably. Mr.Tom Schuelke stated he has never made any statements regarding the number of businesses;he has always left that up to the free market. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 14 OF 26 Councilmember Durbala commented he is saying that i t should be left up to the free market but he does not want this Walgreen's here. Mr.Tom Schuelke commented there are laws in respect to liquor sales.He is concerned that they will be tempting the young people to purchase liquor.He does not believe asking people to go to the other Walgreen's store in town is an inconvenience. Mr.Elliott Fisher,547 E.Quail, Apache Junction,Greater Apache Junction Association for Effective Government, addressed the council.He believes it will be overkill at that corner to have an Osco and a Walgreen's.Corporations do not always tell the truth,and i f they are going to put the city in these situations they should pay a bond, especially if they pull out. Mayor Coleman closed the public hearing with no one else wishing to speak.He reopened the item to council discussion.There being no further discussion,he called for a motion. Vice Mayor Surra MOVED THAT WE CONTINUE ITEM 12,ALL THREE SECTIONS,A,B AND C,AND MAYBE NEXT TIME WE CAN TAKE THEM IN THE ORDER OF A,C.B,ON THE AGENDA FOR OCTOBER 3RD'S MEETING. Councilmember Urich SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROPOSED RESOLUTION NO.00-30/ DESIGNATING A CHANGE IN THE POLLING PLACE LOCATION FOR PRECINCTS 45 AND 46 AND AUTHORIZING THE CITY TO SUBMIT THE CHANGE TO THE U.S.ATTORNEY GENERAL,DEPARTMENT OF JUSTICE,FOR PRE -CLEARANCE )City Clerk Kathleen Connelly briefed the council on the item.The city received a letter from Community Christian Church advising their facility would no longer be available for city REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 15 OF 26 election purposes due to increased usage in their classrooms.Another polling place has been offered at Four Peaks Elementary School.This change has to be submitted to the U.S.Department of Justice because the city falls under the 1965 Civil Rights Act,which requires pre -clearance on all election changes. Mayor Coleman opened 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.There being no discussion,he called for a motion. Councilmember Insalaco MOVED THAT RESOLUTION NO.00-30,A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA,DESIGNATING A CHANGE IN A POLLING PLACE LOCATION FOR CITY VOTERS RESIDING IN PINAL COUNTY PRECINCTS 45 AND 46:AND AUTHORIZING THE CITY ATTORNEY TO SUBMIT THE CHANGE TO THE UNITED STATES ATTORNEY GENERAL, DEPARTMENT OF JUSTICE,FOR PRE -CLEARANCE AS REQUIRED BY THE VOING RIGHTS ACT OF 1965,BE APPROVED. Vice Mayor Surra SECONDED THE MOTION. VOTE:Unanimous. The motion carried. OLD BUSINESS UPDATE AND DISCUSSION ON CITY STREET IMPROVEMENTS AND MAINTENANCE PROGRAMS ) )Councilmember Eck asked for this item to be added to the agenda.He would like the people to know what the status is on getting some of these streets repaired.He would also like to discuss some of the maintenance procedures after Doug Dobson gives his presentation. Public Works Director Doug Dobson briefed the council on the crack seal,overlay,chip seal program,weed control program,the alley clean up program,the street sweeping program,the tree trimming program,and the street striping program, REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19.2000 PAGE 16 OF 26 Councilmember Eck asked if the paint in the street striping program was of the same quality as Arizona Department of Transportation paint. Public Works Director Doug Dobson stated i t is the same paint that Arizona Department of Transportation is using.He commented they have an agreement with the City of Tempe to do the striping.He continued his briefing with the quarterly city-wide clean-up program and the replacement of faded street signs, Councilmember Insalaco asked what the cost was on the sweeper that the city is looking at purchasing. Public Workd Director Doug Dobson stated he does not have an estimated price and he would prefer not to guess. He briefed the council on the construction bond projects. Councilmember Durbala asked if it would depend on how the street was patched if they needed to go with 40'of paving on a street cut. Public Works Director Doug Dobson stated i t could be fixed without going the 40'on each side,but they require concrete slurry.A T -top patch could also be done. explain a T -top patch. demonstrated a T -top patch on the board. Councilmember Durbala asked him to Public Works Director Doug Dobson Councilmember Durbala asked if they would have to do the 40'on either side with that patch. Public Works Director Doug Dobson stated they would. Councilmember Eck commented he thinks the council passed something they did not intend to pass.He thought when they passed the 40'requirement on either side,it was for the main REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 17 OF 26 arterial roads only.I t appears this is a requirement for all roads.Staff is having to tell different property owners and utilities that they must do the entire strip of 40'on each side.He thinks this is overkill.He suggested turning i t back over to staff to come up with a solution. City Attorney Joel Stern suggested addressing the ordinance under direction to staff.This would bring i t back at another time where it could be a discussion item.Council could then go into more detail and amend it. Councilmember Eck commented he believes there are a couple pending that he would like staff to be able to use some discretion on.There is currently no ability for them to do that. City Attorney Joel Stern stated the ordinance would have to be changed to allow discretion. Councilmember Durbala asked if the city would also have to do the 40'if the city made a cut in the pavement.I t could be an overkill at times.The city engineer or the public works director should be able to make the decision as to whether i t needs to be the full 40' or not.Certain contractors are known to do the things that are required, others may need to do the 40'cap. Mayor Coleman commented he would feel uncomfortable in making one contractor do the entire distance and not making another contractor do it. Councilmember Eck agreed.He would like to turn this back to staff and have them research what needs to be done for street repairs.I t appears a t -top would work better on some of the smaller cuts. Public Works Director Doug Dobson stated his department does cover the 40'on all projects as the contractors are required to do. Mayor Coleman commented he thought the ordinance was to try to discourage cuts in the street. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 18 OF 26 Councilmember Eck commented he thought every property owner was going to be made aware of this.However, overlays are being done on Coconino and owners are not being notified until i t is being done.He would like to see the ordinance address main arterial roads only. Councilmember Durbala gave as an example someone putting in a sewer line,having to pave the entire road,and then someone else putting in a sewer line across the street later and having to tear up the new roadway and reconstruct the entire road.A t -top repair should be allowed. Mayor Coleman commented they could just do t -tops and forget about speed bumps. Councilmember Durbala stated the t- tops come out even with the road. Vice Mayor Surra stated they have a wash board road because of all the people coming in and cutting i t in and out. Councilmember Durbala stated they did not t -top it:that includes gravel and slurry. Councilmember Eck commented the majority of the crossings have not been t -topped. Public Works Director Doug Dobson stated that is correct.Most of your sewer,water,and telephone cuts prior to the last 1.5 years have been native material or ABC.They have done slurry backfill in the last 1.5 years,which is what the city does. Councilmember Eck stated he would like to see a better quality of street.He is not sure whether the milling is better than the t -top. Mayor Coleman suggested bringing this up under direction to staff later. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 19 OF 26 Vice Mayor Surra asked if the recommendation of staff would change from what it was previously with the original ordinance. Public Works Director Doug Dobson commented he went through a class at a conference to find out what other cities did and the problems they were having.They all complained that the new streets were a magnet for getting cut up.He has new information that he can give council for their decision. Mayor Coleman asked if he feels differently from his first recommendation. Public Works Director Doug Dobson stated he would like to talk to the city engineer and the development services director to see if they think the current program is worthwhile. NEW BUSINESS DISCUSSION ON STAFF RESEARCH AND REPORT ON CITY USE TAX )City Clerk Kathleen Connelly briefed the council on the item.The city started looking at a use tax in 1990.There have been no changes in the use tax since that time:i t still has the same benefit of equity,the same administrative process,the same way to impose the tax,and the same application of the tax.In 1992 there were 28 Arizona cities and towns that had a use'tax;there are now 31.The use tax is to raise revenues to cover expenses of the city:secondarily,it will motivate purchases within the city,it will remove the tax burden as an issue to decision makers who decide to locate a business within the city limits,and i t will level the playing field.The in -city businesses will no longer be at a disadvantage.Because of our current tiered tax,a lot of -the routine purchases would be unaffected;there would be no additional taxes due. Purchases in excess of $1,000 that are made in an unincorporated area or on the internet or out of state would be subject to the use tax.In 1995 a change in the tax code occurred that gives a definite advantage to the manufactured home industry;they were to be taxed as retail sales at the point of sale instead of taxed as contractors.Since 1995,the sales lots for manufactured homes,recreational vehicles and park models,with one exception, have all moved out of the city and into unincorporated areas.The sales there REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 20 OF 26 are not subject to any taxes.Mesa has the use tax,so any sales made in these areas have their use tax applied. City Attorney Joel Stern asked her to explain how i t is collected. City Clerk Kathleen Connelly stated items that have a title would be tracked by the motor vehicle division which would report the sale to the Department of Revenue.The Department of Revenue contacts the purchaser with a bill for the use tax.The city would probably have to set up an internal mechanism tied to the issuance of a building or setup permit to collect the tax on manufactured homes.Manufactured homes are not titled.Out of state sales would have to be tracked through audit processes.In the course of an audit,they would be looking at sales tax and use tax obligations.She gave an example of a business that purchased $150,000 of furniture out of state:the city could not tax any of it as there is currently no use tax.While driving Apache Trail in the unincorporated area,she counted 27 used and new manufactured home,recreational vehicle and park model dealerships.There is one advertising sales information for Superstition Falls;the city would get no tax revenue from any sales made there.The use tax would have to be at the same level as the sales tax,or 2.2%.Staff is still researching whether i t has to be tiered.This would not be applicable to most of the people in the community because of the $1,000 exemption.I t is for large ticket sales only.She commented she has heard some comments in these council chambers and from various representatives of the manufactured homes industry that they want to be treated the same as site- built homes.They are not being treated the same as they are not paying any kind of tax for purchases made outside the city.Sales tax would be paid for a site -built home. Councilmember Durbala asked when the ordinance would be brought to the council. City Clerk Kathleen Connelly commented our auditor is estimating that the city is losing $350,000 in annual use tax revenues that otherwise could be realized from manufactured homes and park models being located within the city. Councilmember Durbala asked if she would have the ordinance ready for the next meeting. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 21 OF 26 City Clerk Kathleen Connelly stated she would need direction before she could do anything further. City Attorney Joel Stern stated i t would require a public hearing. City Clerk Kathleen Connelly stated it would be an amendment to the Model Tax Code,requiring a public hearing and an advanced advertisement.It would probably have to come back in the second meeting in October. City Attorney Joel Stern commented there would be no picking and choosing of verbage for that ordinance. City Clerk Kathleen Connelly stated that is correct.There cannot be any picking and choosing of amounts as the $1,000 is set already.There are no options.The city either does it or i t does not.The 1995 change for the mobile homes has made a significant difference in revenue. Councilmember Durbala asked if this would come under the direction to staff section. City Attorney Joel Stern stated that is correct. Councilmember Eck asked what would happen if a citizen went to Mesa and bought a $1,500 refrigerator. City Clerk Kathleen Connelly stated there would be no way of tracking that.The city looks at an audit if it believes there will be a decent return for the city.The average citizen going to Mesa to buy an appliance is generally not audited.If a large business is audited and they have bought a large number of appliances,they would be subject to the use tax. Councilmember Eck asked what percentage the use tax is. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 22 OF 26 City Clerk Kathleen Connelly stated i t has to match the sales tax,so it would be 2.2%. Councilmember Eck asked how it works if an item is purchased in Mesa. City Clerk Kathleen Connelly stated they would pay the Mesa city tax. Councilmember Eck asked if they would pay the difference. City Clerk Kathleen Connelly stated they would only pay the one,because of the tiered tax.They would actually pay more tax if they bought the item in Mesa than if they bought i t here. Vice Mayor Surra asked if the funds already paid would be transferred to the city. City Clerk Kathleen Connelly stated they would not be transferred;the City of Mesa would keep whatever they collect.The average person buying a large ticket item would not even know the tax exists as they would be paying it to the City of Mesa.However,i f they buy a major purchase on the Internet,in an unincorporated area or out of state,where there is no tax,then they would be subject to the use tax.The chances collecting from the average person are minimal,but the potential for identifying the large purchases is great. Councilmember Durbala asked i f someone would have to pay the use tax if they bought a car in Illinois and registered i t here in Apache Junction. City Clerk Kathleen Connelly stated that is correct.That person probably did not pay an Illinois tax because they lived in Arizona. COUNCIL DIRECTION TO STAFF ON ANY OF THE ABOVE LISTED AGENDA ITEMS Councilmember Eck MOVED TO HAVE STAFF LOOK OVER OUR STREET IMPROVEMENT AND MAINTENANCE PROGRAM AND GIVE US ANY REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 23 OF 26 RECOMMENDATION OR CHANGES IN ANY CURRENT POLICIES WE'RE FOLLOWING,AND BRING IT BACK TO US AS SOON AS POSSIBLE. Councilmember Insalaco SECONDED THE MOTION. VOTE:Unanimous. The motion carried. Councilmember Urich MOVED THAT AN ORDINANCE ON CITY USE TAX BE PREPARED FOR OCTOBER 3,2000,COUNCIL MEETING. There was general discussion as to the earliest this item could come before the council. Councilmember Urich AMENDED HER MOTION TO THE OCTOBER 17,2000,COUNCIL MEETING. Councilmember Insalaco SECONDED THE MEETING. VOTE:Unanimous. The motion carried. COUNCIL DIRECTION TO STAFF ON PROPOSED LEGISLATION OR ACTION None. SELECTION OF MEETING DATES,TIMES,LOCATIONS,AND PURPOSES Vice Mayor Surra MOVED THAT AN EXECUTIVE SESSION AT 6:00 P.M.AND WORK SESSION AT 7:00 P.M.BE HELD ON MONDAY,OCTOBER 2,2000,IN THE CITY CONFERENCE ROOM AND CITY COUNCIL CHAMBERS RESPECTIVELY;AND THAT AN EXECUTIVE SESSION AT 6:00 P.M.BE HELD ON TUESDAY,OCTOBER 3,2000,IN THE CITY CONFERENCE ROOM. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 24 OF 26 Councilmember Eck SECONDED THE MOTION. VOTE:Unanimous. The motion carried. INFORMATION AND REPORTS Mayor Coleman commented Councilmember Durbala's golf team finished second in the second flight of the Chamber golf tournament this weekend.The city manager and chief of police also attended. ADJOURNMENT )Mayor Coleman adjourned the meeting at 8:55 p.m. Consent Agenda Items are as follows: 1.Acceptance of Agenda. 2.Acceptance of Minutes of Regular Meeting of September 5,2000. 3.Recognition of Outstanding Service to the Community by City Employees. Employees receiving recognition are:Gall Graham-Fisel:Public Works employees;Nick Blake:Keith Graves and other Parks staff. 4.Approval of the Annual Report of the Apache Junction Public Library Board of Trustees. 5.Award of Bid for Project No.PW 2000-23,Fuel,to Phoenix Fuel. 6.Approval of Resolution No.00-25,Approving the Application for Renewal and Supporting the Continuation of the Pinal County Enterprise Zone. 7.Approval of Lease Agreement with Diocese of Tucson for St.George Parish for the purpose of relocating the Senior Center operation. 8.Acceptance of Annual Financial Report for Fiscal Year ended June 30,1999. REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 25 OF 26 9.Authorization for the City Manager to negotiate and execute the renewal of the software service agreement with VisionAir with the City Attorney's approval not to exceed $26,560. ACCEPTED THIS 3RD DAY OF OCTOBER 2000,BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA. SIGNED AND ATTESTED TO THIS 3RD DAY OF OCTOBER ,2000. ATTEST: KATHLEEN CONNELLY City Clerk DOUGLAS CO/EMAN Mayor CITY COUNCIL MINUTES CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular meeting of the City Council of the City of Apache Junction,Arizona,held on the 19th day of September,2000.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 25th day of September,2000. KATHLEEN CONNELLY City Clerk REGULAR MEETING OF THE CITY COUNCIL SEPTEMBER 19,2000 PAGE 26 OF 26