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HomeMy WebLinkAbout1999-07-06 City Council Regular MinutesCITY COUNCIL REGULAR MEETING JULY 6,1999 The regular meeting of the City Council of the City of Apache Junction, Arizona,was held on July 6,1999,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 8:05 p.m. INVOCATION Vice Mayor Surra gave the Invocation. PLEDGE OF ALLEGIANCE Councilmember Urich led the Pledge of Allegiance. ROLL CALL Councilmembers Present:Mayor Coleman Vice Mayor Surra Councilmember Dietz Councilmember Durbala Councilmember Eck Councilmember Urich Staff Present: (Councilmember Insalaco was absent.) City Manager Curtis Shook City Clerk Kathleen Connelly City Attorney Joel Stern City Engineer Paul Stears Development Services Director Glen Van Nimwegen Others Present:Assistant Planner Paul Michaud Assistant to the City Manager Michael Munroe REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 1 OF 44 Long Range Planner Kate Morris Captain Dan Scott ACCEPTANCE OF CONSENT AGENDA )Vice Mayor Surra MOVED THAT THE CONSENT AGENDA BE ACCEPTED AS PRESENTED;AND THAT THE FOLLOWING EMPLOYEES BE RECOGNIZED FOR THEIR OUTSTANDING SERVICE TO THE COMMUNITY:THE PUBLIC WORKS STAFF;THE ENGINEERING STAFF;THE PARKS & RECREATION STAFF;PARKS & RECREATION POOL EMPLOYEE KRAIG CARMICKLE;AND MAINTENANCE SUPERVISOR "B" HOYT;AND THAT THE ANNUAL REPORT OF THE APACHE JUNCTION PUBLIC LIBRARY BOARD OF TRUSTEES FOR FISCAL YEAR 1998-99 BE ACCEPTED AS PRESENTED;AND THAT RESOLUTION NO.99-42,A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,PINAL COUNTY ARIZONA,AUTHORIZING THE EXECUTION AND DELIVERY OF EQUIPMENT LEASE/PURCHASE AGREEMENT,AND RELATED INSTRUMENTS,AND DETERMINING OTHER MATTERS IN CONNECTION THEREWITH,BE APPROVED;AND THAT RESOLUTION NO.99-38,A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA,AUTHORIZING CITY STAFF TO APPLY FOR A LEASE OF A PORTION OF "SILLY MOUNTAIN"FROM THE UNITED STATES DEPARTMENT OF INTERIOR FOR RECREATIONAL AND PUBLIC PURPOSES,BE APPROVED;AND THAT THE INTERGOVERNMENTAL AGREEMENT BETWEEN APACHE JUNCTION UNIFIED SCHOOL DISTRICT NO.43 AND THE CITY OF APACHE JUNCTION FOR VEHICLE USE FOR SPECIAL TRIPS BE APPROVED WITH THE AMENDMENT THAT THE ENDING DATE AS SHOWN IN SECTION 2.2 BE CHANGED TO JUNE 30,2000,AND THAT AUTHORIZATION BE GIVEN TO THE CITY MANAGER TO SIGN THE AGREEMENT. Councilmember Urich SECONDED THE MOTION. VOTE:Unanimous. The motion carried. AWARDS.PRESENTATIONS AND COMMUNICATIONS Mr.Jim Carey,Senior Vice President of Operations for Mediacom L.L.C.gave a presentation regarding their cable system.They are the company purchasing the assets of Triax Cablevision;the transaction should be completed in October.He had brought with him Lou Gentile,the Western Regional Manager from Sun City,California and Cheryl Smith,the General Manager of the Sun City System.He passed out some information on their company,press releases, recent acquisitions,and numerous testimonial letters from various REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 2 OF 44 governmental officials around the country.He gave a brief history on the company.He commented they like to go into the smaller areas and provide the same level of service that the big companies are providing in the big cities. Councilmember Urich commented she was glad to hear that their mission is to provide first class customer care and a consistently superior product with a level of reliability customers expect.This had not occurred in the past. She asked if he had any problems with any of the city's requests in the proposed contract with Triax. Jim Carey stated they have been kept up to date on the negotiations.They will honor the contract struck with Triax 100%. Councilmember Urich asked if they could live with the entire contract. Jim Carey stated whatever is struck as a deal will become their obligation to fulfill. Councilmember Urich asked if she was hearing a commitment. Jim Carey stated it is a commitment to fulfill the obligations as set forth in the contract. Councilmember Urich commented they appeared to be for customer service. Jim Carey stated absolutely. Councilmember Dietz asked if that customer service would be at their home office or local. Jim Carey stated they have four regions:Sun City,California;Denton, Kentucky:Gulf Breeze,Florida;and Daxborough,Delaware. Councilmember Dietz asked if the customer service calls would be directed to one of those centers. Jim Carey stated the Sun City office serves the systems in Clear Lake,Ridge Crest,Kern Valley,and Valley Center,California,plus one in Nogales, Arizona.Each of them has their own separate facilities locally.They answer their own telephone calls.They are not far enough along to determine how the REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 3 OF 44 system will be managed in Apache Junction.His recommendation would be to establish presence here,including telephone lines.The furthest away it will be is Sun City,California,which is closer than Minnesota. Councilmember Eck asked if there would be a local office with a twenty-four hour telephone number for customers to call after hours with their problems. Jim Carey stated they run customer service twenty-four hours a day,seven days a week. Councilmember Eck asked if a service problem would be handled as soon as possible. Jim Carey stated it would be handled as soon as possible. Councilmember Urich asked if they would be hearing a live voice. Jim Carey stated they would. Councilmember Eck commented that there is currently a representative in each individual area to date. Jim Carey stated they have representatives available in their call centers today. Councilmember Eck asked if that is the way they would run Apache Junction. Jim Carey stated they would. Vice Mayor Surra asked if he knew the average turn around time for response to a service call. Jim Carey stated they respond to 97% of their calls within a twenty-four hour period. Councilmember Durbala asked if they would have a local office in Apache Junction to be staffed Monday thru Friday or Monday thru Saturday. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 4 OF 44 Jim Carey stated it is too early to say how they will manage the system,but there is an office there now,with service people and customer service representatives. Councilmember Durbala commented Triax had promised the city a local office, but when people call they are answered in Minnesota. Jim Carey stated the worst case scenario would be the call going to one of their twenty-four hour call centers which are open seven days a week.The call would be dispatched immediately locally for someone to respond. Councilmember Durbala asked if he would be able to walk into a local office at nine in the morning or two in the afternoon and talk to a human body. Jim Carey stated he would be able to. Councilmember Durbala asked if that would be Monday thru Friday or Monday thru Saturday. Jim Carey stated it would probably be Monday thru Friday,and possibly Saturday mornings. Councilmember Durbala asked if he knew what the rates would be. Jim Carey stated the rates would be similar to what they are now.They will not come in and raise the rates.They will rebuild the system,bring it up to a state of the art facility,do a customer survey to see what programming is needed and wanted,and they will adjust the rates according to the programming desired.They will not arbitrarily raise the rates without adding any services or anything else.He believes the rates are getting to point where they need to grow their business with ancillary revenue streams,such as digital tiers,internet access service and telepathy. Councilmember Durbala commented a survey was done a couple of years ago.The city would be glad to pass along that information. Jim Carey stated they do high quality surveys and they would love to see the city's information.How Triax operated is one thing,Mediacom will operate the way they have always operated. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 5 OF 44 Councilmember Durbala stated that the city is trying to find out how Mediacom operates.They are aware of how Triax operates and they want to see better. Jim Carey stated they are welcome to call any of their references.These people will tell you that Mediacom did exactly what they said they were going to do. Councilmember Durbala commented he liked their pledge to twenty-four hour service by phone and by e-mail and their on -time guarantee. Jim Carey added they also offer a money back guarantee if the customer is not satisfied. Councilmember Durbala commented that is for thirty days.He also liked the fact that they added that they would make a commitment to the community. Triax was not involved in many community functions. Jim Carey stated they are overwhelmed by the growth out here and foresee this as being one of their primary markets.They will put people in here who know how to get involved in the community and they will cater to the community's needs. Councilmember Durbala asked if they could see a copy of their projected rates before the transfer hearing,if possible. Jim Carey stated they have no intention of touching the rates.They should close in September or October.They will not adjust the rates within a twelve month period,and they would have to add some services before they increased the rates.They would not add any services unless the services could be substantiated. Councilmember Durbala asked how long it would take them to get the city up to 750 megahertz. Jim Carey commented it will unofficially be done in less than two years since this is such a strong market. Councilmember Durbala asked if the Internet service would be available in a short period of time. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 6 OF 44 Jim Carey stated it would. Councilmember Durbala asked if they would be able to get the Suns games. Jim Carey stated he could not answer that at this time. Councilmember Eck stated they might have to purchase it from another cable company to get those games.The citizens would like to be able to see those games.He asked if Mediacom would be willing to purchase that programming. Jim Carey stated he would be willing to look into it and give them an answer in the next two to three weeks. Councilmember Urich asked if he knew the percentage of satisfied customers. Jim Carey stated they have come into a number of systems that have been neglected in the past.They were "stepchildren" of larger cable companies that had larger markets and they did not want the smaller systems.They have purchased these and are clearing up years of bad image.He believes they have brought a lot of customers around,which is substantiated by their growth rates.Customers that had abandoned the service have come back to the service.They have testimonials from mayors and government officials and were named business of the year in Gulf Breeze,Florida.They had been very unhappy with their cable service before Mediacom bought it.They have to rebuild the system,promote good will,and convince the customer that they are providing a product that is worth what they are charging for it. Vice Mayor Surra asked if he would outline the process used to determine when and if the service will be expanded locally.She wanted to know the contributing factors used to determine how many local offices there will be and where they will be located. Jim Carey stated the current market will not warrant more than one office at this time.He believes one well -run customer service office here would be sufficient. Vice Mayor Surra asked again how they would determine if additional offices would be needed. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 7 OF 44 Jim Carey stated they do customer service surveys every year,and it is determined from that and the amount of telephone traffic that they have.The customer service representatives are held to strict standards;95% of their calls must be answered within 30 seconds.They do not see any more than 3% hanging up without being answered.The 3% comes into play during an outage situation as everyone is calling in at once.During normal operations,they answer 100% of their calls in 30 seconds.They know how many calls a representative should be able to handle a day;if the calls increase above that level,they know they need more representatives.They will increase the personnel as the phone traffic increases. Vice Mayor Surra stated that answers the staff question,but it does not answer the question of how many locations within the city limits.She wanted to know how that is determined. Jim Carey stated if they were overwhelmed with walk in traffic and the city was spread out fifty miles they might need an office on each side. Vice Mayor Surra commented they do not have a set procedure and apparently look at each one individually. Jim Carey stated that was correct. Vice Mayor Surra commented there would be no way of knowing if they would have a centrally located office that could expand into satellite offices. Jim Carey stated they will find the most centrally located office that they can find.They will also look at the demographics,as to who generally pays their bills with walk in traffic. Vice Mayor Surra commented that if there are significant changes in any of those areas they could apply for a second office. Jim Carey stated that was correct. Councilmember Durbala asked about the possibility of a government economic development channel and a station given to the city for low cost advertising of city businesses. Jim Carey stated he does not know of a system that gives away advertising. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 8 OF 44 Councilmember Durbala stated they would be giving the city the channel:the businesses would pay the city for the advertising. Jim Carey stated the free channel would be available for government and educational access and non-profit organizations.They sell their advertising for revenue. Councilmember Durbala stated this channel would be given to the city to use for local businesses to attract more shoppers to the community.He asked if they would be giving an educational channel and a grant for the school district to buy equipment,such as studio,portable production,editing and playback equipment. Jim Carey stated they are not in the negotiations on that subject at this time.That is being negotiated with Triax and the city. Councilmember Durbala asked if they had that in their other contracts. Jim Carey stated they provide government access channels in some of the communities.They have not let businesses advertise on the government access channel. Councilmember Durbala asked if the other channels would be available to assist the school district. Jim Carey stated they would do whatever the Federal Communications Commission requires them to do. Vice Mayor Surra asked if he would agree that they do not get 54 available, active channels as all the companies advertise. Jim Carey stated they will tell them the correct number of channels that they will be able to receive. Vice Mayor Surra asked how many "real" channels they would be able to receive once Mediacom takes over. Jim Carey stated the system is maxed out right now.They will be going to 750 megahertz in order to add more channels. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 9 OF 44 Vice Mayor Surra commented that would explain why they lost a channel when they started receiving the History Channel,even though their price went up. Jim Carey stated he could not answer for what Triax did. Vice Mayor Surra asked if that was a common occurrence with Mediacom. Jim Carey stated it was not.They would rather rebuild the system,create capacity and add channels as needed and necessary as the customers demand.He promised the city will not be dissatisfied with their service. Councilmember Dietz thanked him for coming.He added he liked their commitment to the community and he hoped it would come true. Councilmember Eck asked when the area would be provided with pay per view. Jim Carey stated that is very important to his company.They want to rebuild the system so that there is the availability of 70 to 80 channels for everyone.Pay per view is a very strong growth stream for them;it will be a top priority as soon as the system is rebuilt.They have no where else to go with the system as it stands,it has to be rebuilt first to add the additional programming. Councilmember Urich commented many of the citizens have switched to satellite dish or they come to her and stand in line to complain about the cable service.She would be more than happy to recommend them if the service warrants it. Jim Carey stated he appreciated that,and he hoped they would be having a conversation at this time next year wherein he could tell them that all of their commitments have been fulfilled. Vice Mayor Surra asked him to repeat the time frame for rebuilding the system. Jim Carey stated it will be a top priority.The schedule is not nailed down at this time. Vice Mayor Surra stated this contract could have a short term until they see that certain things have happened.They have already had to live with an impossible 15 year contract.If the time frame is not within that short term, REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 10 OF 44 the city would have no way of knowing if they should automatically extend the contract. Jim Carey stated if they complete the rebuilding within that period of time, then extend the contract. Vice Mayor Surra commented they are now negotiating with Triax. Jim Carey stated they will have to transfer the franchise after the buy out. At the time of the transfer,they can then ask for the contract to be extended additional time,such as ten years,if the system rebuild is completed within the allotted time determined by the original contract. Vice Mayor Surra commented they had said earlier they would abide by any contract negotiated with Triax. Jim Carey stated they would have to. Vice Mayor Surra asked how they could ask for a contract extension then. Jim Carey stated they are faced with having to borrow money to rebuild the system,and a bank may not loan them the needed funds if the contract is only for two years,whereas for a ten year contract they will. Councilmember Dietz stated the city has been burned.They are looking for a short term to get the new system in.They would like to reward the company with an extended contract once the system is built. Jim Carey suggested they put in the contract that if they rebuild the system they get "x" amount of years;if it is rebuilt sooner,then they get "x" more years.He thought that would be agreeable. Mayor Coleman closed the item. CALL TO THE PUBLIC Mr.Elliott Fisher,547 E.Quail,Apache Junction,addressed the council regarding transportation.He read in the paper where Mr.Simpkins stated light rail would be considered through Apache Junction to enhance the economic development.He does not believe it may do so.He would prefer to see i t REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 11 OF 44 down the Superstition Freeway corridor.If the city does something,they should consider something of western heritage for tourist value.Buses have gone through downtown Mesa and they have not really saved the downtown area. He sees no difference between a bus and light rail.He would like to see something serve the greater Apache Junction area.He added that his association is in the process of being formalized and legalized. Mr.Jerry Dean,825 W.12th Avenue,Apache Junction,had filled out a form but had already left the meeting. Ms Catherine Moor,543 E.Mesquite Avenue,Apache Junction,addressed the council regarding the Department of Motor Vehicles.Acquaintances of hers that work in the building have told her that whereas the department has publicly stated they would not be moving,at this time none of the transfers have been canceled and they are still effective for December.She is concerned as to how would the city be serviced if everyone has to go into Maricopa County,and how it would effect the emissions standards. Pinal County Supervisor Sandie Smith,575 N.Idaho,Apache Junction,addressed the council.She stated she would be meeting with the assistant director of the motor vehicle department regarding the redesign of the office to allow for the big rigs to be able to get in and out.The county is willing to do that but it still has to go before the board of supervisors.Mr.Pearce has stated that the citizens are very courteous and complimentary of the service and that the office did not want to move.She thanked Mayor Coleman for calling the director and expressing the council's concern for moving the office.The issues are that people would have to drive too far to be serviced and that this is the largest city in the county and the people have earned the right to have a manned office here.Mr.Pearce is working with them to solve the problem.She also commented on the letter sent by the city regarding support of the land and water recreation fund.At this time it still looks bleak. The money comes from off shore drilling,and the money must be put back into water conservation.The states with the most votes are the ones on the coastlines,and they have enough support to where Arizona may lose out.Those states are demanding the funds since the drilling is taking place off their shores.Arizona disagrees with that mandate,and they are continuing to work on it.She finished with comments on the growing smarter committee.There will be three hearings in the Phoenix area,and one of them will be at Arizona State University East.The Arizona Land Legacy believes that some of the state land should be built on,but other land should be preserved.The REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 12 OF 44 growing smarter hearings have numerous people stating that land should be preserved in the urban areas.The Arizona Land Legacy believes the rural counties need to have and should insist on having legislation written that will also cover them.This legislation will help determine their destiny and they need to be able to have a part in the planning.The meeting will be on July 15th between 3 p.m.and 7 p.m.She commented on what the committee is leaning towards and that she would like to see the Arizona Land Legacy enacted to conserve certain lands and allow cities and towns to manage them.Senator John Kyl is sponsoring a bill at the federal level regarding this.She urged everyone to contact Governor Hull and Senator Kyl,and to attend the meeting at the ASU East Complex,7001 E.Williams Field Road,the Williams Campus Union Ballroom,at Williams Gateway.It will be an open house. CITY MANAGER'S REPORT None. PUBLIC HEARINGS PROPOSED RESOLUTION NO.99-27/DECLARING AMENDMENTS TO CHAPTER 14 CABLE TELEVISION A PUBLIC RECORD;PROPOSED ORDINANCE NO. 1086/ADOPTING AMENDMENTS TO CHAPTER 14 CABLE TELEVISION;POSSIBLE RENEWAL/ RENEGOTIATION OF CABLE SYSTEM LICENSE CURRENTLY HELD BY TRIM( MIDWEST ASSOCIATES.L.P. )City Attorney Joel Stern briefed the council on the item.He commented these three items could be heard together in one public hearing as the council had already voted at a previous meeting to continue these to July 20.The changes and new provisions in Chapter 14 were addressed at the last meeting.The resolution will save the cost for publication of the ordinance,the ordinance will adopt the amendments by reference and anyone can go to the city clerk's office to see it,and the renewal/renegotiation is being addressed through a licensing agreement.Cable systems can be licensed through the city council in this state.A draft agreement had been sent to Triax and a response was received on June 30.He is hoping to have a final acceptable version'to both parties by the end of the week.There are technical requirements in the agreement,and the city will REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 13 OF 44 agree to certain things but not to others in order to preserve public health, safety and welfare in the future. Mayor Coleman opened the item to council discussion.There being no discussion,he opened the public hearing on the three items. Mr.Nick McVicker,633 W.22nd Avenue,Apache Junction,addressed the council.He represented the school district.He read a letter from Dr.Sutter's office.The letter stated that Triax is now Mediacom and they have been negotiating a contract with them since March.They have committed to connecting the district completely through fiber optics.These connections are to be finished by August 7. Negotiations have been polite and agreeable on both sides.They believe Triax/Mediacom have done a good job for the school district through this agreement.They stated Triax has been very progressive from the school district's perspective and helpful to them and the kids. Vice Mayor Surra asked if they had been working diligently since March to provide these services to the school, what services were provided prior to that.The city had found that during the last six months they had been very aggressive about giving good service. Mr.Nick McVicker stated he did not know the answer to that.He was given this information.He knows that they have been working with them religiously recently. Councilmember Eck suggested renegotiating contracts annually. 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 closed the items and called for a ten minute break. Mayor Coleman reconvened the meeting. PROPOSED ORDINANCE NO.1094/PROPOSED RESOLUTION NO.99-40/REZONING REQUEST REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 14 OF 44 PZ-99-03/PRELIMINARY PLAT SD -99-01,LOST DUTCHMAN GARDENS )Long Range Planner Kate Morris briefed the council on the item.Staff recommends that this item be continued to the next meeting as the resolution and ordinance are in draft form only at this time.The public hearing was advertised and must be held;the applicant is in the audience.This is a ten acre site just south of Lost Dutchman and on the east side of Meridian.The rezoning is from CR-5/PD,multiple family by planned development to CR-3,single family residential 7,000 sq.ft.lot size.It is a request for hard zoning.There are no requirements for open spaces or play stations.The lots are the minimum width and size,and it has more than adequate retention.It was originally a 33 lot subdivision;it was increased to 35 lots when it was learned that there was more than adequate retention in the original plan.The retention area will have a shallow basin so that there will be potential use by the residents.There is nothing of great concern on either the preliminary plat or the drainage report,only standard comments for verifying measurements and correcting language. Mayor Coleman opened the item to council discussion. Vice Mayor Surra asked who would be responsible for the maintenance of the retention area. Long Range Planner Kate Morris stated she assumed it would be the homeowners association. Councilmember Eck asked if this was stick built. Long Range Planner Kate Morris stated it is site built.This builder has not been active in the city,i t will be the first project.He has built in Queen Creek and Mesa.The floor plans are the type of housing product that the city has been looking for as a community. Councilmember Dietz asked if this property had already been bladed. Long Range Planner Kate Morris REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 15 OF 44 stated it has not.The bladed site is a 20 acre parcel on Delaware and is the location for a future mobile home park. a lot of growth on that property. commented they grown saguaros that have been especially the around them. Councilmember Urich stated there was Long Range Planner Kate Morris have indicated on the plat the locations of salvageable full and palo verdes.It is pristine desert. Vice Mayor Surra commented those salvaged on other projects tend not to make it too well, saguaros.She asked if there would be the chance to work Long Range Planner Kate Morris stated that would be the builder's decision.The person who would do the salvaging for this applicant has stated he would replace those harvested with like -sized plants so that they would not be damaged or die from construction. Some of these plants would demand a larger lot size to prevent damage or stress. Vice Mayor Surra commented she is concerned about the desert being denuded and she does not see anything in the plans about replacing those desert plants if they die off;as this is not a planned development they cannot make that a stipulation. Long Range Planner Kate Morris stated conditions of approval can be added to the preliminary plat to have some salvaging detail or growth and maintenance. Vice Mayor Surra stated since this one is a draft,she might be able to see that condition in the next one. Long Range Planner Kate Morris stated she would talk to Nick Blake to get the appropriate language. Mayor Coleman called for the applicant to address the council. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 16 OF 44 Mr.LaDell Call,8660 E.Waterford Circle,Queen Creek,addressed the council.He stated he has walked the site with a landscaping architect and salvager.There are a lot of trees that they want to save;some will be used around the perimeter and in Tract A.They want to restore the perimeter landscaping back to the natural desert look. They have received the permits to salvage them.They intend on salvaging the trees,saguaros,and smaller cacti.They intend to box the plants there,load them on semis and take them to his nursery in Queen Creek for proper care. These will be maintained at his place instead of being left uncared for at the site.They will bring back the vegetation that they can and redo it so they will not be damaged or harmed. Councilmember Dietz asked if there would be a homeowners association to maintain the landscaping around the perimeter and in the retention basin. Mr.LaDell Call stated in the past he has done it to other cities'specifics and then he deeds it over to them where they maintain it like a city park.They do the outside landscaping, Tract A and the retention area.As Apache Junction does not do that,he will form a homeowners association for that purpose.To keep it presentable and cost effective,he will attempt to return it back to its natural habitat so that it will look good whether it is trimmed or not.The retention area will probably be grassed in so that people can use it. Mayor Coleman asked if there was any chance that they could get him to go to 1.25 acre lots. Mr.LaDell Call stated he had thought about that,but the market has been peaked for so long he is afraid it will start to fall,and those larger lots are the ones that tend to sit during those times. Mayor Coleman commented he mentioned that because there are horse trails straight north of Lost Dutchman and they try to maintain a lower density in that area.He does appreciate the fact he is asking for a lower density use than what it is currently zoned for. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 17 OF 44 Mr.LaDell Call commented he has had a number of people contact him about selling the land so they could build apartments on it.He believes this would be more appealing to the community. Vice Mayor Surra asked why he chose Apache Junction. Mr.LaDell Call stated he knows a lot of builders and contractors who have already worked here,and they say it is a good place to be and that they have a good working relationship with staff.He has also heard that Apache Junction is going to be growing and that i t is a good place to be,and that good things are happening in the schools. He has also heard that small builders do not get caught up in the bureaucracy here as they do in larger cities. Vice Mayor Surra asked if he had looked at the possible number of children that would be living in this subdivision that would impact the schools. Mr.LaDell Call stated he did a 52 lot subdivision 3-4 years ago in which 27 lots were sold before he sold out to another builder,and at least half of the sold lots had adult age children and most of the others were young families.There were only a few high school kids,most of the kids were elementary school age.He could not really guess how many children this would generate. Vice Mayor Surra asked if he had any adverse feelings about the children impacting the schools and that part of the development fees would help to reduce that impact. Mr.LaDell Call stated he believed the permit fees included things to help to school system. Mayor Coleman opened the public hearing on the item.There being no one wishing to speak,he closed the public hearing and called for a motion of continuance. Vice Mayor Surra MOVED THAT WE CONTINUE THIS ITEM TO OUR NEXT REGULARLY SCHEDULED COUNCIL MEETING WHICH WOULD BE IN TWO WEEKS FROM TODAY,JULY 20. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 18 OF 44 was for Items 11A and 116. for all of the related items. MOTION. VOTE:Unanimous. The motion carried. Councilmember Urich asked if that Vice Mayor Surra stated it would be Councilmember Dietz SECONDED THE PROPOSED ORDINANCE NO.1090/REZONING REQUEST PZ-6-99.CARPENTER/HAINES )Assistant Planner Paul Michaud briefed the council on this item.This involves 2 lots in the Palm Springs Subdivision.They are zoned CR-5 multiple family and the applicants wish to rezone to CR-3 for single family,which is what the remainder of the subdivision is zoned.This will allow them to reduce their rear yard setback from 35 feet to 20 feet.The planning division has found four findings:a difference already exists between the multiple family dwellings regarding use and setbacks and there are differences in setbacks between the CR-5 and the CR-5/PD;single family dwellings are not uncommon in this area;the lot sizes are 10,000 sq.ft.or less which are more ideal for single family dwellings; and that the general plan designates CR-5 as high density and the neighboring CR-3 as medium density.The planning commission recommended rezoning this to CR-5/PD like the lots north of Hondo.This was to eliminate any general plan conflict.They can apply the same type of planned development area to these subject lots as to the planned development area north of Hondo,and the pattern of single family dwellings in this area is already permissible by the conditional use permit.The applicants are agreeable to rezoning this to CR- 5/PD. Councilmember Urich asked the city attorney if he had the chance to complete his review on this. City Attorney Joel Stern stated he had looked at this one. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 19 OF 44 Mayor Coleman requested the applicant address the council. Mrs.Taleen Carpenter,531 E. Mesquite,Apache Junction,suggested that the whole area be rezoned from CR-5 to CR-5/PD.She had received no phone calls regarding this zoning change and she believes the zoning change would increase everyone's property values. Mayor Coleman opened the public hearing on the item. Ms Catherine Moor,543 E.Mesquite, Apache Junction,addressed the council.She supported the rezoning of the Palm Springs Subdivision. Mayor Coleman closed the public hearing with no one else wishing to speak.He opened the item to council discussion.There being no discussion,he called for a motion. Councilmember Durbala MOVED THAT ORDINANCE NO.1090 BE READ BY TITLE ONLY AND THE READING OF THE ENTIRE ORDINANCE BE WAIVED. Councilmember Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. City Clerk Kathleen Connelly read the ordinance by title only. Councilmember Durbala MOVED THAT ORDINANCE NO.1090,AS READ BY THE CITY CLERK,BE APPROVED AND ADOPTED. Councilmember Dietz SECONDED THE MOTION. VOTE:Unanimous. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 20 OF 44 The motion carried. PROPOSED ORDINANCE NO.1093/ZONING ORDINANCE AMENDMENTS TO ARTICLE 5 DEFINITIONS AND ARTICLE 13 ZONING ORDINANCE AMENDMENTS AND CHANGES )Long Range Planner Kate Morris briefed the council on this item.Staff is requesting this item be continued to July 20,1999.It has been recommended that these article amendments be split into two separate ordinances,with the Article 5 amendments being adopted by reference due to their length.A resolution will declare the Article 5 amendments a public record.In addition they had found some clerical errors in Article 5 that needed to be addressed.Article 13 amendments will change how the 300'notices are delivered;it will be changed to delivery by first class mail. Mayor Coleman opened the item to council discussion.There being no discussion,he opened the public hearing on the item.There being no one wishing to speak,he closed the public hearing and called for a motion. Councilmember Eck MOVED TO CONTINUE THIS ITEM 13,WHICH IS THE DISCUSSION ON ORDINANCE NO.1093,TO THE JULY 20'' REGULAR COUNCIL MEETING. Councilmember Urich SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROPOSED ORDINANCE NO.1092/ESTABLISHING STOP SIGNS AT LOCATIONS WITHIN THE CITY LIMITS )City Engineer Paul Stears briefed the council on the item.Due to increased traffic from new subdivisions, additional stop signs need to be installed at several locations.These include eastbound Southern at Starr,northbound Lawson at 16th Avenue, eastbound 36th Avenue at Ironwood,westbound 18th Avenue at Starr,southbound REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 21 OF 44 Vista at Southern,southbound Winchester at Baseline,and several more within the Baseline Industrial Park subdivision.He requested approval of the ordinance. Mayor Coleman opened the item to council discussion. Vice Mayor Surra stated she appreciated how much the department keeps up on the changes in the traffic patterns.This cuts down on the complaints from the residents. Mayor Coleman opened the public hearing on the item.There being no one wishing to speak,he closed the public hearing and called for a motion. Councilmember Durbala MOVED THAT ORDINANCE NO.1092 BE READ BY TITLE ONLY WITH THE EMERGENCY CLAUSE AND THE READING OF THE ENTIRE ORDINANCE BE WAIVED. Councilmember Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. City Clerk Kathleen Connelly read the ordinance by title only with the emergency clause. Councilmember Durbala MOVED THAT ORDINANCE NO.1092,AS READ BY THE CITY CLERK,BE APPROVED AND ADOPTED. Councilmember Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROPOSED ORDINANCE NO.1095/AMENDING REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 22 OF 44 CHAPTER 6 OF THE LAND DEVELOPMENT CODE, ARTICLE 6-1,LANDSCAPING AND SCREENING REQUIREMENTS )Development Services Director Glen Van Nimwegen briefed the council on the item.This draft is slightly different from what was discussed at the work session.This amendment will apply to new RV and mobile home subdivisions and parks,and new subdivisions as well.Staff also addressed the standard of metal buildings.The initial ordinance required masonry across the whole elevation on all elevations of metal buildings.It now reads similar to the City of Mesa standards which requires masonry or a similar material across a third of the elevation.He showed them examples from Kovach Industrial Building in Mesa.The ordinance would force a variety in materials.Cost -wise,i t is twice as much to do masonry as i t is to do stucco.The construction costs per square foot would be smaller for bigger buildings.He believes this will add value and will help raise the level of buildings in the community.People build to the level that is already there.Monty Nichols has proposed some changes to the ordinance which will rephrase the ordinance in a more positive note but he does not change the requirements.Both he and the city attorney are agreeable to his changes. Councilmember Eck asked if this was on new construction only. Development Services Director Glen Van Nimwegen stated that was correct. Vice Mayor Surra commented she thought the metal building allowance was only for those in the industrial park.She asked if they would have to address metal buildings on Apache Trail. Development Services Director Glen Van Nimwegen stated they would have to at this time.There is nothing in the current ordinance that addresses metal building at all in any district. Vice Mayor Surra stated this is not going far enough.Depending on the location,she could be taller than the facade on a building.She could see metal on Apache Trail.This would be contrary to the beautification of Apache Trail and the redevelopment district. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 23 OF 44 She does not believe this is ready for approval if it does not address problems of locations of these buildings.She is not certain she wants to see metal buildings in any other commercial area;she would like them in the industrial park only. Councilmember Durbala asked if the Barleen Dinner Theater was a metal building.No one was sure. Vice Mayor Surra commented Mr.Van Nimwegen had not been lacking in what they had asked him to do.Her understanding was lacking in where they were allowed. Development Services Director Glen Van Nimwegen stated he could type it up for commercial districts and not reduce it down to one third.He advised them the one third could be any part of the building,not necessarily the bottom third. Councilmember Urich agreed with Vice Mayor Surra.She believes more time should be spent on this. City Attorney Joel Stern read Section 6.1-2.He believes this would apply to industrial,commercial, retail,office and multiple family uses and zones. Development Services Director Glen Van Nimwegen agreed. City Attorney Joel Stern stated it is already written in the law as to which zones it would apply to. Vice Mayor Surra stated she does not believe metal buildings should be allowed in all those zones. City Attorney Joel Stern suggested altering some of the other sections of Ordinance No.940. Vice Mayor Surra commented it has brought to her attention her lack of knowledge regarding what is allowable for structures. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 24 OF 44 Mayor Coleman commented under Section 6.1-6,it says corrugated and pre-engineered metal buildings are not permitted in commercial and industrial zones unless they are not visible from any adjacent right-of-ways.Exceptions may be made,but generally speaking he understood they were not allowed. Councilmember Urich agreed. City Attorney Joel Stern suggested reviewing the ordinance again. Vice Mayor Surra stated she thought they needed to be more certain about what they were going to do before they made any more changes. Councilmember Durbala asked if this would prevent corrugated buildings from being placed in backyards for storage. Some of those buildings could show on the frontage of a public street. Vice Mayor Surra commented it says commercial and industrial but it does not say residential. Councilmember Durbala commented it says so in the front.The visibility question comes in under the landscaping section.He asked if they would be outlawing these buildings in residential neighborhoods. Vice Mayor Surra stated she did not believe it addresses accessory buildings such as tool or garden sheds. status of a metal garage. would be allowed to have that. Councilmember Eck asked about the Councilmember Durbala asked if one Councilmember Eck and Vice Mayor Suura stated he could,but he would might have to have the facade. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 25 OF 44 Councilmember Durbala commented they might have to schedule this for legal information in an executive session. City Attorney Joel Stern stated 6.1- 6 could be quickly fixed by saying "except as otherwise provided in Section 6.1-2,corrugated and metal buildings are not permitted in commercial zones". That would take care of the conflict,but since there are other concerns it might be advisable to continue this matter. Councilmember Durbala requested to hear from Monty Nichols before this was continued. Mayor Coleman opened the public hearing on the item. Mr.Monty Nichols,11089 E. Hummingbird,Apache Junction,addressed the council.He owns the Baseline Industrial Park.He proceeded to give a brief history on the property. Councilmember Urich asked if this was part of the agenda. City Attorney Joel Stern stated he is as he is getting into zoning issues,and zoning uses are a part of this ordinance.He will interrupt him if he gets beyond the scope. Mr.Monty Nichols wished to talk about grandfather rights. City Attorney Joel Stern stated that is not the scope of this ordinance.His comments should be limited to what is seen in Ordinance No.1095. Mr.Monty Nichols commented an industrial park is an accepted location for metal buildings.He stated Metaltrades is built in metal because of what they fabricate.The building is not conducive to slump block or stucco due to its openness.He would like to see the one third stucco or similar material to break up the side lines.He commented he was directed to go the way he was going with this industrial park,even though there has been a change in city staff and council.Phase I REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 26 OF 44 is 95% finished,but now there is roadblock.At first he believed metal buildings were going to be outlawed,but the ordinance has since been rewritten a number of times to what is now more acceptable.However,he would like to change some of the wording to make it more positive than negative.He would like to rewrite it to say that corrugated and pre-engineered metal buildings are permitted in industrial zones;however,when they are visible from any adjacent right-of-ways,exterior elevations of the building must include supplemental building materials,forms and detailing,at least one third,and the rest of the information could stay the same.This way the clients can be told that metal buildings are allowed.The other way,he would have to say they are if...His wording would let them know they can have a metal building and then they would get the requirements needed for erecting one.He believes this will encourage the businesses to come out here.After spending a lot of money on the property,he would not like to see the city kill the industrial park -it is the only one here.He has one business that has moved in and he has sold an additional 13 lots.Every customer has asked if they could put up metal buildings.He would like to see the aesthetics there and he believes this is a nice substitute.He commented the industrial park will look better once there are more buildings and the landscaping has grown up around them.There is also an 18 acre buffer zone that the city owns between the freeway and the industrial park;it is unknown what will eventually go in there.He encouraged council to use the positive language. He is for the look of permanence and quality,and he likes the facade idea. He asked the city attorney if his language was acceptable. City Attorney Joel Stern stated it changes the words but it has the same regulatory effect. Mr.Monty Nichols suggested they could put in the ordinance that they would only allow the metal buildings to be erected in the industrial park.They need to be able to have metal buildings there or their costs will double.For example,Metaltrades would have had to be built out of metal due to the huge cranes and other equipment; if it had not been made of metal,he would have had to construct a metal building inside of something else. Vice Mayor Surra commented she appreciated his input on the positive language.However,most of the council was here when Metaltrades building was first brought up.They had some concerns at the time but they were sold on the wonderful landscaping and the REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 27 OF 44 visual impact that would be softened by other things provided for in the Metaltrades building.It was to set apace and standard for what was going to come after.Unfortunately,it has not happened.We know other metal buildings will have to go there,but she has seen industrial parks developed without one metal building being there.They are not just for the kind of industry he is thinking of.There needs to be some expansion of thought on both sides. Mr.Monty Nichols stated he originally had a third parcel,and Metaltrades was that third parcel.It was rezoned industrial under planned development. Councilmember Urich asked if they were off the agenda item. City Attorney Joel Stern stated they are but he is responding to a direct question of the vice mayor. Vice Mayor Surra stated she had commented they were looking into metal buildings because they had been presented with a different look than what they ended up with. City Attorney Joel Stern stated his comments will have to be related to the actual metal structure. Mr.Monty Nichols stated Metaltrades went in under planned development,the rest of industrial park is not.His elevations had to be approved;he agreed they looked nicer on paper.He added the landscaping was put in after this was written.When the foliage starts growing and breaking up the long west side,it will help the looks of it.He asked if they had driven down the street,turned around and looked back at it. Vice Mayor Surra stated she is looking at it the way the people who are visiting the city are looking at i t from afar.The initial impression is what can kill the city. Councilmember Dietz stated he drove down on Friday and looked.He was not impressed at all,especially with the landscaping.It will take at least twenty years for that to grow to a halfway decent size. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 28 OF 44 the city's landscaping requirements. did not. not know about that. Mr.Monty Nichols commented he met City Manager Curtis Shook stated he Councilmember Dietz commented he did Mr.Monty Nichols stated if he did not then he has broken the rules and they will get it fixed. City Attorney Joel Stern commented they were going off the agenda. Councilmember Urich stated it appeared that quite of few of the other municipalities must not be allowing metal buildings in their communities or these businesses would not be asking whether or not they can construct a metal building. Mr.Monty Nichols stated it could just mean that they need to have a metal building to operate their business. Councilmember Urich asked why that would be their first question. Mr.Monty Nichols stated because they do need to have a metal building.If one tells them they cannot,they will go elsewhere.He believes there is only one city in the valley that does not allow metal buildings. Vice Mayor Surra commented then they are not going to go far. Mr.Monty Nichols commented Superior is developing an industrial park and they did it all free. Councilmember Urich suggested having more information brought back to them on the other municipalities when this is next heard. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 29 OF 44 Councilmember Eck commented this ordinance was not intended for the city to do away with metal buildings.He agreed the wording did sound subjective and some of it should be changed. They are only trying to make the buildings more attractive.He added they did give approval on the initial business and they are now doing something that could be a major change for this industrial park. Mayor Coleman stated they had commented that the buildings would appear like the Scottsdale Air Park.Those are poured,stand up cement.He distinctly remembered that.That was what was presented during the plat approval.The neighbors originally did not want it to go in and the planning and zoning commission had recommended denial.He is not trying to eliminate metal buildings,but the more attractive they can make them the better.If the rewording will work,that will be fine. However,he does want them to be held accountable for the things they were told.He is aware that Mr.Nichols is not the one who said that. Mr.Monty Nichols commented Stan Kleban had pointed out that Scottsdale Air Park was the number one tax base revenue producer for any city in the United States.They had hoped that this would go towards this direction.The industrial park will not hurt property values;the land around Scottsdale Industrial Park increased in value at the same rate as the surrounding property.He recalled how Ms Bachman wanted to know every business that was going to go in there before it went there,which they cannot do. City Attorney Joel Stern advised they were going off the agenda. Vice Mayor Surra commented that is why the council looks so different to him,he is thinking of the planning and zoning commission. Mr.Monty Nichols agreed.He stated he could not tell them what it was going to look like because each client had to buy his lot and put up his building. Vice Mayor Surra stated that is why they felt they needed to impose enough regulations so they would have some control •over what it would look like. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 30 OF 44 Mr.Monty Nichols commented if they could permit metal buildings that have the appearance of quality and permanence,it would really help the industrial park.He believes that will work. Councilmember Durbala stated the way this is written it appears that metal buildings are not permitted in commercial and industrial zones unless they are not visible from any adjacent right-of-way.No matter where one goes,you will be able to see a building from a roadway.This will basically do away with metal buildings.There are exceptions,but he wondered who would be making the decision for the exceptions.It needs to be changed to show that they are permitted.An industrial park is an industrial park.He wondered why three businesses have located outside the city in the county industrial park,and suggested this may be a reason why. Councilmember Urich commented there may be other extenuating circumstances. Councilmember Durbala stated this may be part of the reason.He does not see any problems with metal buildings if they will bring more permanent jobs and development.He does not want to see metal buildings outlawed. Councilmember Eck stated they were not talking about outlawing metal buildings.He agreed that there needs to be some language changes. Mayor Coleman asked if there were any more questions for Mr.Nichols.There were none. Mr.Monty Nichols thanked the council for listening and staff for their cooperation. Mr.Doug Metzdorf,3636 E.Anne Street,Phoenix,of Arizona Building Systems,addressed the council.He was there on behalf of Monty Nichols.He believes the issue seems to be metal buildings.He showed them examples of metal buildings they had constructed. One of the buildings was St.George's Catholic Church in Apache Junction.It is really the design of the building that should be the issue. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 31 OF 44 There was general discussion between Vice Mayor Surra and Mr.Doug Metzdorf as to whether or not St.George's is a metal building,as the exterior is block and stucco.The building was designed by Bark Approved Metal Buildings. Vice Mayor Surra commented it would not be considered a metal building.She added if Metaltrades looked like that,the city would be very happy to have them in the industrial park. Mr.Doug Metzdorf stated he is concerned about the way the ordinance is written about pre-engineered buildings.A lot of things can be done with them. Vice Mayor Surra commented if Metaltrades had done something with their building the council would not be here today. Mr.Doug Metzdorf stated the issue is the design,the architect and what he does with it. Vice Mayor Surra commented the problem here is a drawing of a building that never came to fulfillment.This is based on one building that is out there that does not match what the council was shown.Now they are looking for tighter regulations as to what can be used in their buildings.No one has talked about outlawing the buildings. Mr.Doug Metzdorf left the pictures with the council to look at later. Mayor Coleman closed the public hearing on the item and reopened the item to council discussion. Councilmember Eck stated there are some words that need to be changed.They do not intend to outlaw metal buildings.He suggested sending the ordinance back to staff and allowing them to go over it again and change the language.He would support something that is similar to the Mesa industrial park where a portion of the building had to be of some other material. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 32 OF 44 Vice Mayor Surra commented she would like to see more than one third of a different material. Councilmember Durbala commented the one third could also be in the middle part of it. Councilmembers Durbala and Eck thought one third would be fair. Vice Mayor Surra commented they need to have some other kind of review prior to them constructing the building if they only want to have one third of a different material.It needs to be far more specific than we got last time.They need to be sure that they get what they approve. Councilmember Durbala commented he wished they had the old plans for Metaltrades as he recalled a lot of it was the landscaping,with the trees being a lot higher.Landscaping does take time to develop. There was general discussion on the landscaping. Councilmember Eck commented he believed there were other things going on here. Mayor Coleman closed the discussion and called for a motion. Vice Mayor Surra MOVED TO CONTINUE THIS TO THE SECOND REGULAR MEETING IN AUGUST.She also wanted to see a work session on it first. Development Services Director Glen Van Nimwegen suggested splitting the metal buildings off into a separate ordinance and adopting the remainder of the ordinance tonight. City Attorney Joel Stern stated they could all come under the same ordinance but with different sections. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 33 OF 44 Development Services Director Glen Van Nimwegen stated he would like to adopt the sections on applying Ordinance No.940 to new subdivisions,RV parks and mobile home parks.He will bring the part about metal buildings back as a separate ordinance. Vice Mayor Surra WITHDREW HER MOTION FOR CONTINUING THIS ITEM.She then moved THAT ORDINANCE NO.1095 BE READ BY TITLE ONLY AND THE READING OF THE ENTIRE ORDINANCE BE WAIVED. Councilmember Urich SECONDED THE MOTION. VOTE:Unanimous. The motion carried. City Clerk Kathleen Connelly read the ordinance by title only. Vice Mayor Surra MOVED THAT ORDINANCE NO.1095,AS READ BY THE CITY CLERK,BE APPROVED AND ADOPTED WITH THE FOLLOWING DELETION OF SECTION 6.1.6,AND HAVE THAT CONTINUED TO ANOTHER MEETING. Councilmember Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. Mayor Coleman called for a five minute break. Mayor Coleman reconvened the meeting. PROPOSED RESOLUTION NO.99-29/PROPERTY OWNER ASSESSMENT FOR SUNRISE CANYON STREET LIGHT IMPROVEMENT DISTRICT SLID 9707-1; REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 34 OF 44 PROPOSED RESOLUTION NO.99-30/PROPERTY OWNER ASSESSMENT FOR CIMMARRON STREET LIGHT IMPROVEMENT DISTRICT SLID 9709-1; PROPOSED RESOLUTION NO.99-31/PROPERTY OWNER ASSESSMENT FOR RENAISSANCE PARK STREET LIGHT IMPROVEMENT DISTRICT SLID 9712-2;PROPOSED RESOLUTION NO.99-32/ PROPERTY OWNER ASSESSMENT FOR CORTEZ RANCH STREET LIGHT IMPROVEMENT DISTRICT SLID 9801-2;PROPOSED RESOLUTION NO.99-34/ PROPERTY OWNER ASSESSMENT FOR IRONWOOD ESTATES STREET LIGHT IMPROVEMENT DISTRICT SLID 9712-1;PROPOSED RESOLUTION NO. 99-35/PROPERTY OWNER ASSESSMENT FOR IRONWOOD COVE I I STREET LIGHT IMPROVEMENT DISTRICT SLID 9801-1;PROPOSED RESOLUTION NO.99-36/PROPERTY OWNER ASSESSMENT FOR ARIZONA GRANDE STREET LIGHT IMPROVEMENT DISTRICT SLID 9804-1;PROPOSED RESOLUTION NO.99-39/PROPERTY OWNER ASSESSMENT FOR RENAISSANCE POINT UNIT 2 STREET LIGHT IMPROVEMENT DISTRICT SLID 9701-1 )City Engineer Paul Stears briefed the council on the items.These resolutions will allow the county to collect the funds to be transferred to the city for repayment of construction work and energy costs. Mayor Coleman opened the public hearing on the items.There being no one wishing to speak,he closed the public hearing and opened the items to council discussion.There being no discussion,he called for a motion. Councilmember Urich MOVED THAT RESOLUTION NO.99-29,A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,PINAL COUNTY,ARIZONA,RELATING TO TAXATION,LEVYING UPON THE ASSESSED VALUATION OF THE PROPERTY WITHIN THE CITY OF APACHE JUNCTION, SUBJECT TO TAXATION,AND WITHIN THE MUNICIPAL STREET LIGHTING IMPROVEMENT DISTRICT SL 9707-1,A CERTAIN SUM UPON EACH ONE HUNDRED DOLLARS OF VALUATION SUFFICIENT TO RAISE THE AMOUNT REQUIRED FOR THE ANNUAL EXPENSE OF THE SAID REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 35 OF 44 MUNICIPAL STREET LIGHTING IMPROVEMENT DISTRICTS,AND DECLARING AN EMERGENCY, BE APPROVED. Councilmember Durbala SECONDED THE MOTION. VOTE:5-1 (Councilmember Dietz voted in opposition.) The motion carried. had the emergency clause on it. Councilmember Durbala asked if it Councilmember Urich stated it did. Councilmember Durbala asked if it had passed with the emergency clause since the vote was not unanimous. City Clerk Kathleen Connelly stated resolutions are effective immediately.She was unsure why the emergency clause had been added. City Attorney Joel Stern commented he added it to this resolution because this type of resolution can have one. Since there was a no vote,the emergency clause will not pass. Councilmember Durbala asked if it would be effective in 30 days. City Attorney Joel Stern stated that was correct.It would also be subject to a voter referendum. City Clerk Kathleen Connelly stated resolutions are not subject to referendums. Councilmember Durbala MOVED THAT RESOLUTION NO.99-31,A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,PINAL COUNTY,ARIZONA,RELATING TO TAXATION,LEVYING UPON THE ASSESSED VALUATION OF THE PROPERTY WITHIN THE CITY OF APACHE JUNCTION, SUBJECT TO TAXATION,AND WITHIN THE MUNICIPAL STREET LIGHTING IMPROVEMENT REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 36 OF 44 DISTRICT SL 9712-2, A CERTAIN SUM UPON EACH ONE HUNDRED DOLLARS OF VALUATION SUFFICIENT TO RAISE THE AMOUNT REQUIRED FOR THE ANNUAL EXPENSE OF THE SAID MUNICIPAL STREET LIGHTING IMPROVEMENT DISTRICTS, AND DECLARING AN EMERGENCY, BE APPROVED. Councilmember Eck SECONDED THE MOTION. VOTE: 5-1 (Councilmember Dietz voted in opposition.) The motion carried without the emergency clause. Councilmember Eck MOVED THAT RESOLUTION NO. 99-30, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, PINAL COUNTY, ARIZONA, RELATING TO TAXATION, LEVYING UPON THE ASSESSED VALUATION OF THE PROPERTY WITHIN THE CITY OF APACHE JUNCTION, SUBJECT TO TAXATION, AND WITHIN THE MUNICIPAL STREET LIGHTING IMPROVEMENT DISTRICT SL 9709-1, A CERTAIN SUM UPON EACH ONE HUNDRED DOLLARS OF VALUATION SUFFICIENT TO RAISE THE AMOUNT REQUIRED FOR THE ANNUAL EXPENSE OF THE SAID MUNICIPAL STREET LIGHTING IMPROVEMENT DISTRICTS, AND DECLARING AN EMERGENCY, BE APPROVED. Councilmember Durbala SECONDED THE MOTION. VOTE: 5-1 (Councilmember Dietz voted in opposition.) The motion carried without the emergency clause. Councilmember Urich MOVED THAT RESOLUTION NO. 99-32, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, PINAL COUNTY, ARIZONA, RELATING TO TAXATION, LEVYING UPON THE ASSESSED VALUATION OF THE PROPERTY WITHIN THE CITY OF APACHE JUNCTION, SUBJECT TO TAXATION, AND WITHIN THE MUNICIPAL STREET LIGHTING IMPROVEMENT DISTRICT SL 9801-2, A CERTAIN SUM UPON EACH ONE HUNDRED DOLLARS OF VALUATION SUFFICIENT TO RAISE THE AMOUNT REQUIRED FOR THE ANNUAL EXPENSE OF THE SAID MUNICIPAL STREET LIGHTING IMPROVEMENT DISTRICTS, AND DECLARING AN EMERGENCY, BE APPROVED. REGULAR MEETING OF THE CITY COUNCIL JULY 6, 1999 PAGE 37 OF 44 Councilmember Durbala SECONDED THE MOTION. VOTE:5-1 (Councilmember Dietz voted in opposition.) The motion carried without the emergency clause. Councilmember Durbala MOVED THAT RESOLUTION NO.99-34,A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,PINAL COUNTY,ARIZONA,RELATING TO TAXATION,LEVYING UPON THE ASSESSED VALUATION OF THE PROPERTY WITHIN THE CITY OF APACHE JUNCTION, SUBJECT TO TAXATION AND WITHIN THE MUNICIPAL STREET LIGHTING IMPROVEMENT DISTRICT SL 9712-1,A CERTAIN SUM UPON EACH ONE HUNDRED DOLLARS OF VALUATION SUFFICIENT TO RAISE THE AMOUNT REQUIRED FOR THE ANNUAL EXPENSE OF THE SAID MUNICIPAL STREET LIGHTING IMPROVEMENT DISTRICTS,AND DECLARING AN EMERGENCY, BE APPROVED. Vice Mayor Surra SECONDED THE MOTION. VOTE:5-1 (Councilmember Dietz voted in opposition.) The motion carried without the emergency clause. Vice Mayor Surra MOVED THAT RESOLUTION NO.99-35,A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,PINAL COUNTY,ARIZONA,RELATING TO TAXATION,LEVYING UPON THE ASSESSED VALUATION OF THE PROPERTY WITHIN THE CITY OF APACHE JUNCTION, SUBJECT TO TAXATION,AND WITHIN THE MUNICIPAL STREET LIGHTING IMPROVEMENT DISTRICT SL 9801-1,A CERTAIN SUM UPON EACH ONE HUNDRED DOLLARS OF VALUATION SUFFICIENT TO RAISE THE AMOUNT REQUIRED FOR THE ANNUAL EXPENSE OF THE SAID MUNICIPAL STREET LIGHTING IMPROVEMENT DISTRICTS,AND DECLARING AN EMERGENCY, BE APPROVED. Councilmember Eck SECONDED THE MOTION. VOTE:5-1 (Councilmember Dietz voted in opposition.) The motion carried without the emergency clause. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 38 OF 44 Vice Mayor Surra MOVED THAT RESOLUTION NO.99-36,A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,PINAL COUNTY,ARIZONA,RELATING TO TAXATION,LEVYING UPON THE ASSESSED VALUATION OF THE PROPERTY WITHIN THE CITY OF APACHE JUNCTION, SUBJECT TO TAXATION,AND WITHIN THE MUNICIPAL STREET LIGHT IMPROVEMENT DISTRICT SL 9804-1,A CERTAIN SUM UPON EACH ONE HUNDRED DOLLARS OF VALUATION SUFFICIENT TO RAISE THE AMOUNT REQUIRED FOR THE ANNUAL EXPENSE OF THE SAID MUNICIPAL STREET LIGHTING IMPROVEMENT DISTRICTS,AND DECLARING AN EMERGENCY, BE APPROVED. Councilmember Eck SECONDED THE MOTION. VOTE:5-1 (Councilmember Dietz voted in opposition.) The motion carried without the emergency clause. Councilmember Durbala MOVED THAT RESOLUTION NO.99-39,A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,PINAL COUNTY ARIZONA,RELATING TO TAXATION,LEVYING UPON THE ASSESSED VALUATION OF THE PROPERTY WITHIN THE CITY OF APACHE JUNCTION, SUBJECT TO TAXATION,AND WITHIN THE MUNICIPAL STREET LIGHTING IMPROVEMENT DISTRICT SL 9701-1,A CERTAIN SUM UPON EACH ONE HUNDRED DOLLARS OF VALUATION SUFFICIENT TO RAISE THE AMOUNT REQUIRED FOR THE ANNUAL EXPENSE OF THE SAID MUNICIPAL STREET LIGHTING IMPROVEMENTS DISTRICTS,AND DECLARING AN EMERGENCY, BE APPROVED. Vice Mayor Surra SECONDED THE MOTION. VOTE:5-1 (Councilmember Dietz voted in opposition.) The motion carried without the emergency clause. OLD BUSINESS. CONSIDERATION OF RECOMMENDATION FROM HEALTH & HUMAN SERVICES COMMISSION FOR HUMAN SERVICES FUNDING FOR FY 1999-2000 AND DIRECTION REGARDING PREPARATION OF REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 39 OF 44 CONTRACTS briefed the council recommendations due discussions.These total funding. )City Clerk Kathleen Connelly on the item.The commission had reviewed their previous to the $5,000 error made during their original are their final recommendations,staying with the $80.000 Councilmember Eck commented he thought the Boys & Girls Club showed $30,000 in funding on the main budget. City Clerk Kathleen Connelly stated that is what they asked for. Councilmember Urich complimented the commission for not taking their job lightly. Vice Mayor Surra advised that Chairperson Cranmer's son is home from the hospital.He had been burned the night of the last council meeting and Chairperson Cranmer had been in the middle of her briefing at the time she was called away. Mayor Coleman closed the discussion and called for a motion. Councilmember Urich MOVED THAT THE REVISED RECOMMENDATIONS FROM THE HEALTH AND HUMAN SERVICES COMMISSION FOR HUMAN SERVICES FUNDING FOR FY 1999-2000 AS APPROVED AT THEIR MEETING OF JUNE 18,1999,BE ACCEPTED AND THAT THE SERVICE CONTRACTS REFLECTING THE REQUIREMENTS OF ORDINANCE NO.659,THE RECOMMENDATIONS OF THE COMMISSION AS APPROVED AT THEIR MEETING OF MAY 24,1999,AND OTHER APPLICABLE REQUIREMENTS BE RETURNED FOR COUNCIL CONSIDERATION IN CONJUNCTION WITH FINAL BUDGET ADOPTION. Councilmember Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 40 OF 44 NEW BUSINESS, None. COUNCIL DIRECTION TO STAFF ON PROPOSED LEGISLATION OR ACTION DIRECTION TO STAFF REGARDING PINAL COUNTY REQUEST FOR SUPPORT OF REGIONAL LANDFILL ) )City Manager Curtis Shook briefed the council on this item.The county is looking for the support of the municipalities in Pinal County in seeking a long term landfill site.County Supervisor Sandie Smith was in attendance to answer any questions. Mayor Coleman asked if they were starting the process to search for a site. County Supervisor Sandie Smith stated that was correct.They need to know if they will have a certain waste stream,and if the waste stream is dedicated somewhere else they need to know that.She is only waiting on letters from Apache Junction and Florence. Mayor Coleman closed the discussion with no more questions and called for a motion. Vice Mayor Surra MOVED THAT THE FOLLOWING DIRECTION BE GIVEN TO STAFF REGARDING PINAL COUNTY'S REQUEST FOR SUPPORT OF THE REGIONAL LANDFILL:THAT A LETTER OF SUPPORT FOR THE PROJECT AS OUTLINED IN THE COMMUNICATION THAT WE RECEIVED FROM SUPERVISOR OF DISTRICT 2, SANDIE SMITH,BE SENT IN IN ORDER TO DEFINE THE PARAMETERS WITH WHICH OUR SUPPORT CAN BE LEANT TO THE PROJECT. Councilmember Eck SECONDED THE MOTION. VOTE:Unanimous. The motion carried. SELECTION OF MEETING DATES.TIMES.LOCATIONS.AND PURPOSES REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 41 OF 44 Councilmember Durbala MOVED THAT THE TENTATIVE BUDGET ADOPTION BE HELD ON JULY 19 AT 7:00 P.M.PRIOR TO OUR REGULAR WORK SESSION IN THE CITY COUNCIL CHAMBERS. MOTION. VOTE:Unanimous. The motion carried. EXECUTIVE SESSION BE HELD AT 6:00 P.M P.M.ON MONDAY,JULY 19,1999,IN THE CHAMBERS RESPECTIVELY:AND Vice Mayor Surra SECONDED THE Councilmember Durbala MOVED THAT AN .AND A WORK SESSION AT BE HELD AT 7:00 CITY CONFERENCE ROOM AND CITY COUNCIL THAT AN EXECUTIVE SESSION AT 6:00 P.M. THE CITY CONFERENCE ROOM. MOTION. VOTE:Unanimous. The motion carried. INFORMATION AND REPORTS BE HELD ON TUESDAY,JULY 20,1999,IN Councilmember Eck SECONDED THE Councilmember Urich stated she went to the 4th of July celebration at the high school and she thought it was better than last year.She received a lot of compliments from the citizens,and she thought it was a good crowd. Mayor Coleman stated it was a massive crowd. Vice Mayor Surra stated the crowd was so massive she and her family stayed home and watched the fireworks from her roof. Councilmember Durbala stated his family watched it from the golf course and the sprinklers went off just as his son got up. REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 42 OF 44 ADJOURNMENT )Mayor Coleman adjourned the meeting at 11:24 p.m. Consent Agenda Items are as follows: 1.Acceptance of Agenda. 2.Acceptance of Minutes of Regular Meeting of June 15,1999. 3.Recognition of Outstanding Service to the Community by City Employees. Employees receiving recognition are:Public Works employees;Parks and Recreation employees;Kraig Carmickle;and "B" Hoyt. 4.Acceptance of the Annual Report of the Apache Junction Public Library Board of Trustees for 1998-99 fiscal year. 5.Approval of Resolution No.99-42,Authorizing the execution and delivery of an equipment lease/purchase agreement for software from Vision Software,Inc.for the Public Safety Department and from Tidemark Computer Systems,Inc.for the Development Services and City Clerk's Departments. 6.Approval of Resolution No.99-38,Authorization for staff to apply for a lease of a portion of "Silly Mountain" from the United States Department of Interior for recreational and public purposes. 7.Authorization for City Manager to enter into Intergovernmental Agreement with Apache Junction Unified School District No.43 for vehicle use for special trips. ACCEPTED THIS 3RD DAY OF AUGUST ,1999,BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA. SIGNED AND ATTESTED TO THIS 3RD DAY OF AUGUST ,1999. DOUGLAS CpLEMAN Mayor REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 43 OF 44 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 6th day of July,1999.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 27th day of July,1999. KATHLEEN CONNELLY City Clerk REGULAR MEETING OF THE CITY COUNCIL JULY 6,1999 PAGE 44 OF 44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ORIGINAL CITY OF APACHE JUNCTION CITY COUNCIL MEETING JULY 6, 1999 8:00 P.M. A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 12 a,.I. 14 15 16 17 18 19 20 21 22 23 24 25 July 6, 1999 MAYOR COLEMAN:Apache Junction City Council.I appreciate your patience with us.We've had many meetings where we're already out by the sign rather than just starting. Our invocation will be led by Vice Mayor Surra and the Pledge of Allegiance by Council Member Urich. (Invocation Led by Mayor Surra) (Pledge of Allegiance Led by Council Member Urich) MAYOR COLEMAN:Thank you. Roll call. THE CLERK:Mayor Coleman? MAYOR COLEMAN:Present. THE CLERK:Vice Mayor Surra? VICE MAYOR SURRA:Here. THE CLERK:Council Member Dietz? COUNCIL MEMBER DIETZ:Here. THE CLERK:Council Member Durbala? COUNCIL MEMBER DURBALA:Here. THE CLERK:Council Member Urich? COUNCIL MEMBER URICH:Here. THE CLERK:Council Member Insalaco -- Mayor Council Member Insalaco is on vacation.He will not be here this evening. Council Member Eck? A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COUNCIL MEMBER ECK:Here. THE CLERK:Six members present.We have a quorum, Your Honor. MAYOR COLEMAN:Thank you. I'll call for a motion on the consent agenda. VICE MAYOR SURRA:Your Honor? MAYOR COLEMAN:Vice Mayor? VICE MAYOR SURRA:I move that the consent agenda be accepted as presented and that we recognize the outstanding service to the community by the following City employees: The Public Works staff, the Engineering staff, the Parks and Recreation staff, Parks and Recreation Pool employee Craig Carmikel (phonetic), and maintenance supervisor Bea Hoyt (phonetic); and that the annual report of the Apache Junction Public Library Board of Trustees for fiscal year 1998/99 be accepted as presented; and that resolution number 99-42, a resolution of the Mayor and City Council of the City of Apache Junction, Pinal County, Arizona, authorizing the execution and delivery of equipment lease purchase agreement and related instruments and determining other matters in connection therewith be approved; and that resolution number 99-38, a resolution of A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the Mayor and City Council of the City of Apache Junction, Arizona, authorizing City staff to apply for a lease of a portion of Silly Mountain from the United States Department of Interior, and recreate -- for recreation and public purposes be approved; and that the intergovernmental agreement between Apache Junction Unified School District Number 43 and the City of Apache Junction for a vehicle use for special trips be approved with the amendment that the ending date as shown in section 2.2 be changed to June 30th, the year 2000, and that authorization be given to the City manager to sign that agreement. COUNCIL MEMBER URICH:Second, Your Honor. MAYOR COLEMAN:Moved and seconded. Roll call. THE CLERK:Council Member Dietz? COUNCIL MEMBER DIETZ:Yes. THE CLERK:Council Member Durbala? COUNCIL MEMBER DURBALA:Yes. THE CLERK:Council Member Eck? COUNCIL MEMBER ECK:Yes. THE CLERK:Council Member Urich? COUNCIL MEMBER URICH:Yes. THE CLERK:Vice Mayor Surra? VICE MAYOR SURRA:Yes. AfVvlIZONRCS,TN.C. Professional Court Reporting & Transcription Phoenix, AZ- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 THE CLERK:Mayor Coleman? MAYOR COLEMAN:Yes. THE CLERK:Unanimous, Your Honor. MAYOR COLEMAN:Thank you. Item number eight, presentation and possible discussion from Jim Carey, Senior Vice President:of Operations, for MediaCom (phonetic).And, Mr, Shook, perhaps I could go to you for an introduction and -- MR. SHOOK:Yeah.Please approach the podium.My first time meeting him as well, so -- MAYOR COLEMAN:Oh, okay. VICE MAYOR SURRA:Well, may I introduce Mr. Carey, our City Manager, Curtis Shook.And Curtis, may I introduce Mr. Carey. MR. CAREY:Your Honor, members of council, thank you for having us tonight. FEMALE VOICE:Could you move the microphone up, please.Thank you. MR. CAREY:Oh.Is that better? FEMALE VOICE:Yes. MR. CAREY:I'll be brief.I know you're running late tonight, but we do appreciate this opportunity to come by. Again, I'm Jim Carey, I'm Senior Vice President of Operations for MediaCom, and .we the company that A/VI, TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 •12 13 14 15 16 17 18 19 20 21 22 23 24 •25 purchasing the assets of Triax Cablevision.And we hope to have that transaction done sometime in October and we'll be taking over the cable operations that serve Apache Junction here. With me tonight I have Lou Gentile (phonetic) who's our western regional manager.He's in Sun City, California. And with him is the general manager of our Sun City systems, Cheryl Smith. We've got some informational material I'd like to just pass out for you, and you can look at this at your leisure, and I'll just go over a few things in it. We've got information about our company, some latest press releases, some of the acquisitions that we've done here in the last year.We've also got numerous testimonial letters from government officials from around the country where we do business affirming the fact that when we purchase cable systems that we come in and live up to our obligations and do what we say we're going to do. We started our company in -- just to give you a little history of it -- in 1995.Roko Kimeso (phonetic) is the founder and chairman.He's got a strong financial background.He was with Chase Manhattan Bank, senior vice president, and several other financial institutions before he got into the cable business 25 years ago.I've got 20 years in the business myself, and all of the senior management team A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ • 1 2 3 4 5 6 7 8 9 10 11 •12 13 14 15 16 17 18 19 20 21 22 23 24 •25 7 have been around quite awhile in this industry.And we -- Roko and I actually worked together with CableVision Industries (phonetic) before he put this company together in 1995. Started out with the purchase of a system in Richcrest (phonetic), California, which was the first acquisition, and then last year at this time, which made us a real company, we purchased the assets of U.S. Cable, which was owned by CableVisiion Systems, which was about 250,000 subscribers in eight states throughout the southeast and midwest. Their secondary, smaller markets, much similar to Apache Junction here, growing areas, suburban areas, and that's what we're focusing on.We like to go in to these type of areas and provide the same level of service that the big companies are providing in the big cities.And that's where we think we've found our niche.And we -- when we purchased the U.S. Cable properties last year, there were 10,000 miles of cable plant (phonetic) stretched over eight states, like I said.And we rebuilt half of that last year, and we're totally rebuilding the rest of that acquisition this year.And we'll be completely done, it'll be state-of-the-art, 750 megahertz cable systems, digital technology, two way plants with Internet access, all the bells and whistles that all the big city cable systems have. ANv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ • 1 2 3 4 5 6 7 8 9 10 11 •12 13 14 15 16 17 18 19 20 21 22 23 24 25 8 That's our focus and we are very excited about coming into this market and providing the same level of service that we're providing throughout the rest of the company -- the country. So with that, I will take any questions that you might have and answer any questions or concerns, and -- or my staff if any of you have any questions for them. MAYOR COLEMAN:Thank you, Your Honor. Council Member Urich? COUNCIL MEMBER URICH:Looking at your MediaCom pledge, I'm -- it just my heart good to hear you mention -- provide first class customer care and a consistently superior product with the level of reliability customers expect, because that's one thing I would like to see negotiated, is to put customer back into customer service, because that has not been occurring.I'm sure you probably have had a chance to read the contract and I'm sure based on what you're saying here and you want to become I believe the eighth largest cable company -- MR. CAREY:Right. COUNCIL MEMBER URICH:-- in the country. MR. CAREY:Correct. COUNCIL MEMBER URICH:Do you have any problems with any of the requests that we've asked for in the contract that we have with Triax? A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. CAREY:Well, we've been informed and kept up to date with the negotiations, and of course those are going on between yourselves and Triax, and we're a third party to that right now; however, when this transaction is done, whatever agreement is struck between you and Triax, we will live up to 100 percent. COUNCIL MEMBER URICH:How about the entire contract -- if they went with the entire contract, could you live with the entire contract? MR. CAREY:Well, I think that you know we're involved and we're participating in the negotiations with that, and I believe that whatever -- and surely whatever is struck as a deal will become our obligation to fulfill.So, yes. COUNCIL MEMBER URICH:So that's a commitment I'm hearing from you? MR. CAREY:It's a commitment to fulfill the obligations as set forth in the contract. COUNCIL MEMBER URICH:And you're certainly for customer service? MR. CAREY:Absolutely. COUNCIL MEMBER URICH:Thank you. COUNCIL MEMBER DIETZ:Does that mean back at your home office or does that mean local? MR. CAREY:We have four regions.Our company is A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 10 broken up into four regions.We have a regional office in Sun City, California; we have one in Benton (phonetic), Kentucky; we've got one in Gulf Breeze (phonetic), Florida; and we've got one in Dagsburrough (phonetic), Delaware. COUNCIL MEMBER DIETZ:So customer service calls would be directed to one of those centers? MR. CAREY:No.The western region, which this system will be operated out of in Sun City, serves systems in Clear Lake, California, Ridgecrest, Kern Valley, Valley Center, and Nogales, Arizona.We have a system in Arizona now.They all have their own separate facilities in each system.They answer their own telephone calls and then they do all of that locally. Now, how we're going to do -- manage it -- the system out of here, we're just not that far enough along to determine and for me to give you an honest answer as to how we're going to do that.It would be my recommendation I think to Lou (phonetic) you know that we establish some sort of presence here where we do have telephone lines; however, •you know it's just really too early to say. COUNCIL MEMBER DIETZ:Now, would the published phone numbers -- MR. CAREY:But the furtherest (phonetic)(sic) away it would be would be Sun City, California, which is you know much closer to the situation than it is now. A/Vv TRONICS, INC. Prolessional.Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 •12 13 14 15 16 17 18 19 20 21 22 23 24 •25 1 1 MAYOR COLEMAN:Let me go over to Councilman Eck. COUNCIL MEMBER ECK:Sir, did I hear you right? You -- if a customer had a problem and called you after hours, you will have a local number that they call with a 24 hour person on stand-by to take care of that emergency? MR. CAREY:We run service -- we run customer service 24 hours a day, seven days a week.If a customer calls at 3:00 in the morning from anywhere in the country, they can order HBO, they can get a service call, they can -- COUNCIL MEMBER ECK:Can they get somebody out to repair their cable? MR. CAREY:Absolutely.Absolutely. COUNCIL MEMBER ECK:ASAP? MR. CAREY:ASAP.It's the only way we can operate. COUNCIL MEMBER URICH:It's a live voice they're going to hear? MR. CAREY:Pardon? COUNCIL MEMBER URICH:A live voice they're going to hear? MR. CAREY:Live voice 24 hours a day, seven days a week.That's the way we operate our systems now and that's the way -- that's the only way that we can figure we can -- COUNCIL MEMBER ECK:So all your -- the areas you mentioned have this local number at each individual area and A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 12 they have a local representative out then. MR. CAREY:In our call centers today, yes. COUNCIL MEMBER ECK:And that's the way you would run Apache Junction? MR. CAREY:Right. VICE MAYOR SURRA:Do you know your average turnaround for response to a call -- a service call to the home? MR. CAREY:To a service call?We respond to 97 percent of our calls within a 24 -hour period. MAYOR COLEMAN:Council Member Durbala? COUNCIL MEMBER DURBALA:Well, I have two questions that -- one is I think what everybody's eluding to, you actually have an office in Apache Junction staffed by people here Monday through Saturday or Monday through Friday; is that true? MR. CAREY:Do they have an office now?Does Triax have an office?Are you asking me what we would do? COUNCIL MEMBER DURBALA:Well, I'm asking you will MediaCom have an office -- MR. CAREY:Oh.Like I said, it's really too early to - COUNCIL MEMBER DURBALA:So -- MR. CAREY:-- for me to tell you how we're going to manage that system, but there's an office there now, ANv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 13 there's certainly service people there, and there's customer service representatives -- COUNCIL MEMBER DURBALA:Well, that's debatable, I can tell you that by many people in the community, so -- MR. CAREY:Oh.Oh, okay.. Well, I -- you know -- okay.We're different -- COUNCIL MEMBER DURBALA:What I'm asking though -- what I'm asking you is Triax has promised us a lot of things such as a local office -- MR. CAREY:Right. COUNCIL MEMBER DURBALA:-- but when our,people call and you call up, you get connected in Minnesota. MR. CAREY:Well, let me tell you worst case as to how it would be.Worst case, that call would go to one of our operating call systems that are opened 24 hours a day, seven days a week. COUNCIL MEMBER DURBALA:Uh-huh. MR. CAREY:That call would be dispatched immediately locally here for somebody to go to run.It would be -- we would provide a 24 hours a day, seven day a week service. COUNCIL MEMBER DURBALA:Okay.I think we're kind of beating around the bush here. MR. CAREY:Right. COUNCIL MEMBER DURBALA:What I'm asking is if I go AJVv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 14 to someplace in the City, MediaCom's going to have an office, I can walk in at 9:00 in the morning or 2:00 in the afternoon, and I can talk to a human body.Yes or no? MR. CAREY:Yes.Yes. COUNCIL MEMBER DURBALA:And that would be like Monday through Friday or Monday through Saturday?Normal business hours. MR. CAREY:Probably Monday -- Monday through Saturday.Saturday morning at least. COUNCIL MEMBER DURBALA:Okay. MR. CAREY:But -- COUNCIL MEMBER DURBALA:Then my next question is I know you're saying you're too -- not too far along yet or maybe you don't have the information yet.I'd like to get some kind of idea what your rates are going to look like. MR- CAREY:Pretty similar to what they are now.I mean we're not going to come in and raise the rates.We're going to -- COUNCIL MEMBER DURBALA:Well -- MR. CAREY:-- we're going to do this.We're going to rebuild the system -- COUNCIL MEMBER DURBALA:Right.I realize that. That's -- MR. CAREY:-- we're going to bring it up to a state-of-the-art facility, we're going to do customer surveys A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 15 to determine what kind of programming is needed, wanted, and accepted by the community, and we're going to -- of course programming costs money and we're -- we would certainly have to adjust the rates accordingly. Now, we don't -- you know we don't come in and arbitrarily raise the rates without adding any services or anything else.And going forward, quite frankly, the rates are getting to a point to where we know we're going to -- we're having to.-- you know grow our business with ancillary revenue streams, such as digital (indiscernible), Internet access service, even telephony as we go forward. COUNCIL MEMBER DURBALA:Okay.Well, we've had a -- VICE-MAYOR SURRA:And telepathy?that sounds interesting.I might sign up for that. COUNCIL MEMBER DURBALA:We had a survey done a couple years ago which _actually has been higher than any of the City elections, so that gives you an idea where people are more concerned about their cable than some of the other things that go on in the community.We would be glad to pass that along to you to give you an idea of what some of the people said what they were looking for services to help you in your survey. MR. CAREY:Well, you know we do very -- you know we know how to do high quality professional surveys -- A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 •12 13 14 15 16 17 18 19 20 21 22 23 24 •25 16 COUNCIL MEMBER DURBALA:Well -- MR. CAREY:-- and that we'd love to see your information.However, you know I can't speak you know I mean however Triax operated is one thing.We know how we operate. We know what -- you know -- COUNCIL MEMBER DURBALA:Okay.Well, we're -- I think what we're trying to do is to find out how you operate. We do know how Triax operates and we do want to get something a lot better. MR. CAREY:Well, this -- we've got -- we're full of references right here.You're welcome to call any of these or -- you know -- COUNCIL MEMBER DURBALA:Well, I've seen that you had a number of them in here.I don't know how many -- 20 -- 25? MR. CAREY:Yeah. COUNCIL MEMBER DURBALA:Thirty -- maybe 40 from different cities -- MR. CAREY:And -- COUNCIL MEMBER DURBALA:-- and communities. MR. CAREY:Absolutely.Give any of those people a call and ask them that -- when we came in and committed just like I stood up last year and went to a number of these communities and told them what we were going to do with those properties after we bought them, and believe me, those people A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ • 1 2 3 4 5 6 7 8 9 10 11 12 1., 14 15 16 17 18 19 20 21 22 23 24 25 17 will tell you that we did exactly what we said we were going to do. COUNCIL MEMBER DURBALA:I do like, such as Councilman Urich, I do like a couple things in your pledge about the service 24 hours a day by phone and by email which is pretty nice to have.I do also like the on -time guarantee.We make a promise to our customers to arrive on time for all scheduled installation service appointments.If we fail, the customer is compensated with a free installation or a $20 service credit. MR. CAREY:And we offer a money -back guarantee. If you're not satisfied, we give you your money back. COUNCIL MEMBER DURBALA:Right.That says for 30 days.And I do like it where you put in here a commitment to the community because I don't think I've ever seen too many people from the Triax -- MR. CAREY:Well, you'll -- COUNCIL MEMBER DURBALA:-- be involved in a lot of community -- functions.That's why I was wanting to make sure you had a local office in the sense -- MR. CAREY:Let me just -- yeah.Let me tell you today is the first time I've been to Apache Junction.I've been to Phoenix a number of times; I've never been out here. But I'm telling you we are just completely overwhelmed at the growth that's out here.And this is going to be one of our A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 •12 13 14 15 16 17 18 19 20 •21 22 23 24 •25 18 primary markets.I mean it's going to be one of the best growth areas that we have in a company that's serving -- that will be serving 750,000 subscribers.And we are going to -- I mean your -- we're going to be all over this place.I mean you're going to see us, we're going to be involved in the community, we're going to put people in here that know how to get involved in the community, and we're going to -- you know we're going to cater to your needs.We want to be a part of this growth. COUNCIL MEMBER DURBALA:Okay.I would like to ask you one question.Before the transfer hearing if that -- when that comes up, if possible if we can't see a copy of your projected rates at that time, because by that time you should be able to know what you're going to be doing.Is that possible? MR. CAREY:We're not -- we have no -- we have -- I'll tell you right now.We have no intention of touching the rates you know at the close.I mean we're going to close in September/October you know.And we certainly wouldn't adjust any sort of rates you know inside a 12 month period since they've been adjusted.And we certainly wouldn't do that without adding some sort of services and we wouldn't add the services unless you know we could substantiate that through surveys. COUNCIL MEMBER DURBALA:Okay.And then as far as A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2‘r 25 19 putting the -- one of the 750 megahertz -- MR. CAREY:Right. COUNCIL MEMBER DURBALA:-- how long is that going to take you?The two years?Less than that? MR. CAREY:It -- I tell you -- I will tell you unofficially that it -- we're going to do it less than that in this market because this is such a strong market.I mean we want to get this one done.This one -- you -- MAYOR COLEMAN:Like within 12 months? MR. CAREY:You -- I mean you people -- I tell you -- yeah.You know I know what you're -- I mean you've got some serious growth going on here.And I know that it's taking a lot for you people to keep up with that.I mean this is phenomenal tome.I just rode around today and I absolutely could not believe it.And I'm from Atlanta, Georgia, and every time you wake up in the morning, there's a new house in front of you -- COUNCIL MEMBER DURBALA:Right. MR. CAREY:-- but this is incredible.It really is. COUNCIL MEMBER DURBALA:Then what about like the Internet system or Internet service, will you also be a provider with that in a short period of time or -- MR. CAREY:Yes, sir. COUNCIL MEMBER DURBALA:Okay.And one thing that A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 20 I guess most people ask about and I'm -- we keep getting the run around from the present company here, is are you going to be able to get the Suns games.We get told all kinds of things and -- MR. CAREY:Can't tell you.I'm sorry.I just couldn't answer that.I'm not that far along with this thing yet to understand that issue, but -- COUNCIL MEMBER ECK:Well, with that though there's possibility that there might have to be a purchase from another cable company in order to get the Suns games, but what our situation is is over here they're watching these games that we're not getting, and there's other companies purchasing this from that company, and our citizens want that. COUNCIL MEMBER DURBALA:- A little less than three miles from the -- COUNCIL MEMBER ECK:They want to be able to see that, so -- COUNCIL MEMBER DURBALA:-- city limits. COUNCIL MEMBER ECK:-- are you willing to? MR. CAREY:I will certainly take a look at it and I will get focused on the issue and give you an answer back as soon as I possible can within the next two to three weeks, if that's acceptable.I've just -- you've just got me blindsighted.I don't -- I'm not aware of the issue. A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 11111 12 4.‘ 1 .3 14 15 16 17 18 19 20 21 22 23 24 25 21 COUNCIL MEMBER ECK:Well, yeah, I know they have the Braves and you know the Hawks and -- in Atlanta, but we have our Suns. MR. CAREY:I know who the Suns are and I just -- COUNCIL MEMBER URICH:Do you have any idea of what your satisfied customers -- what percentage of satisfied customers that you have? MR. CAREY:Well, let -- COUNCIL MEMBER URICH:I mean how many times have you had to give the money back? MR. CAREY:-- I'll tell you we're dealing with this.I mean we -- we're coming in to a lot of systems that have been neglected over the past.And you know I can't speak this one.I'm saying that the ones we have purchased in the past were somewhat neglected, they were quote "stepchildren" of larger cable companies that had metropolitan markets and they did not want these smaller market systems. We came in, purchased those, and we're cleaning up years of a bad image in these systems.And I think that what we have done in a couple of years is phenomenal and I think that we have brought a lot of customers around.It's substantiated with the growth rates that we had last year after we rebuild this -- these systems.A lot of customers that had fallen off, that had abandoned the service, came A/Vv TRONICS, INC. Professional Court Reporting & Transcription ' Phoenix, AZ • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 22 back to us.The mayors, the councils, gave us testimonial letters.As a matter of fact, we were named Business of the Year in Gulf Breeze, Florida, which had a bad history of being very unhappy with their cable service down there before we bought it. So these things take time.I mean you don't just -- I mean you have to spend millions and millions of dollars to rebuild one of these cable systems and then you have to you know promote good will.We have to deal with you people to make you realize that we're serious about what we're doing.And then we have to convince the customer that we're providing a product that's worth what we're charging them for it. COUNCIL MEMBER URICH:Well, my brother lives in Athens, not too far from Atlanta. MR. CAREY:Athens, Georgia?I was born in Athens, Georgia. COUNCIL MEMBER URICH:Really. MR. CAREY:As a matter of fact, I went to the University of Georgia. COUNCIL MEMBER URICH:Really. MR. CAREY:Yeah. VICE MAYOR SURRA:We -- one would never know that -- MR. CAREY:So I know all about Athens. AfVv1IWNRCS,ENC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 23 COUNCIL MEMBER URICH:The humidity is a lot better out here. MR. CAREY:Well, it sure is, but it's a lot hotter here, so -- COUNCIL MEMBER URICH:But it's a dry heat. MR. CAREY:It is -- you know. MAYOR COLEMAN:Vice Mayor Surra? VICE MAYOR SURRA:Mr. Carey, would you be able to outline for me please the process that you use in order to determine when and if you're going to expand the service that you're going to provide locally here?What will be the contributing factors that you will use to determine how many local offices you will have and where you might be locating them? MR. CAREY:Well, I don't think that you know a 10,000 subscriber -- more or less this is 8,000 subscribers and there's a lot of seasonal activity that comes and goes during the year.I don't think that a market this size would warrant more than one office here.We have much larger systems where we can really accommodate the needs of the customer with one office, and I think if we had one well run customer service office here, that would be sufficient. VICE MAYOR SURRA:But to answer my question then, what would be your process to determine when you would need additional local offices?What -- how would you come to that A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 24 conclusion? MR. CAREY:Well, you know we kind of -- we do customer service surveys every year and we determine it from that, from the amount of phone traffic we're getting, we do studies all the time on our incoming phones, you know what -- we hold our customer service people to strict standards on how many you know -- we answer 95 percent of our calls within 30 seconds.You know our abandonment rate, we will not tolerate anything more than three percent abandonment rate. That means a person just -- VICE MAYOR SURRA:Right. MR. CAREY:-- hangs up before we get to them. VICE MAYOR SURRA:Right. MR. CAREY:And during an outage situation, that's where that three percent comes in because everybody calling in at once and you can't accommodate them.There's no human way you can do it. So in a normal operating mode, we're answering all of our calls 100 percent of the time.When we have like a -- when a storm knocks out a town, the phones get overrun for a while, and we've managed through that process, and then we're back to even again. But we -- you know through those -- and you know when we realize -- I mean that's how we realize -- we know -- you know we've worked it out as to ---we know how many calls A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 25 a customer service representative can actually take in a day. You know how many they should take, how long they should stay on the phone, and all these sort of things.And we monitor all those processes.And if we're getting 1,000 calls, we know how many customer service reps it's going to take to handle that 1,000 calls.If that level goes up to 1100, we know we're going to need more reps, so we put them on.I mean as the phone activity increases, we increase our personnel. VICE MAYOR SURRA:Right.And that answers the question about how much staff you have.You haven't answered my question regarding the number of locations within the City limits.Will it depend on the size of the City; will it depend on the amount of foot traffic that comes in and out of an office?I understand your staffing .levels -- MR. CAREY:Right. VICE MAYOR SURRA:-- you know versus the workload for phones. MR. CAREY:Well, all of the above.All of the above of what you're saying.I mean if we were overwhelmed with walk-in traffic, if it was geographically you know -- if you were spread out 50 miles, we might need an office on each side of the location, or what have you. VICE MAYOR SURRA:But you don't really have a prescribed .process; you look at it individually, is that what A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 •25 26 you're saying? MR. CAREY:We do.We do.We do. VICE MAYOR SURRA:So we would have no way of knowing ahead of time whether we will get a local office that is centrally located within our community to what the boundaries are now and whether that would expand into satellite offices in the future; is that what you're telling me? MR. CAREY:Well, I take it that you're not satisfied with the location of the office now; is that -- VICE MAYOR SURRA:Well, I would not like to say that. MR. CAREY:Right. VICE MAYOR SURRA:I'm just interested in what you would be doing about locating an office. MR. CAREY:Okay.Well, that -- if we -- you know if we're coming in in a situation fresh to where we can build the system from scratch, you know we're going to find the most central location we can.And also the demographics; there's -- you know you have to look at -- VICE MAYOR SURRA:Yeah. MR. CAREY:-- look at the demographics of the community.There's a lot of areas in a community where there's a lot of walk-in traffic because people like to pay cash for their bills; other areas, people send all their A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ • 1 2 3 4 5 6 7 8 9 10 11 •12 13 14 15 16 17 18 19 20 21 22 23 24 4110 25 27 bills in by check.So we try to -- we look at it like that, and also the geography of the whole thing, and the densities of the population, and the -- you know all of those -- VICE MAYOR SURRA:So when there are significant changes in any of those areas, we could certainly apply to you to look at that in order to supply another location if necessary? MR. CAREY:Sure. VICE MAYOR SURRA:Thanks. MAYOR COLEMAN:Councilman Durbala? COUNCIL MEMBER DURBALA:I have a couple things.I guess we're getting more into areas that I would appreciate some answers on. How about on the governmental and economic development channels which I've noticed in other cities, of course the cities -- has their own station or their channel. And I've noticed where a lot of cities have a station that is basically given to the city, in other words, for the different businesses, no matter what kind of business -- it doesn't have to be affiliated with anybody, either the chamber, or the city, or anything like that, as long as it's in the city -- that they can use that for their low cost advertising. Do you have something like that in mind that you plan on giving the city? A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 •12 13 14 15 16 17 18 19 20 21 22 23 24 4110 25 28 MR. CAREY:Well, I tell you I really don't know of a system that gives away advertising. COUNCIL MEMBER DURBALA:Well, no, the advertising -- you're giving us the channel is all -- available for that channel to have that. MR. CAREY:But that's -- it's not available for that; it's available for government and educational access and non-profit organizations.It's -- we sell our advertising.That's a revenue stream for us. COUNCIL MEMBER DURBALA:Okay.Well, a channel that I'm talking about is basically given to the City -- COUNCIL MEMBER URICH:Excuse me. Joe. COUNCIL MEMBER DURBALA:-- to promote local businesses -- COUNCIL MEMBER URICH:Your mic apparently is off. COUNCIL MEMBER DURBALA:To give to the City to -- for local businesses to use to attract more shoppers into our community through the cable system.And that was what I was pointing at. The second thing is I was wondering if you are also going to be giving a -- the educational channel as well as a grant for that -- for the different -- for the school districts to buy equipment as well as with the city -- pay grants such as include without limited to studio and portable production equipment, editing equipment and program playback ANv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 29 equipment.I was wondering what your feelings is -- is on that. MR. CAREY:We're not -- we are not -- we're not in the midst of these negotiations.Triax -- this is being negotiated with Triax and the City.So we're out of that process right now, sir, just to be honest with you. COUNCIL MEMBER DURBALA:I'm just asking do you have that in your other contracts with other cities? MR. CAREY:We provide government access channels in some of our communities.Some use them; some don't. We -- I don't -- I can't tell you of a situation to where we allow businesses to advertise on the government access channel if that's your question.We do not allow that. COUNCIL MEMBER DURBALA:No, that was --that was a lot earlier, but we'll -- I'm talking about the other channels would be available as well as the PEG grant (phonetic) or something similar to that to assist the school districts in buying -- MR. CAREY:Whatever is -- whatever the FCC requires us to do, we do. COUNCIL MEMBER DURBALA:Okay.That all the questions I have, Your Honor. MAYOR COLEMAN:Any other questions, comments? VICE MAYOR SURRA:Well, I have a _very general one if -I might. A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30: Everyone always advertises that there are 54 channels and you know I count better than that because it doesn't even start at one.Okay?So I -- you know -- and it only goes to 53.So I just wonder you know where we get these -- because there's big gaps in between some of the channel numbers.So there are not 54 channels available to us that are active and able to be accessed. Would you agree to that statement? MR. CAREY:I will say that we know how to count and we'll tell you the right number of channels.We don't think that we can fool the public like that from our standpoint. VICE MAYOR SURRA:Okay. MR. CAREY:I -- you know if there's 53 channels, we're going to say 53. VICE MAYOR SURRA:So how many channels are we going to have when you take over in October? MR. CAREY:Whatever -- VICE MAYOR SURRA:Real channels.I mean real that I could actually tune to one you know like with my little remote? MR. CAREY:Well, right now -- let me see.And I can't -- -I'm going to take a stab at this, but I don't know . if I'M correct or not, so don't hold me to this.But I think right now that this system is maxed out channel -wise, okay? A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 31 So we're going to have to rebuild this system, we're going to have to upgrade it to 750 megahertz to have channel capacity to add channels.Right now, I think -- Steve, are we -- am I correct? MALE VOICE:Yes. MR. CAREY:I'm correct.Okay.Good.I'm right for once.But we -- there's no available space to put another channel on right now.Until we come in, rebuild the system, it's channel locked. VICE MAYOR SURRA:So that's why when we got the History Channel we lost a different channel, even though our price went up; is that what you're saying? MR. CAREY:I don't know.That's them; that's not us.But -- VICE MAYOR SURRA:Oh, okay.I just wonder if that was a common occurrence in your company. MR. CAREY:No.We -- we're not going to do that. We would rather come in and rebuild the system, create capacity, add channels as needed and necessary, as you know -- as demands by the community are directed to us, and do our business like that. I'm telling you -- I will make this statement.You will not be dissatisfied with our service.You will not have a problem with MediaCom.We are good cable operators.We come in -- we don't -- we can't understand how you know you A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 1110 12 41 .1 3 14 15 16 17 18 19 20 21 22 23 24 25 32 could run a business and spend millions of dollars for it -- this thing's costing us millions and millions of dollars. And we're not just going to walk off and forget about it.We're going to be here making sure that every penny of that money is well spent, and we're going to rebuild the system, to make sure that we can grow this business, so we can attract more money to go out and buy more cable systems and grow our business just like any other business. That's just the way it has to operate. MAYOR COLEMAN:Council Member Dietz? COUNCIL MEMBER DIETZ:I just had a comment. I wanted to thank you for coming out and it's pretty brave of you after what we've been through -- MR. CAREY:Thank you, sir. COUNCIL MEMBER DIETZ:And it sounds like that your company has got the right focus.Too bad we can't say that for the prior.And I really like your commitment to the community and I hope that comes true. MR. CAREY:It will.I promise you. COUNCIL MEMBER ECK:I had one other, Your Honor. MAYOR COLEMAN:Council Member Eck? COUNCIL MEMBER ECK:I missed one.How long will it be before, if you know, you can provide this area with Pay Per View? MR. CAREY:Well, that's another reason that -- A/Vv TRONICS, INC. Professional Court Reporting &Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 •12 13 14 15 16 17 18 19 20 21 22 23 24 •25 33 COUNCIL MEMBER ECK:How important is it to your company because it's -- MR. CAREY:Extremely important.Pay Per View is -- COUNCIL MEMBER ECK:It's very important to us and we're still trying to get Pay Per View. MR. CAREY:Well, that's one of the upsides we see here. COUNCIL MEMBER ECK:Can you drop one National Geographic Channel to put on Pay Per View?Is that -- I don't know how it works. MR. CAREY:Well, we'd rather let you know the person who wants to watch National Geographic have that --we add the Pay Per Views, but you know cable is a very narrow casted type of a media.You know you -- there's people that want to watch one channel -- I mean that's the purpose of it all.You can have 70 or 80 channels and there'll be something for everybody.And that's what -- that's why we want to rebuild the system where we can add these sort of channels.Pay Per View is a very -- is very strong growth stream for us and we you know -- especially the events you know.People like to -- COUNCIL MEMBER ECK:So you would definitely say it'd be a top priority? MR. CAREY:Top priority.Just as soon as we get A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 34 the system rebuild and if you can read you know between what I'm saying here, I mean you're channel locked, okay?I mean we've got nowhere to go with this system until we rebuild it. So we have to rebuild it right now you know. COUNCIL MEMBER URICH:Your Honor? MAYOR COLEMAN:Council Member Urich? COUNCIL MEMBER URICH:I just have one other thing. I've talked to so many of our constituents that have been so frustrated with customer service, they have switched to satellite dish.And either that or they stand in line almost to give complaints to me about the present system that we have.And I would be more than happy to have us add our letter to your stack of recommendations if it comes out that way. MR. CAREY:Well, I appreciate that.And this time next year or -- yeah, this time next year, I would imagine that that we can have that conversation and I could be proud to stand up here and tell you that I have fulfilled all of our commitments. VICE MAYOR SURRA:Well, can you give me again that time frame that you would have for the rebuild of this system? MR. CAREY:I will tell you that this will be a top priority, and we don't have the schedule nailed down yet. This is going to be a very -- this is going to be at the top A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 35 of the list out of -- you know there's 300 systems in this acquisition -- 300 little head -ins as we call them.And this is the absolute cream of the crop of the whole acquisition is Apache Junction. VICE MAYOR SURRA:Well, there is a possibility here that this franchise agreement that we would be coming to with Triax will have you know a short term until we see certain things that would be happening before it could be extended because we're -- you know we've been burned once already with a 15 year contract that was impossible to live with and we had to live with it. So if your time frame is not within that short contract time, we would have no way of being able to know whether or not we can automatically extend a franchise agreement.That's why I would need something that would -- MR. CAREY:Well, you know let's be -- VICE MAYOR SURRA:-- lead me to believe it would be worth giving a contract at all. MR. CAREY:I don't think that we want to get into a negotiating session tonight, but I would think that if we agree to a period to rebuild this system then I think it would be you know feasible for you to agree to a longer term period.Right?If we do it within that period, then give us the additional time. VICE MAYOR SURRA:But you say you're not in these ANv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 36 negotiations; it's Triax we're negotiating with. MR. CAREY:Well, you are. VICE MAYOR SURRA:So -- MR. CAREY:But if we come to you after they do this, and we want the franchise transferred, okay, we're going to have to transfer the franchise after this process. VICE MAYOR SURRA:Right. MR. CAREY:And you've got in there this window. And I say, okay, if I do it in that window, will you give me 10 more years; what will you say? VICE MAYOR SURRA:Right.And yet you made a statement earlier that says whatever we come up with in an agreement with Triax you would live with and abide by -- MR. CAREY:Well, we have to.I mean it's going to be the agreement and -- VICE MAYOR SURRA:So then you can't come to us and say can you expand that window, because you're going to agree to that. MR. CAREY:Well, you're probably right, but I think it would just be -- you know I think it would be -- you know a good thing if we showed the good will that we're going to abide by all of that that we can extend a time.Let's say we go out and borrow the money to do these rebuilds.Now, if we go to a bank and say, "Okay, we've got a guarantee that we can be in business there for two years, will you loan us $20 A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 37 million to rebuild that system?:And they say, "No.But if you go out and get 10 -- 15 years, we will." So that's what we're faced with as an operator.We have to go out and convince the banks and the investment banking firms to give us the money that we've got a license to do business where we're going to spend that money, and we got to -- which will give us an opportunity to make a payback on it. COUNCIL MEMBER DIETZ:But on the other hand, since we've been burned you know and we're looking at a short time to get this system in since we haven't had a very good system for all this time, how can -- MR. CAREY:Well, why don't you put in the agreement -- COUNCIL MEMBER DIETZ:-- how can we approve double that short amount of time to rebuild the system and then reward the extended contract? MR. CAREY:Well, that's -- I mean why don't you put that in the agreement? COUNCIL MEMBER DIETZ:It seems to me that we would stick with a -- MR. CAREY:Say, look, if you rebuild the system, we'll give you X amount of years.And if you rebuild it this quick, then you get X more years.That -- I think that would be you know agreeable. A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 38 COUNCIL MEMBER DIETZ:Ah, we'll see what happens when that -- MAYOR COLEMAN Other questions? Thank you very much.Certainly appreciate you coming out and -- MR. CAREY:Thanks.Enjoyed being here MAYOR COLEMAN:-- spending the time with us MR. CAREY:You got a great looking community and I know you're faced with all kind of challenges a s this place grow, so good luck. MAYOR COLEMAN:Thank you. MR. CAREY:And we look forward to being here with you. MAYOR COLEMAN:Thank you. ,MR. CAREY:You .bet. COUNCIL MEMBER DIETZ:Great. (Group Applauds) MAYOR COLEMAN:We'll move on to item now to call to the public.This is the time set aside at each of our council meetings for the public to address the council. If you wish to speak you must fill out a request to speak form.You may fill one out now and hand it to the City Clerk, and those are located in the rack by the door as you come in. When called upon to speak, please come forward to A/Vv TRONICS, INC. Professional Court Reporting & Transcription Phoenix, AZ