HomeMy WebLinkAbout1999-08-03 City Council Regular MinutesCITY COUNCIL
REGULAR MEETING
AUGUST 3,1999
The regular meeting of the City Council of the City of Apache Junction,
Arizona,was held on August 3,1999,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 7:30 p.m.
INVOCATION
Vice Mayor Surra gave the Invocation.
PLEDGE OF ALLEGIANCE
Councilmember Eck led the Pledge of Allegiance.
ROLL CALL
Councilmembers Present:Mayor Coleman
Vice Mayor Surra
Councilmember Durbala
Councilmember Eck
Councilmember Insalaco
Councilmember Urich
Staff Present:
(Councilmember Dietz was absent)
City Manager Curtis Shook
Asst.City Manager George Hoffman
City Clerk Kathleen Connelly
City Attorney Joel Stern
Public Safety Director Robert Warner
City Engineer Paul Stears
Development Services Director Glen Van Nimwegen
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 1 OF 40
Others Present:Long Range Planner Kate Morris
Assistant to the City Manager Michael Munroe
ACCEPTANCE OF CONSENT AGENDA
)Vice Mayor Surra MOVED THAT THE
CONSENT AGENDA BE ACCEPTED AS PRESENTED;AND THAT WE RECOGNIZE THE OUTSTANDING
SERVICE TO THE COMMUNITY BY THE FOLLOWING CITY EMPLOYEES:PARKS & RECREATION
DIRECTOR JEFF BELL;THE LIBRARY STAFF;YOUTH SERVICES LIBRARIAN LIZ BURKS;
LIBRARY EMPLOYEES MARY -JOY ZUIK AND SARAH BROWN;AND THAT THE AWARD OF BID FOR
PUBLIC WORKS 99-04,CHIP SEAL OILS,BE AWARDED TO COPPERSTATE EMULSIONS IN THE
AMOUNT OF $0.795 PER GALLON OF CRS -2P APPLIED;AND THAT THE AWARD OF BID FOR
PUBLIC WORKS 99-05,WASHED CHIPS,BE AWARDED TO MESA MATERIALS IN THE AMOUNT
OF $11.97 PER TON FOR 3/8" WASHED CHIPS;AND THAT THE AWARD OF BID FOR PUBLIC
WORKS 99-06,CRACK SEAL MATERIALS,BE AWARDED TO CRAFTCO,INC.IN THE AMOUNT
OF $0.1661 PER POUND;AND THAT THE AWARD OF BID FOR PUBLIC WORKS 99-07,FUEL
BE AWARDED TO MESA FUEL COMPANY IN THE AMOUNT OF $0.84 PER GALLON FOR DIESEL
AND $0.88 PER GALLON FOR UNLEADED;AND THAT THE AWARD OF BID FOR PUBLIC WORKS
99-09,PAVING MATERIALS,BE AWARDED TO MESA MATERIALS IN THE AMOUNT OF $24.42
PER TON FOR 1/2" AC,AND $24.74 PER TON FOR 3/8" AC,AND $24.15 PER TON FOR
3/4" AC,AND $38.84 PER TON FOR COLD MIX;AND THAT THE AWARD OF BID FOR PUBLIC
WORKS 99-10,SAND AND AGGREGATES,BE AWARDED TO PIONEER CONCRETE OF ARIZONA,
INC.IN THE AMOUNT OF $7.95 PER TON FOR ABC;AND THAT THE AWARD OF BID FOR
PUBLIC WORKS 99-11,ALUMINUM BLANKS,BE AWARDED TO NEWMAN SIGNS IN THE AMOUNT
OF $3,040.25;AND THAT THE AWARD OF BID FOR PUBLIC WORKS 99-12,STRIPING
MATERIALS,BE AWARDED TO PERVO PAINT IN THE AMOUNT OF $10,034.75 FOR WATER-
BORNE TRAFFIC PAINT,AND $2,562.50 FOR GLASS REFLECTORIZING BEADS;AND THAT
THE AWARD OF BID FOR PUBLIC WORKS 99-13,TIRES,BE AWARDED TO GCR TRUCK TIRE
CENTER IN THE AMOUNT OF $771.20 FOR FOUR 10:00R20 DRIVE TIRES,#359.98 FOR TWO
10:00R20 STEERING TIRES,$339.44 FOR TWO 9:00R20 DRIVE TIRES,$315.08 FOR TWO
9:00R20 STEERING TIRES,$635.52 FOR EIGHT 12-16.5 NHS TUBELESS -SUPER TRACTION
DUPLEX TIRES,$1,655.24 FOR ONE 23.5R25 DRIVE TIRE,$2,241.45 FOR FORTY-FIVE
P225/60R16 POLICE PURSUIT CONSTRUCTION TIRES,$742.88 FOR SIXTEEN P225/70R15
POLICE PURSUIT CONSTRUCTION TIRES,$126.48 FOR FOUR P205/75R15 HIGHWAY TREAD
TIRES,$177.96 FOR FOUR LT205/75R15 ALL SEASON TREAD TIRES,$132.08 FOR FOUR
P215/75R15 HIGHWAY TREAD TIRES,$208.32 FOR FOUR LT215/75R15 ALL SEASON TREAD
TIRES,$262.88 FOR EIGHT P205/70R15 HIGHWAY TREAD TIRES,$142.32 FOR FOUR
P215/70R15 HIGHWAY TREAD TIRES,$435.52 FOR EIGHT LT235/75R15 ALL SEASON TREAD
TIRES,AND $234.44 FOR FOUR LT 225/75R16 ALL SEASON TREAD TIRES FOR A GRAND
TOTAL OF $8,780.79;AND AWARDED TO REDBURN TIRE COMPANY IN THE AMOUNT OF
$317.27 FOR ONE 385/165R22.5 TIRE,$4,980.00 FOR TWELVE HARD ROCK LOADER
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 2 OF 40
TIRES,$154.30 FOR TWO 11L16 STEERING TIRES,$262.20 FOR SIX 700 X 15LT
HIGHWAY TREAD TIRES,$3,225.28 FOR SIXTEEN 11R22.5 DRIVE TIRES,AND $367.44
FOR TWO 11R22.5 STEERING TIRES FOR A GRAND TOTAL OF $9,306.49;AND THAT THE
AWARD OF BID FOR PUBLIC WORKS 99-14,UNIFORMS,BE AWARDED TO AMERIPRIDE LINEN
& APPAREL SERVICE IN THE AMOUNT OF $2.00 SHIRT RENTAL PER PERSON,$2.00 PANT
RENTAL PER PERSON,$10.00 SHIRT REPLACEMENT PER GARMENT AND $13.50 PANT
REPLACEMENT PER GARMENT;AND THAT THE BIDS FOR PUBLIC WORKS 99-11 SIGN
MATERIALS FOR VINYL SHEETING AND PUBLIC WORKS 99-18 MISCELLANEOUS CONCRETE
WORK BE REJECTED;AND THAT THE BID FOR CITYSCAPE/CITIZEN COMMUNITY MAGAZINE BE
AWARDED TO TRIBUNE NEWSPAPERS FOR LAYOUT,PRINTING,DISTRIBUTION TO A LOCAL
WEEKLY NEWSPAPER AND MARKETING SUPPORT OF SIX ISSUES IN THE YEAR NOT TO EXCEED
$35,000.00;AND THAT APPROVAL BE GIVEN FOR THE FINAL SIGNED DOCUMENTS ON THE
EQUIPMENT LEASE/PURCHASE AGREEMENT BETWEEN LASALLE NATIONAL BANK AND THE CITY
OF APACHE JUNCTION FOR LEASE/PURCHASE OF SOFTWARE FOR THE PUBLIC SAFETY,
DEVELOPMENT SERVICES AND CITY CLERK'S DEPARTMENTS;AND THAT APPROVAL BE GIVEN
FOR THE CONTRACT WITH SENTINEL TECHNOLOGIES,INC.FOR NETWORK/AUTOMATION
CONSULTING SERVICES IN AN AMOUNT NOT TO EXCEED $17,000 AND THAT THE MAYOR BE
AUTHORIZED TO EXECUTE THE CONTRACT PENDING APPROVAL OF THE CITY ATTORNEY;AND
THAT APPROVAL BE GIVEN TO FORWARD THE STREET LIGHT ASSESSMENTS LIST FOR ACTIVE
STREET LIGHT DISTRICTS TO PINAL COUNTY TO BE COLLECTED DURING FY 1999-2000;
AND THAT RESOLUTION NO.99-33,A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF
THE CITY OF APACHE JUNCTION,ARIZONA,DECLARING AS A PUBLIC RECORD AND
ADOPTING THOSE CERTAIN DOCUMENTS FILED WITH THE CITY CLERK AND ENTITLED "THE
CLASSIFICATION PLAN FOR FISCAL YEAR 1999-2000" AND "THE COMPENSATION SCHEDULE
FOR FISCAL YEAR 1999-2000";AND DECLARING AN EMERGENCY,BE APPROVED.
Councilmember Urich SECONDED THE
MOTION.
VOTE:Unanimous.
The motion carried.
AWARDS.PRESENTATIONS AND COMMUNICATIONS
City Manager Curtis Shook stated the city had received a letter and resolution
from the Town of Gilbert supporting Apache Junction's position on the school
development fees.He commented the city had gone through the trial and was
awaiting the decision of Judge Don.The council should be lauded for the
strength of their position and he believes the amount of support from other
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 3 OF 40
communities is very telling.At the request of council,he read the
resolution from the Town of Gilbert into the record.
Councilmember Durbala requested that a thank you letter be sent to the Town of
Gilbert mayor and council.
CALL TO THE PUBLIC
Mr.Elliott Fisher,547 E.Quail,Apache Junction,filled out a request to
speak form but was not in attendance at the time this item was called.
CITY MANAGER'S REPORT
City Manager Curtis Shook commented the Pinal-Gila County Federal
Transportation Services will be starting in the next week.He will try to get
James Rodriguez,the director,to attend the next meeting to talk about that
transportation system.This is to be a small bus service starting in Globe
and going as far west as Power Road on Apache Trail.
PUBLIC HEARINGS
PROPOSED RESOLUTION NO.99-27/DECLARING
AMENDMENTS TO CHAPTER 14 CABLE TELEVISION
A PUBLIC RECORD;PROPOSED ORDINANCE NO.
1086/ADOPTING BY REFERENCE AMENDMENTS TO
CHAPTER 14,CABLE TELEVISION;PROPOSED
CONTRACT FOR THE RENEWAL/RENEGOTIATION OF
THE CABLE SYSTEM LICENSE CURRENTLY HELD BY
TRIAX MIDWEST ASSOCIATES.L.P.)
)City Attorney Joel Stern briefed
the council on the item.These items can all be heard at once,but there must
be three separate motions.These items were continued from last time and it
will be the final hearing for each item.The resolution declares the
amendments to Chapter 14,consisting of 59 pages,a public record.It changes
what was placed into law in 1985 to reflect federal and state law changes to
cable regulations.The current licensee,Triax Midwest Associates,has asked
for a renewal.Ordinance No.1086 adopts be reference the Chapter 14
document,allowing the city to same publication costs.Copies are on file
with the city clerk.The agreement was negotiated between the city manager
and executives of Triax.Triax has filed to have their license transferred to
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 4 OF 40
another company,which is Mediacom.The transfer would have to be addressed
at another public hearing at a later date.Representatives from Triax and
Mediacom were consulted during discussion on the amendments.The changes to
the agreement include the licensee paying a 5% gross revenue to the city
annually,$200,000 government access channel funds available to the city and
$0.65/subscriber per month for the entire term of the agreement.The term is
initially 5 years;if it is upgraded to a more advanced system before December
31,2000,there would be an additional 5 year option.If the licensee is in
compliance through the eighth year,a total of 15 years would be possible as
another 5 year option would become available.They are agreeable to a central
and conveniently located service office,plus a local 24 hour telephone
number;this includes a customer service office.Other legal issues included
regard indemnification insurance,bonds,letters of credit,liquidated
damages,an appeal process,renewal transfer revocation,systems,facilities,
street occupancy operation and maintenance,and customer service provisions.
He added they had more negotiations today,and there are some changes to the
documents previously given to the council.A copy of the changes have been
provided to council today.
Mayor Coleman requested the
applicant make his presentation.
Ms.Jane Bremer,legal counsel for
Triax Communications,addressed the council.She commented they have reached
agreement on the major points outlined.They are in substantial agreement
with the documents before council,but there are two areas where they believe
the documents do not properly reflect the agreement reached today.She
believes they just ran out of time to deal with them;they are both in the
license agreement.The first is on Page 6,Paragraph 9,entitled "Integration
of Advancements and Technology".This was originally proposed for a 15 year
contract.There is now a technology review built into Chapter 14,and it is
applicable to any cable provider servicing Apache Junction.Also,the term is
now a 5 plus 5 plus 5 term,which is based on system enhancements and
technology.The second 5 years would not be available unless the system has
been brought up to a 750 megahertz system,and the third would not be
available unless the system was in compliance with the entire document and the
city was receiving service comparable to other cities of similar size.It has
its own incentives.They have agreed to the change on Page 7,at the bottom
of Paragraph 9,which would grant $25,000 to the city from Triax which the
city could use to hire a consultant to review their compliance at any time
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 5 OF 40
during the first five year term.They are requesting that be deleted with the
exception of the final sentence regarding Triax paying all fees up to $25,000
for the consultant for compliance review.The second concern is on the last
page of the handout from Mr.Stern,the Municipal Data Communications Network.
The city desires,and they have agreed,to extend the local area network which
the city currently owns to serve the Public Works facility in the city.In
order to do that during the time limit requested,they must do so with fiber
optic cable,which they will do.They have agreed to make the extension
compatible with the existing network so that data traffic can flow freely back
and forth between the city buildings connected.The agreement currently calls
for more fiber optic cable than what the city is requesting for its
residential customers;i t is double the number of fibers.She believes that
is just a mistake.The second discrepancy is an additional grant of $50,000
to equip the network;they did not agree to this.They will extend the fiber
optic at their own expense and provide it in a dark form so it can be
integrated with the existing network.They are requesting that the 12 single
mode optical fibers be stricken from F(A)and that it would say the fiber
optics would be compatible with the existing local area network;and that the
additional equipment grant of $50,000 be stricken.This would impose costs on
the customers which may or may not be supported by the customers.
Mayor Coleman requested Mr.Jim
Carey address the council.
Mr.Jim Carey,representing
Mediacom,addressed the council.He believes all of the issues have already
been ironed out.They did make comments during today's discussion and
affected future performance.They agree that the two concerns should be
changed back to the original agreement from this afternoon.
Councilmember Eck asked if they
typically have last minute negotiations where so much is going on.
Mr.Jim Carey stated they do not
find themselves in this situation very often.
Councilmember Eck commented he did
not like it at all;it should have been done months ago.
REGULAR,MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 6 OF 40
Mr.Jim Carey stated this was an
issue with Triax.
Councilmember Eck commented he was
directing towards Triax.
Ms.Jane Bremer commented Triax
rarely finds itself in this situation.Everyone used their best efforts to
conclude it in a mutual fashion,but there was 100 pages of contractual
language.
Councilmember Eck disagreed with
her.He added they had been discussing their contract with the school
district four to five months ago and the city knew nothing about it.There
were negotiations going on with the school district,but not with the city.
Ms.Jane Bremer stated Triax
initiated the process in 1997.The city wanted to conduct a needs assessment
and a technical review,and there were a number of things that the city wanted
to do.
City Manager Curtis Shook asked if
those were required as part of the informal process.
Ms.Jane Bremer stated they are not
required as part of the informal process.However,with the city's election
to do so,she believes it provided benefit to the city and the process.She
commented that everyone involved in the process did an extraordinary job in
bringing the document to the council in an agreeable form with the exception
of two minor points.These negotiations frequently take longer than what was
engaged in here.Both parties agreed to cooperate on a fast track process.
City Attorney Joel Stern asked Ms.
Bremer to point out the language she wanted deleted from Chapter 14.
Ms.Jane Bremer stated it is in the
license agreement.It is in the handout given tonight on Page 6,Paragraph 9.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 7 OF 40
City Attorney Joel Stern commented
he is aware of that,but he recalled her saying something about deleting
something from Chapter 14.
Ms.Jane Bremer stated there is a
technology review in Chapter 14.The paragraph came from a time when they
were talking about a much longer franchise term.The new one includes
performance based extensions,which were in response to the history and desire
to maintain state of the art functionality of the system throughout the term
of the franchise.
Vice Mayor Surra stated the five
plus five plus five terms did not come from the council or staff,but from
their subscribers.They could no longer trust Triax.It will stay in force
as i t is a mandate of the people.She asked if the system would be built and
in use for all the other services by December 31,2000.
Mr.Jim Carey stated it would be.
City Attorney Joel Stern stated he
needs to change the dates on that.He added some councilmembers were
concerned about the company providing the government channel and the economic
development channel to state and city licensed residential care facilities,
but not hotels and motels.
Mr.Jim Carey asked who they should
be providing this to.
City Attorney Joel Stern stated they
wanted this provided for free.
Vice Mayor Surra commented it should
be at no additional cost to hospitals and state and city licensed residential
health care facilities.
City Attorney Joel Stern added this
would even be for non -subscribers.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 8 OF 40
Vice Mayor Surra stated they thought
this would be more equitable than their having to provide it to all of them
plus hotels,motels and conference sites.
Mr.Jim Carey stated they would have
a technical problem doing that.If they put one channel in there,they would
have to trap out all of the other channels.
Vice Mayor Surra stated it would be
okay if they gave them all the other channels.The city is insisting that
they receive that channel.
Mr.Jim Carey stated they want
representatives to be able to go into the hospitals and sell cable.It would
be a technical nightmare to try to strip out all but one channel and take it
into all of these places.It would be very expensive.It is technically
impossible.
Vice Mayor Surra asked if they could
give them a good discount.
Mr.Jim Carey stated they provide
service to a number of hospitals and they do cut good deals for them.They
will give them a bulk rate that is comparable to any other location that they
serve.
Councilmember Durbala stated he did
want the hotels but when they started talking about the expenses,he suggested
they delete that section that states these channels shall be provided at no
additional cost to subscribers.
City Attorney Joel Stern asked for
clarification as to the language that would be cut.
Councilmember Durbala stated they
should delete "These channels will be provided by licensee at no additional
cost."
Vice Mayor Surra added everything
following the sentence would be cut,including that sentence.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 9 OF 40
Councilmember Durbala asked what
kind of modem speed would be available on the internet system.
fast.He was unsure of the speed.
would be their lines carrying it in.
correct.
Mr.Jim Carey stated it would be
Councilmember Durbala asked if it
Mr.Jim Carey stated that was
Councilmember Durbala commented that
they would also have access to that if they were subscribers.
Mr.Jim Carey stated they would be
able to transmit both ways 100 bits.
Councilmember Durbala asked if an
additional modem would be required.
Mr.Jim Carey stated it will require
a cable modem.The future of the industry will allow subscribers to be able
to buy their own modem if they want.
Councilmember Urich asked if
Mediacom normally goes in and makes contract negotiations at the eleventh
hour.
Mr.Jim Carey stated they do not.
They would like to start the transfer process now so they do not have to get
down to the last hour on that.
Mayor Coleman opened the public
hearing on the items.There being no one wishing to speak,he closed the
public hearing and reopened the items to council discussion.There being no
further discussion,he called for a motion.
City Clerk Kathleen Connelly
requested the council be specific and use exact words.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 10 OF 40
City Attorney Joel Stern commented
there were things that he submitted that could be submitted "as the city
attorney has discussed".
Councilmember Urich MOVED THAT
RESOLUTION NO.99-27,A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY
OF APACHE JUNCTION,ARIZONA,DECLARING AS A PUBLIC RECORD PURSUANT TO ARIZONA
REVISED STATUTES ANNOTATED ("A.R.S.")SECTION 9-802 A CERTAIN DOCUMENT FILED
WITH THE CITY CLERK AND ENTITLED "AMENDMENTS TO CHAPTER 14 OF VOLUME 1 OF THE
APACHE JUNCTION CITY CODE AMENDING IN ITS ENTIRETY CHAPTER 14 RELATING TO
CABLE SYSTEM",BE APPROVED.
Councilmember Insalaco SECONDED THE
MOTION.
VOTE:Unanimous.
The motion carried.
Vice Mayor Surra MOVED THAT
ORDINANCE NO.1086 BE READ BY TITLE ONLY WITH THE EMERGENCY CLAUSE AND THE
READING OF THE ENTIRE ORDINANCE BE WAIVED.
MOTION.
VOTE:Unanimous.
The motion carried.
the ordinance by title only
ORDINANCE NO.1086,AS READ
ATTACHMENTS OF INSTRUCTIONS
ATTORNEY.
Councilmember Eck SECONDED THE
City Clerk Kathleen Connelly read
with the emergency clause.
Vice Mayor Surra MOVED THAT
BY THE CITY CLERK,BE APPROVED AS NOTED WITH THE
THAT THE COUNCIL GOT TONIGHT FROM THE CITY
Councilmember Eck SECONDED THE
MOTION.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 11 OF 40
VOTE:Unanimous.
The motion carried.
Vice Mayor Surra MOVED THAT THE
CABLE LICENSE CURRENTLY HELD BY TRIAX MIDWEST ASSOCIATES BE RENEWED WITH NEW
TERMS AND CONDITIONS IN THE FORM PRESENTED BY THE CITY ATTORNEY AND THE CITY
MANAGER,AND THAT SUCH AGREEMENT MAY ONLY BE MODIFIED PRIOR TO EXECUTION BY
THE CITY AND TRIAX ONLY TO CORRECT FORMAT,TYPOGRAPHICAL,GRAMMATICAL,OR
CLERICAL ERRORS OR DEFICIENCIES,AND ANY SUBSTANTIVE CHANGES PRESENTED TO THE
CITY COUNCIL THIS EVENING AND AGREED UPON BY THE CITY ATTORNEY BEFORE
TONIGHT'S VOTE:FAILURE OF TRIAX TO EXECUTE TWO DUPLICATE COPIES AND CAUSE
SUCH COPIES TO BE RECEIVED IN THE CITY ATTORNEY'S OFFICE LOCATED AT 1001 NORTH
IDAHO ROAD,APACHE JUNCTION,ARIZONA,WITH A ZIP CODE OF 85219 ON OR BEFORE 15
DAYS FROM THE EFFECTIVE DATE OF THE ORDINANCE WILL INVALIDATE THE GRANTING OF
THIS AUTHORITY FOR LICENSE RENEWAL.
MOTION.
VOTE:Unanimous.
The motion carried.
considering Items 16A and 16B next.They
for a ten minute break to allow the court
meeting.He announced that Councilmember
problems and he had left the meeting.
NEW BUSINESS.
Councilmember Urich SECONDED THE
Mayor Coleman stated they would be
are under New Business.He called
reporter to collect her equipment.
Mayor Coleman reconvened the
Durbala was having some health
PROPOSED RESOLUTION NO.99-47,PRE-
ANNEXATION AND ECONOMIC AGREEMENT WITH
EARNHARDT PROPERTIES LIMITED PARTNERSHIP )
)City Manager Curtis Shook briefed
the council on this item.The city has been trying to make the Highway 60
area a good place for large retailers.This is one of the city's first
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 12 OF 40
successes.Discussions began with the Earnhardts several years ago and they
have decided to come to Apache Junction.The agreement is a partnership that
will build the interior streets and roads that will be necessary for
additional economic development in the area.This will provide needed jobs,
sales tax revenue and goods and services.It will raise the property values
in the area,and other large retailers may relocate based on what the city has
done here.He stated this does not give away permanent sales tax revenue,but
provides for a strong partnership.The applicant was in attendance to answer
any questions.
Mr.Hal Earnhardt addressed the
council.He commented the opportunity is great for them with the tremendous
growth and development in the east valley.They have been awarded the Ford
franchise for this area and they are looking for other franchises to bring to
this area.They know the area along the US 60 corridor is a growth market.
They hope to bring some growth within the community,some public service that
they can do within the schools,and assist with the location of a new police
substation.They love to get involved with the community.They appreciate
the opportunity to be involved in Apache Junction.
City Manager Curtis Shook state he
found them easy to work partnerships with.He had failed to mention earlier
that Tex Earnhardt had suggested they donate about an acre of land out of
their property for a new substation.The city has been looking at something
like this with an eye on future growth.
Vice Mayor Surra commented she
thought he was going to say that they would bring out the bull and the council
would be able to ride it.
do that,too.
any questions with the agreement.
Mr.Hal Earnhardt stated they would
Mayor Coleman asked if there were
Councilmembers Insalaco and Eck
commented they were happy with the agreement.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 13 OF 40
Mr.Hal Earnhardt commented his
family is estatic about coming out here.They plan on being a great neighbor
and doing a lot of positive things for the community.
Vice Mayor Surra asked if they were
hard and fast on their request for an 80'sign.
Mr.Hal Earnhardt stated he is not
sure.The reason is because they need to make that site a synergy point.
They need to do a lot of marketing towards that area eastbound and westbound.
At this point i t is speculative;they believe there is a suppression of about
20'to 25'from the freeway to the ground at that location.After running a
balloon up,it appears they will need an 80'sign to get an adequate view from
both directions,especially westbound.It is of utmost importance to them to
advertise themselves and make it a destination point at this time.They
believe they will need that,but if it needs to be less,they will hope to
make it up another way.
Mayor Coleman commented the language
states "no fewer than 80'in height".He asked if they could make it a
maximum of 80'in height,and do a study with the city staff to come up with
what they need but no go beyond that.He is concerned about how it will look
from both directions.
Mr.Hal Earnhardt stated they would.
At this point they are just estimating,but they believe it is close to that.
He is willing to have it say it will not exceed 80 feet.If it needs to be
less,they are willing to work with Mr.Shook and staff.
City Attorney Joel Stern asked if
that includes the height of the bull horns.
Mr.Hal Earnhardt stated that would
depend.
Councilmember Insalaco commented
when drove back from the Gold Canyon area today he realized the property in
question is down in a hole.Upon getting off at Tomahawk and checking the
area,he agreed that there is a depression of at least 25',if not more.They
need to make a few concessions for those businesses that are located in a land
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 14 OF 40
depression.The sign does need to be seen.However,he does not want to see
it over 80',and he would prefer that it be less.
Mr.Bill Waters,the person in
charge of Earnhardt construction,stated the site has no visibility westbound.
There is some eastbound.Visibility is very important in the car business.
The signs will give them as much visibility as possible.
Mr.Hal Earnhardt stated they want
to have a user friendly facility.He agreed that an 80'sign is a lot of
sign,but i t is important to them.They are trying to build a state of the
art,ozone free car dealership.Their business is highly competitive.They
will have to really market and merchandise the area.
Mayor Coleman closed the discussion
and called for a motion.
Councilmember Eck MOVED THAT
RESOLUTION NO.99-47,A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY
OF APACHE JUNCTION,ARIZONA,AUTHORIZING THE CITY OF APACHE JUNCTION TO ENTER
INTO A PREANNEXATION AND ECONOMIC DEVELOPMENT AGREEMENT WITH EARNHARDT
PROPERTIES LIMITED PARTNERSHIP,AUTHORIZING THE MAYOR AND STAFF TO TAKE ANY
AND ALL STEPS NECESSARY TO ACCOMPLISH THE ABOVE,AND DECLARING AN EMERGENCY,
WITH THE FOLLOWING AMENDMENT;THAT IN SECTION 6.H.(5),A REDRAFT WITH THE
DELETION OF REFERENCE TO THE BOARD OF ADJUSTMENT:ALSO THAT THE MAXIMUM HEIGHT
SIGN IS NOT TO EXCEED 80 FEET IN HEIGHT.
Councilmember Insalaco SECONDED THE
MOTION.
VOTE:Unanimous.
The motion carried.
City Clerk Kathleen Connelly stated
the resolution passes without the emergency clause due to there only being
five councilmembers voting on the item.
City Attorney Joel Stern added it
would be effective in thirty days.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 15 OF 40
PROPOSED RESOLUTION NO.99-46/APPROVAL FOR
SUPERSTITION MOUNTAIN COMMUNITY FACILITIES
DISTRICT NO.1 TO EXTEND SERVICE BEYOND
CITY LIMITS
)City Attorney Joel Stern briefed
the council on this item.This resolution will allow the district to extend
its boundaries in order for the Earnhardt property to receive sewer hook up.
It is required for all pre -annexation agreements where there is no sewer hook
up.
Mayor Coleman opened the discussion
on the item.There being no discussion,he called for a motion.
Councilmember Urich MOVED THAT
RESOLUTION NO.99-46,A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY
OF APACHE JUNCTION,ARIZONA,GRANTING PERMISSION TO THE SUPERSTITION MOUNTAIN
COMMUNITY FACILITIES DISTRICT NO.1 TO PROVIDE SERVICE TO CERTAIN PROPERTY
LOCATED OUTSIDE THE CORPORATE LIMITS OF THE CITY OF APACHE JUNCTION,BE
APPROVED.
Councilmember Insalaco SECONDED THE
MOTION.
VOTE:Unanimous.
The motion carried.
PUBLIC HEARINGS.(Continued)
PROPOSED RESOLUTION NO.99-48/DECLARING
"APACHE JUNCTION GENERAL PLAN,DATED
AUGUST 3,1999",A PUBLIC RECORD;PROPOSED
RESOLUTION NO.99-49/APPROVAL OF "THE
APACHE JUNCTION GENERAL PLAN,DATED AUGUST
3.1999"
)Development Services Director Glen
Van Nimwegen briefed the council on the item.A copy of the general plan had
been given to the council late last week,and he understands council wants to
spend more time on it.This had been advertised as .a public hearing for
public comment,and consultant Rick Counts was there to give a short
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 16 OF 40
presentation.He added that the reviewing agency is not State Land,as he
commented last night,but the Department of Commerce.
Mr.Rick Counts,CSC/Counts,
addressed the council.On June 22,the Planning and Zoning Commission
recommended approval of the general plan with a change in the density target
of zero to one per acre in certain portions of the community as opposed to an
earlier recommendation of zero to two.Copies of the plan and the executive
summary are available for the public,and various workshops,briefings and
study sessions have been held and will continue to be held.He briefly went
over his graphic display,beginning with the current general plan status up
through the proposed general plan.He commented the basic elements in the
plan include land use,a circulation plan,public services and facilities and
a housing element.The growing smarter elements indicate open space,
environmental planning,growth areas and the costs of development.The final
section of the document develops a full implementation strategy,including
land use decision keys to be used as a guideline only.A time line has been
suggested for the final document,and the final document will include a
glossary and appendices.
Mayor Coleman opened the public
hearing on the items.
Mr.Elliott Fisher,547 E.Quail,
Apache Junction,addressed the council.He was happy to hear Mr.Counts
finally talking about transportation;he recalled talking to him at an earlier
meeting and being told transportation would not be a consideration in the
general plan.He hopes the transportation concern will continue.He is
concerned about the large single family and 55+ housing subdivisions coming in
with very few multi -family units coming in.Many of the low income workers
cannot afford to buy a single family home in Apache Junction,and they would
not want to live in some of the rental housing available in the city.The
city is at the point where multi -family housing is needed.
Mayor Coleman asked Mr.Fisher if he
needed help reading the map or being able to understand the designated areas
on i t for multi -family housing.
Mr.Elliott Fisher stated he has
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 17 OF 40
never gotten the map.He requested the map at the last meeting but he never
received it.He had quickly looked at the map and he did not need help
reading it.In general,he believes multi -family housing has been excluded in
Apache Junction.The council has gone against it on other issues.Mr.Fisher
left the meeting following these comments.
Mrs.Nancy Koerner,1026 N.
Goldfield Road,Apache Junction,addressed the council.She was happy to see
the council and Planning and Zoning Commission listen to the requests of the
public to lower the density in certain areas from zero to two to zero to one.
She believes i t is important for the people to realize that they are listened
to,and that they have some say in their community.
Mayor Coleman closed the public
hearing on the items and opened the item to council discussion.
Councilmember Eck commented he was
originally for the zero to two density on the north side,and he believes
there are still some areas there that would be okay at that density,but
because of the public input he changed his mind to zero to one.He thinks it
is great that the people came out and got involved.He asked to have it
clarified that an area of 6+ is considered a multi -family area.
Development Services Director Glen
Van Nimwegen stated that is correct.The bulk of that density is along the
corridor on either side of US 60,which is where most employment will be.
Councilmember Eck commented he could
see a lot of it all up and down US 60.He asked how large the multi -family
housing is that is going in behind the former ABCO.
Development Services Director Geln
Van Nimwegen stated it is about 5 acres with 117 units.
Vice Mayor Surra commented if people
concerned about multi -family housing would stay longer they would hear an
explanation instead of just being able to give criticism.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 18 OF 40
Mayor Coleman stated he would liek
to spend more time on the general plan.He asked if they needed to be date
specific in the motion.
City Attorney Joel Stern stated they
do in order to avoid further publication costs.
Development Services Director Glen
Van Nimwegen commented the city manager had suggested a work session solely on
this item in the near future.He suggested the work session be in September
and that it be an action item at the first meeting in October.
City Attorney Joel Stern commented
the city manager had mentioned that they may want to have two public hearings.
Development Services Director Glen
Van Nimwegen commented he had thought about having a work session in
September,bringing it back before the Planning and Zoning Commission at the
end of September with another public hearing for more input,have a study
session prior to adoption,and then have another hearing.
City Attorney Joel Stern stated the
Planning and Zoning Commission would not have to see an amended version.It
would be the council's option to do so.
Vice Mayor Surra commented that is
often a good opportunity for other people to speak.It gives them two changes
to speak.
Development Services Director Glen
Van Nimwegen stated he was thinking more of a public meeting then for them to
make another recommendation.
There was general discussion on the
dates available and the exclusivity of the work session for the general plan.
Mayor Coleman closed the discussion
and called for a motion.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 19 OF 40
Vice Mayor Surra MOVED THAT WE
CONTINUE ITEMS 13A AND 13B USING THE DATES FOR A SPECIAL WORK SESSION ON
AUGUST 30 FOR NOTHING BUT THE GENERAL PLAN IN THE CITY CONFERENCE CENTER AT
6:30 P.M.;AND THEN TO SCHEDULE A PUBLIC HEARING AT THE REGULAR SESSION AND A
DECISION MAKING ITEM FOR OCTOBER 5 AT THE REGULAR MEETING.
Councilmember Insalaco SECONDED THE
MOTION.
VOTE:Unanimous.
The motion carried.
PROPOSED RESOLUTION NO.99-37/RESOLUTION
OF ASSESSMENT FOR STREET LIGHT IMPROVEMENT
DISTRICT SLID 9510-1.ARROYO VERDE PHASE 3)
)City Engineer Paul Stears briefed
the council on the item.This should be the last street light assessment that
has been pending.The street lights have already been installed,and the
resolution will order for their assessment.
Mayor Coleman opened the public
hearing on the item.
Mrs.Sandra Browning,879 W.12th
Avenue,Apache Junction,addressed the council.She requested the residents
be advised what the charges are going to be that will be assessed to them,and
she would like to know why they were not notified that there would be a charge
for street lights.She would also like to know how the charges will be
billed.
City Engineer Paul Stears stated
Arroyo Verde was done in three phases,and the street light district was done
for all of Arroyo Verde.The installation,the costs for installing 49 street
lights,and the energy costs from when the street light improvement district
was established are being charged back to the residents.The district was
started in July of 1996.The county will be levying the home owners so that
the city can be reimbursed for the payments that the city has made to Salt
River Project thus far.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 20 OF 40
City Attorney Joel Stern asked him
to explain who had asked for the street light district to be formed,when it
was asked to be created,and how it was formed.
City Engineer Paul Stears stated the
developer asked that the street light district be formed in 1996.Once it is
formed,the city fronts the money for the installation of the street lights
and the monthly energy charges.That money is collected back from the home
owners through the county property taxes.The city is reimbursed over time
for the construction costs.It generally takes a three year period to recover
the construction costs,and the energy costs are charged back each year.
City Attorney Joel Stern asked if a
developer can sell the lots before a street light improvement district is
requested.
City Engineer Paul Stears stated
they cannot have sold any lots at the time a street light district is
requested.One hundred percent of the land ownership has to request that the
district be formed;so at that time the developer owns all the property.
City Attorney Joel Stern commented
i t is up to the developer to notify the lot buyers on the issue of who will
pay for the lights.
City Engineer Paul Stears stated the
developer for this subdivision is Lennar Homes,and he cannot answer for them
as to why there was no disclosure.
City Attorney Joel Stern commented
i t is not the city's obligation to notify the lot owner.
City Engineer Paul Stears stated
that is correct.
City Attorney Joel Stern commented
i t is not the city's responsibility per state law to notify prospective land
owners whether there will be a charge for street lights once they are placed
on the streets in the public right -of ways in the future after the district is
formed.The complaint should be on the developer for not disclosing that,and
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 21 OF 40
i t is incumbent on the land owner to ask the developer how they will be paid
for.
Assistant City Manager George
Hoffman asked if they had an estimate on what these charged would be.
City Engineer Paul Stears stated the
average charge will be $99.40 for the street lights and the energy for a year.
After three years,it should go down to just the energy costs and it should be
about $30 per year.
Mayor Coleman closed the public
hearing with no one else wishing to speak.He opened the item to council
discussion.There being no further discussion,he called for a motion.
Councilmember Urich MOVED THAT
RESOLUTION NO.99-37,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 9510-1,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 DISTRICT,BE APPROVED.
Councilmember Eck SECONDED THE
MOTION.
VOTE:Unanimous.
The motion carried.
PROPOSED ORDINANCE NO.1097/AMENDMENT TO
CHAPTER 6,ARTICLE 6-1,LANDSCAPING AND
SCREENING REQUIREMENTS
)Development Services Director Glen
Van Nimwegen briefed the council on this item.Council had been concerned
with the definition of a pre-engineered building and corrugated metal.Though
they have not found a definition of the former,he did pass around a
definition of the latter.He commented the issue is really the skin of the
building,not the structure itself.He has reworded the ordinance to state
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 22 OF 40
that only two-thirds of the exterior surface of a wall could be a metal
surface in the commercial industrial zone.It means the same thing,it just
avoids the term "pre-engineered metal building".
City Attorney Joel Stern commented
that the definition of corrugated metal came from the Architecture and
Construction Dictionary.Building Official Dennis Dixon has added some
additional language regarding its use for roofing and side panels,and that
this language,if added,would be difficult to enforce.He stated he had
looked at the new language of the ordinance and he has no problem with it.
Councilmember Urich commented this
does not solve some of the issues brought up last night.We are still
allowing corrugated metal;she does not want to see that used for side panels.
Assistant City Manager George
Hoffman stated this is a broad definition of corrugated metal.The products
out there are much better products than what is generally considered
corrugated metal,such as the enclosure at the pig farm.
Councilmember Urich stated she is
not talking about the enclosure of the pig farm.She is talking about driving
around and seeing the roughness of metal buildings.She personally does not
want to continue to see those buildings.
Vice Mayor Surra commented she saw a
building today where the roof and fascia boards were on a stucco building,and
they looked like corrugated metal.It was a design feature.It was not
offensive.Anything that id done appropriately could be considered okay.
This may even have been corrugated plastic,and it was not as bad as she
thought it was going to look.She believes they need to put out a design
standard,not a standard for the materials.She commented she does not like a
solid building with no windows or one that has garage -type doors that is made
of this material.
Councilmember Eck commented he
thought their goal was to get some common structure to these buildings.He
feels they are now getting off the original goal.The corrugated metal
buildings with at least one third or half in windows or other materials look
fine.He likes the new ordinance that has been proposed.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 23 OF 40
City Attorney Joel Stern asked i f
that was the amended version or the original version.
Councilmember Eck liked the amended
version better.
Vice Mayor Surra agreed.It does
not allow flat,solid walls and it does not say whether it was built on site
or was pre-engineered.This way they are judged equally.However,she cannot
see why it has to say that it does not apply to any buildings that are not
visible to any adjacent rights -of -way.She does not think there should be a
disclaimer as all buildings are visible from somewhere,and a building is a
building.
Councilmember Urich commented that
the industrial parks that she drove through in other cities are using the
smooth metal,not the corrugated metal.
had been taken from Mesa's ordinance.
Van Nimwegen stated the one-third two
also had other stipulations.
also had other combinations of smooth
masonry.
Mayor Coleman asked if the last part
Development Services Director Glen
-third part was taken from Mesa.They
Van Nimwegen stated they used the pre-
did not talk about corrugated.
Councilmember Urich commented they
metal with the stucco or brick or
Development Services Director Glen
engineered metal building term.They
Councilmember Urich stated she is
just talking about what she saw out there.
Councilmember Insalaco asked if the
Mesa ordinance only applied to the side facing the street.However,he is not
concerned over what other cities do,he is concerned about what Apache
Junction will do.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 24 OF 40
Vice Mayor Surra stated the building
she saw was right on the road.
Councilmember Eck commented there is
a bank on Southern by the mall that is made of corrugated iron and it is
sprayed with a green copper color.It looks beautiful.He does not like the
old galvanized corrugated iron that had to be painted,but he does like the
little bit of texture the new corrugated metal shows.
Vice Mayor Surra stated it has to be
of good quality.
Councilmember Eck stated he would be
concerned if the building was one third stucco and the remainder galvanized
iron with galvanized nails.
Councilmember Urich asked if this
could be continued until staff can research what other jurisdictions have.
Vice Mayor Surra stated she did not
want to continue this.They have a good start in the way this new draft has
been written.She would like to strike the last part.
Assistant City Manager George
Hoffman read Mesa's policy.
City Attorney Joel Stern asked if
the purpose of the right-of-way visibility was to catch the back of the
building,also.
Development Services Director Glen
Van Nimwegen stated this would allow a business to build a shed in the back
behind the masonry building,and the shed would not be visible to anyone
except the workers there.
Vice Mayor Surra commented that
those little buildings could end up looking like storage containers,and they
would meet the requirement.She does not want that language in the ordinance.
City Attorney Joel Stern asked if
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 25 OF 40
the Mesa ordinance had a 600'limitation.
Development Services Director Glen
Van Nimwegen stated if the building is farther than 600'in their heavy
industrial district they do not have to do anything.
City Attorney Joel Stern asked i f
that even applied to those buildings that could be seen from the public right-
of-way.
Development Services Director Glen
Van Nimwegen stated that was correct.
Vice Mayor Surra reiterated she
would like to have the last part removed from the ordinance.
City Clerk Kathleen Connelly
suggested inserting the word "non -galvanized" prior to metal surfaces in
answer to Councilmember Eck's concern.It would then read "may be covered by
non -galvanized metal surfaces".
Councilmember Urich asked if they
could put in "covered by smooth metal surfaces".
Vice Mayor Surra commented she did
not really want to restrict for smoothness.She has seen some textured metal
surfaces that are very inoffensive.Smooth might look worse.Texture might
add something,especially if it is colored and breaks up the line a little
bit.
Development Services Director Glen
Van Nimwegen stated corrugation provides for more structural integrity.
Councilmember Insalaco stated all
the dents and ripples you see on your automobiles are to lend more strength to
the metal.
Councilmember Urich commented the
buildings she was looking at looked strong to her.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 26 OF 40
Mayor Coleman opened the public
hearing on the item.There being no one wishing to speak,he closed the
public hearing and reopened the item to council discussion.
Councilmember Eck asked if the new
part of the ordinance needed to be read into the motion.
City Attorney Joel Stern commented
they probably should for specificity.It should be read as they want it to be
read.
Mayor Coleman closed the discussion
and called for a motion.
Councilmember Eck MOVED THAT
ORDINANCE NO.1097 BE READ BY TITLE ONLY AND THE READING OF THE ENTIRE
ORDINANCE BE WAIVED.
Vice Mayor Surra SECONDED THE
MOTION.
VOTE:Unanimous.
The motion carried.
City Clerk Kathleen Connelly read
the ordinance by title only.
Councilmember Eck MOVED THAT
ORDINANCE NO.1097,AS READ BY THE CITY CLERK,BE APPROVED AND ADOPTED WITH
THE FOLLOWING AMENDMENT:UP TO TWO-THIRDS OF THE EXTERIOR SURFACE OF EACH WALL
OF THE BUILDINGS LOCATED IN COMMERCIAL OR INDUSTRIAL ZONES MAY BE COVERED BY
METAL SURFACES.AT LEAST ONE-THIRD OF THE AREA OF EACH EXTERIOR ELEVATION
SHALL INCLUDE SUPPLEMENTARY BUILDING MATERIALS SUCH AS MASONRY,STUCCO OR
BRICK.THESE MATERIALS SHALL BE USED IN COMBINATION WITH ARCHITECTURAL FORMS
AND DETAILING TO GIVE BUILDINGS THE APPEARANCE OF QUALITY AND PERMANENCY.
Vice Mayor Surra suggested they
follow the guidance of the city clerk and add "covered by non -galvanized metal
surfaces"in the first sentence.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 27 OF 40
There was general discussion as to
what constituted galvanized and non -galvanized metal.
Councilmember Eck withdrew his
original motion and MOVED THAT ORDINANCE NO.1097,AS READ BY THE CITY CLERK,
BE APPROVED AND ADOPTED WITH THE FOLLOWING AMENDMENTS:UP TO TWO-THIRDS OF THE
EXTERIOR SURFACE OF EACH WALL OF BUILDINGS LOCATED IN COMMERCIAL OR INDUSTRIAL
ZONES MAY BE COVERED BY NON -GALVANIZED METAL SURFACE.AT LEAST ONE-THIRD OF
THE AREA OF EACH EXTERIOR ELEVATION SHALL INCLUDE SUPPLEMENTARY BUILDING
MATERIALS SUCH AS MASONRY,STUCCO OR BRICK.THESE MATERIALS SHALL BE USED IN
COMBINATION WITH ARCHITECTURAL FORMS AND DETAILING TO GIVE BUILDINGS THE
APPEARANCE OF QUALITY AND PERMANENCY.
Vice Mayor Surra SECONDED THE
MOTION.
VOTE:4-1 (Councilmember Urich voted in opposition.)
The motion carried.
OLD BUSINESS.
None.
NEW BUSINESS.
None.
COUNCIL DIRECTION TO STAFF ON PROPOSED LEGISLATION OR ACTION
REVISIONS TO CITY CODE CHAPTER 2 REGARDING
EXISTING BOARDS AND COMMISSIONS
)City Clerk Kathleen Connelly
briefed the council on this item.There is the possibility of deleting from
the city code those boards and commissions that are outdated or inactive.
Staff is required to have direction from the council before they can work on
any legislation.This is before council tonight so they may give direction.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 28 OF 40
Mayor Coleman opened the item to
council discussion.He stated he liked recommendations one,two and three
given to council in the city clerk's memorandum.
Councilmember Eck asked how many
boards could be dropped.
City Clerk Kathleen Connelly stated
they could possibly drop six.She added recommendation three is an either/or.
Mayor Coleman commented he would
like to see it go back to the assigned department first for evaluation and
recommendation.After that,it should be brought back to the council with
either new assignments or tasks,or what their function is going to be.
Councilmember Insalaco agreed.
Mayor Coleman stated they should
also determine if there is a continuing need for the board.
Vice Mayor Surra stated she would
also like them to address the size of the membership.They can tell if it is
a good working number or if there are attendance problems caused by that
number,or if they have trouble filling all the vacancies.
Councilmember Urich commented they
should determine their duties and responsibilities in case they need to be
changed.
Mayor Coleman closed the discussion
and called for a motion.
Vice Mayor Surra MOVED THAT THE
FOLLOWING DIRECTION BE GIVEN TO STAFF REGARDING REVISIONS TO CITY CODE CHAPTER
2 REGARDING EXISTING BOARDS AND COMMISSIONS:THAT WE FOLLOW THE
RECOMMENDATIONS SET FORTH BY OUR CITY CLERK WITH PROCEEDING WITH ONLY FILLING
THOSE APPOINTMENTS FOR BOARDS AND COMMISSIONS THAT ARE EITHER REQUIRED BY LAW
OR CITY CREATED AND THAT ARE STILL ACTIVE;AND THAT WE REQUEST THE PREPARATION
OF NEWS RELEASES AND ANNOUNCEMENTS BY THE PUBLIC INFORMATION OFFICE TO SOLICIT
ADDITIONAL CITIZENS FOR ANY REMAINING VACANCIES THAT MAY EXIST;THAT WE REFER
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 29 OF 40
ALL THE BOARDS AND COMMISSIONS BACK TO THEIR RESPECTIVE DEPARTMENTS THAT
INTERFACE WITH THEM FOR AN EVALUATION AND INPUT WITH A RECOMMENDATION TO COME
BACK TO COUNCIL AT LATER DATE IN ORDER TO ASSESS WHETHER THEY ARE VIABLE,BOTH
IN NUMBER OF PEOPLE WHO SIT ON THE BOARD AND IF THEY SHOULD REMAIN ACTIVE OR
BE REACTIVATED OR IF THEY SHOULD BE DISCONTINUED.
City Clerk Kathleen Connelly asked
if she said all boards and commissions or just those that are inactive.
Vice Mayor Surra commented she
wanted that report about all of the boards because they might want to readjust
membership size on some.
Assistant City Manager George
Hoffman added they might want to change the scope of duties,also.
Councilmember Urich SECONDED THE
MOTION.
VOTE:Unanimous.
The motion carried.
RESEARCH AND COMPILE REPORT ON A CITY USE
TAX AS ALLOWED BY STATE LAW
)Councilmember Urich commented they
had discussed this approximately a month ago.She asked the city clerk to
discuss this item.
City Clerk Kathleen Connelly stated
this had been discussed at a work session.She again stated council needs to
direct staff before any research or work can be done on legislation.She
commented that with the arrival of a major auto dealership in Apache Junction,
people may come here from Mesa as Apache Junction has the lower -tiered sales
tax.It is 2%for the first $2,000 and then 1% above $2,000.If they live in
Mesa,they will still be paying the Mesa rate because Mesa has the use tax.
That is how it works.
Councilmember Insalaco asked that
she repeat that.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 30 OF 40
City Clerk Kathleen Connelly stated
the individual purchasing a vehicle in Apache Junction who lives in Mesa would
pay the Apache Junction rate and then would be assessed the difference between
the Apache Junction rate and the Mesa rate by motor vehicles.
Mayor Coleman stated that is because
their tax is higher than ours.
City Clerk Kathleen Connelly stated
that is correct.It is because of the tier tax.
Councilmember Eck asked if that was
on automobile sales.
City Clerk Kathleen Connelly stated
that is on any major retail purchase over $2,000.
regular sales tax was higher than Mesa's.
smaller items.
going to the mall would pay more tax.
that is incorrect.
Councilmember Eck asked if our
Mayor Coleman stated it was on
Councilmember Eck asked if people
City Clerk Kathleen Connelly stated
Mayor Coleman stated if someone
bought a major item over $2,00,and they buy it in a community whose tax is
less than ours,they would collect the Apache Junction rate.The city where
it was purchased would get their portion of the sales tax,and the rest would
be returned to Apache Junction to provide the services that the purchaser's
tax dollars are providing for them.
Councilmember Eck commented it makes
sense,but he is not sure he totally agrees with it.He would like to see it
researched further.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 31 OF 40
Mayor Coleman stated he is not
totally for it,but he would like to see it researched,also.
Vice Mayor Surra commented they need
to see some instances of benefit and disadvantages for the kinds of things
that can be purchased or not purchased here or there.
Councilmember Eck commented he would
like to see a comparison of what other communities are doing.
available in the League directory.
she believed it was.
and called for a motion.
Mayor Coleman asked if that was
City Clerk Kathleen Connelly stated
Mayor Coleman closed the discussion
Councilmember Urich MOVED THAT STAFF
BE DIRECTED TO DO ANY NECESSARY RESEARCH AND COMPILE A REPORT INCLUDING
COMPARISONS WITH DIFFERENT CITIES AND EXAMPLES ON A CITY USE TAX AS AUTHORIZED
BY STATE LAW.
Councilmember Eck SECONDED THE
MOTION.
VOTE:Unanimous.
The motion carried.
PROCESS FOR POSSIBLE REZONING OF CERTAIN
LOTS IN THE PALM SPRINGS SUBDIVISION FROM
CR-5 TO CR-5/PD
)Councilmember Urich commented this
came up during a rezoning approximately one month ago.It does not take away
from options,it gives the citizens more options.
Development Services Director Glen
Van Nimwegen stated they would be getting additional uses with the CR-5/PD.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 32 OF 40
They would be able to build a single family home,whereas right now they would
need a conditional use permit.It would take some effort to do the process.
There are 217 lots in the subdivision and they would have to notify everyone,
plus the land owners that are 300'around the subdivision.They processed
five conditional use permits last year,and those took a lot of time,also.
He believes this is worth looking into.
Councilmember Eck asked what kind of
direction staff needs.
Development Services Director Glen
Van Nimwegen stated the motion talks about the process.The city would be
paying the cost for notification,and it would not be getting any fees,but it
will probably be a savings in the long run for the city.
Councilmember Eck asked if the
property owners would still have the right to say yea or nay.
Development Services Director Glen
Van Nimwegen stated the property owners can file a legal protest.
Councilmember Eck asked if the city
would be rezoning their property without their approval.
Vice Mayor Surra stated it would,
and that is why she has a problem with it.
City Attorney Joel Stern stated the
city has the authority to rezone basically raw land against the property
owner's wishes.
Councilmember Urich asked if they
would be restricting them or giving them wider options.
City Attorney Joel Stern stated it
depends on how one reads the code.He would have to research it.
Councilmember Urich understood that
it does not take any options away,but rather gives them more options.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 33 OF 40
Vice Mayor Surra stated she could
understand giving the information to the property owners,but she has a
problem with the city being the initiator.It is like imposing the city's
will on them,and that bothers her.
Councilmember Eck thought they would
be giving them the information,showing them it is an opportunity for them,
and seeing if they would like to do it,describing the process.
Vice Mayor Surra added the city
would not charge in order to facilitate if that was their choice.
City Clerk Kathleen Connelly stated
you cannot release them from the charges.
City Attorney Joel Stern commented
that would be a gift.Also,if there is a protest of 20% or more of the
property owners,that would force a three-quarter vote to rezone.
Mayor Coleman asked why they would
want to make that many people mad at them.
City Attorney Joel Stern commented
there are cities that rezone raw property because they do not like the use.
The individual owners have yet to vest their rights by getting building
permits.It would be a political issue.He asked what the difference was
between CR-5 and CR-5/PD.
Development Services Director Glen
Van Nimwegen stated it basically takes away the requirement for getting a
conditional use permit to build a single family home.There would be a
benefit,but whether you can convince everyone that the government is doing
something to help them is the question.
Councilmember Eck stated they could
now build a multi -family residence.
Development Services Director Glen
Van Nimwegen stated that is correct.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 34 OF 40
Councilmember Eck asked if they
could still build a multi -family residence or a single family residence under
CR-5/PD.
Van Nimwegen stated they could.
not see why they would then be upset.
Development Services Director Glen
Councilmember Eck stated he could
Vice Mayor Surra stated it would be
because they would not understand or believe it.
City Attorney Joel Stern commented
the PD designation would allow the city to do certain things that they would
not be allowed under straight zoning.Uses can also be restricted in a CR-
5/PD.This could be an education process that council might want to direct
staff on rather than go ahead with the rezonings.
Councilmember Eck stated he would
still want it to be the property owner's choice.
There was general discussion on the
area that would be affected.
Development Services Director Glen
Van Nimwegen commented that some of the older multi -family is dilapidated and
the city may want to see it removed at some time.
Councilmember Eck commented they are
only talking about 32 vacant lots in actuality.
There was general discussion on
other lots in the subdivision that could be affected and the previous rezoning
to CR-5/PD to add a porch.
Mayor Coleman stated he would not
want to see a lot of effort expended if there is not a lot of interest from
the people.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 35 OF 40
Vice Mayor Surra stated she would
like to see an explanatory mailer sent out to the property owners.The
property owners could then approach the city about getting something done.
They could even apply as a group and get a bunch of them done at the same
time.She thinks it would be better if it were initiated by the property
owner.
City Attorney Joel Stern asked if
the letters are going to the property owner only,and not those within 300'of
the property.
Vice Mayor Surra stated people
within 300'do not need to know about it until someone applies for the
rezoning.
City Attorney Joel Stern commented
he just wanted to find out if she wanted courtesy notices sent out to those
within 300'of the property.
Councilmember Eck wanted i t
clarified that the city could change zoning on vacant land.
City Attorney Joel Stern stated it
can be changed on land that is already developed but the property owner would
have a vested right and they would be grandfathered with that use.Once it
was sold and the building originally on it was no longer there,then it would
revert to the new zoning use.
asking about the 32 vacant lots.
they have not gotten building permits yet
their rights have not been vested.
the rezoning should be a property owner's
and called for a motion.
REGULAR MEETINGOF THE CITY COUNCIL
AUGUST 3,1999
PAGE 36 OF 40
Councilmember Eck commented he was
City Attorney Joel Stern stated if
or have not started construction,
Councilmember
decision.
Mayor Coleman
Eck stated he believes
closed the discussion
Vice Mayor Surra MOVED THAT THE
FOLLOWING DIRECTION BE GIVEN TO STAFF REGARDING THE PROCESS FOR POSSIBLE
REZONING OF CERTAIN LOTS IN THE PALM SPRINGS SUBDIVISION FROM CR-5 TO CR-5/PD:
THAT THE CITY PROVIDE THOSE NON -DEVELOPED LOTS IN THAT AREA THAT WE DISCUSSED
WITH INFORMATION ON WHAT IS AVAILABLE FOR THEM TO LESSEN THEIR RESTRICTIONS ON
THE KIND OF DEVELOPMENT THEY WOULD LIKE TO PUT ON THOSE LOTS.
she wanted a deadline on that.
City Attorney Joel Stern asked if
Vice Mayor Surra stated she did not.
It should be a little bulletin sent by regular mail.
Councilmember Urich SECONDED THE
MOTION.
Assistant City Manager George
Hoffman stated they are to explain the situation to them and see if they want
to apply through the normal process.
Councilmember Eck suggested the
council be notified at a later date on the percentage that were interested in
this.
Vice Mayor Surra suggested notifying
them of the neighbors who have already done the rezoning,and that the
information given was initiated by a resident's request.
VOTE:Unanimous.
The motion carried.
SELECTION OF MEETING DATES.TIMES.LOCATIONS.AND PURPOSES
Vice Mayor Surra MOVED THAT AN
EXECUTIVE SESSION AT 6:00 P.M.AND A WORK SESSION AT 7:00 P.M.BE HELD ON
MONDAY,AUGUST 16,1999,IN THE CITY CONFERENCE ROOM AND CITY COUNCIL CHAMBERS
RESPECTIVELY;AND
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 37 OF 40
THAT AN EXECUTIVE SESSION AT 6:00 P.M.BE HELD ON TUESDAY,AUGUST 17,1999,IN
THE CITY CONFERENCE ROOM.
Councilmember Insalaco SECONDED THE
MOTION.
VOTE:Unanimous.
The motion carried.
iNFORMATION AND REPORTS
Councilmember Eck stated he has tried for about a year to get sanctioned
softball in Apache Junction.After working with Parks & Recreation,the
American Softball Association will hold a sanctioned tournament,the first one
in the city's history,at Prospector Park.They have agreed to hold about
four tournaments next year.
ADJOURNMENT
)Mayor Coleman adjourned the
meeting at 10:55 p.m.
Consent Agenda Items are as follows:
1.Acceptance of Agenda.
2.Acceptance of Minutes of Regular Meeting of July 6,1999.
3.Recognition of Outstanding Service to the Community by City Employees.
Employees receiving recognition are:Jeff Bell and Parks & Recreation,
Liz Burks,Mary -Joy Zuik,and Sarah Brown.
4.Approval of Annual Award of Bids for street construction and maintenance
materials for FY 1999-2000 (chip seal oils,washed chips,crack seal
materials,fuel,paving materials,sand and aggregates,sign materials
(aluminum blanks),striping materials,tires and uniform rental.
Rejection of bids for sign materials (vinyl sheeting)and miscellaneous
concrete work.
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 38 OF 40
5.Approval of Award of Bid for printing Citizen/Cityscape Community
magazine for six issues.
6.Approval of Final Signed Documents on the equipment lease/purchase
agreement between LaSalle National Bank and City of Apache Junction for
lease/purchase of software for the Public Safety,Development Services,
and City Clerk's Departments.
7.Approval of Contract with Sentinel Technologies,Inc.for
network/automation consulting services and authorization for Mayor to
execute contract.
8.Approval to forward street light assessments list for active street
light districts to Pinal County to be collected during FY 1999-2000.
9.Approval of Resolution No.99-33,Declaring as Public Record and
Adopting be Reference FY 1999-2000 Classification Plan and Compensation
Schedule as shown on Exhibits A and B (with emergency clause).
ACCEPTED THIS 21ST DAY OF SEPTEMBER ,1999,BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA.
SIGNED AND ATTESTED TO THIS 5TH DAY OF
ATTEST:
KATHLEEN CONNELLY
City Clerk
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 39 OF 40
OCTOBER
DOUGLAS gOLEMAN
Mayor
,1999.
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 3rd day of August,1999.I further certify
that the meeting was duly called and held and that a quorum was present.
Dated this 31st day of August,1999.
KATHLEEN CONNELLY
City Clerk
REGULAR MEETING OF THE CITY COUNCIL
AUGUST 3,1999
PAGE 40 OF 40
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
AUGUST 3, 1999
7:30 P.M.
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
August -3, 1999
MR. COLEMAN:We'll move on to the public hearings.
MALE VOICE:Mr. Mayor?
MR. COLEMAN:Yes.
MALE VOICE:Just to let you know, items 11.a,
11.b, and 12 can all be done at once; however, there'll be --
there'll be a need of three separate motions.
MR. COLEMAN:Okay.We'll consider items 11.a,
11.b, and 12 altogether, and this is on proposed resolution
number 99-27 declaring as a public record a certain document
filed with the city clerk and entitled "Ordinance Number
1086" and amendments to Chapter 14 of Volume 1 of the Apache
Junction City Code amending its entirety Chapter 14 relating
to the cable systems.11.b is proposed Ordinance Number 1086
adopting by reference that certain document entitled
"Amendments to Chapter 14 of Volume 1 of the Apache Junction
City Code" amending in its entirety Chapter 14 relating to
cable systems.And then item 12 is a public hearing for
final consideration of renewal and/or renegotiation of cable
system license currently held by TRIAX Midwest Associates.
And I'll call upon our city attorney, Mr. Stern.
MR. STERN:Thank you, Mr. Mayor, member of the
City Council.First of all, this is a continuation from last
week and, pursuant to your motion or to your motions, this is
the final hearing for each item starting with resolution 99-
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
27 for your consideration.Basically it would be declaring a
public record the amendments to Chapter 14.The amendments
to Chapter 14 I have provided you, and it is a 59 -page
document.And essentially it would change what was placed
into the law in 1985 to reflect federal and state law changes
to cable regulations.Since 1985, a lot of federal
legislation has occurred.The area of deregulation has
occurred dramatically.As you know, we currently have a
license with -- we have granted a license to TRIAX Midwest
Associates, a limited partnership.And basically they've
asked for renewal.
Getting to Ordinance 1086, 1086 would basically
amend or would adopt by reference the Chapter 14 document.
We do that to save publication costs.And under state law,
we can do that.So if anybody wanted to go take a look at
this 59 -page document, if it gets approved, three copies will
be on file with the city clerk.
Now, I want to just briefly talk about agreement
because we have talked about all three of these items before.
The agreement was negotiated between the city manager and
executives of TRIAX.As you know, TRIAX has requested a --
or they have filed a form 394 which, under federal law, is a
transfer request.They want their license to be transferred
to another company.And some of those representatives are
here today.We have also talked to the company
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
4
representatives from Media Corn which would be the company if
it were to be transferred, and the transfer would have to
basically be addressed through a public hearing, a different
hearing from today, if that were the council's preference.
However, those executives did meet with us.We talked for
the past three months on certain issues with the agreement as
well as the Chapter 14 amendments because any of the Chapter
14 amendments would apply to any licensee that would come to
the city to provide cable services.So the representatives
from TRIAX had some input in the Chapter 14 amendments.And,
you know, rightly so because currently they are the only
cable service provider in the city with a few minor
exceptions.
Getting to the agreement, and you should have a
copy of that, the big ticket items are that they will pay a
five percent gross revenue on an annual basis, there will be
a $200,000 government channel access funds that will be
available to the city, and also 65 cents per subscriber per
month for the entire term of the agreement.The term of the
agreement would initially be five years.If an upgrade to a
more technologically -advanced system is made before December
31 5t ,the year 2000, then TRIAX would have an option for
another five years on top of the initial five years.If
TRIAX is in -- or their successor, I should say, is in
compliance through the eighth year, then a total of 15 years
A/Vv TRONICS, INC.
Professional Court Reporting
& Transcription
Phoenix, AZ
1
2
3
4
5
6
7
8
9
10
11
•12
_Ii
14
15
16
17
18
19
20
21
22
23
24
25
would be possible, so they'd have another option for another
five years.The concerns regarding a centrally and
conveniently located customer service office has been
identified and has been met by TRIAX.They're agreeable to
that, and also a local 24 -hour telephone number and a
customer service office where people could go in and register
their complaints if they have any or they can actually apply
for service and could exchange converter boxes.In addition
to that are some other legal issues in the agreement and in
Chapter 14 regarding indemnification insurance, bonds,
letters of credits, and also liquidated damages and appeal
process where compliance can be addressed.Also addresses
renewal transfer revocation, systems facility, street
occupancy operation and maintenance and customer service
provisions.
So tonight before you you do have resolution 99-27.
You also have 1086, Ordinance 1086, and you have the actual
agreement.If there are any questions at this time, I'd be
happy to answer them.
MR. COLEMAN:Any questions for counsel at this
point?Thank you.
MR. STERN:Can I add one more thing?Today we did
have more negotiations and there are some changes to the
original documents I gave you on Friday.And you have been
provided a copy of those changes.I don't know if Curtis
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
wants to add anything to this.No.Okay.
MR. COLEMAN:Okay.Would the applicant or their
spokesperson want to address the council?
MS. BREMMER:Excuse me.Thank you, Mr. Mayor.
Mayor, members of the council, members of the staff and the
audience, my name is Jane Bremmer.I'm legal counsel for
TRIAX Communications.I'm happy to be here tonight and I
promise to make this very brief.City attorney properly
reports that we have achieved agreement on the major points
that he outlined.It's been along process, an interesting
process, and I think that it's one that we'll be glad not to
repeat for five to ten years, but the -- we -- and we have
substantial agreement with the hundred pages of documents
that are before you right now.
We did receive the changes that you received
approximately a little bit before 6:00 p.m. this evening, and
there are two areas where the agreements do no, in our
opinion, properly reflect the agreements that were reached
this afternoon.Let me step back just briefly and tell you a
little bit about the process that was involved.With me
today is Tom Bordwell who is the director of government
relations for TRIAX who you have all met who's spoken to you
before.Also with us are Jim Cary who is the senior vice
president of operations for Media Com.They have signed an
agreement to acquire TRIAX assuming the consent of this
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
counsel as well as 450 other communities.That transaction
would close sometime approximately October, the fourth
quarter of '99.With Mr. Cary is legal counsel for Media
Corn, Mr. Chris Cinnamon (phonetic) from the law firm of
Beanstock and Clark (phonetic).
The four of us came down and spent considerable -
time with Joel and with the city manager and we were able to
clear up the remaining discrepancy and the issue based on the
council's desire both to conclude this process and to move
forward quickly with the upgrade of the cable system.The
two remaining areas where the agreements do not properly
reflect what we believe the agreements that were reached this
afternoon.There's simply two issues and we just ran out of
time to deal with it, I think just given the fact that we
received documents about the same time you did.
The first of these were in -- they're both in the
license agreement.Neither of them are in Chapter 14.The
first of these is in the license agreement.In your
attachment to this, page six of the modifications of the
license agreement, numerical page six, and it is the
paragraph numbered nine that is title "Integration of
Advancements in Technology."This section was originally
proposed when TRIAX was seeking a 15 -year franchise.And I
think that the council and the staff were contemplating what
would happen in the course of 15 years to technology, how
AfVv1IIIDNICS,ENC.
Professional Court Reporting
& Transcription
Phoenix, AZ
•
1
2
3
4
5
6
7
8
9
10
11
12
1.3
14
15
16
17
18
19
20
21
22
23
24
25
8
would the community be assured that it would be keeping up
with technology, and built a process in to deal with it in
the license agreement.
Since that time, we've done a couple of things in
this agreement.First of all, we have built in a technology
review in Chapter 14 which would be applicable not only to
TRIAX but to any other cable provider that might provide
service in the city of Apache Junction.So given that the
council is seeking to encourage competition, the -- that
requirement would apply to all providers, not simply TRIAX.
And the city thought that that was a good decision.
But the second and primary reason why this -- we
discussed changing this was the agreement by TRIAX to step
back from its request for a 15 -year term and instead go to
the 5 plus 5 plus 5 term which is, in and of itself, based on
system upgrade and enhancements in technology.There's no
greater incentive for a cable operator than term for making
massive capital investments, and what we have agreed to in
this document with your staff is that our initial term would
be five years.We would not be entitled to an additional
five years unless and until we brought the system up to 750
megahertz which is a state of the art system, and that we
would not be entitled to even talk about the third five years
unless and until we could demonstrate not only compliance
with this hundred -page document but also that we were
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
9
providing a comparable level of service to comminutes same
size as Apache Junction so that, with those changes that we
have incented ourselves and we have built in the requirements
that we believe address the council's concern.
We did agree on, at Mr. Shook's request, to the
change that is articulated on page seven and is properly
reflected which is at kind of the bottom of paragraph nine
where it says that we did agree that we would grant to the
city $25,000 which they could use to hire an expert
consultant of their choice to review the quality of the
service and our compliance with this franchise anytime during
that first five-year term.That is in addition to our
requirement to certify to you completion of the system
construction by December 31', 2000.So what we would be
requesting is that paragraph nine be deleted with the
exception of the agreed upon phrase which was that licensee
shall pay all fees associated with the hiring of an expert up
to $25,000 during the first five-year term.
The second point is a simpler point and I think is
one that we have substantial agreement on and maybe it's just
simply not properly reflected in the document.And that is
the last page of the handout that you received from Mr.
Stern, the municipal data communications network.The city
has desired and we have agreed to extend the local area
network which the city currently owns to serve the public
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
works facility here in the city.To do that, in order to do
it at the speeds that the city is requesting, we need to do
that with fiber optic cable, and we've also agreed to do
that.What we have agreed is to make the -- that extension
compatible with your existing network so that traffic -- data
traffic can flow freely from your public works facility back
into all the other city buildings that are connected to the
local area network.Where -- the page that you're looking at
is different than what the discussion reflects, is, first of
all, the type of optical fiber cable that is being required.
What is being required here is more than what the city has
asked for for its residential customers.It's doubled the
number of fibers than what we're requesting for the
customers, and I think that might just be a mistake.
The second is an additional grant of $50,000 to
equip this network.This was not something that we agreed
to.We did agree to extend the fiber at our expense and to
provide it in a dark form so the city could integrate it with
its existing network, so the request that we would make would
be that, in FA, that be 12 single -volt optical fibers be
stricken and that it would say, "Fiber optics compatible with
the city's existing local area network," I think is the
proper way to phrase that.And that can be mutually agreed
upon or whatever term we think is appropriate.And then that
the additional equipment grant of $50,000 be stricken.
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
11
Our concern with these two provisions are that they
impose costs on the customers which may or may not be
supported by the customers.We are in -- we I think have all
worked closely and hard to achieve agreement on all the deal
points that the city has raised for us and the ones that
we've raised for ourselves.This is a document that we can
all be proud of.We ran out of time this afternoon and so
we've got these two small corrections to make.But they are
important to both companies given that they do affect the
cost to the customers.So I appreciate your consideration.
MR. COLEMAN:Thank you.Does any of the council
have questions for Ms. Bremmer?Thank you very much.
MS. BREMMER:Thank you.
MR. COLEMAN:Mr. Cary, did you want to address the
council?
MR. CARY:Sure.Good evening, Your Honor, members
of council.It's good to be back in Apache Junction.I was
here about I guess .a month or so ago if you remember, and
told you about!MediaCom and all the plans we had for -,this
area.I think it's cooled off a little bit since then, I
don't know.
I guess the only thing I!.can do at this point is
reiterate what!,Jane.just'said in thefact!that we,had a ..good
negotiating session this afternoon and 'we pretty much!ironed
out all of the,issues that we. had, and we were merely!
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
observers today.However, we were there to comment and to
make our recommendations on items that affected future
performance.And it does boil down to these two things which
we thought we had a clear agreement on in the negotiating
sessions, and when we got the agreement back this afternoon,
those things had slightly changed, according to what Jane has
said, so that's where we stand on it and we hope that these
things can be altered back to the original state that we
agreed on this afternoon.And I think, at that point, we
have no problem with the agreement.
And I'm willing to answer any questions that you
might have again, as I did last time, about Media Com or any
other issue that you might have.
MR. ECK:Your Honor?
MR. COLEMAN:Council Member Eck?
MR. ECK:In your negotiations, do you have a lot
of these -minute negotiations where so much is going on and
right up until the decision -making process?
MR. CARY:No.We don't find ourself in this
situation very often, to tell you the truth.
MR. ECK:Yeah, because I know I don't like it at
all.I think this negotiation should have been done weeks to
months ago and here we are last minute trying to make major
changes in a contract right up to the last minute.
MR. CARY:You know, we -- like I said, this was an
ATV* 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
issue with TRIAX and the city.
MR. ECK:I understand.I'm directing that toward
TRIAX.
MR. CARY:Right.
MS. BREMMER:Mr. Mayor, members of the council,
TRIAX rarely finds itself in this situation.I think that
the desire to conclude the process promptly was mutual.
We've all been using our best efforts to conclude it in a
mutual fashion, but with 100 pages of contractual language --
MR. ECK:I have to disagree with that.I don't
think there was any efforts -- in our discussions, there was
efforts going on with the school district four or five months
ago and we didn't know anything about it.We weren't
negotiating anything then, but school district was
negotiating things with TRIAX.Where's the city involved
with this?
MS.BREMMER:I think, Council Member, I can
refresh your recollection a little bit.TRIAX initiated this
process in '97 and we respected the city's desire to conduct
a needs assessment and a technical review of the system, and
there were a number of things that the city wanted to do
prior to --
MR. SHOOK:Well, those are required as part of the
informal process though, are they not?
MS. BREMMER:They're not required as part of the
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
14
informal process.But I think that, you know, that the fact
that the city elected to do that provided benefit to the city
and provided benefit to the process.These are, you know,
multi -million -dollar investments with 100 pages of contracts,
and I think that I would certainly say that everyone at the
table, in my experience, has done an extraordinary job of
bringing this document to you in a form where it is agreeable
with exception of two minor points.Oftentimes these
negotiations take much longer than what was engaged in here
and I think the mutual desire of both parties was to wrap it
up so that we could move forward into, you know, the
continued rebuild of the cable system and some of the other
items that were important to the city.And we agreed to
cooperate on a fast track process.
MR. STERN:Mr. Mayor, may I inquire of counsel?
MR. COLEMAN:Certainly.
MR. STERN:Ms.Bremmer, can you point to the
Chapter 14 regulations where the number 9, the language you
want to take out is reflected?
MS.BREMMER:It's in the license agreement.
MR. STERN:Can you tell me exactly where?
MS.BREMER:It's not in Chapter 14.It is in the
handout that you gave to the council tonight.It is
paragraph nine found on numerical page six of the
modifications list.
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
MR. STERN:Oh, I understand that.I just want to
know if we're going to take out some of that language up to
the point that you referenced, is that language going to --
is that language in Chapter 14 because I believe you said
that that language is reflected in the Chapter 14 amendments.
MS.BREMMER:What I said is that there's a
technology review section in Chapter 14.The more important
point though is that this paragraph came from a time when we
were talking about a much longer franchise term that did not
include the kind of performance -based extensions that TRIAX
and the staff have agreed to now.A five plus five plus five
cable television franchise with, you know, a -- what will be
approximately at $20,000,000 investment is unheard of in the
cable television industry.
I have worked with many companies in addition to
TRIAX, have agreed to hundreds of these documents and have
never in my experience agreed to a five plus five plus five.
And I think that we all recognize that what we were trying to
do here was respond to two things that TRIAX thought were
legitimate and the city staff felt were legitimate.First
was history and second was the desire to maintain state of
the art functionality of the system throughout the term of
the franchise.And if we weren't able to do that, we weren't
entitled to continue operating in the city of Apache
Junction.So that's what the document now reflects.
A/Vv TRONICS, INC.
Professional Court Reporting
& Transcription
Phoenix, AZ
1
2
3
4
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 :
22
23
241
25
16
MR. COLEMAN:Vice Mayor?
MS. SURRA:The length of the terms of the
agreement, the five plus five plus five, did not come from
the city council, did not come from the staff.It was
mandated by your subscribers because they no longer could
trust you, and that needs to be made perfectly clear.We
work on the mandate of your subscribers in order to formulate
this agreement.That will stay in force because it is a
mandate from the people.
MS. BREMNER:Well, and we have agreed to that
Madame Vice Mayor.The -- I think the reality of the cable
television industry that I was simply trying'to share with
you is that typically bankers won't lend the kind of money
that we've agreed to provide here in this community on a
five-year term.That is almost unheard of, and, frankly,
don't know that it would be possible but for the fact that it
is fully anticipated that Media Corn will be the one
performing on this agreement.
MS. SURRA:You're probably right.I doubt if
TRIAX would have probably been able to get it on their own
merits.
MS. URICH:Your Honor?
MR. CARY:If I may, let me just say a couple of
things about the section that she is referring to, Joel.
Under that -- what we agreed to this afternoon for a one-time
ATV* 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
17
consultant charge of up to $25,000 to ensure the performance
of the system within a five-year period and agreed to strike
the other language out which says that, on a yearly basis,
the city can hire a consultant to do an evaluation of the
system and, therefore, mandate to us to do certain things to
the system that may be unnecessary, frivolous, or what we
consider just not in -- not appropriate to the subscribers or
not a good cost of doing business -type procedure.And that's
what we wanted out of the agreement was the fact that, you
know, you're doing this -- you're doing the consultant survey
within the five-year period in order to renew the franchise
for the additional five years.And we think that's
sufficient going forward to prove that we're performing under
the obligations of the ordinance.
Now, the other issue on the fiber network I think
she explained sufficiently, that we will put what fiber it's
going to take to link your buildings together and have your
network performing as it should perform at the same speed and
same rate it's performing now.And the fact of the $50,000
did not come up this afternoon, and that was new to us
tonight.So those are the only two issues we have.And I
think that, you know, all of this, you know, what's happened
in the past.I tried to explain last time that we're just a
totally different company, and you can check us out like I
asked you last time, to call around the country.We've got
A/Vv TRONICS, INC.
Professional Court Repordng
& 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
franchises in 15 states right now, soon to be 22 states when
this thing is done and, you know, this Apache Junction
franchise is very, very crucial to us.And, as I said last
time, it's one of the fastest growing areas that we have in
our company and we're going to provide the resources to do
whatever it takes to make this thing a state of the art,
first-class cable system.And I mean that.I meant what I
said, and we do what we say we're going to do.We are
obligated to the franchise and we take these things very
seriously.And when we negotiate these points, we negotiate
in good faith and
know, when we are
party feels that,
we expect
obligated
you know,
the same in return that, you
to do something, that the other
the same things were said.
And I think if these two issues can be rectified,
it's something that we can live with going forward and we
would certainly like to expedite the transfer process, get
this things behind us and let us come in here and prove to
you and to the citizens of Apache Junction that we're going
to be great corporate citizens and we're going to do exactly
what we said we're going to do.
MS. SURRA:The $50,000 figure that you're talking
about that you had a problem with --
MR. CARY:Right.
MS. SURRA:-- in what is it letter F, municipal
data communications, about (indiscernible)?
AfVv111110NICSOONC%
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
19
MR. CARY:Right.
MS. SURRA:What figure were you talking about?
MR. CARY:Well, this morning when we started the
negotiation it was zero and --
MS. SURRA:Well, I know it's going to cost more
than that.
MR. CARY:Well, no.We're going to do it.We're
going to put the --
MS. SURRA:Yeah.
MR. CARY:We're going to put the fiber in.We're
going to go to that expense to run the fiber which is
probably, to get under Highway 60 out there, is we're going
to have to directional bore that and that's going to cost a
lot of money, and we're going to bear the expense of
constructing the fiber.We have no problem with that.The
problem we have is buying your equipment on either end to
make your network work.And that should be --
MS. SURRA:The ones that interpret the signals
that come through the --
MR. CARY:That's your equipment.
MS. SURRA:Uh-huh.
MR. CARY:That belongs to your network.That, you
know, we feel that you should bear the cost of that and we
thought that that was what the original agreement said before
we started negotiating today.
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
MS. SURRA:Where did it say that?Do you have a
copy of that --
MR. CARY:Do we have a copy of that?
MS. SURRA:-- of where it said that because I
couldn't find that anywhere.Of course, we've had so many
copies of this at the last second.We're not accustomed
either to these eleventh -hour meetings.
MS. BREMMER:It's actually the second to the last
page of the handout that Mr. Stern gave to you where it says,
"Stricken," and then it says, "See the next page."
MS. SURRA:Well, I meant --
MR. SHOOK:Those lines are underground.
MR. CARY:Pardon?
MR. SHOOK:Those lines are underground, correct?
MS. SURRA:I'm not talking about that.I'm
talking about where did you have the other figures --
MR. CARY:Tom, do you know whether they're
underground or aerial?
MS. SURRA:-- that said no dollars.
MALE VOICE:Going across the highway, they will be
underground.
MR. CARY:Oh, I know they'll be underground going
under the highway, but are they --
MR. SHOOK:That's what I'm asking is.We're
talking about underground into the public.
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
21 ,
MR. CARY:Yes, a serious directional bore going
under that freeway, so --
MS. SURRA:This is from the original.I have the
original agreement.
MR. SHOOK:Right.All I keep saying is there's no
mention of 50,000 in here and this was just thrown at them
today.
MS. BREMMER:Madame Vice Mayor, maybe I can
clarify.The original request -from -the city was for an
institutional network which would have been :a duplicative
network of both our fiber optic_ system and your fiber optic
system.After_conversations with representatives of the
city, it was..determined that it didn't make a wholes -lot of
sense to build a third infrastructure in the community, that
we should-be smarter about:using your resources-and our
resources and sowhat we talked:zbout was making our entire
network available to the city fOr point-to-point data
communications with cable modems.After additional
reflection on the part of the city, they concluded that that
-- representatives concluded that that didn't really make
sense.
What they really wanted to do was to interconnect
the public works building.And so when the materials came
back to us with the request for the public works building,
that was I think on Thursday we received that request for the
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
22
first time which had not been discussed, and we were prepared
to discuss it and did discuss it today.And what we
concluded was that the -- what was stated in the document
that you have that's stricken out, really wasn't what the
city wanted either because it wasn't necessarily compatible
with the existing local area network.So what we agreed to
do was to build the extension so it would be compatible with
your existing local area network and bear the cost of the
fiber optic link, which is kind of where we started this
discussion, how do we link the public works building, but
there was no discussion about asking either TRIAX or Media
Com to bear what would be typically the city's cost for the
end user equipment.
MR. SHOOK:And I can verify that this was
something that was produced late this afternoon by the city's
consultant, our technical consultant, and it was not an item
that was initially discussed with either TRIAX or with Media
Cam.I did think that their willingness to put in what
amounts to several miles of optical fiber cable was beyond
what we had originally talked about, but I thought again that
it was a good faith effort on their part to try and address
one of our needs.
MR. STERN:Mr. Mayor?
MS. SURRA:So you're saying that letter D under
the municipal data communications of the newest and latest
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
23
and dearest, that you want just letter D stricken?
MS.BREMMER:We want letter D stricken because
ultimately that is a cost that --
MS. SURRA:I understand.
MS. BREMMER:All right.And we simply want letter
A clarified that we will be compatible with whatever your
local area network is, and I don't know what that is and I
don't know that anyone here knows what that is, but --
MR. CARY:We will provide whatever it takes in the
way of fiber to make your network function.
MS. BREMMER:Right.
MR.CARY:Just, you know, with --
MR.COLEMAN:Don't the optical fibers come banded
in either six or twelve strands?I mean, it's like that,
isn't it?
MR. CARY:Well, there are -- there's different
size fiber.You know, you can get up to, you know, whatever,
you know.You can get -- the cost goes up exponentially as
you increase the size of the fibers.Now, twelve fibers --
MR.COLEMAN:Are you just going to --
MR. CARY:Twelve fibers you could run, you know, I
mean, there's just -- you'll never have a need for that.
MR.COLEMAN:It would be really cool though,
wouldn't it?
MR.SHOOK:We are concerned.We do think that we
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
24
would need the 12 fibers at sometime in the future for GIS
types of systems and that kind of thing.
MR. COLEMAN:Can I ask a --
MS. SURRA:Which we are actually pursuing.
MR. COLEMAN:What's the difference in cost between
like six and twelve; what --
MR. CARY:Well, it depends -- you know, I'm not --
I don't know how many miles it is.You know, mileage comes
into play.
MR. COLEMAN:Say it was three miles.
MS. SURRA:Three.
MR. CARY:Okay, three miles.I would say between
six and twelve, depending on what we do.I mean, you know,
there's a chance that, you know, we're going to run under the
freeway anyway.
MR. COLEMAN:Yeah.
MR. CARY:And serve on out.So, you know, we
might put a 60 -count fiber under the freeway or whatever.
And the cost between six and twelve I would say would
probably be $2,000 a mile.So another $6,000 --
MR. COLEMAN:So 6,000 --
MR. CARY:-- or whatever.
MR. COLEMAN:So I wonder what the city could bear
the cost in the difference or something that -- or have the
option to where we could upgrade or --
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
25
MR. CARY:Well, we'll -- I mean, if you put the
language in there that says that we will comply with what
your needs are for the network, your covered.I mean --
MR. SHOOK:Yeah.
MR. CARY:-- if you need two this year and you
need four, fine.I mean, we'll supply that.But we don't
see any need to lay 12 fibers out to sit there dormant for 10
years.
MR. COLEMAN:Council Member Stern?
MR. STERN:This issues they have brought up --
well, first of all, I want to tell you, the way negotiations
go, one party can say that, well, we agree to this.However,
that may be what their impression was at the time; however,
things do change when you have about five or six different
versions.So I don't want you to all get the impression that
we made the deal this afternoon on these things because we
didn't really do that.
MR. CARY:No.And, Joe, really, we're not trying
to say that either.We tried to negotiate in good faith and
we, of course, you know, there's difference -- different
opinions of what is said and what's not said, and we're
certainly not laying the burden on anybody.But I think that
these two -- I mean, as far as us at Media Com -- of course,
this is between you and TRIAX at this moment.But we're in
the background and we're making sure that we can comply with
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
this because hopefully you'll transfer it to us and we can go
forward with a good business relationship.But if you can
give us relief on these two things right here, we have a
document that we can live with.And I don't think that's a
whole lot to ask right here.I don't think, you know, you're
giving up much at all.
MR. STERN:Mr. Mayor, these are policy issues
rather than legal issues, so I would, at this point, you know
leave it in your hands.However, I do want to tell you that
we did hire Mr. Jonathan Kramer (phonetic) who is an expert
in this area, and his estimate of $50,000 is probably pretty
close.And he did recommend this language and we do rely on
his advice -- and I've relied on his advice throughout the
entire negotiation process ever since Mr. Monroe (phonetic)
put me in touch with him.And as for the other issue, that
issue -- the page nine -- I'm sorry.
MR. COLEMAN:Page six.
MR. STERN:Page six, number nine.That issue did
come up early on and that language I think has been in the
past two versions if I'm not mistaken.I'm not -- Jane, am I
mistaken on that?
MS.BREMER:No, you're not mistaken and we've
asked for it to be stricken at --
MR. STERN:Correct.
MS. BREMMER:-- all steps, and I think --
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
27
MR. STERN:So you have seen it before though,
that's what I'm getting at?
MS..BREMMER:Oh, sure
MR. STERN:Okay.
MS. BREMMER:But the -- you know, your points
before in discussing this, we don't need to rehash the
discussions, were the concern about maintaining the quality
of the system.And we've actually gone a step better and
tied the termto :maintaining the quality of the system which
is the ultimate „leverage that a city has with a cable
operator so -- because ultimately it's -- you know,: that
affects the banking relationship, - the ability to finance this
and --
MR, CARY:You know, we at Media COm -- just let me
say that we operate in 600 franchises around -the:country, and
we spend, you know, in capital improvements everyyear, we're
going to spend over $100,000,000 a year in capital
improvements.And the senior management team at Media Com
has 3- or 400 years of experience in running cable systems.
Sowe-kind of consider ourselves experts too at this sort of
thing and how.to go about:it and ;what the:needs of )a city and
a franchising authority are.And we're certainly -willing to
work: with you, and we think that with the way that we would
like these two -sections read', we're going -to comply and we're
going to give you over and above everything that you need to
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
28
have a first-class operation here.You know, we agreed to
move the office, you know, out of the location it's at.We
agreed to put customer service representatives in here with
phone lines where there won't be -- you know, you won't be
calling to Wisecome (phonetic), Minnesota, anymore as soon as
we take over.And we're going to rebuild the system, you
know, to a 750 two-way state-of-the-art cable plant which,
you know, I think is huge for us to consent to.And these
are two small minor things that we would just really like to
-- like some concession on.
MR. COLEMAN:Council Member Durbala?
MR. DURBALA:So I understand you correctly, in
section A of the municipal data communications, what you're
looking at is to provide the city with 10, 12 months, the
course of the agreement.Instead of 12 single modes, you're
saying maybe 2 and then as needed by the city to be updated?
MR. CARY:Sure.
MR. DURBALA:Is there someplace in there that a
time frame needs to be or --
MR. CARY:Well, I mean --
MR. DURBALA:You know, we may say we need six two
years from now and you may say, "Well, geeze, we're not going
to be able to get to it till maybe six months or eight months
down the road."
MR. CARY:Well, I mean, you can --
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
29
MR. DURBALA:Would you be agreeable putting some
kind of time frame in there --
MR. CARY:Sure.
MR. DURBALA:-- once we say we submit a letter to
you?
MR. CARY:If you tell us you need it, we'll do it
within, you know, what do you think's reasonable?I mean, as
far as getting permits and all and running new fibers?
MR. DURBALA:90 days.90 days, is that --
MR. CARY:90 days?That's fine.
MR. STERN:Mr. Mayor, if I can inquire of the city
engineer.If you're going to have encroachment permits, is a
90 -day period practical?
MR. STEARS:For the installation?
MR. STERN:Correct.
MR. STEARS:I think it's practical.
MR. STERN:Okay.I just want to make sure.So
the new language would read basically the --
MR. DURBALA:Well, I don't know, it's up to the
council as a whole.
MR. STERN:Well, I'm saying the propose language
would be the agreement would basically initially to and as
needed by city within 90 days?
MR. DURBALA:Well, that's if the city -- maybe we
maybe need to start off at four, I don't know, whatever the
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
city feels it would be best on the --
MR. STERN:That's what you were proposing,
correct?
MR. DURBALA:Yes.
MR. STERN:That's what --
MR. DURBALA:It's what the city needs is the
number, whether it be two, four, or what.
MR. COLEMAN:Well, compatible with the city's
system.
MR. DURBALA:To start off with and then upgrades.
I really don't have a problem with taking D out.I don't
know what the rest of the council feels on this.
MR. COLEMAN:In fairness, I think it ought to
be --
MR. DURBALA:It ought to be?Okay.The other one
I have a little problem with --
MR. SHOOK:I think we really need to start off
with the minimum of six fibers, but I'd also like to take Mr.
Cary up on putting what we need in the ground so that we can
anticipate the future.And it .really doesn't cost that much
additional to have the 12 in.
MR. CARY:Well, if we have -12 in the ground -- let
me ask you this; if we have 12 in the ground and you have
absolutely no use for anything but 2 of them at the time --
MR. SHOOK:Uh-huh.
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
MR. CARY:-- do we have to let 10 lines --
MR. SHOOK:All I can tell you --
MR. CARY:-- lay dormant or can we use them until
you need them?
MR. STERN:I don't know that we would have any
problem with you using them until we need them, but I will
tell you that the city is rapidly moving towards MIS systems.
The engineering department is located down there, and I
suspect -- Paul, do you have any feel?
MR. STEARS:Well, I just would like to ask a
question if I may because you mentioned that it would be when
we were going from six fibers to twelve it would be an
additional $2,000 a mile?
MR. CARY:Approximately.That's off the top of my
head.
MR. STEARS:How much will it cost you per mile to
put the conduit in the ground?
MR. CARY:It's going to cost us --
MR. STEARS:About --
MR. CARY:Probably $20,000 a mile.
MR. STEARS:Okay.So we're $2,000 extra versus
$20,000 to put the conduit in the ground, right?
MR. CARY:Well, when you get to 20, I mean, every
penny counts after that.I mean, if we're going to spend
$60,000 -- I would rather spend 60 than 70, you know. 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
32
MR. STEARS:I got you, but I wanted to give this
council and idea of what --
MR. CARY:Right.
MR. STEARS:-- we were talking about.
MR. CARY:Okay.
MR. STEARS:Just the conduit in the ground was
going to be somewhere between --
MR. CARY:Just running the cable. Now, coming
under the freeway is probably going to be -- is probably
going to cost $25,000 just for that.
MS. SURRA:But that isn't all just for reaching
the city building there, the public works building?
MR. CARY:No, but we --
MS. SURRA:You'd have to do that anyway, don't
you?
MR. CARY:Not at this -- I mean, maybe at a later
date, but I don't know if we would do it right now, but we're
going to do that now to accommodate the city because we're
good guys.
MS. SURRA:20,000 spent this year is probably
going to be 35- next, so you're right, it will save you money
to do it now.
MR. CARY:We're agreeing to do that.
MR. DURBALA:And what exactly are you asking to be
taken out on number nine?
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
MR. CARY:On number nine?The whole section there
that deals with the consultant on a yearly basis telling us
what we need to do with our system year after year.I mean,
that's just little onerous to us.
MS. SURRA:Wasn't the wording originally that it
was a recommendation --
MR. DURBALA:Yes.
MS. SURRA:-- that our consultant would give
recommendations to apprize them of what we knew or could see
the needs would be for the city?It wasn't a mandate, was
it?
MR. DURBALA:No.
MS. SURRA:Was purely a list of recommended
upgrades or --
MR. CARY:Right.
MS. SURRA:-- system things.•
MR. CARY:It's always been mandatory.Jane is
telling me that a recommendation would be fine, wouldn't it?
MS. BREMMER:Yes.Madame Vice Mayor, I think what
you're thinking about is the language that's in Chapter 14
which is that we agree that we sit down, we talk through the
issues, we are each entitled to bring whatever experts or
information to the table.And you receive recommendations.
TRIAX and/or soon to be Media Com management received
recommendations, and the parties try to reach mutual
AfVv111ADNICS,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
34
agreement on anything that makes sense for the community.
Again, the five plus five plus five term is the ultimate
indentive for any cable operator, but the -- I think you're
thinking about there are two sections, one that was in the
regulatory--
MS. SURRA.:I know.You have inundated us with so
much krap because of your lateness in bringing stuff to us
that it has been rather difficult to keep it separate,
especially since we have to get it after you decide to have a
last-minute meeting on the day of our meeting.So you'll
have to bear with me.But I do believe that the wording says
"recommend."
MR. CARY:We have no problem if it says recommend.
MS. SURRA:And I don't care where you look and
where it's written, it says recommend.
MR. CARY:Well, it doesn't say that now, but if it
said recommend, we have no problem with that.
MR. SHOOK:If I could.I -- we did talk about
this item toddy and we did agree that the event should be one
year not every single year within the five years but one
time.And I think the changes that --
MS. SURRA:Right.
MR. SHOOK:-- have been made by the city attorney
reflect that.The -- it does say that the city may hire
annually an expert in the field of electronics cable systems
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
35
to review the licensee's report.Such expert may be
requested by the city to draft a critical analysis of the
licensee's report and to recommend any additions needed with
the system by licencee to be at a level consistent with the
industry standard.It says, "And to recommend any additions
needed in the system by the licensee."I think the current
language reflects both the spirit of the agreement and I
would not recommend that the council change it.
MS. SURRA:I don't see anything wrong with the
word "recommend" down there.
MR. SHOOK:I don't see why we even have to discuss
it any further.
MR. CINNAMON:Madame Vice Mayor, Your Honor,
members of the council, I'm Chris Cinnamon, counsel to Media
Com.And if the city manager's description of the entire
term were accurate, we would have no objections to it and
maybe we could focus on the last sentence in that section
where we get our understanding that it's mandatory.Maybe we
misapprehend the words.But it says that licensee shall
perform all recommended actions relating to upgrades.And
that is where we read into the consultant's recommendation a
mandatory requirement.And that's where our discomfort comes
from.If that is not the intent of this provision to require
mandatory upgrades, maybe that sentence can come out and we
all can I think get more comfortable with what this term
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
intends.
MS. SURRA:I have no problem with taking out
anything that mandates your future upgrades after you have
complied with your initial promises because I believe your
subscribers will put enough demands on you and the
competition of business will put enough demands on you to
have to do that.So -- but I do think it is still very
healthy for the city to monitor what the rest of the industry
is doing so that we can make you aware of the fact that we
would like an equal share of the industry's current standards
year by year.
THE COURT:And we have no problem with that.
MS. SURRA:And that was the intent originally I
believe of that paragraph.
MR. CINNAMON:We have an accord on those points,
Madame Vice Mayor.
MS. SURRA:Are you making good notes on that one,
Joel?
MR. COLEMAN:So what we're talking about is tying
the last sentence then to the one annual agreement for
25,000, the --
MR. DURBALA:Not the --
MR. CARY:That's fine.That language we've
cleared up.The last sentence there is the only one we have
a problem with, right?
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
MR. CINNAMON:That's correct.
MS. BREMMER:That's correct.
MR. STERN:But if you -- if I could, Mr. Mayor and
Mayor of City Council.If we change the last -- actually
it's the second to last sentence.It says, "Licensee shall
perform all recommended actions relating to upgrades."If we
just tied that to a time period, would that satisfy you?A
time period less than five years?
MR. CARY:Well, sure.I mean, a consultant can
come in and recommend anything he wants.I mean, it might
not make any business sense whatsoever to us.
MR. CINNAMON:And I think coming out of the
negotiations today, the intent that we understood this was
that, during the first five years, a consultant could come in
at Media Corn's expense, the city's -- a choice of consultant,
and test the system for compliance and performance, and it
was not with the intent of prescribing upgrades based on the
consultant's view of what the state of the art was.
MS. SURRA:For that first five year -- in that
first year?
MR. CINNAMON:Yes.
MS. SURRA:That first one, for you to come into
compliance with the original request.
MR. CARY:Right.
MR. CINNAMON:And the -- I mean, there may be some
AfVv1IWNICSOUNC.
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
history in the system where that would be a very appropriate
action, and Media Corn has no problem stepping up to that
requirement.
MS. SURRA:And after that at our expense, if we
wish to hire someone to continue to audit you in order to
make sure that you are offering your subscribers that reside
within our city the best that can be gotten for that dollar
amount, we have the right to recommend to you that you meet
those standards.Whether or not you choose to do so I am
sure will be entirely up to your efficient or deficient
economic stability at the time, but you will either lose
customers or gain them, so I'm sure it'll come out fine in
the wash.
MR. CINNAMON:We have an accord on those things.
MR. CARY:I think so.
MR. SHOOK:I think what you said is really
important.I don't think that we want to be in a position
where we're dictating to TRIAX what kind of business they're
going to do in the future.I think the market will do that.
And I would respectfully, you know, have no problem with the
deletion of that sentence.
MS. SURRA:Okay.
MR. STERN:So just to clarify, you want to
MR. SHOOK:See how easy it is, Joel.
MR. STERN:Is that easy?Well, you all should
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
39
have been in the negotiations today.So just to clarify, you
want to --
MS. SURRA:Probably.
MR. STERN:You want to take out the -- that one
sentence, that is the second to the last sentence of that
paragraph, correct?"Licencee shall perform all recommended
actions relating to upgrades in the system"?
MS. SURRA:It's the performance of the
recommendations.We can hand them recommendations but they
do not want to be tied to a mandate to perform them.
MR. STERN:Well, Mr. Shook just said let's delete
that sentence.
MS. SURRA:Yes, that's correct.
MR. STERN:So that's the entire sentence, correct?
MS. SURRA:Right.
MR. STERN:Okay.
MS. SURRA:But earlier on it says that we will
possibly recommend, at least give them a report.That's the
only sentence that said that they had to perform relating to
those recommendations, correct?Okay.
MR. COLEMAN:Anything else for Mr. Cary?
MR. ECK:When you were here last time and we spoke
about the needs assessment and I talked to you about the Suns
games and you said, I believe you said you would aggressively
go after these channels.I'm still -- I didn't see it
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
40
anywhere in the contract, and basically what I was talking
about were the Suns games.There's, you know, there's
Channel 45 that'll pick them up and everything.ASPN is my
understanding Cox Cable owns the rights to ASPN, Arizona
Sports Network, and they sub that channel out to other cable
companies who purchase it.And there's a lot of Arizona
sports on there.Cable America for one is (indiscernible).
Is it your intent to do that, to be able to get that channel?
MR. CARY:It's our intent to do -- to carry the
programming that is mandated by the subscribers and also
keeps us in a competitive mode with all of our competition.
MR. ECK:In our needs assessment, it was a very
high priority.
MS. SURRA:It was a big thing.
MR. ECK:And because that local sports channel
does carry a lot of Suns games, a lot of local boxing, a lot
of local sports, there was -- it was a big priority on there
and I did not see that in the contract.
MR. CARY:I mean, if this is something that's --
that is really demanded by the public and it's cost
effective, we would have no problem in doing it.It's
really, you know, it's a thing that, you know, we haven't
focused on yet.We're trying to get the, you know, all of
these things done before we can really focus on the business
plan, but, you know, in all of our systems, and I'll tell
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
41
you, if they're out in the country, if there's a demand for
programming there, we put it on.Now, we try to do it in a
way to where, you know, if there's 5,000 customers here and
500 of them want that programming and that programming costs
us $2 a month per subscriber, then we try to figure out a way
to tier it to where everybody does not have to take it if
they don't want it.But we will certainly, you know, give
that, you know, close attention, and if it's something that
we have to put on, we will.
MS. SURRA:Well, our understanding is that it is a
business decision and it is not technical deficiency that
exists, but the problem has always been the response when
people have called and asked about it has been that the
inability for them to get that signal which is, you know, a
crock.And so they -- and they hate hearing that.So, you
know, own up and just say, "We can't afford to purchase that
from Cox."I mean --
MR.CARY:We will --
MS. SURRA:-- at least be honest about that.But
they want you to try because it's going to be a difference
maybe if they stick with cable or if they decide to go
satellite.
MR. CARY:Well, that will be -- I've got my notes
from the last time and I've got that in it and I remember it.
It's going to be one of the first issues we deal with.
A/Vv TRONICS, INC.
Professional Court Reporting
& Transcription
Phoenix, AZ
•
1
2
3
4
5
6
7
8
9
10
11
411110 12
13
14
15
16
17
18
19
20
21
22
23
24
•25
42
MS. SURRA:Okay.
MR. ECK:All right.There you go.
MR. CARY:And we will deal with it one way or
another.And if we can't afford it, I will come tell you
that we can't afford it.I won't tell you that we can't get
it technically.
MR. ECK:It has a similar priority to pay per
view --
MR. CARY:Right.
MR. ECK:-- where, in years, you know, people will
ask for pay per view and we can't get pay per view is what
we're told, but four years ago I used to watch pay per view
fights with TRIAX, so --
MR. CARY:I promise you you'll be able to get pay
per view when we come in.
MR. ECK:You flip a coin, we get it; flip a coin,
we can't.You know, so --
MR. CARY:That is something that everybody wants
and there's a big demand for and we carry pay per view on
every system we upgrade.
MR. ECK:All right.Thank you.
MR. COLEMAN:Council Member Insalaco?
MR. INSALACO:When you were here last time, I was
on vacation so I missed you.And I'm not here to embarrass
anybody or anything.That's not the idea.But you got to
AfVvIRIDNICS,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
43
understand that, besides being council members, we're also
subscribers, most of us.
MR. CARY:Sure.
MR. INSALACO:And, like I say, I don't want to
embarrass -- we've been burned so hard before that it's awful
tough for us to trust anybody.And I got burned a lot.And
so, like I say, I'm -- I like the way you talk.
MR. CARY:Sure.
MR. INSALACO:I like what I hear from you, and I
just hope that it is going to continue.
MR. CARY:Well, it will.Believe me, I mean, I
can only give you -- I can give you my word, I can give you,
you know, our company's reputation.I'm speaking for the
company, and I promise you what I'm saying to you will
happen.
MR. COLEMAN:Johnny's hair used to be black.
MR. INSALACO:My hair used to be black.
MR. COLEMAN:Yes?
MR. STERN:Go ahead, Joe.
MR. COLEMAN:Council Member?
MR. DURBALA:Okay.I'm going to go one step
closer tohome than what our councilman member down there
already did.I would like to know if you're still going to
be able -- I don't know what kind of agreement was signed
with the school district, but I'm still hoping that you will
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
44
probably be as beneficial as one of the local newspapers, the
AJ News was very productive in getting -- matter of fact, I
think the city in the whole state having local football
telecast: and basketball games.And I'm wondering and hoping
that you work again -- your company will work again with the
local newspaper and the school district to make sure that is
back on line next year or I don't know if the TRIAX is still
having that in their system or not.
MR. CARY:We're going to continue that.
MR. DURBALA:I know, again, it's not a
requirement, but would be nice to get at least some kind of
commitment because I think that's-- being the only city in
the whole state that has done that, that is an outstanding
effort by both TRIAX, the school district, and AJ News.
MR. CARY:We will continue that.
MR. DURBALA:Okay.I would be glad to hear that
because --
MR. CARY:Can I take -- now, in order for all of
these things -- for us to do all of these things, of course,
we have to get this franchise transferred into our name.And
the quicker we can do that, the quicker we can get started.
And we would certainly like to expedite that process as much
as we can and get on about our work here in Apache Junction,
so --
MR. SHOOK:And for my part, I would say that all
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
45
of my discussions with Jim and with Media Corn have been just
extremely above board.We agreed that there were some
administrative areas that we could, you know, that we could
make formal agreements on, and I think that, if council
decides to move ahead with the agreement, we should be able
to work with Media Com to exercise a transfer as soon as
possible.
MR. STERN:Mr. Mayor, if I could add two more
questions actually that came up after we talked, and I
apologize for these two other things.Can you take a look at
page eight of the license agreement.And it would be at the
top, top line, "Subscribers no later than."There's been a
concern that that should be December 315t, the year 2000,
rather than July 30 -- July 1'.Is that going to leave you
-- is that going to cause you any problem?
MALE VOICE:That was for the modem?
MS. BREMMER:The system won't be rebuilt by then.
MR. CARY:Right -- yeah, we -- when we rebuild the
system, I mean, we've got till December of 2000 to do that
which is, you know, pretty soon it's going to be a year.I
mean, you know, this year is just going by and it'll be
December before we know it and that'll probably be the time
that we can get started, and then we have to go through the
approval process with the city on our plans and all of that.
So realistically, if we get started in March or April, we
A/Vv TRONICS, INC.
Professional Court Reporting
& Transcription
Phoenix, AZ
1
2
3
4
5
6
7
8
9
10
11
O 12
13
14
15
16
17
18
19
20
21
22
23
24
•25
46
have 350 miles of cable plant to upgrade here to be done in
six or seven or eight months or whatever we've got left at
that point in time.Now, when we do a rebuild like that,
when we get done with it, you have to what we call shake --
we shake down the system.We make sure that all the bugs and
all the kinks are out of it. Everything's tightened down.
There's no leaks, there's no ingress or egress to the system
which allows the two-way to -- allows us to activate the two-
way and to make it function properly.The two-way on a cable
plant is much more critical, you know, keeping it running and
the maintaining than the one-way path going to your house.
Coming back requires much more maintenance and is much more
temperamental.And we like to make sure that everything is
totally right.
Now, we just -- we would like some time after the
rebuild is done to be able to work all the bugs and kinks out
of that to make sure that it's working properly because we
never put a service on until we know that it's going to work
properly, and we just don't want that sort of impression out
there that we throw something on and then we're sitting out
there trying to work all the bugs out of it.We don't want
that.We don't want that to happen.So we've given
ourselves a little grace period there to make sure that
everything is working properly after the rebuild before we
activate and start putting cable modems out into people's
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
47
houses.
MR. STERN:So you wanted an extra six months,
correct?
MR. CARY:Up to six months.Hopefully it wouldn't
take that long, but we would just like to have some sort of
grace period there to be able to work through --
MR. COLEMAN:So you're looking at July 1, 2001?
MR. CARY:2001.
MR. COLEMAN:Rather than 2000?
MR. CARY:Right.
MR. STERN:I believe I miscommunicated to the city
council, and I apologize.
MR. CARY:Oh, okay.
MR. STERN:Because originally --
MR. CARY:Okay.
MR. STERN:-- I put down July of 2000, so --
MR. CARY:Oh, excuse -- okay, good.All right.
2001.
MS. SURRA:And that's not the rebuild.You're
talking strictly for the Internet modem interconnection.
MR. CARY:That's right.Cable modem, Internet
high-speed data Internet access.
MS. SURRA:But you're still going to have the
system built --
MR. CARY:Absolutely.
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.
2324
25i
48
MS. SURRA:-- and otherwise in use for all other
services by the 31' --
MR. CARY:By December.
MS. SURRA:-- of December of the year 2000?
MR. CARY:That's correct.
MS. SURRA:So you need to rewrite that so that
those are totally separate.
MR. CARY:No, he just needs to change that date to
2000.
MS. SURRA:Change that date from July --
MR. STERN:Yes.I miscommunicated to the council.
MS. SURRA:-- from December to July.
MR. STERN:I said 2000.I do apologize.There's
one more issue I have to bring up, Mr. Mayor.I apologize
for the time element here.Some council members were
concerned, on page 14 under 5(b), the concern is that the
company should be providing the government channel and the
economic development channel to hospitals and residential --
actually state and city licensed residential care facilities
but not hotels or motels.
MS. :31=A:Or conference sites.
MR. STERN:Or conference sites.
MR. CARY:We should provide it to what now?
MR. STERN:For free basically, even if they're
not --
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
49
MS. SURRA:With no additional cost to hospitals
and state and city licensed residential --
MR. COLEMAN:Health care centers.
MS. SURRA:-- health care facilities.
MR. STERN:Even if they're not subscribers.
MS. SURRA:Yeah.We originally had asked for
hotels, motels, hospitals, residential care facilities,
conference sites, but we felt that the hospitals and state
and city licensed residential care facilities, even if such
institutions are not paying subscribers, would.be.more
equitable.
MR:. CARY:Well, we have a technicaLproblem with
doing that They have to -- if we sent one channel .in there,
we would have::to trap out.all_of the other -channels.
MS ,SURRA:Well, of course, if out of the goodness
of your ,heart.:you want to give them all -of them, that's okay.
We just are:insisting that you givethem the others.
CARY:Well, I mean, they could pay us if they
wanted it that bad, but--- of course, we -- I: mean, that's
our livelihood -is the cable and we certainly -- -we want to
have people that are commercial sales representatives to go
in there:andl -try to sell -cable to these: hospitals and what
have you, and -- pardon?Oh.And it wouldibe--- it would
really be a,technical nightmare to try to strip out all but
one channel and to take it into all of these little -- 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
50
places.Very expensive equipment to do that with and it
would just -- it's just a real technical impossibility
really.I don't know.I really, off the top of my head,
can't think of how you would do it.
MS. SURRA:Well, could you give them a good
discount?
MR. CARY:We think we've got a great price.
SURRA:If they purchase as subscribers?
MR. CARY:We --
MS. SURRA:I just know what it's like being in a
hospital and not being able to get anything but local
channels on any kind of the TV.It's boring.
MR. CARY:We provide hospital -- we provide
service to hospitals in a lot of areas, and we do cut good
deals for them.We do.
MS. SURRA:Could we put that in there, that
you'll --
MR. CARY:We do bulk rates.
MS. SURRA:-- cut the best deal for --
MR. CARY:We will give them -- we'll give them a
bulk rate that's comparable to any other location that we
serve.
MR. COLEMAN:Council Member Durbala?
MR. DURBALA:Well, as you know, I really wanted it
in the hotels and stuff like that, but then when they started
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
51
talking about the expenses, maybe it would be an additional
expense on them and the residents and the rest of the city
would have to bear the costs.Maybe that whole section there
that -- just that last sentence, might be advisable to go
ahead and --
MS. SURRA:"And these channels"?Starting with,
"These channels shall be provided," just cut that whole
thing?
MR. DURBALA:"These channels should be provided by
licensee at no additional cost to subscribers."Cut that
from there.I mean, my intent was hopefully to get into the
hotels so we could increase our businesses in the community.
MS. SURRA:And mine was just to help the people
who are in the hospital.
MR. DURBALA:Yours is just the health care
industry.I did have one other question.
MR. STERN:Well, can we clarify the language that
we're going to cut out or --
MR. DURBALA:We're just cutting the last sentence
where it say, "These" --
MS. SURRA:Quality video, still photos, and --
MR. DURBALA:"These channels shall be provided by
licensee at no additional cost."
MS. SURRA:Starting with that sentence all the way
to the end of that is cut.
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
52
MR. DURBALA:All the way to the end of that
section.Just cut that last sentence out.
MR. DURBALA:My question was what kind of modem
speed is that going to have for the Internet system and do
you have a --
MR. CARY:Fast.
MR. DURBALA:Well, fast means what?I'm serious,
what --
MR. CARY:Tom, what is it, do you know?
MALE VOICE:Up to 100 megabits.
MR. DURBALA:Up to 100 megabits?That's your
lines that carfying it in then, so that would be --
MR. CARY:That's right.
MR. DURBALA:having it we'd also be accessible
to that as well, right?
MR. CARY:To --
MR. DURBALA:Well, I mean, some of the phone lines
I think come up -- go up a little higher like 76 or
something, but they don't actually transmit that fast.Your
lines going to be able to transmit at --
MR. CARY:Oh, yeah.Yeah.
MR. DURBALA:At that 100 bits?
MR. CARY:Absolutely, both ways.
MR. DURBALA:In and out, okay.You don't require
an additional modem for those people?
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
53
MR. CARY:You have to have a cable modem.You
know, in the future, the industry is going to go the route of.
you can go buy your own modem if you want.
MR. DURBALA:Right.
MR. CARY:And hook it into your -- plug it up to
your computer.Radio Shack will be selling them in two or
three years_
MR. DURBALA:Okay.Well, that's kind of. off the
line.
MR,,,CARY:Right.
MR, DURBALA:I just wanted to ask that.
MR. CARY:Okay.
MR, COLEMAN:Council member Urich?
MS..URICH:I just have a question.TRIAX.has been
known to do this like they're doing to us in other areas,
going m at the last eleventh.thour and make contract
negotiations.Does Media Corn also do that normally?
THE COURT:NO, ,ma'am, we don't.
MS. URICH:Thank you.
MR. CARY i And, as a ,matter of fact, that's why we
would like nowto start the transfer process. so we can not
get down to .the last hour on.
MS URICH:Thank you.;
P.11R -_COLEMAN:Any other questions?Thank you.
Thank you very much.
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
54
MR. CARY:Thank you very much.
MR. COLEMAN:This is a public hearing and we're
going to go ahead and open it up to the public at this time.
Is there anyone who would like to address the council on any
of items 11a, 11.b, or 12?Okay.Hearing none, we'll close
the pubiic.hearing.Is there further discussion or questions
from members of the councilor -from our city attorney?
MR. STERN:I think we've covered everything unless
there's any clarification.Kathy, you got all the .changes?
I got most_of .them I think..
THE CLERK:We'll have go back andrgo:over the
tape.
MR. STERN:All right.
MR. COLEMAN:Okay.
MR. SHOOK:Let's vote.
MR. COLEMAN:I'll call for a motion then and we
will consider these one at a time.
THE CLERK:Your Honor, if the council could in
making the motion be as specific or the exact words, it would
be helpful.
MR. SHOOK:Your Honor?
MR. STERN:Well, actually --
MS. SURRA:Don't worry about it.
MR. STERN:Okay, well, there were things that I
did submit and that could be submitted as the city attorney
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
55
and as discussed.
MR. COLEMAN:Council Member Urich?
MS. URICH:I'd move that Resolution Number 99-27,
a resolution of the Mayor and City Council of the City of
Apache Junction, Arizona, declaring as a public record,
pursuant to Arizona Revised Statutes Annotated, A.R.S.§ 9-
802, a certain document filed with the city clerk and
entitled "Amendments to Chapter 14 of Volume 1 of the Apache
Junction City Code," amending in its entirety Chapter 14
relating to cable systems be approved.
MR. COLEMAN:Is there a second?
MR. INSALACO:Second, Your Honor.
MR. COLEMAN:Moved and seconded.Roll call.
THE CLERK:Council Member Eck?
MR. ECK:Yes.
THE CLERK:Council Member Surra?
MS. SURRA:Yes.
THE CLERK:Council Member Urich?
MS. URICH:Yes.
THE CLERK:Council Member Durbala?
MR. DURBALA:Yes.
THE CLERK:Council Member Insalaco?
MR. INSALACO:Yes.
THE CLERK:Mayor Coleman?
MR. COLEMAN:Yes.
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
56
THE CLERK:Unanimous, Your Honor.
MR. COLEMAN:Thank you.Item 11.b.
MS. SURRA:Your Honor?
MR. COLEMAN:Vice Mayor?
MS. SURRA:I move that Ordinance Number 1086 be
read by title only with the emergency clause and the reading
of the entire ordinance be waived.
MR. COLEMAN:Is there a second?
MR. SHOOK:Second.
MS. URICH:Second.
MR. COLEMAN:Roll call?
THE CLERK:Too many pages in the book.Vice Mayor
Surra?
MS. SURRA:Yes.
THE CLERK:Council Member Urich?
MS. URICH:Yes.
THE CLERK:Council Member Durbala?
MR. DURBALA:Yes.
THE CLERK:Council Member Eck?
MR. ECK:Yes.
THE CLERK:Council Member Insalaco?
MR. INSALACO:Yes.
THE CLERK:Mayor Coleman?
MR. COLEMAN:Yes.
THE CLERK:Unanimous, Your Honor.
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
57
MR. COLEMAN:Thank you.And now --
THE CLERK:Let's see, Ordinance Number 1086, an
ordinance of the Mayor, and City Council of the City of Apache
Junction, Arizona, amending -- adopting by reference that
certain document entitle "Amendments to Chapter 14 of Volume
1 of the Apache Junction City Code," amending in its entirety
Chapter 14 relating to cable systems pursuant to Arizona
Revised Statutes Annotated, A.R.S.§ 9-802, repealing any
conflicting provisions providing for severability, providing
for penalties, and declaring an emergency.
MR. COLEMAN:Okay.And now the main motion.
MS. SURRA:Your Honor, I move that --
MR. COLEMAN:Vice Mayor?
MS. SURRA:-- Ordinance 1086 as read by the city
clerk be approved.
MR. COLEMAN:Is there a second?
MR. SHOOK:Second.
MS. SURRA:There were no changes for the
THE CLERK:There are no changes.There are no
changes in Chapter 14 amendments.
MR. STERN:Actually there are a few as noted in
the attachments that I gave you tonight.
MS. SURRA:Well then we will just approve them as
noted with the attachments that we got tonight.
THE CLERK:From the city attorney?
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
58
MS. SURRA:Instructions from the city attorney.
MR. COLEMAN:Is there a second?
MR. SHOOK:Second.
MS..URICH:Second.
MR. COLEMAN:Moved and seconded.Roll call.
THE CLERK:Council Member Urich?
MS. URICH:Yes.
THE CLERK:Council Member Insalaco?
MR. INSALACO:Yes.
THE CLERK:Vice Mayor Surra?
MS. SURRA:Yes.
THE CLERK:Council Member Durbala?
MR. DURBALA:Yes.
THE CLERK:Council Member Eck?
MR. ECK:Yes
THE CLERK:Mayor Cbleman?
MR. COLEMAN:Yes.
THE :CLERK:Unanimous,-Your Honor:
MR: COLEMAN:Thank you.And now on item 12, I'll
call for a -motion.
MS. SURRA:Your Honor?
'MR: COLEMAN:Vice Mayor?
MS SURRA:I move that the cable license currently
held by TRIAXIlidwest Associates be renewed with :new terms
and' conditions in the form .presented by the city attorney and
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
59
the city manager and that such agreement may only be modified
prior to execution by the city and TRIAX only to correct
format, typographical, or grammatical or clerical errors or
deficiencies and any substantive changes presented to the
city council this evening and agreed upon by the city
attorney before tonight's vote.Failure (applies?). to
execute two duplicate copies and cause such copies to be
received in the city attorney's office located at 1001 North
Idaho Road, Apache Junction, Arizona, with a zip code of
85219 on or before 15 days from the effective date of the
ordinance will invalidate the granting of thisauthority for
license renewal.
MS. URICH:Second -, Your Honor.
MR. COLEMAN:Moved-,and seconded.Roll call.
THE CLERK:Council Member Insalaco?
MR. INSALACO:Yes..
THE CLERK:Council Member Eck?'
MR.: ECK:Yes.
THE .CLERK:Vice Mayor Surra?
SURRA:Yes.
THE CLERK:Council -Member Urich?.
14S. URICH:Yes.
THE :CLERK:Council Member Durbala?
14R. DURBALA:Well, I thought hard and long on
this, and.I just don't trust TRIAX no matter what, and I know
A/V* TRONICS,- INC.
Professional Court Reporting
& Transcription -
Phoenix, AZ
S
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
60
the only way to get rid of them out of town is to vote yes on
this particular piece of thing, so maybe I just better vote
yes so that the city can get this thing under -- hopefully
under emergency clause past and they'll be out of here as
fast as possible on the road.
THE CLERK:That's a yes?
MR. SHOOK:Is that a yes?
MR. DURBALA:That's a yes.
MR. SHOOK:Just checking.
THE CLERK:Thank you.Mayor Coleman?
MR. COLEMAN:Yes.
THE CLERK:Unanimous, Your Honor.
MR. COLEMAN:Thank you. We are going to consider
item 16.a and 16.b away from -- they're not public hearings,
but it's under new business.But we need to take a break at
this time to allow the court reporter to pick up, but we will
move that up.
(Proceedings Concluded)
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
61
STATE OF ARIZONA
County of Maricopa )
BE IT KNOWN that the foregoing city council meeting
was recorded by me; that the statements, questions and
answers were recorded by electronic sound recording and
thereafter transcribed into typewriting under my direction;
and that the foregoing pages are a fully, true and accurate
transcript of all proceedings in connection with this city
council meeting.
I FURTHER CERTIFY that I am in no way related to
nor employed by any of the parties hereto, nor am I in any
way interested in the outcome hereof.
DATED at Phoenix, Arizona, this /day of
a tilLb04—, 1999.
0_,111e41k 1176
1.111.LUM
My commission expires:
July 17, 2000
A/Vv TRONICS, INC.
Professional Court Reporting
& Transcription
Phoenix, AZ