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HomeMy WebLinkAbout1994-04-19 City Council Regular MinutesCITY COUNCIL REGULAR MEETING APRIL 19,1994 The regular meeting of the City Council of the City of Apache Junction, Arizona,was held on April 19,1994,at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Mayor Perkins called the meeting to order at 7:13 p.m. INVOCATION Councilman Coleman gave the Invocation. PLEDGE OF ALLEGIANCE Councilman Hendricks led the Pledge of Allegiance. ROLL CALL Councilmen Present:Mayor Perkins Vice Mayor Barker Councilwoman Richmond Councilman Hendricks Councilman Perkins Councilman Coleman Councilwoman Surra Staff Present: Others Present: City Manager Michael R.Lee City Clerk Kathleen Connelly City Attorney Glenn Gimbut Assistant City Manager George Hoffman Acting Police Chief Capt.Dan Scott City Engineer Gordon Grandy Public Works Supt.Doug Dobson Acting Director of Devel.Servs./ Planning Mgr.Jim Nakagawa Library Director Pam Loui Finance Director Keith Lewis Parks & Rec.Director Jeff Bell Housing & Grants Coord.John Flumerfelt Judy Hamilton,5136 N.31st Pl.#627,Phoenix W.Dean Thorpe,1615 N.Delaware,Apache Junction REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 1 OF 20 Art Grandlich,201 W.Apache Trail,Apache Junction Jimmy Eidson,944 W.3rd Avenue,Apache Junction ACCEPTANCE OF CONSENT AGENDA )Councilman Coleman MOVED THAT THE CONSENT AGENDA BE ACCEPTED AS PRESENTED;AND THAT RESOLUTION NO.94-11,"ADOPTING A FAIR HOUSING POLICY,MAKING KNOWN ITS COMMITMENT TO THE PRINCIPLE OF FAIR HOUSING,AND DESCRIBING ACTIONS IT SHALL UNDERTAKE TO AFFIRMATIVELY FURTHER FAIR HOUSING"BE APPROVED AND ITEM NO.11 BE DELETED. Councilwoman Richmond SECONDED THE MOTION. VOTE:Unanimous. The motion carried. AWARDS,PRESENTATIONS AND COMMUNICATIONS Mayor Perkins presented a plaque to former Councilman Ed Cox for his work on the Council and his service to the community. Kathie Lee,representing Salt River Project,presented a check for $1,000 to Apache Junction Clean and Beautiful,Inc.to promote recycling efforts. City Clerk Kathy Connelly read a proclamation indicating the City's commitment to Fair Housing. CALL TO THE PUBLIC None. CITY MANAGER'S REPORT City Manager Mike Lee informed the Council that on April 21st at 7:30 p.m., there will be a meeting of Central Arizona Association of Governments in Apache Junction at the County Complex;that on the first week of May,the City will start chip sealing seven miles of streets;and that the Clean Up Week will be the week of May 16th. Mayor Perkins mentioned that the Council received a letter complimenting the Public Works Department for a job well done. REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 2 OF 20 PUBLIC HEARINGS OFF-TRACK WAGERING FACILITY AT THE WINCHESTER RESTAURANT BY TURF PARADISE RACE COURSE )City Clerk Kathy Connelly briefed the Council on this item. Ms.Judy Hamilton,representative of the horse racing industry,asked the Council's approval on this item and - stated they have no complaints about it.She reminded the Council that last year there were some concerns about the dog track and they are now sending their signal to them and they have no problems. Mayor Perkins opened the public hearing:there being no one wishing to speak,she closed the public hearing. Councilman Perkins MOVED THAT REQUEST FOR RENEWAL OF THE OFF TRACK WAGERING FACILITY AT THE WINCHESTER RESTAURANT SUBMITTED BY TURF PARADISE RACE COURSE,BE RECOMMENDED FOR APPROVAL TO THE ARIZONA RACING COMMISSION. MOTION. VOTE:In favor: Councilwoman Richmond SECONDED THE Vice Mayor Barker,Councilwoman Richmond, Councilman Hendricks,Councilman Perkins, Councilman Coleman,Mayor Perkins. Abstained:Councilwoman Surra. The motion carried. ORDINANCE NO.893,AMENDING THE CITY CODE BY ADDING ARTICLE 10-2 BAD CHECKS,AND SECTIONS 10-2-1 THROUGH 10-2-4 )City Attorney Glenn Gimbut stated that the State Law provides for a bad check program in counties throughout the state.He explained how that program works through the County and how the City could establish a bad check program by adopting this ordinance,making the program available locally which will better serve the businesses in our community.He further stated there will be fees applicable according to state statutes which will generate a revenue source. Vice Mayor Barker asked for a short synopsis of how this program will work. Officer Steve Greb explained that the bad check would go first through the City Attorney's office,who in turn REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 3 OF 20 will send letters to the bad check passer indicating they are being offered a diversion program;that a total of three letters are sent out and if the person does not respond,the police then proceeds to prosecute it through the city court.He stated that this process is currently taking about nine to ten months through the County and they hope to shorten it to sixty or ninety days. Mayor Perkins asked if an employee of a business receives a bad check,this will be handled the same way. Officer Greb answered that it would work the same way because it is against the law to write a bad check regardless of who that is. Councilwoman Surra asked if a construction worker gets a bad check,he as a citizen would be able to go through this program. Mr.Greb answered that in that case the suspect would be the construction company and not the employee who cashed the check so they will go after the company who wrote the bad check and that this has to occur within the city because they cannot prosecute it if it took place outside the city limits. Councilwoman Surra asked if they were planning to make this a pilot program before it goes fully into effect. Capt.Dan Scott,Acting Chief of Police,explained they would need someone to operate this program because they did not have enough staff to do it;that they thought of a temporary person to do both the bad check program and the handgun background checks;that it could be a self-sufficient position at no cost to the City but he did not know if there would be a profit and suggested to have staff reevaluate the program and submit a report to the Council after six or nine months to see if it is going to work;and that if they start this program right away,they have residual money in their budget to handle it until July. Vice Mayor Barker asked about the specific time period for that because she would like the Council to do it tonight. Capt.Scott answered that nine months would be a good time;that in three months they would know how it is going to work plus six months to operate it. Vice Mayor Barker suggested January as the time to review the program. Officer Greb stated that the law stipulates how long they have to wait to notify people;that the letters will REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 4 OF 20 take from six weeks to two months,so in three months they will not be able to tell if this is going to work,but nine months would be enough time to determine if this will be a feasible program. Vice Mayor Barker replied that January looked like a reasonable time. Asst.City Manager George Hoffman stated that the approval of this would also give the department the approval for that additional position. Mayor Perkins replied she understood that. Vice Mayor Barker added that is why they have indicated that they have residual funds within the department's budget which will take care of this until July. Mayor Perkins opened the public hearing. Mr.Dean Thorpe,1615 N.Delaware, spoke opposing this item.He stated the City should not get involved in this because i t is a private situation and would make the City a collection agency. Mr.Jimmy Eidson,944 W.3rd Avenue, spoke in favor of this item.He stated that it is against State law to write a bad check and encouraged the Council to approve this program. Mrs.Betsy Grandlich,owner of Superstition Grand Hotel,spoke against this item.She stated that patrolmen are needed to keep the city safe,not for collecting the money for bad checks. Councilwoman Surra explained that this was not a bill collection program but to prosecute an offender for writing a bad check. Mayor Perkins asked if the City is not doing that now. Mr.Gimbut answered that the City is doing it now under the County's program but the City ends up prosecuting these cases many times instead of the County. Mayor Perkins asked Mrs.Grandlich to approach the podium since she began speaking to the Council from her seat. Mrs.Grandlich asked about the dollar amount on bad checks. REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 5 OF 20 Mr.Gimbut answered that the fee was $25 if the amount of the check does not exceed $100;$50 for a check between $100 and $300;and $75 for a check greater than $300;and that most of the cases that Officer Greb handles are between $100 and $300. Mayor Perkins closed the public hearing,there being no one else wishing to speak on this item. Councilwoman Surra MOVED THAT ORDINANCE NO.893 BE READ BY TITLE ONLY AND THE READING OF THE ENTIRE ORDINANCE BE WAIVED. Councilman Hendricks SECONDED THE MOTION. VOTE:Unanimous. The motion carried. City Clerk Kathy Connelly read,"AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA,AMENDING THE APACHE JUNCTION CITY CODE BY ADDING ARTICLE 10-2,BAD CHECKS,AND SECTIONS 10-2-1 THROUGH 10-2-4;REPEALING ANY CONFLICTING PROVISIONS;AND PROVIDING FOR SEVERABILITY." Councilwoman Surra MOVED THAT ORDINANCE NO.893,AS READ BY THE CITY CLERK,BE APPROVED. Councilman Hendricks SECONDED THE MOTION. Councilman Perkins AMENDED THE MOTION THAT THIS PROGRAM BE PUT ON A NINE -MONTH TRIAL BASIS AND THAT THE REPORT BE RETURNED TO THE COUNCIL WITHIN NINE MONTHS FOR ITS EFFECTIVENESS AND WHETHER OR NOT IT IS A PROGRAM WE WANT TO PURSUE CONTINUALLY. AMENDMENT. the nine months would end January 1995. Councilman Coleman SECONDED THE City Clerk Kathy Connelly asked if Mayor Perkins answered yes. Mr.Gimbut asked if this would be back the first or second meeting in January. Ms.Connelly answered it would be back on the second meeting. REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 6 OF 20 AMENDMENT VOTE:In favor:Councilman Perkins,Vice Mayor Barker, Councilwoman Richmond,Councilwoman Surra, Councilman Coleman,Councilman Hendricks. Opposed:Mayor Perkins. The motion carried. MAIN VOTE:In favor:Councilman Hendricks,Councilman Coleman, Councilman Perkins,Councilwoman Richmond, Councilwoman Surra,Vice Mayor Barker. Opposed:Mayor Perkins. The motion carried. Mayor Perkins recessed the meeting at 7:57.She reconvened the meeting at 8:18 p.m. OLD BUSINESS None. NEW BUSINESS APPOINTMENTS OF KENDRA GRIFFING AND JEANETTE HAUCK TO THE LIBRARY BOARD ) the Council on this item. introduced themselves to the Council. applying to the Library Board. )Library Director Pam Loui briefed Ms.Griffing and Ms.Hauck Mayor Perkins thanked them both for Vice Mayor Barker MOVED THAT KENDRA GRIFFING AND JEANETTE HAUCK BE APPOINTED TO FILL VACANCIES ON THE LIBRARY BOARD FOR TERMS TO EXPIRE JUNE 30,1995. Councilman Coleman SECONDED THE MOTION. VOTE:Unanimous. The motion carried. REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 7 OF 20 COUNCIL DIRECTION TO STAFF ON PROPOSED LEGISLATION OR ACTIONS REQUEST FOR ECONOMIC DEVELOPMENT FUNDS BY MAIN STREET.INC. )City Engineer Gordon Grandy briefed the Council on this item.He stated that the City has recently invested in the business community in a variety of needs,which he listed,and that there was a funding source for other improvements on Apache Trail in conjunction with the desires of Main Street;that one of those sources was ADOT's transfer account which was available as of this date and also Maricopa Association of Governments ISTEA funds which have been designated for a joint project with the County.He introduced Bill Schulte and Bob Trepp of Main Street to speak to the Council. Mr.Bob Trepp stated that one of their goals was to enhance the business district;that Main Street asked the Dept.of Commerce to design something that would enhance the median on Apache Trail;that they did it and they would like to ask the City to redirect some funds to accomplish that design.He stated that Main Street would like to develop the landscaping of the median on Apache Trail from Meridian to Phelps and that they have committed to solicit the business community for their participation in funding this plan.He added that they have talked with Mr. Grandy about helping him with the project at Friendship Park. Mr.Schulte added they would like to lump the $65,000 that Mr.Grandy has allocated for the median and the $100,000 for the park into $165,000 and see how far they can go with that money into landscaping the median. Councilman Hendricks asked if Main Street had any plans to extend this work from Phelps to Idaho since this is one of the main roads into the city. Mr.Trepp answered they plan to do that eventually;that this is basically phase one to see where they are going to go and how much participation they are going to get;and that they felt the priority was the west end of the city. Mr.Schulte added they have plans for two more entry -way signs;one would be at Goldfield and Old West Highway and the other one at SR 88;that they looked into locating one on Idaho coming from the freeway but the City does not have an easement for one in that area, except for ADOT 's right-of-way but they will not allow anything in there. Councilman Hendricks asked if they still have the controversy over the color on the entry -way sign. REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 8 OF 20 Mr.Schulte answered no;that the color was changed this morning and explained that future signs will have in- laid letters. City Attorney Glenn Gimbut asked if the City will plan for the bid process for these two signs as it did for the first sign. Mr.Grandy confirmed that and added that the City also contributes with staff time to assist Main Street. Councilman Perkins stated that they had the project broken down into different things and amounts;that the $165,000 only covered some of those things and asked if they needed to add the rest into the $160,000. Mr.Trepp agreed on that. Councilman Perkins asked if they were asking the Council to add the $12,000 and the $25,000 into the $160,000 to be redirected. Mr.Trepp answered that is correct. Councilman Perkins asked Mr.Grandy if that was correct. Mr.Grandy answered that this is Main Street's request and he was trying to keep the money for the projects that Engineering wants to do. Councilman Perkins pointed out that reconstruction of the Delaware intersection was also listed in there and asked if that project was still on. Mr.Grandy replied it was still on. Councilman Perkins asked about the projects the Council was going to redirect these funds from. Mr.Grandy explained that the money will be redirected from the median curbs which do not represent a safety issue and do not have to be done today,but he would like to know that the money will be available at the time the curbs are needed. Councilman Perkins asked if the median curbs go in first. REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 9 OF 20 Mr.Grandy answered they would go in after they landscape the median. Councilman Perkins asked if the curbs are a necessity because he has heard that the curbs are not needed. Mr.Grandy answered no,they are not needed entirely but he would recommend that they be put at median crossovers. Councilman Perkins asked if the money allocated to reconstruct Broadway/Royal Palm was for the design fees. Mr.Grandy answered no,that was the City's match for that project if the city were to get another ISTEA grant. Councilman Perkins asked if the curbs and the Broadway/Royal Palm were the projects from which the Council would redirect money for this project and if Mr.Grandy hopes to have the money reinstated later. Mr.Grandy agreed on that. City Manager Mike Lee stated that the ISTEA grant also included money for curbs and sidewalks on Apache Trail; that the Main Street program was worthwhile and it should be done;and he commented on SRP funded aesthetic program of underground lines along Apache Trail. Mr.Grandy stated that the community of Apache Junction was entitled to that money which was designated for SRP aesthetic program,but they could have applied that money anywhere in the community. Mr.Lee stated that funding for this project does not have to be transferred from ADOT or ISTEA funding;that i t could come out of the City's regular street's budget. Councilman Perkins stated that the total for the two entry signs,landscape of the median,and silhouettes was $202,000 and asked if Main Street was planning to take that money as far as they could go. Mr.Trepp agreed on that and added that they wanted the Council and staff to feel comfortable with this;.that Main Street wanted to provide them with all the information and data to support that comfort level;and that part of that is making sure that Mr. Grandy is comfortable with these expenditures. REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 10 OF 20 Mr.Grandy was concerned that if the Council capped everything at $200,000,they may only do four projects with all that money;but if the Council established that they wanted all of the projects done,then they will proceed to accomplish all the projects within the available dollars;that they can landscape the median at a cheap rate or at an expensive rate. Councilman Perkins stated he saw three projects in here;the landscaping of the median,friendship park,and the entry signs. Mr.Grandy replied that Councilman Perkins was adding in the silhouettes which was not an identifiable dollar amount in his presentation tonight;that if they add the cost of the silhouettes and say they have $200,000 to spend,they may spend it all landscaping the median and the other things will be lost. Councilman Perkins asked where these dollar figures come from. Mr.Grandy answered that they are merely estimates and Friendship Park is the only thing that was estimated in detail. Councilman Perkins asked if these estimates were obtained from the people who will do these things. Mr.Grandy answered no. Councilman Perkins was concerned that the figures were not real but only estimates.He stated he could understand why they should not allocate a figure of $200,000 when they really do not know how much those projects are going to cost. Mr.Trepp explained why they could not set a true dollar value on those projects;that their goal tonight was to have a dollar figure and then try to involve the business community in sharing the expenses. Councilman Perkins stated they needed to set a definite dollar figure for these projects to avoid having Main Street come back for more money. Mr.Trepp agreed with that and stated that tonight they wanted the City's commitment on these projects;its willingness to make these monies available. REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 11 OF 20 Councilman Perkins replied the Council was willing to commit funds for these projects but they needed to see detailed expenditures before the City can allocate any money into that. Mr.Trepp agreed on that. Councilman Perkins explained he could not make a commitment without knowing for sure how much i t is going to cost to do those projects. Mr.Trepp replied that is not what they wanted the Council to do;that they wanted the Council to make a commitment and say "here is the money and now go out and see what you can get done." Asst.City Manager George Hoffman stated that Mr.Trepp has advocated for some time doing a detailed cost analysis but what they would like tonight is to know that there is some interest from the Council before they do that. Vice Mayor Barker stated they already know the cost for the two entry signs because of the one that was done;that the friendship park cost has been detailed closely;so the emphasis tonight was on the landscaping cost. Councilwoman Surra added that the silhouettes were also part of that. Mr.Hoffman asked if Main Street's priority was landscaping the median before the friendship park. Mr.Trepp answered it would be the two entry signs and if there is any money left,the completion of the other projects. Councilwoman Surra stated she would like to help with these projects,however she did not want the Council to lose control over the monies and what would actually be in place;that she would like to know how much the merchants will contribute to funding these projects and asked if they had an idea of how much that will be. that. like to know what that needed to do something Mr.Trepp answered they did not know Councilwoman Surra stated she would amount would be before the Council commits the money. Vice Mayor Barker stated the City with the median whether Main Street is here or not; REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 12 OF 20 that in her opinion the entry signs were not a priority but the median was; and that she also would like to know how much the businesses will give for this and a specific dollar amount on these projects and what is going to be done. Mr.Trepp replied ,that our community is not in good Shape financially or aesthetically;that he did not think the City can ask.the business community to do more than it is doing right now,but they will do it anyway and follow the City's lead;but if the City does not want to lead,it may not see much participation., Vice Mayor Barker replied that i t seems like he was saying that the City should prioritize what it needs to do and that the City Engineer was waiting in trepidation because he felt that. this priority might not beLthe right decision.She stated this was a business investment and the businesses should be interested to some degree. Mr.Trepp replied that the business investment is the City's business;that if the Council was trying to stop revenuelrom leaving the City;that they cannot draw new business into an area that operates at less than optimum;and that this is a step to show that the City wants to grow in. a positive .way. Vice Mayor Barker asked if he is saying that the City does not have the right to expect the business community to give concrete evidence that they are willing to join the City in this project. Mr.Trepp answered it was the contrary;if the Council is willing to make a commitment for the money and let Main Street do their part,they would be happy to do it. Vice Mayor Barker replied he seemed to contradict himself. Mr.Trepp stated that he is not going to go and ask people for their money if they do not know that the City has a commitment on this. Vice Mayor Barker replied that the City was going to commit that money and expected the same commitment back from others,but if they do not make a commitment,then the City may have to re- prioritize this. Councilwoman Surra stated that they all wanted the same thing,which was that these projects come to fruition; that the City cannot lose control of the funds until it looks like it is a reasonable assumption that these projects are going to come to fruition;that REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 13 OF 20 the Council needed more information and the support of the business community to make a decision. Mr.Schulte stated that Main Street also needed some preliminary plans from the engineers to show the business community and say that the City is willing to invest on this. Councilwoman Surra stated the Council can make a commitment without allocating the funds. Mr.Lee stated that the aesthetics and appearance of main street also encompasses the store fronts and parking lots,so the commitment from businesses may not be money but to fix up their own business. Mr.Schulte stated that some business owners are already fixing up the appearance of their business. Councilman Perkins asked if Main Street had a program to assist business owners. Mr.Schulte answered there is a program available. Councilman Perkins asked if it has been used. Mr.Schulte answered that nobody has used it yet,however one business has asked for help on the interior design and marketing of their business,which is another service of Main Street. Councilman Perkins stated that the Council is willing to make a commitment but they also want to know the response from the business community. Vice Mayor Barker stated that the reason this item was on the agenda was because of her request. Mr.Gimbut stated that since this is going to go through the bidding process and this is for public improvements and public lands,the Council will have to award the bids so that it will be their decision to spend the money or not. Mr.Schulte asked what will happen with donated plants in relation to the bid process. Mr.Gimbut answered they do not have to worry about bidding for that but only when they pay for any construction. REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 14 OF 20 Mr.Schulte asked about people who wanted to donate money for the project. Mr.Gimbut answered they did not have to worry about that either. Vice Mayor Barker asked about liability in the case of people planting trees. Mr.Schulte answered there are insurance policies on both parties. Mr.Gimbut explained that donations or the planting of trees will have to be approved by either the City Engineer or the City Manager. Mr.DeBow of Main Street stated that all they needed was to target a dollar amount so that they can do their research and try to stretch that money as much as possible and come back with a proposal. Mayor Perkins stated work on the median should extends all the way to Goldfield Road;that maybe the friendship park could wait until after the median is completed. Councilwoman Surra replied that the Council should not participate in spending money into a median development on the east side until further highway improvements occur. Mayor Perkins replied that maybe they could extend the work up to Idaho Road. Councilwoman Surra stated that may be possible once they start stretching the dollars. Mayor Perkins commented that the Chevron landscaping at Idaho was nice. Councilwoman Surra replied that is what Mr.Trepp meant when he said that there is already a beginning at that end and that is why they would like to bring the west end up to that level of aesthetic quality. Mr.Grandlich spoke in favor of Main Street plans for the median and indicated that the entry sign had been painted a darker color and he could not read it;and he encouraged the Council to spend the money wisely. REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 15 OF 20 Mayor Perkins stated she was disappointed to hear that the sign had been painted a darker color. Mr.Grandlich spoke up from his seat in the audience discussing further the entry sign and his problems when he tried to get a permit for his sign at the Grand Center. Councilman Perkins pointed out that discussion was out of order since the issue was not listed on the agenda. Mayor Perkins asked Mr.Grandlich to come back and speak on that at Call to the Public. discussion. Grandlich was out of order. Mr.Grandlich continued his Vice Mayor Barker insisted Mr. Mayor Perkins thanked Mr.Grandlich. Councilman Perkins MOVED TO DIRECT STAFF TO DEVELOP FINAL IMPROVEMENT PLANS FOR TWO MORE MONUMENTAL ENTRY SIGNS, LANDSCAPING FOR THE MEDIAN ON WEST APACHE TRAIL AND FRIENDSHIP PARK;AND THAT THE CITY IS WILLING TO GO UP TO THE AMOUNT OF $202,000 PENDING FEEDBACK FROM ENGINEERING AND FROM THE BUSINESS COMMUNITY. Mr.Hoffman asked if that included the silhouettes. Councilman Perkins answered yes. Councilman Coleman SECONDED THE MOTION. Councilman Hendricks stated he would agree that the friendship park was not a priority. Councilwoman Surra stated that the motion was to develop final improvement plans for those projects and they were not deciding where the money is going to go. VOTE:Unanimous. The motion carried. REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 16 OF 20 IMPLEMENTATION OF A TRANSIENT RENTAL TAX ) )City Clerk Kathy Connelly stated that the Council discussed at their previous meeting this issue and they requested additional information,which she relayed to them. Vice Mayor Barker asked if all the cities listed were the only ones who have this tax. Ms.Connelly answered that it was a cross-section and that the League of Cities no longer produces a print out of that...(she was interrupted by Mr.Grandlich) Mr.Grandlich stated he had that print out with him. Mrs.Grandlich supported that. Ms.Connelly stated they should speak at the podium so they could be recorded. Mayor Perkins asked Mr.and Mrs. Grandlich to approach the podium. Mrs.Grandlich stated that the list they had was on sales tax from the Arizona Department of Revenue and included all the cities that the State collects for and which included hotels and motels.She stated that on the State codes "transient lodging"and "rental occupancy"are two different classifications and the term "transient rental" used by the City was not listed. Mr.Grandlich stated that the City has the highest sales tax in the area and we do not need one more. Mr.Thorpe,1615 N.Delaware Dr. spoke opposing this item.He stated he lived in a mobile home park and he already pays a 2% sales tax on his rent and the City was trying to impose an extra tax on that. Councilman Perkins asked if the law does not allow us to exclude trailer spaces which are rented for thirty days or less. Ms.Connelly confirmed that. Councilman Perkins asked if a house which is rented for thirty days will include this tax. REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 17 OF 20 Ms.Connelly answered that if houses are rented for up to thirty consecutive days,they are subject to the 2% rental tax plus the transient tax. Councilman Perkins asked what would happen if the rental is extended for another thirty days. Ms.Connelly answered that if it was "thirty-two days as opposed to twenty-nine days,they would only be subject to the two percent."She added that the State will administer the tax for the City and they will notify everyone in the business of renting;and it will be enforced through our normal audit program which is very successful and for those who do not pay,there will be substantial penalties and interest assessed. Councilman Perkins asked if people can bypass this tax by renting a house for thirty-two days. Ms.Connelly answered they could do that but they would still be subject to the normal 2% rental tax. Councilman Perkins stated that the community is growing and we are trying to move in the direction of tourism which includes more motels,etc.;that those kinds of businesses deal with people who stay three or four days;that he realized they may be penny -saving people but he is also and when he takes his family on vacation anywhere,he pays that extra tax and they get the benefits from it;and that the City needs this tax as a source of revenue for economic development purposes. Councilwoman Surra stated she was in favor of this tax because she knows this is not being targeted toward the winter visitors or permanent residents who rent a space year round,but toward people who stay here for a short period of time;that the Council is not following anything out of the ordinary but following prescribed good business practice for people who come here as tourists. Vice Mayor Barker MOVED THAT THE FOLLOWING DIRECTION BE GIVEN TO STAFF REGARDING IMPLEMENTATION OF A TRANSIENT LODGING TAX AS PER THE STATE TAX FORM THAT MRS.GRANDLICH SO KINDLY SHARED WITH US;THAT STAFF PREPARE AN ORDINANCE BASED ON THE ONE THAT IS IN THE AGENDA PACKET WITH A TWO PERCENT TAX. Ms.Connelly asked if they were also interested in using the funds for the economic development purposes. Vice Mayor Barker answered yes. Councilwoman Surra SECONDED THE MOTION. REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 18 OF 20 VOTE:Unanimous. SELECTION OF MEETING DATES,TIMES,LOCATIONS,AND PURPOSES Vice Mayor Barker MOVED THAT AN EXECUTIVE SESSION BE HELD AT 6:00 P.M.AND A WORK SESSION AT 7:00 P.M.ON MONDAY,MAY 2,1994,IN THE CITY COUNCIL CONFERENCE ROOM AND CITY COUNCIL CHAMBERS RESPECTIVELY:AND Vice Mayor Barker asked people in the audience who were speaking loud to allow her to finish her motion. She continued:THAT AN EXECUTIVE SESSION BE HELD AT 6:00 P.M.ON TUESDAY,MAY 3,1994,IN THE CITY COUNCIL CONFERENCE ROOM. Councilman Hendricks SECONDED THE MOTION. VOTE:Unanimous. The motion carried. INFORMATION AND REPORTS None. ADJOURNMENT meeting at 9:47 p.m. Consent Agenda Items are as follows: )Mayor Perkins adjourned the 1.Acceptance of Agenda. 2.Acceptance of the Minutes of the Regular Meeting of April 5,1994. 3.Approval of Resolution No.94-11,Validation of City of Apache Junction's ongoing commitment to Fair Housing. ACCEPTED THIS 3RD COUNCIL OF THE CITY SIGNED AND ATTESTED DAY OF MAY ,1994,BY THE MAYOR AND CITY OF APACHE JUNCTION,ARIZONA. TO THIS 4TH DAY OF REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 19 OF 20 MAY ,1994. ATTEST: KATHLEEN—MANE City Clerk CITY COUNCIL MINUTES CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular meeting of the City Council of the City of Apache Junction,Arizona,held on the 19th day of April,1994.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 26th day of April,1994. KATHLEEN CONNELL City Clerk REGULAR MEETING OF THE CITY COUNCIL APRIL 19,1994 PAGE 20 OF 20