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HomeMy WebLinkAbout1992-05-05 City Council Regular MinutesCITY COUNCIL REGULAR MEETING MAY 5,1992 The regular meeting of the City Council of the City of Apache Junction, Arizona,was held on May 5,1992 at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Mayor Damiano called the meeting to order at 7:01 p.m. INVOCATION Vice Mayor Eidson gave the Invocation. PLEDGE OF ALLEGIANCE Councilman Perkins led the Pledge of Allegiance. ROLL CALL Councilmen Present:Mayor Damiano Vice Mayor Eidson Councilwoman Barker Councilman Perkins Councilwoman Alger Councilman Coleman Councilman Cox Staff Present: Others Present: City Manager Michael R.Lee City Clerk Kathleen Connelly City Attorney Glenn Gimbut Assistant City Manager George Hoffman Director of Public Safety Bill McDaniel Director of Public Works Rich Broman City Engineer Gordon Grandy Planning Division Manager Jim Nakagawa Building and Safety Manager Lynn Underwood Library Director Pam Loui Librarian Spencer Paden Ms.Jeaneen Walter,2056 W.Canyon,Apache Junction Mr.Robert DeBow,4375 Superstition Blvd., Apache Junction Mr.William E.McDaniel,11124 E.Sugar Creek Dr.,Apache Junction REGULAR MEETING OF THE CITY COUNCIL MAY 5,1992 PAGE 1 OF 16 Mr.John Insalaco,1570 S.Buena Vista,Apache Junction Ms.Judi Hamilton,18016 S.Cooper Rd.,Chandler Mr.John Mangum,Phoenix ACCEPTANCE OF CONSENT AGENDA )Vice Mayor Eidson MOVED THAT THE CONSENT AGENDA BE ACCEPTED AS PRESENTED;AND THAT THE INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF APACHE JUNCTION AND THE APACHE JUNCTION FIRE DISTRICT FOR DEVELOPMENT ASSISTANCE,USE OF FUELING FACILITIES,BUILDING/FIRE CODE ENFORCEMENT,AND RADIO TRANSMISSION/ COMMUNICATIONS,BE APPROVED. Councilwoman Barker SECONDED THE MOTION. Councilman Perkins asked if at the joint work session they did not agree to eliminate the fueling. City Manager Mike Lee explained that after that meeting there was follow up conversations with members of the fire board and the chairman did not understand the advantages of that,so now it is in the agreement as something permissible and the fire board is in agreement. Mayor Damiano requested that item 6 be moved to follow item 8. Vice Mayor Eidson ASKED THAT IN ADDITION TO HIS MOTION ITEM NO.6 BE MOVED TO FOLLOW ITEM NO.8. Councilwoman Barker SECONDED THE AMENDMENT. VOTE:Unanimous. The motion carried. AWARDS.PRESENTATIONS AND COMMUNICATIONS City Clerk Kathleen Connelly read a proclamation for "Country Music Week",May 10-13,1992 and Mayor Damiano presented it to Dusty Lane,president of the Arizona Country Music Association.Ms.Connelly also read a proclamation for "Public Works Week",May 17-23,1992. REGULAR MEETING OF THE CITY COUNCIL MAY 5,1992 PAGE 2 OF 16 CALL TO THE PUBLIC Mr.John Insalaco,1570 S.Buena Vista,president of the Chamber of Commerce,informed the council that May 3-9 is "National Tourism Week"and read a letter to them on this subject. Ms.Jeaneen Walter,2056 W.Canyon, addressed Council on the issue of Mr.Mercer Weiskotten. City Manager Mike Lee explained that Council cannot answer to that at this time since it is not an agenda item, however he can meet with Ms.Walter and explain any specific questions she might have. CITY MANAGER'S REPORT City Manager Michael Lee gave a financial update and stated that as of April the city is where it was projected.He reported on the sales tax audit and stated revenues continue to increase.He then gave a general review on the revenues. Mr.Lee also informed the council that Pinal County gave the city 50% reduction on the landfill fees in connection with the city's semiannual cleanup campaign. Mr.Lee gave an update on the use of CAP water for public works.He stated there are some difficulties and that the city will have to get water through Arizona Water at the rate the city would get it from CAP,but this is not yet for sure. Councilman Perkins commended staff for the financial report given and asked staff to express the council's gratitude to the public works crews for their job on the streets. PUBLIC HEARINGS None. OLD BUSINESS None. NEW BUSINESS REQUEST BY TURF PARADISE RACE COURSE FOR APPROVAL OF AN OFF TRACK WAGERING FACILITY city manager to speak on this item. REGULAR MEETING OF THE CITY COUNCIL MAY 5,1992 PAGE 3 OF 16 Mayor Damiano called upon the City Manager Mike Lee stated the council had already received some information and that there were some people in the audience wanting to address this issue. Ms.Judy Hamilton,representative of Turf Paradise,offered to answer questions from the council. Councilman Perkins asked if Turf Paradise has off track wagering facilities in other municipalities. Ms.Hamilton replied they are in 23 other cities and counties. Councilman Perkins asked if the revenues are being taxed in those places. Ms.Hamilton replied yes,they pay a city sales tax on part of the amount wagered that is retained by the track and added that the city will see an increase in sales tax from increase of food and beverage trade at the facility. City Attorney Glenn Gimbut stated he believes Turf Paradise is the party responsible for the collection of the sales tax and it is them who pass it to the Department of Revenue who,in turn,passes it on to the city;that this is a situation where Turf Paradise very closely monitors and accounts for. they will get a city business license. Ms.Hamilton replied yes,and also City Clerk Kathy Connelly stated they will need to get a city business license and city sales tax permit. Mr.William McDaniel,11124 E.Sugar Creek Dr.,owner of the Winchester Restaurant,spoke in favor of the application. Vice Mayor Eidson asked how the wagering system work. Mr.McDaniel replied Turf Paradise will install monitors to receive the signals from Turf Paradise;that there would be several screens at his facility and he would set up booths for the customers to place their wages. would be for dog and horse racing. REGULAR MEETING OF THE CITY COUNCIL MAY 5,1992 PAGE 4 OF 16 Vice Mayor Eidson asked if that just for horse racing. the bets. employees of Turf Paradise. Mr.McDaniel replied it would be Mayor Damiano asked who would take Mr.McDaniel replied they would be Ms.Hamilton explained that everything associated with wagering is handled by Turf Paradise and is monitored by the Arizona Racing Commission.She also stated that everybody that would be working within the pari-mutuel wagering area is licensed by the State of Arizona and they also go through an FBI background check. Mayor Damiano asked if city residents would be hired. Ms.Hamilton replied yes,they go through the local people first;they would rather hire from within the city than any place else and they would also hire a manager,and these would be independent from Mr.McDaniel's employees. Mr.Robert DeBow,4375 E. Superstition Blvd.,supported the application. Mrs.Jean Perkins,616 N.Cactus, was not against the concept but asked the council not to vote tonight and have public input on it. Councilman Perkins asked if this is permitted in the city,can the council decide where this will go? Mr.Gimbut explained the decision for approval of the license for the Winchester and the off track wagering facility is made by the Arizona Department of Racing;all council is doing is making a recommendation similar to the one for a liquor license,so the final decision is made by the state and not the council. Councilman Perkins asked if people have a problem with the site they can go and protest to the state. Mr.Gimbut replied people can write letters of protest to the state if they so desire. Mr.John Mangum,a lawyer and representative of Turf Paradise,stated the Racing Commission will hold a hearing to consider approval of the site and any persons wanting to make a statement can do so there. REGULAR MEETING OF THE CITY COUNCIL MAY 5,1992 PAGE 5 OF 16 Councilwoman Barker commented the city has had a greyhound track for years with betting on both races occurring at the track as well as in Phoenix and the request from Turf Paradise is a similar proposition. Councilwoman Barker. Councilman Coleman agreed with Councilman Perkins MOVED THAT THE REQUEST BY TURF PARADISE RACE COURSE FOR APPROVAL OF AN OFF TRACK WAGERING FACILITY,BE APPROVED. Councilwoman Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. COUNCIL DIRECTION TO STAFF ON PROPOSED LEGISLATION OR ACTIONS DIRECTION TO STAFF REGARDING ECONOMIC DEVELOPMENT COMMISSION COMMERCIAL PERMITTING PROCESS REVIEW )Mayor Damiano called upon the economic development manager to speak on this item. Economic Development Manager John Schoeph stated the commission is proposing to conduct a mail survey of the business community and to have a public hearing on this subject.He stated the commission is seeking guidance from the council on proceeding since that represents an effort and cost to the city. Councilman Perkins asked if this is a project the commission took upon themselves. Mr.Schoeph replied the commission initiated this as part of their program plan for economic development and one of the items was to review the commercial permitting process. Councilman Perkins asked if there is a problem with the permitting procedure now and if there have been a lot of complaints filed so that this is necessary at this time;also,if there are other more important areas where the commission can be working on. Mr.Schoeph replied this is a subject that comes up periodically when business people raise a question in particular instances of whether or not the system is too complicated or that REGULAR MEETING OF THE CITY COUNCIL MAY 5,1992 PAGE 6 OF 16 it does not work to get the best advantage.He also stated the commission has currently heard some complaints along this lines. Councilman Perkins stated there are also many other areas that the city needs to address at this point,especially with the economy today,for instance businesses who are looking to relocate. Councilwoman Alger stated that in light of the recent Town Hall meeting she agrees with Councilman Perkins.She stated that each community has to identify their strengths,their weaknesses, the resources they have and the ones they are lacking,and what leadership is needed in order to move the city along with the rest of the county in economic development.She informed that a committee will be formed to work on a strategic plan for economic development for the county and that she would like to see the city working together with that group when it's ready for their participation.So,if the commission could look at those things and determine where the city is now and how we will be ready to fit into Pinal County's plan,this would be more beneficial at this point than looking at the permitting process. Mr.Schoeph explained that the commission's program includes a number of activities,one is business retention and expansion and another is attracting new businesses;that there is a state strategic plan developed and they can look at that and see how it applies to Apache Junction and Pinal County. Councilwoman Alger stated she would like the commission at this time to look into the Arizona Strategic Plan for Economic Development (ASPED)and to look into our own community for the things the council needs to be aware of when the time comes to be involved with the Pinal County plan. Mr.John Insalaco of the Economic Development Commission stated they work for the City Council and if this is what they want the commission to do first,then they will do that. Vice Mayor Eidson commented it is a good idea that the commission look at some of the local problems,such as the number of building permits for new businesses built in the city.He stated he believes there were very few this year,if any,and that businesses look at the local problems when they consider a location. Councilwoman Alger replied that will be covered by the commission as they look at the strengths and weaknesses of the community. Councilman Coleman asked how much it would cost to conduct the survey. REGULAR MEETING OF THE CITY COUNCIL MAY 5,1992 PAGE 7 OF 16 Mr.Schoeph explained it would amount to several hundred dollars. Councilman Coleman stated he would like to have the opinions from the survey. Councilwoman Barker suggested to include the survey in the direction to staff. Mayor Damiano commented that the economic development discussed at Town Hall was for countywide and not just Apache Junction;that he thinks these are two different things the commission can handle. Councilwoman Alger explained that the intention of this is not for the Economic Development Commission to look at the county but to look at the same things in the city that the county is going to look at countywide,and this could include the commercial permitting process review. Vice Mayor Eidson stated he knows the city has to work with the county for the betterment of our community,but in the past efforts have been concentrated in areas other than Apache Junction and the council needs to keep that in mind as they work with the county. Mr.Schoeph stated that is why the state strategic plan should be looked at in terms of Apache Junction and how it applies to the city. Councilwoman Alger MOVED THAT THE FOLLOWING DIRECTION BE GIVEN TO STAFF AND THE ECONOMIC DEVELOPMENT COMMISSION REGARDING COMMERCIAL PERMITTING PROCESS REVIEW,THAT AS A PART OF AN OVERALL STUDY OF ECONOMIC DEVELOPMENT FOR APACHE JUNCTION,THE COMMISSION LOOK AT THE A.S.P.E.D.PROGRAM FROM THE STATE AND SEE HOW IT CAN BE OF USE TO THE CITY, HOW WE CAN MAKE IT WORK WITH OUR ECONOMIC DEVELOPMENT,IF IT'S POSSIBLE;TO LOOK AT THE STRENGTHS AND WEAKNESS IN THE COMMUNITY,THE RESOURCES THAT WE HAVE,WHAT WE ARE LACKING,IDENTIFY AS MUCH AS THEY CAN;IDENTIFY THE LEADERSHIP NEEDS THAT WE HAVE IN THE COMMUNITY;LOOK AT HOW EDUCATIONAL INSTITUTIONS ASSIST ECONOMIC DEVELOPMENT IN THE COMMUNITY,WHAT MORE CAN THEY DO;AND,IF IT BECOMES APPROPRIATE AND THE COUNTY DOES A STRATEGIC PLAN FOR THE COUNTY,THAT THEY ALSO LOOK AT WHAT OUR ROLE IS WITH THE COUNTY ECONOMIC DEVELOPMENT PLAN;AND THE PERMITTING PROCESS WOULD FIT INTO LOOKING AT THE STRENGTHS AND WEAKNESSES. Councilman Cox SECONDED THE MOTION. VOTE:Unanimous. The motion carried. REGULAR MEETING OF THE CITY COUNCIL MAY 5,1992 PAGE 8 OF 16 Mayor Damiano called a recess at 7:50 p.m.The meeting resumed at 8:05 p.m. DISCUSSION ON DEPARTMENTAL REQUESTS AND CITY MANAGER'S PRELIMINARY RECOMMENDA- TIONS FOR FY 1992-93 BUDGET city manager to address this item. Mayor Damiano called upon the City Manager Mike Lee stated the preliminary budget was provided to the council and that department heads were present to answer any questions or make clarifications. Councilman Perkins asked how much it would cost to have the Library open full time. Mr.Lee replied it would be approximately $342,000. Councilman Perkins asked how much is the difference. Mr.Lee replied it would be about $20,000 with benefits.Mr.Lee added that some of the items are for compliance with the Disabled Americans Act,for example one of the intelligent catalog units would provide assistance in that area and also the closed caption television. drop in the fringe benefits. Mayor Damiano asked why there is a Finance Director Keith Lewis explained the part-time clerks will not require all of the benefits that a full-time employee will. Vice Mayor Eidson pointed out the two additional officers in the police department. Mr.Lee stated there is also a computer technician in the police department who will be available to provide some technical assistance to other departments.He explained that computer equipment is taking too much time from existing staff,primarily Keith Lewis, to do that job. Vice Mayor Eidson commented that according to Mr.Lee's financial reports revenues are better than expected and perhaps Council could build in a certain percent for cost of living for the employees. REGULAR MEETING OF THE CITY COUNCIL MAY 5,1992 PAGE 9 OF 16 Mr.Lee stated the city could maintain in this budget the $750,000 contingency fund which is above the minimum,so that would provide for the normal merit increase as provided in the past. is $8,000 for sales tax audit this year. Councilman Coleman asked why there City Clerk Kathy Connelly the auditors put in a proposal of 20 hours per month to do the actual audits; staff will be able to take it to a certain point,but the auditors are going to do the actual auditing,setting up the hearings,etc. Councilman Coleman pointed out $20,000 went to the Chamber of Commerce last year and now is only half;the other half was put under development services administration. Mr.Lee replied the city will be doing some of the services directly rather than doing them through the Chamber of Commerce,for instance some of the mailings can be done by the city. Assistant City Manager George Hoffman stated that a substantial portion of the contract with the Chamber of Commerce is for things that are directly purchased,such as advertising.He explained that the money going to the Chamber is not a grant and that the city purchases services from the Chamber to the extent that the money appears in the development services budget and is used for advertising to promote tourism in Apache Junction. Councilman Coleman asked what the $10,000 represents then. Mr.Hoffman replied that amount is used for the operation of the Tourist Information Center. Councilman Coleman asked what is the increase in professional services. Mr.Lewis replied he believed that is for some of the fees that have to be paid for some of the professional services related to the city's bonding. Mr.Gimbut commented that in the past there used to be $20,000 in nondepartmental for outside attorney's fees and this year that is zero.He asked if anything is provided this year under nondepartmental for that category. for legal fees to some extent. REGULAR MEETING OF THE CITY COUNCIL MAY 5,1992 PAGE 10 OF 16 Mr.Lee replied there is something Councilman Coleman asked why electricity and water are going down in cost. Mr.Lewis explained this year the city is not using what had been anticipated. Mr.Lee added that also the city has a project of eliminating some metering which could result in some savings. Mayor Damiano asked why there were $10,000 for waste removal. Mr.Lewis replied that is for the annual citywide clean up. Mayor Damiano asked why there was software maintenance. Mr.Lewis replied that is for different changes on software during the year. Mayor Damiano asked why office equipment is higher. Mr.Lewis replied that is for the new telephone system which had to be borken out as a lease as requested by the auditors. Councilwoman Barker called to the council's attention the Department of Parks and Recreation and emphasized how valuable it is to the community. Councilman Perkins asked why there was a concession stand. Parks and Recreation Director Jeff Bell replied that last year the city offered to help offset the concession stand at Prospector Park. Councilwoman Barker pointed out that Mr.Lee stated the amount recommended for debt service would be enough.She asked if that indicates that he is planning on making contractual agreements for the new building (police department)this next year in order to pay that dollar amount. Mr.Lee replied that is right,that it is difficult to say when they'll be using the bond money,but there will be architect fees,etc.,and the interest earned on that money will be reduced REGULAR MEETING OF THE CITY COUNCIL MAY 5,1992 PAGE 11 OF 16 and then the city will have to take money from the general fund to start adding to the interest off of the bond money during construction. Mr.Lewis stated that the $30,000 in nondepartmental for special services is for assistance from Pinal County, airport facilities,and development of US 60/Apache Trail. Mr.Hoffman requested money for health insurance and employee benefit consultation which is not in this year's budget.That would be to better handle health insurance costs,limit the increases and look at a wellness program to try and manage those costs also. Mr.Lee asked how much. Mr.Hoffman replied about $10,000. Vice Mayor Eidson asked Mr.Hoffman if the city is getting ready on that for next year. Mr.Hoffman replied yes,and that the health insurance costs will not increase,but this is not in writing yet. Vice Mayor Eidson asked if that is with the current insurance. Mr.Hoffman replied that is correct. Vice Mayor Eidson asked if the city is looking at a contract with somebody else. Mr.Hoffman replied he will not recommend to Mr.Lee that the city changes insurance at this point.He stated the city received proposals from several health insurance consultants and they have interviewed three of them;that he is in the process of negotiating with one of them the scope of work and the dollar amount,and that he would like to have them do some comprehensive studies,but Council needs to make a decision on the health insurance renewal of contract before that. Vice Mayor Eidson asked why they should make a decision on an existing contract before considering a contract with somebody else outside. Mr.Hoffman replied there is a process for requesting proposals from alternative carriers.He explained that a consultant indicated to him last year that frequent shifts on insurance carriers will result in them being reluctant to bid on the city,because they are concerned that they invest money in doing their reviews and studies for the city to make sure they can make a profit and then the city changes insurance right away.He stated that may result in higher costs. REGULAR MEETING OF THE CITY COUNCIL MAY 5,1992 PAGE 12 OF 16 Mr.Lewis confirmed what Mr.Hoffman stated. Vice Mayor Eidson stated that the $500 per family in health insurance was outrageous. Mr.Lewis replied that checking with other agencies our size we are not as high. Mr.Hoffman stated that health insurance is increasing for a variety of reasons,such as cost of latest technology,cost of claims,etc.,that is why the city should get some specialized assistance in this area before deciding where we want to go. Vice Mayor Eidson stated he thinks the city should look into an IGA with the fire district,Pinal County,school district,City of Mesa,to work together on health insurance,because $500 is too much for the coverage employees have. Mr.Hoffman stated the League of Arizona Cities and Towns is currently working with a provider in the market place to look into a pool concept. Councilwoman Alger asked if the capital improvement plan for the city complex could be added into that bond; rather than just one building,if the city could put money in for a park, library expansion,court expansion;putting it all in one package so the city could have a lower interest rate and better payments. Mr.Lee replied that should be considered if there is any serious thought of having all those things done,it would make good sense to do them all in one bond,including the police building. Councilwoman Alger asked if any work has been done on that,if there are any figures as to how the payments can be. Mr.Lee replied there is some preliminary information that would be presented to the council at the next council meeting. Councilwoman Alger asked if there was any idea of how much it would cost to expand the library or to have another park. Mr.Lee replied there is some data in the capital improvement plan that they need to refer to. REGULAR MEETING OF THE CITY COUNCIL MAY 5,1992 PAGE 13 OF 16 Councilwoman Alger asked if it's possible to rearrange this budget to put in a project like that. Mr.Lee replied it's feasible. Mayor Damiano suggested to have a meeting strictly on budget. Mr.Lee stated this meeting is to be considered time for discussion on the budget. Councilman Perkins asked if there is anything scheduled for the next work session. Mr.Lee replied there is one item so far. Councilman Perkins asked if they could dedicate the next work session just for budget. feasible. favorable. Mr.Lee replied that would be The council's general consensus was City Engineer Gordon Grandy suggested that the Capital Improvement Plan be included for review in the work session,so that Council can get an idea of those projects when talking about next year's budget. SELECTION OF MEETING DATES,TIMES,LOCATIONS,AND PURPOSES Councilwoman Barker MOVED THAT AN EXECUTIVE SESSION AT 6:00 P.M.AND A WORK SESSION AT 7:00 P.M.BE HELD ON MONDAY,MAY 18,1992 IN THE CITY COUNCIL CONFERENCE ROOM AND CITY COUNCIL CHAMBERS RESPECTIVELY;AND THAT AN EXECUTIVE SESSION AT 6:00 P.M.BE HELD ON TUESDAY,MAY 19,1992 IN THE CITY COUNCIL CONFERENCE ROOM,AND OTHER MEETINGS,IF NECESSARY. Councilman Perkins SECONDED THE MOTION. VOTE:Unanimous. The motion carried. REGULAR MEETING OF THE CITY COUNCIL MAY 5,1992 PAGE 14 OF 16 INFORMATION AND REPORTS Central Arizona Association of Governments (CAAG)meeting on May 6,1992 at 6:30 p.m.,at the Winchester Restaurant in Apache Junction. ADJOURNMENT meeting at 9:00 p.m. Consent Agenda Items are as follows: Mayor Damiano adjourned the 1.Acceptance of Agenda. 2.Acceptance of the Minutes of the Regular Meeting of April 21,1992. 3.Approval of Intergovernmental Agreement between the City of Apache Junction and the Apache Junction Fire District for development assistance,use of fueling facilities,Building/Fire Code enforcement, and radio transmission/communication. ACCEPTED THIS 19TH DAY OF MAY ,1992,BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA. SIGNED AND ATTESTED TO THIS 27TH DAY OF MAY ,1992. )90JnNk.,,—CR)qANy.Ja.—ve THOMAS DAMIANO Mayor ATTEST: KATHLEEN CONNELLY City Clerk REGULAR MEETING OF THE CITY COUNCIL MAY 5,1992 PAGE 15 OF 16 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 13th day of May,1992.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 13th day of May,1992. KATHLEEN CONNELLY City Clerk REGULAR MEETING OF THE CITY COUNCIL MAY 5,1992 PAGE 16 OF 16