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HomeMy WebLinkAbout1989-03-13 City Council Regular MinutesCITY COUNCIL SPECIAL MEETING MARCH 13,1989 The special meeting of the City Council of the City of Apache Junction, Arizona,was held on March 13,1989,at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Vice Mayor Damiano called the meeting to order at 7:00 p.m. ROLL CALL Councilmen Present:Councilman Burgess Councilman Vehon Councilman Connolly Councilwoman Gardner Vice Mayor Damiano Councilman Absent:Councilman Cox (out of town) Acting City Manager/City Clerk Kathleen Connelly informed the Council and the audience that Mayor Norman Hill died earlier today. EMERGENCY EXECUTIVE SESSION, MARCH 13,1989 )Councilwoman Gardner MOVED THAT AN EMERGENCY EXECUTIVE SESSION FOR THE PURPOSE OF OBTAINING LEGAL ADVICE FROM THE CITY ATTORNEY REGARDING CONTRACTS BETWEEN THE CITY AND OTHER AGENCIES FOR HOUSING FOR THE HOMELESS CHRONICALLY MENTALLY ILL BE HELD ON MARCH 13,1989,AT 6:00 P.M.,IN THE CITY COUNCIL CONFERENCE ROOM. Councilman Burgess seconded the motion. VOTE:Unanimous The motion carried. Vice Mayor Damiano recessed the special meeting and convened into Executive Session. Vice Mayor Damiano reconvened the special meeting at 6:34 p.m. PROPOSED CONTRACTS FOR HOMELESS CHRONICALLY MENTALLY ILL HOUSING SPECIAL MEETING OF THE CITY COUNCIL MARCH 13,1989 PAGE 1 TO INCLUDE: - -AGREEMENT BETWEEN THE CITY OF APACHE JUNCTION AND SUPERSTITION MT.MENTAL HEALTH,INC. - -AGREEMENT BETWEEN THE CITY OF APACHE JUNCTION AND ARIZONA DEPT. OF HEALTH SERVICES - -AGREEMENT BETWEEN THE CITY OF APACHE JUNCTION AND ARIZONA DEPT. OF COMMERCE )City Attorney David Alexander explained that Superstition Mountain Mental Health has approached the City with several considerations concerning the contract,Page C,which currently calls for a security interest on parcels they are purchasing for $97,000,and that part of the money is to be used for administration,construction,renovation, and i f the City places a lien on all three parcels we are denying them the opportunity to develop these lots.Mr.Alexander outlined options discussed expressing his concerns,and stated that the CDBG funds will be paid in two payments with $80,450.00 in advance for acquisition,$3,800.00 for administration requiring documentation prior to submission,and further funds coming directly to the City to be paid to the organization. Assistant Planner Julie Reid reiterated how the funds from CDBG are to be submitted. Mr.Gary Selvy stated that Mr.Alexander has explained what the problem is,that time is short to work out the difficulties,and stated that hopefully the land can be developed in some way and that i t won't have to remain vacant for 20 -25 years,understanding that the City has to protect their interests. Councilman Vehon commented that the Council is willing to working out a solution,short of just releasing those lots,but that Mr.Alexander's suggestion of assigning three separate mortgages to the lots with gradually releasing them is a possibility. Mr.Selvy replied that this suggestion's value is questionable,as i t wouldn't benefit the Center or the City. Councilman Burgess asked i f the Center would be getting grant money to build on the lots. Mr.Selvy stated that borrowing is one alternative or a program considered by the State in which a lending institution would make funds available at a low interest rate for this purpose or paying off existing mortgages. Mr.Alexander suggested the Council direct continuing negotiations and this be brought back with a signed agreement, SPECIAL MEETING OF THE CITY COUNCIL MARCH 13,1989 PAGE 2 understanding that the Department of Health Services and Department of Commerce have to approve the agreement. Mr.Selvy stated that the Department of Commerce has recommended that all CDBG funds go to paying off the escrow. Councilmembers asked to reconvene the Executive Session. VOTE:Unanimous Vice Mayor Damiano recessed the special meeting and reconvened into Executive Session. Vice Mayor Damiano reconvened the special meeting at 7:30 p.m. Councilwoman Gardner MOVED THAT THE AGREEMENT BETWEEN THE CITY OF APACHE JUNCTION AND SUPERSTITION MOUNTAIN MENTAL HEALTH CENTER BE APPROVED WITH THE FOLLOWING AMENDMENT: THAT PARAGRAPH 7 BE EXPANDED TO INCLUDE PERMISSIVE SUBROGATION (SUBORDINATION) PROVISIONS CONTINGENT UPON SUBMISSION OF PLANS TO THE THEN SITTING CITY COUNCIL WHICH WILL REVIEW THE PROJECT SO AS TO PROVIDE FOR A SATISFACTORY EQUITY POSITION IN ANY PROJECT, AND I MOVE THAT AUTHORIZATION BE GIVEN TO THE MAYOR OR THE VICE MAYOR AND ACTING CITY MANAGER TO EXECUTE THE THREE CONTRACTS REQUIRED TO IMPLEMENT THE PROJECT FOR HOUSING FOR THE HOMELESS CHRONICALLY MENTALLY ILL,AS FOLLOWS: 1.A 25 YEAR INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF APACHE JUNCTION AND SUPERSTITION MOUNTAIN MENTAL HEALTH CENTER INC.,(SMMHC,INC.)PASSING ON THE REQUIREMENTS OF BOTH OF THE INTERGOVERNMENTAL AGREEMENTS TO SMMHC, INC.AND PROVIDING ADDITIONAL LANGUAGE TO ASSURE THE CITY OF CONTINUED COMPLIANCE WITH ALL STATE AND FEDERAL REGULATIONS;AND 2.A 20 YEAR INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF APACHE JUNCTION AND THE ARIZONA DEPARTMENT OF HEALTH SERVICES;AND 3.A 25 YEAR INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF APACHE JUNCTION AND THE ARIZONA DEPARTMENT OF COMMERCE. motion. clarification on Paragraph 7. motion: SPECIAL MEETING OF THE CITY COUNCIL MARCH 13,1989 PAGE 3 Councilman Burgess seconded the Councilman Vehon asked for Councilwoman Gardner amended the THAT THE AMENDMENT REFLECTS THE PARAGRAPH 7 IN THE CONTRACT BETWEEN THE CITY OF APACHE JUNCTION AND SUPERSTITION MOUNTAIN MENTAL HEALTH CENTER. amendment. VOTE (On the Amendment):Unanimous The motion carried. VOTE (On the Actual Contracts):Unanimous The motion carried. Councilman Burgess seconded the ADJOURNMENT )There being no further business to discuss,Vice Mayor Damiano adjourned the meeting at 7:35 p.m. APPROVED AND ADOPTED THIS 16TH DAY OF MAY AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA. SIGNED AND ATTESTED TO THIS 18TH DAY OF MAY ATTEST: KATHLEEN CONNELLY City Clerk ,1989,BY THE MAYOR CkAAP;4A..1 THOMAS DAMIANO Vice Mayor SPECIAL MEETING OF THE CITY COUNCIL MARCH 13,1989 PAGE 4 ,1989.