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HomeMy WebLinkAbout1980-01-30 City Council Special MinutesCITY COUNCIL MINUTES SPECIAL MEETING JANUARY 30, 1980 A Special Meeting of the City Council of Apache Junction was held on the 30th day of January, 1980 at the Apache Junction City Hall, pursuant to the notice as required by law. CALL TO ORDER Mayor Virginia Seeman called the meeting to order at 7:10 p.m. at the Apache Junction City Hall. INVOCATION Councilman Eidson gave the Invocation. PLEDGE OF ALLEGIANCE Councilman Hill led the Pledge of Allegiance. ROLL CALL Councilmembers Present:Mayor Virginia Seeman, Vice -Mayor Granillo, Thomas Damiano, Jerry Burgess, Norman Hill, Marie Shanks, Jimmy Eidson Councilmembers Absent :None Staff Present Others Present :G. Ray Lee, City Manager Isabel Ballard, City Clerk Susan Goodwin, Asst. City Attorney :Don Brooke, 1532 W. Palimano Gerry Page, Bayless Plaza Earl Laabs, 370 E. 12th Ave. Earleen Andrews, P.O. Box 813 Emma Melder, 970 N. Delaware Richard D. Metz, 450 E. Montebello Dr. Robert Dugger, 710 S. Lawson #17 Glenda Wynn, 1504 W. Superstition Blvd. Robert Bogart, 3405 S. Tomahawk Arlie Myers, 528 S. Meridian ACCEPTANCE OF THE AGENDA )Vice -Mayor Granillo MOVED THAT BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION THAT THE AGENDA BE ACCEPTED AS PRESENTED. the motion. VOTE:Unanimous Motion carried. Councilman Damiano seconded Special Meeting - Jan 30, 1980 Page 2 ORDINANCE NO. 18, BUSINESS LICENSE )Mayor Seeman announced that this meeting is a Special Meeting of the Council for Business License Ordinance No. 18, and that because many of the audience may not have been present at past meetings, she would read the public format for speaking. Mayor Seeman stated that if there were members of the public who wished to speak, they should fill out Request to Speak Forms and submit them to the City Clerk. Mayor Seeman gave a short history on Ordinance Number 18, beginning last September with in-house research, stating that approximately three weeks prior to Ordinance No. 18 appearing on the December 19, 1979 Agenda, it was given to each Councilman to study.On November 21, 1979, the Chamber of Commerce presented a letter to the City recommending that the Council consider a Business License Ordinance. December 19th was the first reading, which was a public hearing with citizen input.Due to the important subject matter of Ordinance No. 18, a Work Session was held on December 26th; public input was heard at this session.On January 2, 1980, the second reading was made and public input was heard at this time; and the Council also agreed to review this Ordinance in six months with regard to the fee schedule.The Ordinance will go into effect thirty (30) days from the date of its adoption. Mayor Seeman reported that due to the history of Ordinance No. 18, she would like to request a motion to establish a citizens' committee to study the fee schedule and bring back a recommendation to the City Council, stating that there was a list of five citizens who had been contacted and are willing to serve in this capacity;their names are contained in the agenda packet and these individuals were present at the meeting. Councilman Shanks requested that the citizens who have consented to serve on this committee stand to identify themselves. THAT BE IT RESOLVED BY THE MAYOR AND JUNCTION THAT AN AD HOC COMMITTEE BE the motion. VOTE:Unanimous Motion carried. Vice -Mayor Granillo MOVED CITY COUNCIL OF THE CITY OF APACHE CREATED TO STUDY ORDINANCE NO. 18. Councilman Damiano seconded Councilman Damiano MOVED THAT BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION THAT EARLEEN ANDREWS, SAM GARDON, MARTHA WRIGHT, TOM LESTER, AND DON BROOKE BE AND HEREBY ARE APPOINTED AS THE AD HOC COMMITTEE TO STUDY ORDINANCE NO. 18 AND RETURN A RECOMMENDATION TO THE CITY COUNCIL WITHIN 30 DAYS; BE IT FURTHER RESOLVED THAT DON BROOKE BE APPOINTED CHAIRMAN OF THIS AD HOC COMMITTEE. Special Meeting - Jan. 30, 1980 Page 3 Councilman Hill seconded the motion. VOTE:Unanimous Motion carried. Mayor Seeman reported that the Committee members will receive a copy of the Business License Ordinance. It was noted, also, that all backup information will be made available to the Committee. Mayor Seeman called upon the Requests to Speak. Robert Bogart, 3405 S. Tomahawk, outside of the City of Apache Junction, reported that he is partially representing the Chamber of Commerce and asked if, in view of the appointment of the Ad Hoc Committee, if it would be possible to postpone the effective date on the Ordinance until the Ad Hoc Committee has returned their recommendations. Assistant City Attorney Goodwin reported that because an Ordinance is a legal document, it does, by law, go into effect thirty days after the date of adoption, which is, in this case, February 2, 1980. Mayor Seeman reported that if a Business License has already been purchased, and there is a change in the amount of fees, a refund or credit will be offered. Mr. Bogart stated that this is acceptable and thanked the Mayor. Glenda Wynn, 1504 W. Superstition Boulevard, had the same question as Mr. Bogart. Robert Dugger, 710 S. Lawson #17, reported that it is his understanding that this type of licensing, in most cities, only applies to those businesses that collect sales tax and that it is his understanding that it is the purpose of Ordinance No. 18 to inforce the collection of sales tax.He further stated that he can not figure out why the license applies to finance companies, doctors, lawyers, accountants, and himself, a management counselor, who do not collect sales tax. Mayor Seeman reported that the Ordinance also has to do with proper zoning and reputable business; it does not only refer to the collection of sales tax, but to other regulations as well. staff to provide information on this. Mayor Seeman requested Special Meeting - Jan. 30, 1980 Page 4 City Manager Lee stated that the License gives us something to compare with the State Sales Tax printout to insure that all people are, in fact, declaring their rightfull tax; one of the most important aspects is to insure proper zoning to protect the property owners. Richard Metz, 450 E. Montebello Dr., requested that the Ad Hoc Committee give some consideration to the fact that the business license tax should not be graduated; that it discourages people from expanding their business or hiring more employees or do anymore business if it is a graduated tax instead of one set fee.It is his feeling that a person who operates out of a small store and has no employees, working on a cash basis, is not going to be controlled and that he can avoid much of the tax by putting the cash into his pocket, whereas, in a larger business which employs many people, whose volume is very carefully controlled, would then be discriminated against by his own business practices under which he must comply.He feels that this discourages growth. City Manager Lee reported that as a General Law City, we are restricted to a certain proceedure, but that we are not restricted as far as basing our taxes on gross receipts; we can base it on the number of employees or the gross receipts, however, many recent surveys indicate that this is very unpopular; that the standard, set fee is more desireable. Emma Melder, 970 N. Delaware, stated that she was very insulted when, on the front page of the Sentinel, herself and every businessman was more or less called a crook; because it said that they have to pay sixty dollars a year in order to be sure that they have paid their one cent sales tax.Mrs. Melder stated that she pays her one percent sales tax. Mayor Seeman reported that, based on research done, using the State Sales Tax printouts, which indicate the number of businesses who are paying State tax, an estimated 56 per cent of the local businesses are not paying their one per cent City Sales Tax. Earleen Andrews, 480 S. Palo Verde, stated that the Chamber of Commerce did call for a Business Ordinance, but that it was to specifically include the establishments that are not in a permanent location or that are not permanently established here.She questioned why this was not included in the Ordinance. Mayor Seeman asked Mrs. Andrews if she was referring to the Park and Swap, or the Flea Market? Mrs. Andrews answered yes. City Manager Lee reported, in response to the first question, in regard to control of businesses, that the control was the Zoning Compliance Certificate, which must be obtained before a temporary or permanent business can engage in any activity in the City and that this is part of the Business License requirement.This will protect the other business people in town, i.e., if they are in an improper zoning then they cannot obtain the business license.For example, the fruit stands on the corner, which have in the past caused some accidents or other problems, must operate in Special Meeting - Jan. 30, 1980 Page 5 the properly zoned areas. City Manager Lee further reported that the Swap Meet Ordinance is separate and will have to be addressed separately from Ordinance No. 18, and that it will be on an Agenda for a first reading and for public input as well in the near future. Mrs. Andrews asked if, when the Ordinance came before the City Council, was it read in its entirety? Mayor Seeman reported that, by a unanimous vote, the reading of the entire Ordinance had been waived. Mrs. Andrews asked that if the people did not know what the Ordinance said, how could they give input. Mayor Seeman reported that copies were available at City Hall after the first reading and it was published, in its entirety, in the Mesa Tribune for six consecutive days. Earl Laabs, 370 E. 12th Ave., requested the City Council to consider amending Ordinance No. 18.He asked that they be conservative and start with a $10.00 annual fee for all businesses that pay sales tax; then, after one year's time, if it is costing considerable more, an increase be proposed.Also, that the one percent sales tax operation should carry part of the license enforcement cost, as you are using this means to insure collection from all the businesses that pay sales tax.Not all businesses pay sales tax, such as real estate firms, lawyers, and others; possibly they should be licensed at a different rate. Mr. Laabs further stated that he is afraid that if we stay with the current fees, there never will be a reduction and that the history of past government operations bears this out. Councilman Hill reported that the reason the Special Meeting was held tonight was to get a committee together to work on this determination and to find out what the people want since input was not received from the people before the law was passed.He further stated that we are here tonight to resolve this. Councilman Burgess asked how the public feels they need to be notified of these matters. Mr. Laabs stated that it should be put in the Apache Sentinel. Councilman Burgess asked how many people actually buy the Sentinel.He reported that he had personally gone into the Sentinel Office and was told that they have only 900 subscriptions inside the City limits, out of an estimated population of 10,000 permanent residents. Special Meeting - Jan. 30, 1980 Page 6 Gerry Page, his business located in Bayless Plaza, reported that it is his feeling, along with some of the other businesses in his area, that the advertisement of Ordinance No. 18 should have been published in the local papers; that he does not subscribe to the Mesa Tribune but to the Apache Sentinel.He further questioned why the Park and Swap has a separate Ordinance, as it is his feeling that they are already covered in Ordinance No. 18 under the section on Street Fakers.He further reported that the licensing fee should be a minimum fee. Councilman Burgess asked Doris Mathews, Editor of the Apache Sentinel, if, when this original Ordinance came up, she did or did not publicize that the Council was having the first reading of Ordinance No. 18. Mrs. Mathews answered to the affirmative. Councilman Burgess asked Mrs. Mathews if she did or did not publish in the Sentinel that a Work Session was being held on Ordinance No. 18. Mrs. Mathews said that she did. Councilman Burgess asked if, in fact, she had published stories on meetings on this Ordinance three different times. Mrs. Mathews said yes. Mayor Seeman reported that any meeting of the City Council is also posted in three different places in the City; at City Hall in a bulletin board which is available to the public twenty-four hours a day, at A.J. Bayless, and at the Post Office. Dan Andrews, 1975 LaBarge Road, not within the City, asked what good it did them if they could not get a copy of the Ordinance to read, and that he was not able to get a copy of it. Mayor Seeman reported that after the first reading, all Ordinances are available to the Public. Mayor Seeman asked the City Clerk what dates the Ordinance was published in its entirety. City Clerk Ballard reported that the Ordinance was published after the second reading and passage of the Ordinance. Special Meeting - Jan. 30, 1980 Page 7 Vice -Mayor Granillo stated that he would like to extend their invitation to attend the Regular Meetings of the City Council, which are held the first and third Wednesday of every month, stating that it is not that hard to make it to the meetings if you are interested in what is happening in your city and that perhaps something like this will not happen again.He further stated that the only time some people become aroused is when something happens that they donot agree with, but if they will come out and give their opinions, then the Council can work toward a mutual understanding in the community for the benefit of everyone concerned. Don Brooke, 1532 W. Palimano, reported that most of the people here are in favor of the Business License; they feel that there does need to be a control on business that is conducted within the City limits.He further reported that those in the liquor business in Apache Junction are in total disagreement with the fee schedule established in Ordinance No. 18 and that, if the fees are not a revenue producing program, then why are the liquor businesses expected to pay upwards of six to ten times the amount assessed most other businesses in the City. Mr. Brooke further reported that, according to the Apache Sentinel, dated Wednesday, January 23, 1980, Mr. Eidson said, "approximately 2/3 or more of the calls that come into the Police Department are going to have something to do with a bar or something of this nature in the community." Mr. Brooke asked that reference be made to the Arizona Liquor Laws, Title IV of the Arizona Revised Statutes, Regulation 4-15-32, entitled, Report of Violence, stating that he had called Mr. Guest of the Director's Office of the State Department of Revenue and he informed Mr. Brooke that there were many instances when the police would be called to a bar, the State Department of Public Safety, of which the Liquor License Control Order is a part of, would be called in to determine why the bar owner was having problems.They would then instruct the owner to clean up the operation or face revocation of their license.Mr. Brooke stated that in 41/2 years in the bar business in this City, he has had occasion to write eight reports of violence to the Liquor Board.In five of the instances the police were called.In all cases the altercations were over by the time the police arrived.In conclusion, Mr. Brooke stated that he disagreed with the statement made by Councilman Eidson concerning the number of problems steming from bars in the City. Mr. Brooke further expounded on Sales Tax Collections and the course of actions taken by the State Departments of Revenue and Liquor License Control.He referenced Regulation 4-15-02, entitled Delinquent Taxes, on page 37; and Regulation 4-210, paragraph C, entitled Revocation Extention Complaints Against Licensees. Mr. Brooke stated that he feels that there is an inequality in the fees and that the liquor businesses are willing to pay a reasonable amount, but they do not feel they should be paying any more than any other business in the community. Special Meeitng - Jan. 30, 1980 Page 8 Councilman Shanks reported that it is her feeling that the pricing of the individual fees are exorbitant and that we should start out with an equitable fee, the minimum fee of $10.00, and give it a try for three months and after that length of time, we will know if it is going to cost us more money. Councilman Eidson asked the City Manager why the Ordinances are published in the Mesa Tribune instead of the Apache Junction paper.He also clarified the statement which appeared in the Apache Sentinel.He stated that more than fifty percent of the accidents on the highway are involving someone who has been drinking.A large percentage of the calls that come to the Sheriff's Department revolve around drinking, whether it is on the street, in a bar, in a home or wherever, they still revolve around liquor. Councilman Eidson now asked the City Manager to answer his question in regard to publishing Ordinances. City Manager Lee reported that a General Law City is obligated by Statute to place their legal advertisements in a newspaper of general circulation and they are also required by local Ordinance, as well, to advertise a certain action pertaining to zoning, 15 days prior to a hearing.A telephone survey, information from the Chamber people, and information in the community indicate to City officials that there is a greater circulation in Apache Junction of the Mesa Tribune than the Apache Sentinel.The Tribune gave a figure of 12,000 from Power Road out to Apache Junction and 3,500 was supposed to be a conservative figure within the corporate limits.City Manager Lee stated that it is also a published figure in the Post Office. City Manager Lee further reported that we, as a General Law City, are not flexible in advertising; the State law tells us exactly how we will advertise, how many times we will advertise a particular Ordinance, a Notice to Bid, and any other legal action that the public is entitled to hear. Arlie Myers, 528 S. Meridian, outside of the City limits, stated that he is in favor of the Business License, as he feels it is necessary.He further stated that if the City is really in favor of finding out who is paying their one percent sales tax, why doesn't the application ask for their sales tax license number.He reported that he had picked up his Business License Application that very afternoon and that there was no mention on the application of the Sales Tax License Number; that it would be very easy to check from that point. City Clerk Ballard informed the Council and public that there is a portion on the application that asks for the State Tax License Number; also for Contractor's Licenses, there are special forms that must be filled out by the applicant that require the numbers that Mr. Myers was speaking of. Jay Mogel, 425 E. 9th, stated that the first time he had heard about any of this whole thing was when the Chamber of Commerce gave him a courtesy call to let him know about their Special Meeting - Jan. 30, 1980 Page 9 private meeting.He further stated that the license is a good idea and that, personally, as far as fee structure, he does not care about the money. He further stated that his major competition is set up in the swap meet and they are not required to be licensed or bonded and that he is required to have a Contractor's License, be bonded by the State, and also have the City Business License.He feels that this is not fair. Mr. Mogel further stated that it is his feeling that the City Council is young and that the citizens have been a little rough on them and that they deserve a chance to "get their feet wet." Mayor Seeman asked if there was any other citizens who wished to speak at this time that have not yet spoken. Virgil Johnson, 1630 W. Apache Trail, Lazy J. Trailer Park, asked if the public will be billed for their fee or do they need to come in to pay their fee. City Clerk Ballard reported that the City is in the process of sending out bills and that there is twenty days in which to respond. Mary Ann Pippet, 1545 E. U.S. Highway 60, reported that she has a restaurant that has a No.16 Liquor License with it, however, she is seasonal and knows that there are other restaurants that are also and does not feel that she should have to pay on a yearly basis and that she had called City Hall and was told that she would have to pay on a yearly basis. Mayor Seeman replied that the fees that are stated are quarterly fees and that they do not have to be paid on a yearly basis. Arlie Myers stated that it is his understanding that the Council could table this Ordinance and not go into effect for 30, 60, or 90 days or whatever they chose. Assistant City Attorney Goodwin stated that under the State Law, the Ordinances go into effect 30 days after the second reading and adoption.It was her opinion that the Council cannot repeal the Ordinance or amend it because you do not have the written document in front of you.You can vote to stay it, but any fees would be retroactive.It seems simpler and cleaner, since it probably will not be repealed, to leave it the way it is and give credit if there is any change in the fees. Arlie Myers asked if the City is going to pay interest on the money they will be holding.He asked if it should be stayed, let the Ad Hoc Committee study it and come back with their recommendation, and make the fees retroactive as of the first of February. Special Meeting - Jan. 30, 1980 Page 10 Lou Lambarde, 4721 Cardinal, asked how the fees were arrived at and how they compare to other cities. Mayor Seeman reported that because Apache Junction has no track record at this point, we went to other cities and towns and looked at their schedules and from that we based our fees. Mr. Lambarde asked if our fees were the same as Mesa's. Mayor Seeman replied that they are not, because Mesa is a Charter City and Apache Junction is a General Law City and that our fees were based on research on cities and towns that are comparable to Apache Junction and are fees are comparable to theirs. Earleen Andrews requested that the City Council stay the fee schedule until the Ad Hoc Committee comes back with their findings. Assistant City Attorney Goodwin reported that it would take a vote of 6 to pass because whatever is done, it would have to come under an emergency measure. Councilman Shanks proposed a motion to extend the due date for 30 days on Ordinance No. 18 and asked the Assistant City Attorney to help phrase the -Motion.. Vice -Mayor Granillo suggested that the Council recess for discussion and preparation of a proper motion. Vice -Mayor Granillo MOVED THAT THE COUNCIL RECESS FOR FIFTEEN MINUTES. Councilman Hill seconded the motion. VOTE:Unanimous Motion carried. Mayor Seeman called the meeting to order after a fifteen minute recess. Mayor Seeman asked Councilman Shanks if she wished to present her motion at this time. Councilman Shanks said she would, but she wished to present a clarification first.She stated that the Ordinance will stand as it was passed to protect the businesses already here in town. Special Meeting - Jan. 30, 1980 Page 11 Councilman Shanks MOVED THAT BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, THAT ORDINANCE 31, AN ORDINANCE OF THE CITY OF APACHE JUNCTION, PINAL COUNTY, ARIZONA, PROVIDING FOR THE REPEAL OF SECTION 8-5-4, SCHEDULE, OF ORDINANCE 18, AND DECLARING AN EMERGENCY, BE AND HEREBY IS APPROVED. Mayor Seeman called upon the City Clerk to read Ordinance 31 in its entirety. City Clerk Ballard read as follows. ORDINANCE NUMBER 31, AN ORDINANCE OF THE CITY OF APACHE JUNCTION, PINAL COUNTY, ARIZONA, PROVIDING FOR THE REPEAL OF SECTION 8-5-4, SCHEDULE, OF ORDINANCE 18, PROVIDING FOR SEVERABILITY CLAUSE AND DECLARING AN EMERGENCY. Be it ordained by the Mayor and City Council as follows. SECTION 1.That Section 8-5-4, Schedule is repealed. SECTION 2.That all Ordinances and parts of the Ordinance in conflict with the provisions of this Ordinance or any part of the Code adopted herein by reference are hereby repealed. SECTION 3.It is hereby declared to be the intention of the City Council that sections, paragraphs, sentences, clauses and phrases of this Ordinance shall be severable and if any provisions of this Ordinance is held unconstitutional for any reason by a Court of competent jurisdiction, such as unconstitutionality, shall not affect any of the remaining provisions of the Ordinance. SECTION 4.Whereas the immediate operation of the provisions of this Ordinance is necessary for the preservation of the public peace, health, and safety of the City of Apache Junction, an emergency is hereby declared to exist and this Ordinance shall be in full force and effect from and after its passage, adoption, and approval by the City of Apache Junction. Councilman Burgess seconded the motion. Councilman Shanks explained that Section 8-5-4 is the fee schedule and is being repealed at this time until future consideration. that this does not have any time restriction on it. VOTE:Unanimous Motion carried. Mayor Seeman pointed out Special Meeting - Jan. 30, 1980 Page 12 Mayor Seeman asked if there was any further discussion from the public. Earleen Andrews thanked the Council for listening to the public. Councilman Shanks requested those citizens in attendance tonight to remember to sign the register near the door so that it may go on record that they were here in support. Arlie Myers apologized to the City Clerk, because the Business License Application does ask for the Transition Privilege Tax License.He also congratulated the City Council, stating that this was one of the best steps they have taken so far. Vice -Mayor Granillo again reminded people to attend the Regular Meetings to voice their opinions. Vice -Mayor Granillo MOVED THAT BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION THAT THIS MEETING BE ADJOURNED. the motion. VOTE:Unanimous Motion carried. 8:45 p.m. Approved this ....1.0 71Cday of ATTEST: V V RGiIN A Se/p/A e EEMAN Mayor ) •g ISABEL C. BALLARD, CMC City Clerk Councilman Hill seconded Meeting was adjourned at , 1980.