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HomeMy WebLinkAbout1991.0307.TCRM.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL MARCH 7, 1991 A public meeting of the Fountain Hills Town Council was convened and called to order by Mayor John Cutillo at 6:30 p.m. , Thursday, March 7, 1991, in the Fountain Hills Unified School District Administration Building located at 14605 N. Del Cambre Ave. , Fountain Hills, Arizona. ROLL CALL - Following the pledge to the flag and the invocation by Reverend Don Lawrence of Christ 's Church of Fountain Hills, roll call was taken. Present for roll call were the following members of the Fountain Hills Town Council: Mayor John Cutillo, Vice Mayor Wally Hudson and Councilmembers Peg Tibbetts, Mike Minarsich, Charlie Fox, Frank Clark and Bill O'Brien. Also present were Town Manager Paul Nordin, Director of Community Development Gary Jeppson, Town Attorney Bill Farrell and Town Clerk Cassie Hansen. AGENDA ITEM #2 - ACCEPTANCE OF THE MEETING MINUTES OF NOVEMBER 13TH, 15TH, 27TH 1990, AND JANUARY 3RD, 15TH AND 17TH, 1991 Councilman Minarsich made a MOTION to accept the minutes as written. SECONDED by Councilwoman Tibbetts and CARRIED unanimously. AGENDA ITEM #3 - CONVEYANCE OF THE VICE MAYOR POSITION FROM COUNCILMAN HUDSON TO COUNCILMAN CLARK Vice Mayor Hudson conveyed the position of Vice Mayor to Councilman Clark. AGENDA ITEM #4 - PRESENTATION BY OFFICIALS OF DIMENSION CABLE ON THEIR PROPOSAL FOR CABLE SERVICE TO THE TOWN OF FOUNTAIN HILLS Mr. Nordin introduced Mr. Greg Holmes, Vice President and General Manager; Mr. Ivan Johnson, Vice President of Public Affairs; and Mr. Tom Vaughn, Public Affairs Specialist; of Dimension Cable. Mr. Johnson presented Dimension Cable 's proposal . He stated that through research they had found that the residents felt the existing system had poor reliability, picture problems, excessive rate per channel for limited channel capacities and that the current system provided limited programming. He stated that Dimension Cable proposed to upgrade 100a of the existing system, expanding the channel capacity to 60 channels and supplying cable to all existing homes as of the date they receive their license from the Town. He explained that any new subdivisions may be required to pay for the extended service. He described the types of new programs which would be available to the residents and claimed that this new service would be the same that the rest of the Valley enjoyed. He Town Council Regular Meeting Minutes 03/07/91 Page 1 of 7 explained various problems which Dimension would need to overcome and ways in which they were trying to supply the residents with the type of service desired. He stated that the cost for all renovations and upgrades was approximately $5.6 million and said they were estimating completion of the project within twelve months after licensure. He stated that Dimension had signed a lease with MCO so they could establish regular local office hours. He said that also, as part of the new proposal, Dimension would provide public educational and governmental access channels. He also stated that their proposal would provide cable TV to all commercial buildings and that they would comply with all Town cable TV codes. Mr. Johnson commented that Dimension would maintain all existing cable TV service while work was being performed. He mentioned that they would provide cable service to future developments when densities reach 25 homes per mile but stated that if a developer desired cable tv service sooner a capital contribution would be requested. Mr. Johnson explained that the local office would be staffed two days per week so residents would be able to sign up for service, pay their bills and file complaints. Mayor Cutillo stated that he felt Dimension Cable 's new proposal did not communicate that the parent company guaranteed their work. Mr. Holmes commented that he believed the new proposal clearly stated that Dimension was fully qualified to supply cable TV service to Fountain Hills and that they were "self sufficient" legally, financially and technically. Mr. Johnson explained that the reason they originally applied under the corporate name of Arizona Cable Television was because this was the entity in which Fountain Hills ' assets were held. He said that based on questions raised by the Fountain Hills consultant, they decided to modify the name and submit the license to be negotiated under the parent company name of American Cable Television. He clarified that funding for Fountain Hills would come from American Cable Television. Mr. Farrell commented that assurances for construction would come either from a bonding company or from a cash deposit. He said that in an action of eminent domain the Town would acquire all assets from the company. Councilman Fox expressed his concerns if Dimension Cable ever attempted to sell the company. Mr. Holmes stated that the provisions of the agreement did not provide for any transference of the license for the first three years and that for years four through fifteen any transference would require the Council 's approval. Councilman O'Brien questioned why Dimension had not begun improvements previously. Mr. Holmes answered that they needed a license to provide them with security to realize a return on their investment before any work was done. Town Council Regular Meeting Minutes 03/07/91 Page 2 of 7 Mayor Cutillo commented on the implications of the license agreement and questioned whether service would ever he retracted instead of added. Mr. Holmes answered that at no time had they ever reduced services to their customers. He said that the mix may be changed at some time in the future. but no channels would be deleted. Vice Mayor Clark said he felt the agreement should clarify that all "existing" service should include all currently platted areas and "new" service should include all currently unplatted areas. He said he felt this was the only way in which to specify what areas were new and would be charged a line extension fee. Mr. Johnson explained that "drops" were not installed until homes were actually placed and service had been requested. He said that, instead, distribution plants were built in platted undeveloped areas because they did not know how many homes would be built in each area. Mr. Peter Putterman commented that although he had been promised quick response to a question he asked approximately one year prior during a local rotary club meeting, he had not received adequate attention. He stated that after calling and leaving messages with the Dimension Cable office four times over the subsequent three week period he still never received a response. His concern was that although . cable lines were physically apparent in front of his home, Dimension 's records indicated his home was not in an area supplied with cable and was scheduled for new burial . He stated that he questioned the value of the information being given due to this fact and did not feel comfortable with their proposed new service. He addressed various other complaints and asked the Council if they knew what level of technical support and service Dimension was to provide. Mr. Nordin answered that Mr. Farrell was making notes of all concerns and would address them in the license agreement. Mr. Duane Nash, President of the Casa Cafetal Association, commented that the cable service provided to their 56 units was excellent. Ms. Lois Wilhelm asked if when old cables were replaced would Dimension be required to destroy resident 's yards. Mr. Johnson answered that if new cables were being placed, some trenching would occur but that they would attempt to restore any damaged landscaping. Ms. Wilhelm commented that she had observed that Dimension was having a great deal of trouble with their transformers. Mr. Johnson stated that new amplifiers would be used and that the transformer difficulties would cease. Mr. Danny Tancredi asked if he would be charged for an upgrade to his existing service. Mr. Johnson answered that current customers would not be charged but clarified that new customers would be charged the standard installation charge. He further said that one converter was supplied to customers as part of the standard installation charge. Mr. Al Porna asked Mr. Johnson if he was aware of a reduction in the number of available channels in 1976. Mr. Johnson stated that the number of available channels was not reduced but that the "mix" was changed. Town Council Regular Meeting Minutes 03/07/91 Low Page 3 of 7 • Mr. Peter Putterman questioned who decided what channels would be supplied to customers. Mr. Johnson stated that they did "audience surveys" to determine what type of viewing was desired and said that the cost of each service was also a consideration. Ms. Lois Wilhelm asked if cable TV offered radio service as well. Mr. Johnson said that they currently offered FM radio but commented that this was not a very popular service. Mr. Howard McCollom asked the Council what their target date was for either approving or disapproving Dimension Cable 's proposal. Mr. Nordin answered that if the Council approved Dimension 's request, then they would immediately begin to draft a license document but could not provide a target date. Councilman Fox commented that the Council had set up a guideline schedule for drafting the cable TV ordinance, submitting the RFP and reviewing negotiations. Mr. Peter Putterman stated that he felt Dimension Cable was being "presumptuous" by renting office space and contacting current local customers before any authorization had been given. Mayor Cutillo stated that although no authorization had been given to Dimension for these actions he felt this to be an "act of good faith. " To Mr. Howard McCollom's comments, Mr. Johnson stated that Dimension Cable was a marketing tool for Times Mirror Cable Television. He said that Times Mirror Cable Television became involved in Phoenix in 1980 and had acquired • approximately 200 of local operator American Cable Television had increased to 50Z in 1982 and then to 100Z in 1983. Ms. Lois Wilhelm asked if Rio Verde 's residents were included in the upgrades being proposed for Fountain Hills but commented that she had heard that Rio Verde had installed their own cable TV system. Mr. Johnson responded that Rio Verde was serviced initially by American Cable Television and had a very antiquated small system which did not satisfy the residents ' needs. He said that they switched cable TV companies but did not know to which company they had changed. Mr. Nordin stated that he believed Rio Verde utilized a satellite system. At approximately 8:07 p.m the Council took a recess before reconvening at 8:17 p.m. AGENDA ITEM #5 — TOWN MANAGER'S REPORT A. Project Update (including possible Council action to direct staff as appropriate) a. Awarding the crack seal and material bid Mr. Nordin stated that staff recommended that the low bid supplied by Brewer Cote of Arizona of $0.228/lb. be accepted and that staff be authorized to spend an amount not to exceed $12,000. He Town Council Regular Meeting Minutes 03/07/91 Page 4 of 7 commented that Mr. Harvey recommended the crack seal be placed in all areas having the greatest need first but that all streets would be repaired. Councilman Fox requested that a priority list be developed showing what roads would be repaired and when the work would be performed. Mayor Cutillo made a MOTION that the Council accept the low bid of Brewer Cote of Arizona of $0.228/lb. and that staff be authorized to expend an amount not to exceed $12,000 for crack sealing material. The motion was SECONDED by Councilman Fox and CARRIED unanimously. B. Discuss and possibly act upon a. Naming the terms of the Board of Adjustment members Mr. Nordin stated that the Board of Adjustment recommended the initial terms of office as indicated in his memo to the Council . Councilman Hudson made a MOTION that the terms of the Board of Adjustment be set as follows: Roland Britton One Year George Bard One Year Earl Stavely Two Years Joel Kaetleman Two Years Paul Kolwaite Two Years SECONDED by Councilman Minarsich and CARRIED unanimously. b. Liquor license application for Poma's Ristorante and Deli Mr. Nordin explained that Poma 's Ristorante and Deli had submitted an application for a liquor license and had fulfilled all requirements. Mayor Cutillo stated that he would abstain from voting on this issue. Councilman Minarsich made a MOTION that the Council approve the application for a liquor license for Poma 's Ristorante and Deli . SECONDED by Vice Mayor Clark and PASSED, six aye votes and one abstention. c. Staff authorization to negotiate a Cable TV license with Dimension Cable TV Mr. Nordin reported that the Cable TV committee had met several times within the past few weeks and, after reviewing all materials submitted by Dimension Cable, recommended that the Council authorize the Town to enter into negotiations for a Cable TV license with Dimension Cable. Town Council Regular Meeting Minutes 03/07/91 Page 5 of 7 Vice Mayor Clark commented that the other applicant for the license was Sun Country Cable and asked Mr. Nordin to elaborate on this company and the options they would make available to the residents of Fountain Hills. Mr. Nordin answered that although Sun Country Cable submitted a proposal it was not submitted in a timely manner. He said that they also did not submit the fee required to be considered by the Town and said that Sun Country Cable did not submit a viable bid appropriate to be considered. He commented, however, that subsequent to that submittal, Sun Country Cable had met with him to propose that if Fountain Hills could supply them with sufficient substantial funding, they would be willing to operate a cable system. He said that it was staff 's position that this type of proposal would require a great deal of work and research and was not possible at this time. He stated that should negotiations with Dimension Cable break down that Sun Country would be a possibility. Vice Mayor Clark made a MOTION that the Town be authorized to proceed with licensure negotiations with Dimension Cable for a non- exclusive contract, that written documents be brought to the Council within the next eight to ten weeks and further, that staff be directed to continue, unrelentingly, to search for, investigate and analyze alternatives to the Dimension Cable system and report all feasible options to the Council within twelve months from the start of the Dimension contract. SECONDED by Councilman Hudson. Councilman Clark stated that the "essence" of the motion was to 44) continue to look for other alternatives and not give up pursuing other options. Mr. Nordin commented that the eight- to ten-week time frame did not restrict Dimension 's or the Town 's ability to accomplish negotiations and research into other cable TV options. He stated that he anticipated presenting the license agreement to the Council at the May 2, or the May 16, 1991 meeting, if not earlier. Mayor Cutillo called for comments from the public and Mr. Peter Putterman and Mr. Paul Slater gave their opinions regarding the Town 's engaging in an agreement while continuing to look for other cable TV companies. Mr. Putterman did not feel this was in the Town 's best interest while Mr. Slater felt the competitive edge would force Dimension 's standards to improve. The motion CARRIED unanimously. Town Council Regular Meeting Minutes 03/07/91 Page 6 of 7 • AGENDA ITEM #6 - DISCUSS AND POSSIBLY ACT UPON RESOLUTION 1991-07 ADOPTING AN ENHANCED NOTIFICATION PROCEDURE TO INFORM NEIGHBORING COMMUNITIES OF DEVELOPMENT ACTIVITY Mr Nordin commented that staff recommended approval of the resolution as written. Councilman Hudson made a MOTION to approve Resolution 1991-07 adopting an enhanced notification procedure. SECONDED by Councilwoman Tibbetts and CARRIED unanimously. AGENDA ITEM #7 - DISCUSS AND POSSIBLY ACT UPON RESOLUTION 1991-08, AUTHORIZING AN AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT RE LIABILITY INSURANCE Mr. Nordin explained that Resolution 1991-08 amended the intergovernmental agreement concerning the Town 's liability insurance with the Arizona Risk Retention Pool. Councilman Hudson made a MOTION to approve Resolution 1991-08. SECONDED by Councilman Fox_and CARRIED unanimously. AGENDA ITEM #8 - CALL TO THE PUBLIC No one from the public approached the Council. AGENDA ITEM #9 - ADJOURNMENT Councilman Fox made a MOTION to adjourn. SECONDED by Councilwoman Tibbetts and CARRIED unanimously. TOWN OF /UNTAI HIILLS By: -4?2 G' d John utillo, Mayor ATTEST: Y-� �/,/.Lt�) Cassie B. Hansen, Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Meeting held by the Town Council of Fountain Hills on the 7th day of March, 1991. I further certify that the meeting was duly called and that a quorum was present. DATED this ( S1' day of April, 1991. e4.014,A: %15 . a4-4'‘J_JA,,U Cassie B. Hansen, Town Clerk Town Council Regular Meeting Minutes 03/07/91 Page 7 of 7 J