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
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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.
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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.
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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
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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.
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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.
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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
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