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TOWN OF FOUNTAIN HILLS
MINUTES OF THE EXECUTIVE AND REGULAR SESSIONS OF THE
FOUNTAIN HILLS TOWN COUNCIL
MAY 7, 2015
EXECUTIVE SESSION
* CALL TO ORDER AND PLEDGE OF ALLEGIANCE
Mayor Kavanagh called the Executive Session to order at 5:04 p.m. in the Fountain Conference Room - 2nd Floor.
AGENDA ITEM #1 - ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION:
Present for roll call were the following members of the Town Council: Mayor Linda Kavanagh, Vice Mayor Dennis
Brown, Councilmember Nick DePorter, Councilmember Cecil Yates, Councilmember Cassie Hansen, Councilmember
Alan Magazine and Councilmember Henry Leger. Town Manager Ken Buchanan, Town Attorney Andrew McGuire
and Town Clerk Bevelyn Bender were also present.
PURSUANT TO A.R.S. §38-431.03(A)(4), DISCUSSION OR CONSULTATION WITH THE ATTORNEYS
OF THE PUBLIC BODY IN ORDER TO CONSIDER ITS POSITION AND INSTRUCT ITS ATTORNEYS
REGARDING THE PUBLIC BODY'S POSITION REGARDING CONTRACTS THAT ARE THE SUBJECT
OF NEGOTIATIONS, IN PENDING OR CONTEMPLATED LITIGATION OR IN SETTLEMENT
DISCUSSIONS CONDUCTED IN ORDER TO AVOID OR RESOLVE LITIGATION (SPECIFICALLY, THE
FOUNTAIN HILLS THEATER LEASE); AND (II) A.R.S. §38-431.03(A)(1), DISCUSSION OR
CONSIDERATION OF EMPLOYMENT, ASSIGNMENT, APPOINTMENT, PROMOTION, DEMOTION,
DISMISSAL, SALARIES, DISCIPLINING OR RESIGNATION OF A PUBLIC OFFICER, APPOINTEE OR
EMPLOYEE OF ANY PUBLIC BODY (SPECIFICALLY, FOR THE PURPOSE OF DISCUSSING THE TOWN
MANAGER VACANCY).
Councilmember Yates MOVED to go into Executive Session and Vice Mayor Brown SECONDED the motion, which
CARRIED UNANIMOUSLY (7-0).
Town Manager Ken Buchanan and Town Clerk Bevelyn Bender left the meeting at 5:52 PM.
AGENDA ITEM #2 - ADJOURNMENT.
The Executive Session adjourned without objection at 6:15 p.m.
REGULAR SESSION
* CALL TO ORDER AND PLEDGE OF ALLEGIANCE
Mayor Kavanagh called the meeting to order at 6:33 p.m.
* INVOCATION - Ms. Debby DeBernardi, Spiritual Director and Director of Christian Formation, Fountain Hills
Presbyterian Church
* ROLL CALL - Present for roll call were the following members of the Town Council: Mayor Linda Kavanagh,
Vice Mayor Dennis Brown, Councilmember Nick DePorter, Councilmember Cecil Yates, Councilmember Cassie
Hansen, Councilmember Alan Magazine and Councilmember Henry Leger. Town Manager Ken Buchanan,
Town Attorney Andrew McGuire and Town Clerk Bevelyn Bender were also present.
* MAYOR'S REPORT
i) None
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* SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS
i) The Mayor may review recent events attended relating to Economic Development.
Mayor Kavanagh announced that they had their MAG (Maricopa Association of Governments ) Economic
Development meeting, which brought them information about applying for the USDOT (US Department of
Transportation) Tiger Grants. She said that they were also presented with some alarming statistics about safety in the
Maricopa region and noted that their region has the highest traffic fatality rates (out of 53% Statewide, the Maricopa
region is at 47%). She added that there were 75,000 crashes with 35,000 injuries, sadly including 400 deaths and
stated that Phoenix alone has the second highest fatality rate with Houston being the first. She advised that there is a
MAG Transportation Safety Plan to deal with this but they have to sell it to ADOT (Arizona Department of
Transportation) so they can get funding increased to implement it. She commented on statistics about the city of
Phoenix and reported that they are anticipating huge future growth in their city and that for them means they have to
invest more money in transportation. She further stated that it also translates into less State Shared Revenues for the
Town, because funds are divided by population. She said that the MAG Economic Development meeting centered
around the impact to their region from the Community College District and explained that with continued lower tuition
rates than the Universities, the Community Colleges also offer a new beginning for students who might not be ready
for college academically. She added that another topic was discussion of the lack of what they call "dirty job" interest
among students and pointed out that Arizona has a shortage of welders, machinists and other like industry jobs because
students view these as not attractive. She stated that the difficulty is getting students to become interested in them and
that is the focus of this new group, to portray them as viable options for a career choice. She stated that in speaking
with a trucking executive at the meeting, he told her that there is a real shortage of those willing to be truck drivers (the
older guys are retiring and young people are just not interested in that kind of work even though the pay and benefits
are good). She added that it will be interesting to see the progress of this new campaign.
ii) Quarterly Budget Report by Finance Director Craig Rudolphy for the fiscal quarter ending March 3, 2015
Finance Director Craig Rudolphy addressed the Council relative to this agenda item and highlighted a brief
PowerPoint presentation (Copy available on line and in the Town Clerk’s office) regarding the Quarterly Budget
Report for the fiscal quarter ending March 3, 2015. The presentation included the following:
* All Funds Revenues for the 9 Months Ending March 21, 2015
* Operating Funds
* Operating Funds Revenues by Source
* Local Sales Tax - Retail
* Local Sales Tax - Restaurant
* Local Sales Tax - Telecom
* Local Sales Tax - Construction
* Operating Fund Expenditures by Department
* Other Funds
* Highway User Revenue Funds (HURF)
* HURF Expenditures
* Restricted Funds
* Funds Balance
* Summary
Operating Fund revenues and expenditures are trending favorably in the current year
Reserve Fund balances remain acceptable for all funds
Operating Fund revenues are 0.3% over budget and higher (6.1%) than last Fiscal Year
Operating Fund expenditures are 0.5% under budget but 8.9% higher than last Fiscal Year
Pavement Management remains a priority and is funded through HURF and Vehicle License Tax revenues
Local economic indicators remain stable
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Mr. Rudolphy indicated his willingness to respond to any questions.
Councilmember Yates thanked Mr. Rudolphy for his excellent report. He said that although Mr. Rudolphy mentioned
that the Town is 6.1% higher on revenues, he asked what their trajectory is moving forward.
Mr. Rudolphy responded that he would guess they would be maybe 1% over their projections on revenue and even
with or slightly below on expenditures.
Councilmember Yates asked whether Mr. Rudolphy could give any long-term insights and Mr. Rudolphy replied that
as of this morning they were showing a positive balance of approximately $300,000.
Mayor Kavanagh thanked Mr. Rudolphy for the update.
CALL TO THE PUBLIC
Town Clerk Bevelyn Bender advised that there was one citizen who wished to speak under this agenda item.
Paul M. Getty addressed the Council and expressed concerns relative to the Salt River Project (SRP) electric utility
district boundary as it relates to Fountain Hills. He noted that everyone in Town utilizes SRP as their electricity
provider but expressed the opinion that there is an outrageous injustice that can be corrected through legislative action
and he is present this evening to ask the Council for their help. He informed the Council that he has recently
discovered that the residents in Fountain Hills do not participate in SRP Board of Director elections and that is because
they lie outside of the district boundaries that were created in 1937. He noted that the SRP Board sets the rates and
policies for their electric bills and cost of utilities and how they move forward to the future. He stated that the
residents of the Town are subject to SRP's decisions and control without any representation and without any voting
rights because the Town lies outside of the official boundaries. He advised that he is requesting the Council's help in
convincing the Town's Senator John Kavanagh to sponsor legislation to expand the SRP power district boundaries so
that Fountain Hills is within the SRP power district. He added that a similar injustice and lack of representation in
voting rights also exists in a large region of Gilbert and Queen Creek, Arizona. He said that each member of the
Council will receive a letter from him following up on this subject individually via email and regular mail. He
reported that SRP is not subject to control by the Arizona Corporation Commission and thanked the Council for their
time.
Mayor Kavanagh noted that the Council cannot respond at this time but they did take notes and they look forward to
receiving Mr. Getty's letter.
CONSENT AGENDA
AGENDA ITEM #1 - CONSIDERATION OF APPROVING THE TOWN COUNCIL MEETING MINUTES
FROM APRIL 16 AND 21, 2015.
AGENDA ITEM #2 - CONSIDERATION OF APPROVING SPECIAL EVENT LIQUOR LICENSE
APPLICATIONS FOR THE FOUNTAIN HILLS AND LOWER VERDE VALLEY MUSEUM AND
HISTORICAL SOCIETY (JEAN LINZER) TO BE HELD AT THE FOUNTAIN HILLS COMMUNITY
CENTER, ON THE FOLLOWING DATES AND TIMES: AUGUST 15, 2015 FROM 5:00 PM TO 10:00 PM;
SEPTEMBER 16, 2015 FROM 5:00 PM TO 8:00 PM; NOVEMBER 18, 2015 FROM 5:00 PM TO 8:00 PM;
JANUARY 20, 2016 FROM 5:00 PM TO 8:00 PM; MARCH 12, 2016 FROM 11:00 AM TO 5:00 PM; MARCH
30, 2016 FROM 5:00 PM TO 9:00 PM AND MAY 18, 2016 FROM 5:00 PM TO 8:00 PM.
Councilmember Yates MOVED to approve the Consent Agenda as listed and Councilmember Magazine
SECONDED the motion.
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A roll call vote was taken with the following results:
Mayor Kavanagh Aye
Vice Mayor Brown Aye
Councilmember Nick DePorter Aye
Councilmember Cecil Yates Aye
Councilmember Cassie Hansen Aye
Councilmember Alan Magazine Aye
Councilmember Henry Leger Aye
The motion CARRIED UNANIMOUSLY (7-0).
REGULAR AGENDA
AGENDA ITEM #3 - CONSIDERATION OF THE REQUEST BY THE PUBLIC ART COMMITTEE TO
ACCEPT A DONATED BRONZE SCULPTURE TITLED, "WEDDING VASE," FOR PLACEMENT IN
FOUNTAIN PARK.
Community Services Director Mark Mayer addressed the Council relative to this agenda item and said that the Public
Art Committee is requesting that the Town accept the bronze sculpture titled, 'Wedding Vase," donated by Jean and
Rolland Lorenz, for placement in Fountain Park. He noted that the sculpture has a value of $15,000 and the artist is
Doug Hyde. He added that there will be an annual cost of $64.50 to insure the piece and said that staff is
recommending acceptance of the bronze sculpture and its placement in Fountain Park as requested. He referred to a
picture displayed in the Chambers showing the bronze sculpture.
Councilmember Magazine asked whether there will be a plaque showing the name of the piece and the donor and Mr.
Mayer advised that there will be a plaque recognizing the donation from Mr. & Mrs. Lorenz.
Mayor Kavanagh noted that Mr. & Mrs. Lorenz have donated other pieces of art in the past and thanked them for their
generosity.
Councilmember Magazine MOVED to approve the request by the Public Art Committee to accept a donated bronze
sculpture titled, "Wedding Vase" for placement in Fountain Park and Councilmember Yates SECONDED the motion,
which CARRIED UNANIMOUSLY (7-0).
AGENDA ITEM #4 - CONSIDERATION OF RESOLUTION 2015-28, APPROVING AND AUTHORIZING
THE MAYOR TO EXECUTE AND THE TOWN CLERK TO ATTEST AN AGREEMENT BETWEEN THE
TOWN OF FOUNTAIN HILLS AND THE TOWN OF FOUNTAIN HILLS MUNICIPAL PROPERTY
CORPORATION PROVIDING FOR THE REFINANCING OF CERTAIN PUBLIC IMPROVEMENTS BY
PROVIDING FOR THE REFUNDING OF PREVIOUSLY ISSUED AND OUTSTANDING BONDS;
APPROVING THE ISSUANCE BY THE TOWN OF FOUNTAIN HILLS MUNICIPAL PROPERTY
CORPORATION BONDS; ACKNOWLEDGING THE PRIORITY OF THE PLEDGE OF EXCISE TAXES;
APPROVING THE FORM OF THE AGREEMENT AND TRUST INDENTURE, AND AUTHORIZING THE
TAKING OF ALL OTHER ACTIONS NECESSARY TO THE CONSUMMATION OF THE
TRANSACTIONS CONTEMPLATED BY THIS RESOLUTION, INCLUDING THE REDEMPTION IN
ADVANCE OF MATURITY OF CERTAIN OUTSTANDING BONDS.
Town Manager Ken Buchanan addressed the Council relative to this agenda item and reviewed the Staff Report (Copy
available on line and in the office of the Town Clerk). He informed the Council that the Town of Fountain Hills'
Municipal Property Corporation (MPC) was established by adoption of Resolution 1998-32 as the first step in the
formation of a Municipal Property Corporation to act as a unit of government that would sell tax-exempt bonds for the
construction of certain municipal projects. He said that the payment of the bonds by the Town would be a portion of
the excise tax revenues and would not be considered long-term debt to the Town. He added that the structure of such
transactions is such that the Town's property was conveyed to the MPC, the building was constructed and the MPC
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leased the building back to the Town until such time as the bonded debt was paid off. He stated that at that time, the
ownership of the property would transfer back to the Town. He advised that in 2005 the MPC refunded existing bonds
for the Community Center and the Mountain Preserve by issuing $5,330,000 in MPC Municipal Facilities Revenue
Refunding Bonds, Series 2005 (the "2005 Bonds"). He explained that the MPC now desires to refund $2,780,000 of
the 2005 Bonds, which constitutes all of its outstanding bonds, with interest rates of 4.0%, with new refunding bonds
totaling approximately $1,880,000 and an anticipated interest rate of 1.65% or lower, thereby resulting in an estimated
net present value savings after costs of issuance of at least $53,000. He said that the final maturity date of the new
bonds will remain the same as the 2005 Bonds, specifically July 1, 2020. Mr. Buchanan stated that staff recommends
approval and indicated his and Bond Counsel's willingness to respond to any questions.
There were no citizens wishing to speak on this agenda item.
Councilmember Yates MOVED to approve Resolution 2015-28, approving the refunding of MPC 2005 Bonds and the
issuance by the MPC of Series 2015 refunding bonds and Vice Mayor Brown SECONDED the motion, which
CARRIED UNANIMOUSLY (7-0).
AGENDA ITEM #5 - CONSIDERATION OF OPTIONS AND COSTS FOR AVENUE OF THE FOUNTAINS
BANNER REPLACEMENTS.
Tourism Coordinator Grace Rodman-Guelter addressed the Council relative to this agenda item and said that she is
present this evening to discuss the possible replacement of the banners on the light poles on Avenue of the Fountains.
She highlighted a brief PowerPoint presentation for the Council (Copy available on line and in the office of the Town
Clerk). She discussed the current design renderings on the poles and reported that there are currently 34 light poles
and noted that the banners are approximately ten to eleven years old, weather worn and fraying and badly in need of
replacement. She said that she has proposals to replace the current renderings and showed the Council photographs of
renderings that she commissioned for the possible redesign. She noted that they would be looking to order 50
Welcome signs and three alternative designs that would be placed in a pattern down the Avenue. She advised that she
has chosen to align these designs with the tourism and the Economic Development process for branding Fountain Hills
and the general direction they are going with those designs (Arts & Culture, F ind your Recreation and Find your
Adventure in addition to the Welcome to Fountain Hills banner with a picture of the Fountain). She said that these
banners would be on display from January until May and August to November and the months of June and July will
have their patriotic 4th of July banners displayed while the months of November and December will have their holiday
banners displayed. She pointed out that both the Patriotic and Holiday banners are still in fair condition and do not
warrant full replacement at this time. She added that this proposal includes the purchase of 101 banners, two banners
per their 34 light poles and five spare banners per design to be used as replacements if any banner gets damaged or
destroyed by weather.
Ms. Rodman-Guelter informed the Council that the first proposal comes from the Town's existing vendor, Downtown
Graphics, who quoted $9,460 for the printing of the new banner designs and the second proposal comes from a new
vendor, Downtown Decorations, who quoted $6,565 for the printing of the same designs (to replicate the current
designs the existing vendor quoted $8,991.20 and the new vendor, in order to stock images similar to the current
design, quoted $6,000). She indicated her willingness to respond to questions from the Council.
Mayor Kavanagh asked whether the material that would be used by both vendors is of the same quality and Ms.
Rodman-Guelter replied that they are of the same quality but have different styles -- the second vendor, Downtown
Decorations, uses a different coating to protect against the sun damage (each of them uses a type of UV preventative
fabric).
Councilmember Yates advised that he definitely supports replacing the old banners. He said that the new renderings
have a beautiful design but said he is worried about people seeing them from a distance and discerning what is actually
on them.
Ms. Rodman-Guelter agreed that they might lose some of their effectiveness from a distance and stated that
Councilmember Yates' point is completely valid, especially for banners that they might see along different kinds of
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roadways. She commented that the Avenue receives a lot of foot traffic (the Great Fair, etc.) and added that they
always lose a little something when it comes to traffic's view of the banners on the poles.
Councilmember Magazine referred to the proposed Recreation banner and expressed the opinion that it looks a lot like
Monument Valley. He asked whether that is supposed to be Red Mountain or something else in particular.
Ms. Rodman-Guelter responded that she doesn't honestly know which mountain it is but pointed out that Tourism has
used that photograph in other advertising venues and they sought out special permission from the McDowell Mountain
Park to use that photograph (that is their photograph).
Councilmember Hansen asked whether the banners will be mildew proof and Ms. Rodman -Guelter replied that
unfortunately nothing is mildew proof but staff will take extra care in the storage of the banners during the months that
they are not being displayed.
Councilmember Leger commended Ms. Rodman-Guelter on her efforts and stated that he looks forward to seeing them
displayed on the Avenue.
There were no citizens wishing to speak on this agenda item.
Councilmember DePorter MOVED to direct staff to proceed with the printing of the new banner designs from a new
vendor, Downtown Decorations, in the amount of $6,565 and Councilmember Hansen SECONDED the motion,
which CARRIED UNANIMOUSLY (7-0).
AGENDA ITEM #6 - PUBLIC HEARING TO RECEIVE COMMENTS ON ORDINANCE #15-03, A
PROPOSED AMENDMENT TO THE TOWN OF FOUNTAIN HILLS ZONING MAP. IF ADOPTED, THE
AMENDMENT WOULD REZONE APPROXIMATELY 1.3 ACRES AT 11208 N. INDIGO DRIVE,
LOCATED ON THE SOUTHWEST CORNER OF INDIGO DRIVE AND EMERALD DRIVE, FROM THE
R1-18 ZONING DISTRICT TO THE R-3 ZONING DISTRICT. IF APPROVED, THE REZONING WILL
ALLOW THE CONSTRUCTION OF "PALAZZO DI LUSSO," A FOUR-UNIT LUXURY CONDOMINIUM
BUILDING. (CASE #Z2015-05)
Mayor Kavanagh declared the Public Hearing open at 7:04 p.m.
Senior Planner Bob Rodgers addressed the Council relative to this agenda item and advised that the proposal is to
rezone the subject property located at 11208 from R1 -18 Single-Family Residential to the R-3 Multi-Family
Residential Zoning District in order to construct Palazzo Di Lusso, a 4-unit condominium project. Mr. Rodgers briefly
outlined the contents of a Staff Report and displayed pictures of the proposed location and project to the Council
(Copy available on line and in the office of the Town Clerk). He noted that the property is currently vacant and is 1.24
acres in size and referred to adjacent residential properties zoned R1-18 as well as adjacent properties, which have
previously been developed as condominiums and zoned R-3 Multi-Family Residential. He advised that the General
Plan describes this property as Multi-Family Medium Density, which would allow between 4 and 10 units-per-acre.
He stated that this proposed 4-unit condominium project has a 6,792 sq. ft. footprint consisting of one 30’ two-story
building with four condominiums and noted that parking for residents would be provided via an underground , air-
conditioned garage. He added that visitor parking would be provided via a surface lot near the front entrance to the
building facing Indigo Drive and said that vehicular access is via a gated circular driveway off Indigo Drive. He
reported that each three bedroom unit would be approximately 2,700 square feet in size and would be fully landscaped
and compiles with the Town’s development guidelines.
Mr. Rodgers stated that this rezoning proposal does not approve this site plan , but commented that it’s helpful to see
what the plan is when considering the rezoning. He pointed out that the Planning & Zoning Commission
recommended that a stipulation be added that if this plan is not followed the rezoning should be voided. He said that
that stipulation is not included in the stipulations outlined in the Staff Report since staff determined that that would not
be allowed under State law. He referred to architectural elevations and advised that the Planning & Zoning
Commission recommends approval as does staff, subject to the stipulations outlined in the Staff Report. He indicated
his willingness to respond to any questions.
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Vice Mayor Brown asked whether any comments from the neighbors have been received aside from the letter they are
aware of and Mr. Rodgers responded that there are three or four letters in the Council's packets. He added that a fairly
large group attended the Planning & Zoning Board's meeting and they expressed a number of concerns. He informed
the Council that the developer has stated that he did meet with the neighborhood.
Town Clerk Bevelyn Bender advised that two speaker cards have been received.
Serene Seger addressed the Council and said that she was there representing the neighborhood, a lot of whom could
not make it tonight. She added that they are the group that met with Mr. Tully, the applicant. She advised that their
biggest concern that has come to their attention is that the changing of the General Plan and making it Multi-Family;
when that took place that is the meeting she and the neighbors should have attended to voice their objections. She
added that it appears that the zoning has been changed to Multi-Family and there's not a whole lot they can do, it's just
a formality to change the zoning so they have come to the realization that it is going to be rezoned. She informed the
Council that when she and her neighbors bought their properties they did so with the understanding that those two lots
were Single Family and pointed out that the other condominiums are down the hill and not visual. She further stated
that she and the group did meet with Mr. Tully who was extremely receptive to their thoughts and they are very
appreciative of the fact that he is making every attempt to make his development look like a large house as much as
possible for a two story when the rest of the homes are single story. She added that currently the bigge st problem they
have is that it seems there is a requirement for a sidewalk and that will be very inconsistent with the neighborhood
because it will be the only one in the area.
Bruce Tully, the applicant in the case, addressed the Council, provided a brief overview of the proposed project and
informed the Council that his company consists of experts as far as looking at the needs of the aging population (55
years of age and older), and provided detailed statistics relative to the over-55 population. He noted that this segment
of the population consists of upper income executive individuals who most likely helped position themselves
somewhere in the mid-west, raised children, have great grandchildren and they want to retire and live in a beautiful
community like Fountain Hills and enjoy their active years as a senior citizen. He stressed the importance of providing
this segment of the community with the amenities of a lifestyle and a home similar to that which they enjoyed (they no
longer want the larger square footage single-family homes to take care of). He noted that their units will have the best
of the most luxurious apartments and added that the company has secured the services of an award-winning builder
who has focused on building high-end single-family residences. He stated although they call these apartments they are
in fact four gorgeous single-family homes with ample square footage.
Mr. Tully said that he would like to address some of the comments that were contained in the letters received by the
Council. He provided brief background information on his zoning/planning history and advised that if there is a
General Plan in place that indicates a general pattern then it is just good stewardship to honor that General Plan. He
added that the current situation is a classic case of spot zoning and noted that the zoning could allow up to 12 units but
they are only requesting the opportunity to develop four units in a building style that resembles a beautiful, single-
family mansion. He pointed out that the site is abutted by single -family properties on several sides and is consistent
with the Town's General Plan. He expressed the opinion that it will serve as a good transitional zoning form from the
very dense multi-family that is within a half block of the site to a very reasonable four-unit multi-family design. He
further stated that there are three other issues that he saw as important in the comments and the first was compatibility
with the immediate surrounding neighborhood. He noted that within a stone's throw away there are two -story single-
family homes and said that the current zoning would allow a significant single-family home with a 50% footprint of
the property. He added that they could easily develop a significant two-story single-family home covering up to 50%
of the site up to 30 feet but they are only talking about 13% lot coverage with the proposed project.
Mr. Tully commented that as far as the devaluation of property values, the project that they are proposing to build will
cost $2.7 million dollars and once rented out, if they apply a conservative cap rate to the valuation of the project, they
are looking at a proj ect that will be valued at approximately $3.6 million; therefore, each one of the units would then
be valued at between $850,000 and $900,000. He further stated that given the beautiful finishes that they are planning
to use on the project, and the value, he really can't imagine that this structure would devalue the adjoining property
owners' properties. He added that there were also comments regarding the architectural compatibility and reported that
the architecture took its roots in southern Mediterranean design, particular southern Spain. He advised that those who
follow architectural history will know that the Spanish Colonial architecture strongly influenced the Mexican Colonial
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architecture, which greatly influenced the Southwest Colonial architecture. He stated that their design is very
compatible with that design form which can be seen all throughout the Town. He noted that he also heard that the
project would not blend in with the neighborhood and said that he drove through the neighborhood thi s afternoon and
he counted seven different architectural styles within a block. He said that when he taught architecture, one of the
things that they wanted to strive for was diversity; there is elegance and beauty in diversity. He asked and encouraged
the members of the Council to consider the request before them and noted that the proposed zoning change is
consistent with the Town's General Plan, eliminates spot zoning and that they are going to under-develop it and bring
what they think is a beautiful and wonderful project to Fountain Hills.
Mayor Kavanagh thanked Mr. Tully for his presentation and asked Mr. Rodgers how far this project will be set back
from the road. Paul Rogers, site engineer for the project, addressed the Council and provided them with the various
setback numbers.
Mayor Kavanagh advised that she has walked the site a couple of times and noted that the homes across the street from
the proposed project are all one story.
Vice Mayor Brown commented that it is his understanding that they are requiring a sidewalk and Mr. Rodgers stated
that that would be under Stipulation #6. Vice Mayor Brown expressed his opinion that the proposed landscaping looks
like it belongs in southern California rather than Fountain Hills and pointed out that the property that they would be
building on is extremely native and natural and to introduce something like that to the neighborhood would be a shock
to the neighbors. He added that he doesn't know whether they plan to use artificial grass or not but the project is
showing about as much grass as they have around Town Lake.
Mr. Tully responded that the picture displayed was a render’s interpretation noting that they were planning to keep it as
natural and maintenance free as they could. He stated that he was old school and if he stands before the Council and
gives his word…Mayor Kavanagh stated that Mr. Tully could not speak from the audience as the meeting was being
recorded and no one could hear him.
Vice Mayor Brown said that he understands that Mr. Tully will probably find a little better landscape architecture but
added that as far as the architecture of the building, if they are trying to make it look like a nice big custom home, he
would recommend looking at it from a different angle where they've got two pods side by side that are identical. He
added that he would like to see that changed just a little bit and stated that if he were going to rent it he would like to
have a little more identity than what is being shown. He advised that he is not objecting to the project but added that
the rendering really looks like something that would be built in southern California than what they typically see in
Fountain Hills.
Mayor Kavanagh stated that she too walked the neighborhood and saw the homes that are there and expressed the
opinion that this definitely does not fit into the neighborhood. She added that she has been struggling with this
because she always has a problem when people buy a property and want to change the zoning. She added that the
people who built their homes there thought this property would always be for single-family homes and she has a big
problem once they have promised somebody that this is a single-family lot and there is going to be a single-family
home on it. She added that she knows that it looks really nice but it doesn't look anything like the neighborhood and
just because there are condominiums around it they are pretty far away so she is not considering them, she is just
considering the homes that are across from the development and on Emerald.
In response to a request from Councilmember Hansen, Mr. Rodgers provided a brief overview of the history of the
General Plan Amendment and changes that have been made to the two parcels. Mr. Rodgers advised that the zoning
and the General Plan designation have been there forever, the County had it this way and nothing has changed.
Councilmember Hansen referred to a letter received from residents regarding this proj ect and noted that one does say
that Mr. Tully gave a verbal indication that the recommendations would be incorporated into the proposed plan and
one of those is the sidewalk, which the Vice Mayor refers to as "the sidewalk to nowhere." Mr. Rodgers advised that
the sidewalk could be taken out if so desired. Councilmember Hansen asked whether the other requests from the
neighbors could be incorporated as stipulations as well and Mr. Rodgers responded that that is a good question for
Town Attorney Andrew McGuire. She said she is looking for a greater comfort level between what the neighbors want
and what Mr. Tully wants and questioned if there some way to memorialize Mr. Tully’s commitments.
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Councilmember Leger advised that he was happy to read in the corre spondence that he received from the neighbors
that when they met with him it was a positive meeting with a positive outcome and said that that doesn't happen very
often between neighbors and developers. He stated that he is making the same observations that Councilmember
Hansen has made and he is not sure whether they can legally make a stipulation but just for the record, just in case this
project is approved, he would like to know whether Mr. Tully will honor the commitments that he has made.
Mr. Tully replied absolutely and commented that he would not have said that at the neighborhood meeting if his
intention was to renege on those commitments.
Councilmember Leger explained that he just wanted that on the record in case they can't stipulate it and M r. Tully said
that he thought several of the requests that the neighbors made were helpful and would add to the overall character of
the project. Mr. Tully further stated that what he is about to say is without self interest and noted that he has been
doing this work for 40 years and has worked at every level at every type of regional planning imaginable and he would
like to say whether they decide to rezone this project this evening or not, over time this property will become a multi -
family site. He pointed out that it is what the General Plan has called for and given the interest in lifestyles and in
going green and higher densities, for many positive reasons this property will eventually become a multi -family site.
He added that given that, at the lowest zoning level for multi-family, R-3, the Town could have as many as 12 units
there and if some of the neighbors objected to four units, he would say that four units in a lovely, single -family like
building would be far preferable to 12 units of who knows what. He pointed out that this is going to be one of the best
multi-family presentations that they could possibly envision for this property. He advised that he has taken Vice
Mayor Brown's comments under consideration and they would be happy to look at some different renderings (they
have shared this with some of the neighbors as well) as far as the elevation of the building. He noted that the
Renaissance designers tried to balance the elevations in a symmetrical way and they were just trying to stay t rue to that
historical derivative. He added, however, that they want to develop a project that in the end everyone will be proud of
and said that they are all about building quality structures and if he didn't think that this would make a positive
contribution to the neighborhood he wouldn't be here. He ended by stating that he hopes that the Council grants the
rezoning request.
Councilmember Magazine asked when they do a General Plan change whether the property is posted and Mr. Rodgers
responded yes.
Town Attorney Andrew McGuire interjected and clarified that if it is a specific General Plan change it will be posted
on the property but General Plan changes happen on a normal level whenever they do an update, like in 2010, and
those would not be posted.
Councilmember Magazine advised that he understands the concerns of the residents but when he sees what would be
allowed for the property, although the proposal might not be a perfect use for the property according to the residents,
he thinks it is a reasonable use. He added that he agrees with the comments that were made about the landscaping, that
they not do grass and so on, and as he looked at the area he really was struck by how much multi -family is right there
in that area so he doesn't share some of the comments that were made and he believes that the proposal is a reasonable
use.
Mayor Kavanagh pointed out that in the Council's packets there is a statement from the President of the Neighborhood
Property Association expressing the Association's concerns regarding the project. She said that he noted that all
structures "should be of an architectural character in harmony with and compatible to the existing structures in the
subdivision and the neighborhood in which the structure is to be constructed." She added that specifically he is
concerned that a multi-family property is not compatible with existing single-family one-story residences in the
neighborhood. The Mayor stated that if they look at the overall layout, the multi -family is actually quite a distance
away from this and it is the single-family homes that will be impacted. She noted that the Association has requested
that the property remain zoned for single-family homes. She said that she understands that there is multi-family
development around it but asked who is going to be impacted by it and advised that it is going t o be the single-family
homes that are right across the street. She pointed out that these people built their homes , which are all approximately
3,000 square feet in size, thinking that they were building right across from single-family lots and now we are saying
we want to change that because the project looks really nice and would be good for the Town and the project is really
nice, but maybe it is not nice for that lot and belongs somewhere else in Fountain Hills where things look like this.
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She further stated that this project does not fit in with the single-family homes so she can't go along with the argument
that it does and she is not sure that she can support this.
Councilmember Yates commented that architecturally he has some issues with how the proposed project would blend
in and asked if they did not change the zoning on this he would like to know how many total units could be built on the
site if it remained zoned as is and Mr. Rodgers responded that one home could be built.
Discussion ensued relative to foot prints and height of buildings in the area; the fact that Councilmember Leger
empathizes with the neighbors but someone could come in an build something with a larger footprint and greater
height than what is in the area; the Vice Mayor's comment that it appears the biggest pushback is the Mediterranean
architecture in a Southwestern community and the fact that the Council cannot dictate design; the Vice Mayor's
opinion that there would not be as much resistance if the project had a Southw est design and stated that he is not
personally objecting to the project but he is objecting to what he is seeing and a different rendering with a different
elevation would be a lot more palatable; Mr. Tully's statement that Mrs. Seeger has an appointment with him in a week
and the fact that they have already agreed to have their architectural staff do several different renderings and they are
going to display them all for her and see if they can arrive at a style that is more acceptable since she is repres enting
the neighborhood; the fact that the company is doing this voluntarily and is willing to do what they have to do to make
the neighbors happy with the project; Vice Mayor Brown's comment that he thinks the Council should have a little
more control over the architectural design and he knows they can't do that but he is very sensitive about building
something that is that ornate in Fountain Hills; Mr. Tully's statement that the key to his success over the years has been
that he is a good listener and he has done that and is doing that and reiterated the fact that they are voluntarily meeting
with Mrs. Seeger and developing some different options for her to review; the Vice Mayor's comment that he
appreciates that and Mr. Tully's remark that the current zoning would allow a larger two story, 30-foot high house right
across the street from those homes and nothing could be done to stop that.
Councilmember Leger MOVED to continue the public hearing until they have more information come forward that
has been requested from the dais with regard to architectural renderings, design, elevations, etc., and Vice Mayor
Brown SECONDED the motion.
In response to a question from Councilmember Magazine, Town Attorney Andrew McGuire stated that he would only
ask that if they are going to continue the public hearing that they do so to a specific date.
Councilmember Leger suggested that they continue it for 60 days and expressed the opinion that the more time the
better because it would give the applicant sufficient time to develop a response for the Council.
Vice Mayor Brown recommended that they ask the developer what timeframe would be best for him and commented
that he would hate to delay it if they have a rendering or are close to having one and Councilmember Leger concurred
with that statement.
Mr. Tully informed the Council that with respect to their timeframe, the sooner the better and explained that they have
commitments to lenders, construction loans that would lapse and they would have to resubmit all over again, etc., so
again, the sooner the better. He further stated that it would be nice to have some specific guidance so that if they are
doing it and going through the process they will have a better idea of exactly what it is the Council is looking for. He
added that he wants to make sure that they are moving in the right direction. He noted that they have voluntarily
brought the building forward and now it feels that by having brought it forward that is driving a decision on whether or
not they want to rezone the property. He said that he thinks they've got the cart before the horse and the real issue is
they have a General Plan and they have a spot zone and do they want to bring this property into conformance with the
General Plan? He asked whether they want to bring the zoning into conformance with the General Plan knowing that
they (the developer) will redesign the building as many times as they have to in order to satisfy the neighborhood and
the community. He reiterated that he would like to do it as quickly as possible because of all the other issues that have
impacts.
Vice Mayor Brown advised that a simple Southwest design with clean, straight lines would w ork the best and added
that they are not trying to be difficult. He further stated that he thinks if they had a rendering of native landscaping it
would have given it a totally different look. He added that he has no objection to moving this forward.
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Councilmember Magazine said he has been involved in numerous, difficult debates over rezoning in his lifetime and
expressed the opinion that Mr. Tully seems to be a rare exception and he appreciates his sensitivity and willingness to
work with the neighbors and it seems he is willing to bend over backwards to make this project work. He announced
that he for one would vote in favor of the zoning change and if appropriate, he would ask Vice Mayor Brown, who is a
builder, if he would be willing to join with the neighbors to talk through the various issues.
Councilmember Yates questioned if they want to move in that direction, would the previous motion need to be
rescinded.
Councilmember Leger clarified that he made a motion just to continue the public hearing b ecause it seems evident that
this is an odd situation and his peers are looking for more information. He added that typically when they are looking
for more information they either table something or continue it. He added that he understands Mr. Tully's sensitivity to
that in terms of his timeline so the motion was to continue and there was a second and the Town Attorney asked for a
date and the first meeting in June would be about a month (June 4, 2015) and he is not sure whether that would
adversely affect financing or not. He said that if that date is not acceptable then the last meeting in May, which would
be May 21, 2015.
Vice Mayor Brown advised that he would like to elaborate on Councilmember Leger's remarks and said that he thinks
this could be resolved in two weeks and that would relieve a lot of pressure off of the developer. He added that he
would definitely put in some of his time and have lunch with Mr. Tully and discuss what he is trying to bring to
Fountain Hills.
Councilmember Leger MOVED to continue the public hearing until June 4, 2015 and Vice Mayor Brown
SECONDED the motion, which CARRIED UNANIMOUSLY (7-0).
Mayor Kavanagh declared the public hearing closed at 8:05 p.m.
AGENDA ITEM #7 - CONSIDERATION OF ORDINANCE #15-03, A PROPOSED AMENDMENT TO THE
TOWN OF FOUNTAIN HILLS ZONING MAP. IF ADOPTED, THE AMENDMENT WOULD REZONE
APPROXIMATELY 1.3 ACRES AT 11208 N. INDIGO DRIVE, LOCATED ON THE SOUTHWEST
CORNER OF INDIGO DRIVE AND EMERALD DRIVE, FROM THE R1-18 ZONING DISTRICT TO THE
R-3 ZONING DISTRICT. IF APPROVED, THE REZONING WILL ALLOW THE CONSTRUCTION OF
"PALAZZO DI LUSSO," A FOUR-UNIT LUXURY CONDOMINIUM BUILDING. (CASE #Z2014-05)
Action on this Agenda Item has been continued to the June 4, 2015 meeting (See discussion above under Agenda Item
#6.)
AGENDA ITEM #8 - CONSIDERATION OF A THIRD AMENDMENT TO THE FIRE PROTECTION
SERVICES AGREEMENT WITH RURAL/METRO CORPORATION, EXTENDING THE TERM OF THE
AGREEMENT FOR AN ADDITIONAL TWO YEARS TERMINATING ON JUNE 30, 2018, DELETING
THE CARES PROGRAM FUNDING, AND UPDATING THE EQUIPMENT LIST.
Town Manager Ken Buchanan addressed the Council relative to this agenda item and briefly reviewed the contents of
a Staff Report. He informed the Council that the Town and Rural/Metro entered into a Fire Protection Services
Agreement dated May 21, 2009. He explained that the first amendment to the agreement was the creation of the
CARES Services on August 2, 2012 and the second amendment was approved on May 15, 2014 that extended the term
(i) two additional years; (ii) addresss the operation period for the Eagle Mountain Ambulance Station; (iii) deletes the
provisions relating to telephone services at the Fire Station; (v) replace s Appendix 1 to include recently purchased
equipment and (vi) updates the notice provisions. He stated that tonight they are asking the Council to approve the
third amendment to further amend the agreement for an additional two years, deleting the CARES Program funding
and updating the equipment list. He explained that it was a mutual agreement b etween the Town and Rural/Metro that
the funding for the CARES program be eliminated from their budget and that the program become totally voluntary.
He reported that this action will result in a savings of $24,000 and requested that the Council approve this request.
He indicated his willingness and the willingness of staff to respond to any questions from the Council.
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There were no citizens wishing to speak on this agenda item.
Councilmember Leger asked whether this includes the continuation of the ambulance sub-station at Fry's and Fire
Chief Randy Roberts confirmed that that is correct.
Mayor Kavanagh said that it is her understanding that they have already secured a number of volunteers for that and
Mr. Buchanan commented that perhaps the Chief would like to say something about that.
Chief Roberts addressed the Council and informed them that they have established a new coordinator for their new
program and have been working with Heather Ware. He noted that they have experienced a great outpouring of
volunteers who want to work, many of whom have great backgrounds. He stated that he is very excited about the new
program and the savings that it will realize for the Town (it reduces the agreement by $24,000).
Councilmember Hansen MOVED to approve the Third Amendment to the Fire Protection Services Agreement with
the Rural/Metro Corporation for the purpose of extending the term for two years, subject to the terms and conditions
set forth in the amendment, deleting the provisions of the CARES Program and replacing Appendix 1 to include
updates to the vehicle list and Vice Mayor Brown SECONDED the motion, which CARRIED UNANIMOUSLY (7-
0).
AGENDA ITEM #9 - CONSIDERATION OF RESOLUTION 2015-12, SETTING FORTH THE TENTATIVE
BUDGET AND ESTABLISHING THE MAXIMUM BUDGET AMOUNT FOR THE TOWN OF FOUNTAIN
HILLS FOR FISCAL YEAR 2015-2016. THE COUNCIL MAY ADDRESS ANY OR ALL ITEMS
CONTAINED IN THE BUDGET DOCUMENT AND INITIATE ANY CHANGES PRIOR TO THE
ADOPTION.
Town Manager Ken Buchanan addressed the Council relative to this agenda item and advised that this is part of the
State law regarding adopting the maximum amount for the Town of Fountain Hills' Fiscal Year 2015 -16 Tentative
Budget with appropriate direction to publish said documents in accordance with that State law. He reported that the
maximum Tentative Budget amount is $37,960,501.75 and noted that this is slightly higher than what they discussed
their Budget Work Session and explained that there was a $6,470 increased adjustment to the Tentative Budget based
on the following:
* A requirement from the Fountain Hills Fiscal Policy and Arizona State Budget Law requires the General Fund to
be structurally balanced and CIP (Capital Improvement Project) project moved to the Special Revenue Fund due
to the Fiscal Policy;
* Town Council reduced the Community Contracts in the General Fund to Economic Development Fund which
requires an accounting adjustment because it increases another fund (the Economic Development Fund) to
$6,620;
* The CIP was reduced by $150 of its contingency portion of the fund by moving the Stop Sign Grant to the Special
Revenue Fund and removed from the CIP Fund in accordance with the Town's Fiscal Policy;
* This move is more of a subsequent Audit issue than a budget issue
Mr. Buchanan briefly discussed slides included in the presentation (Copy available on-line and in the office of the
Town Clerk) and said that staff recommends approval of the Tentative Budget. He indicated his willingness to
respond to any questions from the Council.
There were no citizens wishing to speak on this agenda item.
Councilmember Leger MOVED to approve Resolution 2015-12 and Councilmember Hansen SECONDED the
motion, which CARRIED UNANIMOUSLY (7-0).
AGENDA ITEM #10 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF REGARDING THE
FORMATION OF A FIRE/SAFETY DISTRICT IN THE TOWN OF FOUNTAIN HILLS. THIS ITEM WAS
ADDED AT THE REQUEST OF COUNCILMEMBER YATES WITH SUPPORT FROM VICE MAYOR BROWN AND
COUNCILMEMBER MAGAZINE.
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Councilmember Yates addressed the Council relative to this agenda item and said as they all know, they have a very
"lean and mean" budget and they definitely do not have a spending problem but the issue of how can they raise
revenues has been repeatedly brought up. He stated that although he is a big proponent of economic development, he
is open to the idea of looking at all aspects and several residents have come forward and shown interest in the
formation of a Fire District or Safety District, whatever they call it, because it is specific , it is targeted and even winter
visitors would pay their share on the protection of their homes, particularly during the months that they are not in
Town. He advised that he is requesting that they look into some of the "what ifs" on how to do that and h e knows
there are more ways than one to bake a cake and he is asking that staff and/or the Town Attorney delve into different
aspects as far as how they could do this and determine what would be the path of least resistance that would give the
residents the most input and the most control.
Town Attorney Andrew McGuire addressed the Council and said that over the past few years, the idea of how to form
Fire Protection Districts within municipal boundaries while still keeping intact the unified government operations (not
have two separate bodies) has been kicked around. He reported that this idea started to take some shape in some of the
west Valley communities who already have an Automatic Aid Agreement with the City of Phoenix, which pretty much
behaves this way already, the units will go wherever they are assigned regardless of jurisdictional lines. He added that
a lot of the fire representatives started to look at Orange County, California, where they have actually formalized it and
most of the communities in Orange County are members of a Fire District. He commented that that is a great model to
strive for down the road, it takes fire out of all the budgets of the local communities and it has a lot of benefits but that
action is really way down the road. He stated that they (people looking into this) tried to scale back and determine
what in Arizona would make sense for Fountain Hills that would still provide the opportunity for local control over fire
services but would also provide the ability to have a dedicated funding source that isn't part of the General Fund. He
said that as they know, they just approved a resolution tonight as members of the Eagle Mountain Community
Facilities District. He pointed out that CFDs are much newer in statutory form than the Fire District statutes so the
formation process is a municipal formation process rather than a fairly cumbersome County formation process that is
attached to all the special districts other than Tempe's. He explained that because of that, under a CFD you are allowed
to choose the form of government and most cities and towns choose to have the Council. He added that what they
have "kicked around" in the early stages and have not written up as yet was a Municipal Fire District under the Fire
District's powers that mirrored more of a Community Facilities District in the way that it operated rather than as a Title
48 Fire District that the Town previously had that was a separate entity that operated independently. He advised that
that has not been moved forward because there hasn't been any momentum behind it but that is the concept that they
are more than happy to put into some statutory language if that is the desire of the Council.
Councilmember Magazine said that he would like to bring up something that he has discussed briefly with some
Councilmembers and he will keep it short. He advised that his understanding from talking to Council members is that
if they were to go in that direction, it would require legislation and then a vote of the public and the Councilmembers
have told him that it would probably take anywhere from 18 months to two years before they could actually get it
before the public. He stated that they are facing, as everyone knows, a $700,000 deficit next year and his idea, which
is for discussion purposes only -- he is not going to make a motion, is this: Council approved an Environmental
Runoff Fee in the amount of approximately $36.00 per year per household to offset costs that have been passed on to
the Town like many other costs. He commented that it is his understanding that they can, as a Council, pass a Public
Safety Assessment and what he would propose, and they can play with the numbers all they want, would be an
assessment of $150 per year per parcel, which equates out to $9.50 a month per parcel and this would hit everyone --
residential, commercial, industrial and winter visitors -- everyone. He added that if they did away with the
Environmental Runoff Fee they come up with $114 a year for each parcel and based upon each parcel that would raise
approximately $1.7 million and that would only get them partway to where they need to go and although it is a number
that was practically pulled out of the air, it seemed like a good beginning.
Mayor Kavanagh asked Town Attorney Andrew McGuire whether the Council can legally talk about this issue and
would it be considered an offshoot of the Fire/Safety District discussion.
Mr. McGuire responded that he thinks it is all within the same idea of fees for fire services, it is in the neighborhood.
Councilmember Magazine further stated that should Council decide to go in that direction, he would suggest that there
be a Hardship Clause, which the Councilmembers tell him would also be feasible in so far as people who advise sta ff
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that they cannot afford $114 a year, or whatever the figure is determined to be, and they can prove that, then the Town
will absorb those losses which he suspects would be minimal. He noted that this proposal is not perfect and just like
the Runoff Fee, it is inequitable and aggressive because everyone would pay the same amount and he doesn't
necessarily like going in this direction but he also doesn't like where they are as a Town as far as their fiscal situation.
He expressed the opinion that something needs to be done and added that he doesn't offer this as an option to a Fire
District but even if a Fire District did obtain the needed legislation and the Town voted on the issue it would take 18
months to two years and during that time the Town would not be collecting any new revenue. He further stated that if
it doesn't pass through the Legislature and it doesn't get approved by the public, then they are back where they started
so he just wanted to put this forth as an idea to be discussed.
Councilmember Yates asked whether Mr. McGuire could walk the Council through the CFD or whether they need to
get some additional information first.
Mr. McGuire replied that the concept for CFDs and almost always they are formed when they have a single voting
entity so they can get a unanimous vote of all of the property owners and they form without an election. He explained
that they would not be looking at that kind of a tool because he thinks frankly anything that allows them to get to a
property tax at some point must have voter authorization. He stated that the concept they would go with is the other
half of the formation of a CFD where it is voted on by everyone who lives within the boundaries of it. He said that the
formation would be the vote that authorizes its existence and taking that same model then once in existence that same
board has the authorization to levy a secondary property tax. He reported that they haven't really looked at the
restrictions of the Title 48 Fire District and he thinks that would be a good model for how they would regulate the
maximum amount that could be levied in a given year. He added that that is the genesis of it -- it would have voter
authorization up front and not have on-going authorization (formed by the voters and then from that point on it would
function on its own).
Councilmember Yates noted that he didn't hear about the legislative path and Mr. McGuire responded that the
legislative path is an unknown.
Councilmember Yates said it sounds like Mr. McGuire is saying that they as a Council come up with a concept, put it
out on a ballot and let the people vote on it.
Mr. McGuire clarified that first they need to convince the Legislature to carve out a statute and commented that they
have had discussions at that level on a couple of different occasions but never marched down the road so they have
absolutely no idea what kind of support or lack of support it would have. He further stated that they did have
discussions when a broader Public Safety District was being toyed with down the road but that is totally untested water
and they just don't know until they get it out there what kind of support it might get presuming that the Council could
get support from a sponsor who had some influence to bring this issue forward and get it into the right hands and
heard. He said that if there is some support, this upcoming Legislative Session in 2016 will be the first opportunity for
them to do that and typically they see a general effective date for new laws somewhere betwee n July and September.
He added that assuming they had a general effective date of August 1st, that puts them too far beyond the ability to
have an election in November and that depends on how they draft the statute -- if it is drafted and states that they have
to hold an election in May, when all of the Property Tax elections take place, then it doesn't really affect that
timeframe. He expressed the opinion that even under the best of circumstances he thinks that March of 2017 would be
the first opportunity to do this.
Councilmember Leger noted that they have had the same discussion before and said it sounds like the same path. He
asked whether there would be any roadblocks to Councilmember Magazine's suggestion because he knows that there
has been some legislation regarding fees from the municipalities and he is aware of the fact that Paradise Valley is
getting some pushback from the Legislature because they charge a fee.
Mr. McGuire responded that the legislation specifically focused on Paradise Valley and a Fire Service fee that was
created there a few years ago. He explained that the Town of Paradise Valley took over Fire Service and they created
a requirement that everybody in Town have fire coverage and if someone didn't have fire coverage from someone else,
the default provide was the Town of Paradise Valley and if they went to the default provider, they paid a fee based on
the value or size of the property he believes. He reported that it was implemented and they had a collection rate in the
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high 90% range and that caught the attention of the Arizona Tax Research Association (ATRA) which doesn't care for
those types of things so the legislation that came back made it if someone had not had that kind of fee in place by the
"drop dead date" then they could not charge a fee that was for any municipal service on a municipal -wide basis that
was based upon the value or size of the property. He stated that that is why with Councilmember Magazine's approach
they would have to take the approach that it is everybody equally regardless of size. He further stated that there is a
debatable point as to whether that is fair or unfair because the cost generally to provide fire coverage service for the
Town is not in the uniqueness of the building it is in the cost of having it available every minute of every day and so he
believes there is a fee justification that exists that would equate the cost to the Town to provide that service to
everyone every day and that would be the model that would be used as far as Councilmember Magazine's approach.
He noted that there is no guarantee that the approach would be successful and ATRA could potentially kill it.
AGENDA ITEM #11 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF RELATING TO ANY
ITEM INCLUDED IN THE LEAGUE OR ARIZONA CITIES AND TOWNS WEEKLY LEGISLATIVE
BULLETIN OR RELATING TO ANY ACTION PROPOSED OR PENDING BEFORE THE STATE
LEGISLATURE.
Town Manager Ken Buchanan addressed the Council relative to this agenda item and advised that he has nothing new
to report this evening. He noted that staff is in the process of taking the 322 bills that were finally signed by the
Governor and performing an assessment on them to determine what the impacts are on the Town of Fountain Hills
specifically. He added that the League of Cities & Towns will be present at the May 21st meeting to discuss the
various bills so staff is hoping to have their assessment ready in time for the Council to first review their comments.
AGENDA ITEM #12 - COUNCIL DISCUSSION/DIRECTION TO THE TOWN MANAGER
Items listed below are related only to the propriety of (i) placing such items on a future agenda for action or (ii)
directing staff to conduct further research and report back to the Council.
A. None.
Mr. Buchanan asked how the Mayor likes driving on Shea Boulevard and she replied that it is really nice. He noted
that they have until October on Saguaro Boulevard before the work is complete.
AGENDA ITEM #13 - SUMMARY OF COUNCIL REQUESTS AND REPORT ON RECENT ACTIVITIES
BY THE MAYOR, INDIVIDUAL COUNCILMEMBERS AND THE TOWN MANAGER.
Vice Mayor Brown advised that he received a call from the Veterans of Fore ign Wars (VFW) and they had two
members of the Warrior's Hike, which is a hike across America. He reported that they were spending two nights in
Fountain Hills and he had the pleasure of meeting both of the young men, thanking them for their service and giving
them both a famous Fountain Hills' pen. He said that they were quite polite young gentlemen and he would like to
thank them again for their service.
Mayor Kavanagh thanked Vice Mayor Brown for representing their Town welcoming the Warrior Hikers. She stated
that she attended the 12th Annual Polish Festival, representing Fountain Hills, Sister City to Zamosc, Poland, with
Consul Bogumil and Elizabeth Horshem. She added that Sister City members Sharon Morgan, Estelle Mackey, Carl
Eisland and Karen and Marty Goodwin also attended the festival to show support for their connection with Poland.
She reported that they got to meet many of the Polish dignitaries including the Consul General to Los Angeles and his
wife and later Consul Horshem and his wife hosted the Consul General and his wife in Fountain Hills to show off their
beautiful Town. The Mayor advised that it was a great honor for her to be the guest speaker at the Silver Rose
ceremony along with Sheriff Arpaio and to take part in the motorcade, held this year at their American Legion Post
Fountain Hills. She noted that the Silver Rose honors those Vietnam Veterans exposed to Agent Orange, many now
suffering from debilitating illnesses and many who have already died. She said that there has never been a purple heart
for these brave men and women who fought for their country, since these illnesses have never been recognized as
wounds sustained in battle. She explained that the Silver Rose ceremony bestows a special medal on each of these
individuals or their relatives posthumously to let them know that we do honor them for their services to our country.
She announced that she attended the Boys & Girls Club Volunteer Reception in Scottsdale, an annual event whereby
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the Club thanks its many volunteers for their hard work all year. She stated that it was great to meet the people who
work the events, their thrift store and inside the clubs. She pointed out that these are the volunteers who make their
Fountain Hills' Club a great place for their kids. She said that she attended the last school Anti-drug/Anti-alcohol
Coalition meeting of the year and advised that it was a very successful year for the group coming up with new and
innovative ways to keep kids active, involved and educated so that they don't turn to drugs or alcohol. She thanked
that group's many volunteers along with the continued collaboration with MCSO (Maricopa County Sheriff's Office)
and the Boys & Girls Club for their continued support of this vital cause for their kids. She wished all moms and
grandmothers a Happy Mothers Day.
AGENDA ITEM #14 - ADJOURNMENT
Vice Mayor Brown MOVED to adjourn the meeting and Councilmember Yates SECONDED the motion, which
CARRIED UNANIMOUSLY (7-0). The meeting adjourned at 8:38 p.m.
TOWN OF FOUNTAIN HILLS
By _______________________________
Linda M. Kavanagh, Mayor
ATTEST AND
PREPARED BY:
____________________________
Bevelyn J. Bender, Town Clerk
CERTIFICATION
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Executive Session, held in
the Fountain Conference Room - 2nd Floor and with the Regular Session, held by the Town Council of Fountain Hills
in the Town Hall Council Chambers on the 7th day of May, 2015. I further certify that the meeting was duly called
and that a quorum was present.
DATED this 21st day of May, 2015.
_____________________________
Bevelyn J. Bender, Town Clerk