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HomeMy WebLinkAbout2002.0207.TCREM.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR AND EXECUTIVE SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL Lir February 7,2002 Mayor Morgan convened the regular session at 5:00 p.m. ROLL CALL - Present for roll call were the following members of the Fountain Hills Town Council: Mayor Sharon Morgan, Vice Mayor John Kavanagh, and Councilmembers Sharon Hutcheson, John Wyman, Susan Ralphe, and Leesa Fraverd. Councilman McNeill was absent. Also present were Town Attorney Bill Farrell and Director of Administration/Town Clerk Cassie B.Hansen. AGENDA ITEM #1 - PURSUANT TO A.R.S. 38-431.03.A.1.A.R.S. §38-431.03.A3. AND A.R.S. §38-431.03.A.4., VOTE TO GO INTO EXECUTIVE SESSION FOR 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, EXCEPT THAT WITH THE EXCEPTION OF SALARY DISCUSSIONS, AN OFFICER, APPOINTEE OR EMPLOYEE MAY DEMAND THAT SUCH DISCUSSION OR CONSIDERATION OCCUR AT A PUBLIC MEETING. THE PUBLIC BODY MUST PROVIDE THE OFFICER, APPOINTEE OR EMPLOYEE WITH SUCH PERSONAL NOTICE OF THE EXECUTIVE SESSION AS IS APPROPRIATE BUT NOT LESS THAN 24 HOURS FOR THE OFFICER, APPOINTEE OR EMPLOYEE TO DETERMINE WHETHER SUCH DISCUSSION OR CONSIDERATION SHOULD OCCUR AT A PUBLIC MEETING; (SPECIFICALLY THE CONTRACT FOR THE NEW ACTING TOWN MANAGER); FOR DISCUSSION OR CONSULTATION FOR LEGAL ADVICE WITH THE ATTORNEY OR ATTORNEYS OF THE PUBLIC BODY (SPECIFICALLY REGARDING THE FIRE DISTRICT); AND FOR 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 REGARDING THE mow FIRE DISTRICT); RESPECTIVELY. Councilwoman Fraverd MOVED that the Council convene the executive session and Councilwoman Ralphe SECONDED the motion, which carried unanimously. AGENDA ITEM#2- RETURN TO REGULAR SESSION Mayor Morgan recessed the executive session at 6:18 p.m. and reconvened the regular session at 6:30 p.m. Following the pledge to the flag and invocation by Pastor Dennis Daniel of the First Baptist Church, roll call was taken. ROLL CALL - Present for roll call were the following members of the Fountain Hills Town Council: Mayor Sharon Morgan, Vice Mayor John Kavanagh, and Councilmembers Sharon Hutcheson, John McNeill, John Wyman, Susan Ralphe, and Leesa Fraverd. Also present were Town Attorney Bill Farrell, Director of Administration/Town Clerk Cassie Hansen,and Interim Community Development Director Jesse Drake. Acting Town Manager Roy Pederson was absent. Mayor Morgan acknowledged that the new Acting Town Manager Roy Pederson was in Sedona, AZ, attending the Arizona City Manager Association's annual meeting where Mr. Paul Nordin was being recognized and presented with the Jack DeBolske Professional Excellence Award. Mayor Morgan excused herself from the dais due to an implied conflict of interest and Vice Mayor Kavanagh read the items on the consent agenda(items 1-7): AGENDA ITEM #1 - CONSIDERATION OF APPROVING THE MEETING MINUTES OF JANUARY 15, 17 AND 22,2002. AGENDA ITEM#2- CONSIDERATION OF A PROPOSED REPLAT OF FINAL PLAT 433,BLOCK 1,LOTS 9 AND 10,A LOT JOIN PROJECT. CASE NUMBER S2001-33. AGENDA ITEM #3 - CONSIDERATION OF RESOLUTION 2002-08 ABANDONING WHATEVER RIGHTS TITLE, OR INTEREST THE TOWN HAS IN THAT CERTAIN DRAINAGE EASEMENT LOCATED ALONG THE NORTHERLY PROPERTY LINE OF LOT 16, CRESTVIEW AT FOUNTAIN HILLS,(14541 E. SIERRA ALEGRE COURT) AS RECORDED IN BOOK 533 OF MAPS, PAGE 1 RECORDS OF MARICOPA COUNTY, ARIZONA. SUMMIT ESTATES LLC, DB/A CRESTVIEW AT FOUNTAIN HILLS (A SUBSIDIARY OF MCO PROPERTIES).EA2002-01 AGENDA ITEM #4 - CONSIDERATION OF THE SPECIAL EVENT LIQUOR LICENSE SUBMITTED BY KENNETH BOWMAN FOR THE AMERICAN LEGION POST 58 LOCATED AT 16837 EAST PARKVIEW. THE REQUEST IS FOR A BUILDING FUND FUNDRAISER DURING THE GREAT FAIR. THE REQUESTED HOURS OF OPERATION ARE 9:00 A.M. TO 10:00 P.M. ON FRIDAY AND SATURDAY, FEBRUARY 22ND AND 231w AND 10:00 A.M.TO 9:00 P.M.ON SUNDAY,FEBRUARY 24'". AGENDA ITEM #5 - CONSIDERATION OF THE SPECIAL EVENT REQUEST SUBMITTED BY THE FOUNTAIN HILLS CHAMBER OF COMMERCE FOR THE ANNUAL GREAT FAIR SCHEDULED FOR FEBRUARY 22, 23 AND 24, 2002 FROM 10:00 A.M. TO 5:00 P.M. ON FRIDAY AND SATURDAY AND FROM 8:00 A.M. TO 5:00 P.M. ON SUNDAY. THE EVENT WILL REQUIRE THE CLOSURE OF THE AVENUE OF THE FOUNTAINS FROM SAGUARO BOULEVARD TO LA MONTANA AND SAGUARO BOULEVARD FROM PARKVIEW AVENUE TO EL LAGO BOULEVARD BEGINNING 5:30 P.M. ON THURSDAY,FEBRUARY 21 AND ENDING 6:00 A.M. ON MONDAY,FEBRUARY 25,2002. AGENDA ITEM #6 - CONSIDERATION OF THE SPECIAL EVENT LIQUOR LICENSE APPLICATION SUBMITTED BY THE FOUNTAIN HILLS CHAMBER OF COMMERCE TO BE USED IN CONJUNCTION WITH THE GREAT FAIR SCHEDULED FOR FEBRUARY 22 THROUGH 24,2002. AGENDA ITEM #7 - CONSIDERATION OF THE LIQUOR LICENSE APPLICATION SUBMITTED BY AUSENCIO SANCHEZ FOR QUE BUENO LOCATED AT 13207 NORTH LA MONTANA DRIVE. THE APPLICATION IS FOR A NEW CLASS 12 RESTAURANT LICENSE. Councilwoman Fraverd MOVED to approve the consent agenda as read and Councilman Wyman SECONDED the motion. A roll call vote was taken with the following results: Vice Mayor Kavanagh Aye Councilwoman Ralphe Aye Councilman Wyman Aye Councilman McNeill Aye Councilwoman Hutcheson Aye Councilwoman Fraverd Aye The motion CARRIED unanimously Mayor Morgan returned to the dias and proceeded with the meeting. AGENDA ITEM #8 - UPDATE BY TOWN ATTORNEY BILL FARRELL ON THE TOWN'S CURRENT FINANCIAL STATUS. Mr. Farrell reviewed the $2.1 million litigation with Bank of New York and Merrill Lynch regarding the PG&E commercial paper. He covered that the Town had filed a claim in the bankruptcy court in California regarding PG&E bankruptcy and the Town's claim to a stake of$2.1 million in commercial paper. He said the activity was very typical in bankruptcy in that there was a great deal of posturing going on without much progressive news. He stated that the Town had heard this week that PG&E was attempting to free up some real property owned to use as collateral for its creditors. If distributions were to be made, the Town's position would be preferred since commercial paper was one of the higher priority items in that bankruptcy. The Town was still pursuing litigation against the Bank of New York and Merrill Lynch for the transaction itself, which had been filed in the Maricopa County Superior Court. The two defendants had immediately asked that it be removed to Federal District Court, which was done. Merrill Lynch then filed a motion to have Merrill Lynch dismissed as a party for litigation on the basis that they had no contract or direct relationship with the Town of Fountain Hills and the Town had opposed that motion. Mr. Farrell said that this case had been before the judge for over four months without a ruling. He noted that he did not have an estimate as to when the judge might rule, however, this was not uncommon practice in Federal District Court litigation. Last month it was mentioned that there was an after market or secondary market for PG&E debts. Mr. Farrell said he was aware of a similar situation where the commercial paper holder sold their position for $.50 on the dollar. He felt that this a indication that the chances of collecting more than 50% was very strong because those who speculate in secondary Nor markets do so for a profit and take a high degree of risk. Mr. Farrell was confident that the Town of Fountain Hills would recover the full$2.1 million, whether from partial bankruptcy or litigation or entirely from the litigation. Town Council Meeting Minutes of February 7,2002 Page 2 of 9 Mr. Farrell reviewed the monthly financial report, which had been distributed by Ms. Ghetti. He stated that he and Ms. Ghetti were optimistic that the Town was seeing a positive upturn through the first six months. He said that staff saw the local sales tax receipts growing at a soft trend but staying ahead of projections although the construction sales tax activity was continuing to decline. He pointed out that those two revenues represented 66% of Town's sales tax revenue. The early indications for January were that the construction decline was going to stop and should start going forward because of two projects: Fry's and Target. Both projects had paid their development fees and were applying for their building permits. He reviewed that retail sales were up in December, 27.7% over November, but down from last year. He acknowledged that overall the Town was where staff had projected it to be in terms of budget activity. Mr. Farrell explained that Mr. Pederson would continue with a "hold policy" on capital expenditures with the possible exception of some items of $10,000 or less. Mr. Farrell stated that Mr. Pederson had issued a memo to department heads that set forth a budget calendar. Staff budget plans would be discussed at the next department head staff meeting. Councilman Wyman agreed that the Town appeared to be financially healthy. AGENDA ITEM #9 — CONSIDERATION OF RESOLUTION 2002-09 ADJUSTING THE TOWN OF FOUNTAIN HILLS "BASE LIMIT" PURSUANT TO ARTICLE IX, SECTION 20, PARAGRAPH 6, CONSTITUTION OF ARIZONA; AND DECLARING AN EMERGENCY. Mr. Farrell noted that there were two resolutions before the Council: 2002-09 and 2002-10. These follow from the Council's last direction regarding the expenditure limitation and property tax issue. The two resolutions set forward the ballot language that the voters would see at the May 21st Primary Election. He read Resolution 2002-09,Exhibit A. He said this was interesting ballot language because at the last January Council meeting he had asked the Council for permission to ask the voters to increase the spending limitation from $15.5 million to $20.5 million and that was still exactly what the Town was asking the voters to do. He explained that the law required the Town to go back to the Town's first year of existence (1989-90) and its very first budget limitation, which was $3,302,273. He described the methodology used to arrive at the new expenditure limitation and how the $1 million dollar adjustment would result in a $20.5 million expenditure limitation. He felt that this issue had been the most confusing. The expenditure limitation issue was something that all of the cities and towns in the state had addressed. Mr. Farrell reviewed his findings from a survey of the twenty-five cities and towns in Maricopa County and how they fared when presenting this issue to the voters. Fourteen of those cities and towns had asked for and received voter approval for what was known as the Home Rule Option. Six of those cities and towns had chosen to go with the one time base adjustment, which was what Fountain Hills would be asking the voters to do. Mr. Farrell pointed out that there was something interesting about those six cities/towns. Glendale had gone to the voters in the year 2000 (twenty years after the limit went in), Scottsdale in 1999, Tempe in 1996, Gilbert in 1997, Paradise Valley in 2001 and Carefree in 1999. He had determined that with the exception of Gilbert, the other communities had excesses in their general funds just as Fountain Hills does and most had pretty defined goals in terms of growth. He noted that Queen Creek would be asking their voters in March of 2002 to approve a Home Rule adoption. That would mean twenty-three of the twenty-five communities had gone to the voters and asked for some type of budget adjustment. He confirmed that the only two who had not were Buckeye and Litchfield Park. He said he would make this information available to any citizens who were interested. Mr. Farrell commented that staff would continue to try to help the voters understand, through the publicity pamphlet and other material allowable under the law, that the $1 million base limit would translate into a$6 million adjustment if the voter approval was there. He explained that the emergency clause had been included so that staff could get this material to the printer in a timely manner to allow for the early ballots to be prepared for the May General Election and to provide citizens with the opportunity to file letters of support or opposition on the issue. Councilman Wyman MOVED to approve Resolution 2002-09 as presented and Vice Mayor Kavanagh SECONDED the motion. Councilwoman Ralphe viewed this as something good for the Town. She expressed that she had been hesitant about raising the spending limit at first, but now she believed that this was a way for this and future Councils to be good stewards of the public's money. Councilwoman Ralphe explained that neither this Council nor future Councils were required to spend the additional $3.6 million every year. Councils could cast wise votes for projects and be careful with the public's money. She noted that the benefit of this additional spending authority would enable the current Council and future Councils to pay cash for some projects rather than bond for them and have to pay interest. Councilwoman Ralphe stated that if used correctly and conservatively, it could serve the citizens. Town Council Meeting Minutes of February 7,2002 Page 3 of 9 Vice Mayor Kavanagh reiterated that this was not a tax increase. The Town was simply requesting permission to spend the money, which the Town was currently generating. Mike Archambault, 15033 El Sobrante Nw He asked Mr. Farrell if there was a way the ballot language could be added to explain the methodology of how the$20.5 million would be reached. He was concerned that this language only appeared to ask the voters to increase the limit S I million. He felt by adding the language it would help clarify in the voters' minds what they were being asked to vote on. Mr. Farrell responded that the Town's bond counsel had approved the ballot language as it appeared. He suggested that the publicity pamphlet would contain a detailed analysis showing the mathematics and explain the calculations. Staff would attempt to explain the methodology of the increased expenditure limitation in terms that would be understandable to the public. He stated that the publicity pamphlet that would accompany the sample ballot would clearly set forth all of that information. Mr. Archambault said he was afraid that the public would not read the literature. They would vote and not understand the ballot language. Mr. Farrell said that the ballot language had been wrestled with as much as they could without stepping over the line in terms of attempting to influence the outcome of the election. He expressed that he was hesitant to say that language could be added but he guaranteed that the publicity pamphlet would clearly spell out that information. It would include examples of calculations so that the public understood that the result would be an increase of the Town's spending authority. The motion CARRIED unanimously. AGENDA ITEM #10 — CONSIDERATION OF RESOLUTION 2002-10 SUBMITTING TO THE QUALIFIED ELECTORS OF THE TOWN OF FOUNTAIN HILLS,ARIZONA,THE QUESTION OF AUTHORIZING THE TOWN TO LEVY PRIMARY PROPERTY TAXES; AND DECLARING AN EMERGENCY. Mr. Farrell said the ballot language had to do with a first ever property tax for general fund purposes. He read Proposition 401. The amount and descriptive title was the subject of staffs meeting today. It became very clear after the last session that the citizens who contacted the elected officials and Town officials wanted to make sure that the amount that the Council was requesting would not exceed $2.4 million in its first year. Many suggestions were made about trying to incorporate the understanding that this was a substitute of an existing tax and not a new one. The bond counsel had been reluctant to have staff go this far, but after a period of time staff was able to secure their approval for this ballot language. Mr. Farrell stated that staff found a number of folks who had been thankful for the presentation about property tax but others were still having some difficulty. He reviewed that Ms. Ghetti randomly picked twenty-seven parcels of residential property and did the calculations based on the actual tax that the Fire District levied last year and what the Town would have levied last year. Staff continued to see that numbers stay pretty much as they had indicated earlier. He distributed to the Council and the public the tax calculations. He noted that the commercial taxpayers tend to have a smaller gap between their primary and secondary assessments and as a general rule the commercial properties would pay a little more but not all commercial properties were that way. Mr. Farrell stated that Town staff would be happy to help the public calculate the tax difference if Town residents were to provide their tax property number so that they can see what the affect would be. Mr. Farrell addressed the article in the paper, which talked about the Town's property assessed value going up. He explained that if the assessed value of property in the Town of Fountain Hills went up and the Town asked and the voters gave their approval for the $2.4 million, then the amount of the tax would be lower than the anticipated $1.09. He did not promise that it would be lower than $1.09. Mr.Farrell pointed out that the mathematics clearly indicated that if the assessed value went up, then the rate that the Town needed to reach $2.4 million would go down. Therefore, the $1.09 might not be an accurate figure. Councilman McNeill MOVED to approve Resolution 2002-10 as presented and Councilwoman Ralphe SECONDED the motion. Vice Mayor Kavanagh clarified that the increase in the assessed valuation of the Town was being done by the Maricopa County Assessor. Mr. Farrell agreed the Town had nothing to do with this. Vice Mayor Kavanagh noted that regardless E. of how much the assessed values were raised in Fountain Hills by the County, the Town would not be raising the �r amount that the Town was collecting for this fire tax. The Town would be collecting the same amount that they were asking for. Mr. Farrell said that was correct. The Town wanted to raise the exact amount of$2.4 million. Vice Mayor • Town Council Meeting Minutes of February 7,2002 Page 4 of 9 Kavanagh pointed out that the assessed value would simply lower the rate so that the Town did not receive more than the$2.4 million being asked for. Councilman McNeill clarified there were some major projects underway in Town that would add to the Town's tax base so besides the potential of seeing the assessed valuations increase on the existing tax base there were projects such as Target and Fry's that would come into the Town's tax base. As soon as other projects came on line he felt that should spread the burden of the property tax load in Fountain Hills and that should help everyone. The motion CARRIED unanimously. AGENDA ITEM #11 - UPDATE ON THE TOWN'S GENERAL PLAN BY ACTING COMMUNITY DEVELOPMENT DIRECTOR JESSE DRAKE. Director Drake reviewed the draft document for the General Plan 2002. She stated that staff met the sixty-day review deadline and copies of the draft document had been distributed for public comment and review. She noted that drafts had been sent to public agencies such as ADOT, MAG, and numerous local business locations. She hoped to receive letters with review comments. Director Drake commented that letters had been received back from the School District and the Sanitary District. She requested that the public write to her with comments so that she had a written record of their concerns. Director Drake covered that there were three new elements in the draft general plan that were not included in the last draft seen in 1998: Chapter 2 (Growth Element), Chapter 6 (Water Resources Element, and the Environmental Planning Element). She encouraged the Council to review those elements, as this was the first time that they were seeing them. She covered that there were many revisions that would be made to this draft document and staff knew that when the draft went out. She stated that the text was addressed most carefully. The graphics were reviewed for page layout and format. The graphics were taken from the 1998 draft so staff did not have time to look at the content of all of the maps before bringing the draft to the Council. Because of that, several people had pointed out an error to staff on the parks and open space map. Director Drake assured everyone that the error that showed trails in the washes would be revised. She felt it was a positive suggestion to review all the language in the draft referring to the trails and washes as there was coo some confusion about trails as opposed to preserved trails and trails running through the Town proper where they could be misconstrued as going into the washes. She again reassured everyone that would also be addressed in the entire text document by looking for that particular statement and revising it. Director Drake pointed out on page twenty-four the methodology of using boxes on the side as a cross reference or linking element so that when someone was reading the document and there was something pertinent that related that box would tell you where to go. She explained that the boxes now referred to page xx because the exact placement of information had not yet been determined for referencing purposes. She explained that there would be photos included and other graphics provided. She distributed the results of the public participation questionnaire for the Council to review. She noted that many of those items listed in the public participation questionnaire had been addressed in the draft document. Director Drake announced that the Planning and Zoning Commission would review this document on April 25, 2002, for recommendation to the Council. The Council would then consider this document on May 2, 2002. She suggested that the Council meet again on April 4, 2002, so they go through the document line by line and review the revisions. That would give staff a couple more weeks if there were further changes before coming back before the Council on May 2, 2002. Councilwoman Ralphe found the citizens' responses very interesting as to what they liked most about Fountain Hills. She estimated 26-27 answers to that question with 12 of them having to do the public liking the land, mountains, washes, and open space. She felt the Council should pay attention to what the people were commenting on overall as the Council puts together land use concepts. Councilwoman Fraverd asked that Director Drake repeat the dates, which she did. Lori Noss,Fairlyn She commented that she had read the draft and she had discussed her wash concerns with Jesse Drake. Director Drake had assured her that she would work on that. Overall she was pleased with the tone of this document. Town Council Meeting Minutes of February 7,2002 Page 5 of 9 AGENDA ITEM #12 - PUBLIC HEARING ON A SPECIAL USE PERMIT APPLICATION TO PERMIT A GUEST HOUSE AS A SPECIAL USE IN AN "R1-35" RESIDENTIAL ZONING DISTRICT. LOCATED AT 16648 N.BOULDER DRIVE,AKA PLAT 505C,BLOCK 1. LOT 28. CASE NUMBER SU2001-17. Mayor Morgan recessed the regular session and opened the public hearing at 7:22 p.m. Planner Jason Sanks reviewed the applicant's Special Use Permit request. A site plan was displayed that showed an accessory structure located in front of the primary residence. He noted that the owner had accepted responsibility for converting it into a guesthouse. They were now asking for a special use permit to legalize it and the building permit. Staff noted their only concern was that there were seven conditions for a guest house to be permitted the property and this met all but one: "the structure must be located behind the front line of the primary structure". Councilwoman Fraverd referred to a packet of pictures depicting numerous guesthouses. She asked Mr. Sanks if he was aware of the packet and had it been reviewed. Mr. Sanks said he had received it and he had looked at it. He noted that each house listed in the packet would have to be individually looked to see if there were special conditions that would have to be applied to determine if it was called a guest house or if it actually met the criteria to be classified a guest house under the Town's ordinance. Director Drake said that with regard to the packet of material, staff had not researched each property to determine if they were being used as a guest casitas or permitted as guest casitas. She noted that each was advertised as a guest casita however and they might be permitted as an accessory structure. Councilwoman Fraverd questioned if this issue had been addressed by the Planning and Zoning Commission and were they made aware of all of these additional structures. Director Drake responded that the applicant discussed that there were other guest casitas in the Town but their list was not made available at that time. Councilman McNeill asked when the modifications were made inside the structure. Mr. Sanks replied that the kitchen facilities and the plumbing for the bathroom did not exist as of July 2000. It was brought to staffs attention approximately 2 1/2 months ago that those facilities did exist. He was not sure of the exact date. Councilman McNeill asked if adjoining landowners had been notified and were there any objections voiced by neighbors. Mr. Sanks explained that for a special use permit application a notification was required for all neighbors adjoining the property within 300 feet of its perimeter lines. He acknowledged that he had received a couple of phone calls but they were expressing concern that a new facility was being constructed. Most neighbors had thought of the existing structure as a guesthouse because of the existing porch. The neighbors only expressed concern that it would become a rental as a second unit. Councilman McNeill asked for clarification that a rental unit was not a permitted use. Mr. Sanks stated that the purpose of a guesthouse was to accommodate guests of the residence and was to be rented. Councilwoman Hutcheson expressed concern for those pictures showing additional structures. She noted that the only non-conformance on this application was the location of the structure. She stated that she would feel more comfortable taking action on this if she knew what the Town had actually permitted. Mr. Sanks suggested that he could do additional research on those pictured properties and look even further into what had not been listed. He proposed that the Council could continue this item until more research had been done. In this specific application, the property did not meet the seven conditions and therefore staff was recommending denial solely based on that fact. Joyce Calvin, applicant She stated that when they initially took out the permit for the house and the detached RV garage, Planning and Zoning had instructed them to make the design look appealing and fit in with the rest of the architecture of the house. At that point they added the covered patio, had it tiled to match the existing house, and added windows and doors to make it look like a structure rather than a blunt side of an RV garage. Planning and Zoning had approved of the position of the structure on the lot in relationship to the main structure of the house. She explained that the only thing that they had done was to improve the interior of the structure, which they did last summer 2001. Mrs. Calvin said the plumbing was put down to the addition because they needed sprinklers to be in compliance with the Code when they built the house and the electrical system was there. Basically the applicants had added a bathroom and finished the interior having it sheet rocked so that the sprinkler system could be installed. She asked the Council to help them resolve this situation. They wanted to get this permitted so that they could get it inspected by Planning and Zoning and Building Safety. Mrs. Calvin stated that their intent was to use the structure for guests for short periods of time. Mayor Morgan closed the public hearing the 7:32 p.m. Town Council Meeting Minutes of February 7,2002 Page 6 of 9 AGENDA ITEM #13 - CONSIDERATION OF A SPECIAL USE PERMIT APPLICATION TO PERMIT A GUEST HOUSE AS A SPECIAL USE IN AN "R1-35" RESIDENTIAL ZONING DISTRICT, LOCATED AT 16648 N.BOULDER DRIVE,AKA PLAT 505C,BLOCK 1, LOT 28, CASE NUMBER SU2001-17. Vice Mayor Kavanagh MOVED to approve the special use permit as presented and Councilman McNeill SECONDED the motion. Vice Mayor Kavanagh said he was inclined to grant the use. He stated that special use permits dealt with exceptional situations and in this case the request seemed reasonable. He noted that the only changes that had been made were to the interior of the structure so there weren't exterior changes, which would have upset people. This probably accounted for the fact that there weren't any objections from the neighbors. He said that it met six of the seven requirements. He did not feel that of the seven criteria that location was one of the more critical ones. He said the change from a workshop to a guesthouse would probably be more appealing for neighbors. He said the only problem was that changes had been made before they were authorized by Building Safety Department. Councilwoman Hutcheson agreed with Vice Mayor Kavanagh. She felt the reason that the structure couldn't be called a guesthouse was because of the location. She noted that a structure in that location was ok as long as it was a labeled a garage. She was disappointed that Planning and Zoning hadn't seen the other pictures that had been provided to the Council. She did not know if that would have influenced their decision. She felt the issue was what the structure was called and she found that confusing. Mayor Morgan said that the structure had originally been for an RV and could be called a guesthouse for RVs. She felt they were one and the same to her. Councilwoman Ralphe did not favor granting the permit because it could set a precedent to build more guesthouses with that leading to guesthouses that might be rented out. She did not want to negatively change the character of Fountain Hills. She respected the denial recommendation of the Planning and Zoning Commission and staff. Councilwoman Fraverd asked Director Drake to describe the differences between an accessory structure and a guesthouse. Director Drake stated that an accessory structure did not have any living facilities in it. The guesthouse allowed the unit to be used as a living unit. She explained that, if allowed, a multi-family dwelling could exist on a single family zoned lot and the current Town ordinance did not allow that. The neighbors purchased their adjoining , homes with the expectation that they would be living in a single-family residential district. This particular owner might not rent that unit out but it did open the possibility for future owners to do so. Staff did not want to encourage a little building in front of the main structure. Director Drake noted that there many reasons why staff was opposed to this application. Councilwoman Fraverd asked why there wasn't any restriction on an accessory building not being in the front of main structure. Director Drake stated that she would encourage a text amendment to that affect. Councilwoman Fraverd pointed out there were reasons for the criteria of granting special use permits. She reasoned that if all seven points to that criteria weren't met then the permit should not be allowed. Councilwoman Fraverd said that if the Council wanted to reduce the number of points that needed to be met then it meant that the list of required criteria was not important. If the criteria were not important, then that list needed to be changed but not disregarded. She said she would not be supporting this application at this time. She felt there was a need to look at guesthouses through the committee that she was chairing. However, she was interested in the other pictured structures, as she did not remember approving any guesthouses at those addresses when she served on the Planning and Zoning Commission. One of the structures looked relatively new so she was curious how that came to be built. Councilwoman Fraverd MOVED to continue this item to allow time for more information to be gathered and Councilwoman Hutcheson SECONDED the motion, which CARRIED on a vote of 6-1. Councilwoman Ralphe cast the nay vote. AGENDA ITEM #14 — CONSIDERATION OF AMENDING CHAPTER 6, SECTION 6.03.C.6, SECTION 6.07.C.4 AND 6.07.D.5 OF THE ZONING ORDINANCE FOR THE TOWN OF FOUNTAIN HILLS TO ADD NEW LANGUAGE THAT WOULD MODIFY THE REQUIREMENTS FOR MENU BOARDS FOR DRIVE-IN OR DRIVE-THROUGH RESTAURANTS TO ALLOW LARGER MENU BOARDS, AND TO ALLOW THE L. USE OF LIQUID CRYSTAL DISPLAY(LCD)ORDER PLAY-BACK UNITS TO BE INSTALLED AS A PART OF THE MENU BOARD,OR ADJACENT TO THE MENU BOARD. Town Council Meeting Minutes of February 7,2002 Page 7 of 9 Mr. Farrell requested a continuance on this matter until the March 7th Council meeting as the necessary and required public advertising had not been done. He stated that the Planning and Zoning Commission would revisit this on their second February meeting and then this item would be brought back to the Council at their first meeting in March. Lie Councilwoman Fraverd MOVED to continue this item to the March 7th, 2002, Council meeting and Councilwoman Ralphe SECONDED the motion, which CARRIED unanimously. AGENDA ITEM#15 - CONSIDERATION OF ACCEPTING THE RESIGNATION OF COUNCILMAN JOHN MCNEILL. Mr. Farrell stated the issue was that Councilman McNeill had offered his resignation and formality dictated that the Council accept it. Staff recommended that the Council accept his resignation and thank Councilman McNeill for his fine service. Councilwoman Hutcheson MOVED to accept the resignation of Councilman McNeill and Councilwoman Fraverd SECONDED the motion, which CARRIED unanimously. Mayor Morgan presented a plaque to Councilman McNeill to commemorate his service to the Town. She read the printed inscription to the public. AGENDA ITEM#16- CONSIDERATION OF ACCEPTING THE RESIGNATION OF COUNCILMAN JOHN WYMAN. Mr. Farrell stated that Councilman Wyman had also tendered his resignation. Staff recommended that the Council regretfully accept his resignation and thank him for his service to the community. Councilwoman Fraverd MOVED to accept the resignation of Councilman Wyman and Vice Mayor Kavanagh SECONDED the motion, which CARRIED unanimously. Mayor Morgan explained that Councilman Wyman's resignation might not be his final appearance and that was why he had not been presented with a farewell plaque. At this time it was unknown as to whether or not he would be leaving public service. Mayor Morgan made a special thank you presentation of a fountain pen to Mr. Farrell from the Council for his dual service as Acting Town Manager and Town Attorney. Director Hansen read and presented a plaque to Mr. Farrell to thank him for his service as Acting Town Manager from Town staff. AGENDA ITEM#17-CALL TO THE PUBLIC. No one came forward. Councilwoman Fraverd wished both Councilman McNeill and Councilman Wyman well. Mayor Morgan echoed her sentiment on behalf of herself and the other Council members. AGENDA ITEM#18-ADJOURNMENT. Councilwoman Fraverd MOVED to adjourn and Councilwoman Ralphe SECONDED the motion, which CARRIED unanimously. Mayor Morgan adjourned the meeting at 7:50 p.m. Town Council Meeting Minutes of February 7,2002 Page 8 of 9 TOWN OF FOUNTAIN HILLIS B : i celw" Y Sharon Morgan,Mayor / A I-FEST: ( ,y) Cassie B. Hansen, Director of Administration/Town Clerk PREPARED BY: 1 i� Bev Bender,Executive Assistant CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular and Executive Meeting held by the Town Council of Fountain Hills on the 7th day of February 2002. I further certify that the meeting was duly called and that a quorum was present. DATED this 2151 day of February 2002. • 1 l (Lf . Cassie B. Hansen, Director of Administration/Town Clerk L Town Council Meeting Minutes of February 7,2002 Page 9 of 9