HomeMy WebLinkAbout2003.1120.TCREM.Minutes TOWN OF FOUNTAIN HILLS
MINUTES OF THE REGULAR AND EXECUTIVE SESSION OF THE
FOUNTAIN HILLS TOWN COUNCIL
NOVEMBER 20,2003
Mayor Nichols called the meeting to order at 5:30 p.m.
AGENDA ITEM #1 — VOTE TO GO INTO EXECUTIVE SESSION: PURSUANT TO A.R.S. 38-
431.03.A.1 FOR DISCUSSION OR CONSULTATION OF EMPLOYMENT, ASSIGNMENT,
APPOINTMENT, PROMOTION, DEMOTION,_ DISMISSAL, SALARIES, DISCIPLINING OR
RESIGNATION OF A PUBLIC OFFICER, APPOINTEE OR EMPLOYEE OF ANY PUBLIC BODY,
EXCEPT THAT THE DISCUSSION OR CONSIDERATION OCCUR AT A PUBLIC MEETING. THE
PUBLIC BODY SHALL PROVIDE THE OFFICER, APPOINTEE OR EMPLOYEE WITH WRITTEN
NOTICE OF THE EXECUTIVE SESSION AS IS APPROPRIATE BUT NOT LESS THAN TWENTY
FOUR HOURS FOR THE OFFICER, APPOINTEE, OR EMPLOYEE TO DETERMINE WHETHER
THE DISCUSSION OR CONSIDERATION SHOULD OCCUR AT A PUBLIC MEETING.
(SPECIFICALLY, TO INTERVIEW AN APPLICANT TO SERVE ON THE COMMUNITY CENTER
ADVISORY COMMISSION.)
Vice Mayor Melendez MOVED to convene the Executive Session and Councilwoman Nicola SECONDED the
motion, which CARRIED UNANIMOUSLY. Mayor Nichols recessed the Executive Session at 6:20 p.m.
AGENDA ITEM#2—RETURN TO REGULAR SESSION
Mayor Nichols reconvened the Regular Session at 6:30 p.m. Following the invocation by Councilman
Kavanagh,roll call was taken.
ROLL CALL — Present for roll call were the following members of the Fountain Hills Town Council:
Councilman Archambault, Mayor Nichols, Councilwoman Stevens, Councilman Kavanagh, Vice Mayor
Melendez, Councilwoman Nicola, Councilwoman Ralphe. Town Attorney Andrew McGuire, Town Manager
Tim Pickering, Town Clerk Bev Bender, Director of Public Works Tom Ward, Director of Parks & Recreation
Mark Mayer,Judge Armbruster, and Accounting Supervisor Julie Ghetti were also present.
CALL TO THE PUBLIC
Town Clerk Bev Bender advised that two speakers wished to address the Council under this agenda item and
Mayor Nichols asked that they come forward and present their comments at this time.
Bob Travis spoke in support of a Fire District and stated that until the Council had in hand an actual statement of
costs from Rural Metro, he, after 18 years of contracting with Rural Metro, strongly recommended that they
consider what the Scottsdale Firefighters said about Rural Metro and what the Fire District said about them as
well. He said that Fountain Hills would no longer have an automatic "move up" system, which would force the
Town to hire additional Firefighters and stated the opinion that Rural Metro would have a request for the
additional personnel in their next contract. He added that the best they could get was a mutual aid agreement
that would send service to Fountain Hills when "the big one" hits. He expressed additional concerns regarding
this issue and requested that the Council keep up with other Rural Metro towns in Phoenix and Tucson and find
out what they were planning to do. He urged the Council to keep the public updated on this important issue.
Phil Gaziano, 14946 East Sierra Madre Drive, also spoke about fire service for the Town and stated the opinion
that a great opportunity existed at this time. He added that Rural Metro leaving Scottsdale probably would help
the Town more than harm it because it provided an opportunity to work with Scottsdale, Tonto Verde, and Rio
Verde, and possibly the Indian nations on both sides in an attempt to develop a regional fire service program.
He added the opinion that combining everyone's assets would provide better service than what currently existed
and allow "automatic recall" using the people who they presently had. He requested that the Council direct the
Town Manager to pursue this idea with Scottsdale.
Mayor Nichols thanked the speakers for their comments.
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Mayor Nichols requested that the new banner be displayed that was designed by the Tourism Council. He said
that the Streets Department staff would erect the banners, free of charge, this weekend on Shea and Saguaro
before the Thanksgiving Day Parade.
CONSENT AGENDA
Mayor Nichols read the following consent agenda items
AGENDA ITEM#1 —CONSIDERATION OF APPROVING THE COUNCIL MEETING MINUTES OF
11/06/03.
AGENDA ITEM #2 — CONSIDERATION OF RESOLUTION 2003-69 ABANDONING WHATEVER
RIGHT, TITLE OR INTEREST THE TOWN HAS IN CERTAIN PUBLIC UTILITY AND DRAINAGE
EASEMENTS LOCATED AT THE WESTERLY PROPERTY LINES OF LOT 25, BLOCK 5, PLAT
203 (16738 E.EMERALD DRIVE) AS RECORDED IN BOOK 149 OF MAPS,PAGE 31 RECORDS OF
MARICOPA COUNTY,ARIZONA,WITH STIPULATION. EA03-22(ENYON).
AGENDA ITEM #3 — CONSIDERATION OF THE LIQUOR LICENSE APPLICATION SUBMITTED
BY STREETS OF NEW YORK LOCATED AT 16841 EAST SHEA BOULEVARD, SUITE 101. THE
APPLICATION IS FOR A CLASS 12(RESTAURANT LICENSE).
AGENDA ITEM #4 — CONSIDERATION OF A SPECIAL EVENT LIQUOR LIENSE APPLICATION
SUBMITTED BY THE AMERICAN LEGION POST #58, 16837 E. PARKVIEW AVENUE. THE
REQUEST IS FOR A FUNDRAISER SCHEDULED FOR DECEMBER 6, 2003, FROM 9:00 A.M. TO
10:00 P.M.
AGENDA ITEM#5—CONSIDERATION OF A SPECIAL EVENT LIQUOR LICENSE APPLICATION
SUBMITTED BY THE AMERICAN LEGION POST #58, 16837 E. PARKVIEW AVENUE. THE
REQUEST IS FOR A FUNDRAISER SCHEDULED FOR DECEMBER 13, 2003, FROM 9:00 A.M. TO
10:00 P.M.
AGENDA ITEM#6—CONSIDERATION OF A SPECIAL EVENT LIQUOR LICENSE APPLICATION
SUBMITTED BY THE AMERICAN LEGION POST #58, 16837 E. PARKVIEW AVENUE. THE
REQUEST IS FOR A FUNDRAISER SCHEDULED FOR DECEMBER 31, 2003, FROM 9 A.M. TO
1:00 A.M.
Councilwoman Ralphe MOVED to approve the Consent Agenda as read and Councilwoman Nicola
SECONDED the motion.
A roll call vote was taken with the following results:
Councilwoman Nicola Aye
Mayor Nichols Aye
Councilman Kavanagh Aye
Councilwoman Stevens Aye
Vice Mayor Melendez Aye
Councilwoman Ralphe Aye
Councilman Archambault Aye
The motion CARRIED UNANIMOUSLY(7 to 0).
AGENDA ITEM #7 — CONSIDERATION OF RESOLUTION 2003-70 APPROVING THE TOWN OF
FOUNTAIN HILLS' PUBLIC ART MASTER PLAN.
Director of Parks and Recreation Mark Mayer addressed the Council relative to this agenda item and provided ,444)
an overview of the Fountain Hills' Public Art Master Plan. He provided a brief history relative to this issue and
noted that in 1997, the Council passed Resolution 1997-44, establishing an Arts Council, which in turn
established the Public Arts Committee of the Arts Council. He commented that the document before the
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Council this evening was the result of their efforts to follow up on their responsibility and their charge to
consider public art within the community, as well as the possible location of the artwork.
Mr. Mayer stated that both Dr. Paul Kolwaite, Chair of the Public Arts Committee of the Arts Council, and
Cheryl Murray, the author of the document, were present to respond to any questions the Council might have.
He said that staff requested that the following language be added as a stipulation of approval of the Master Plan:
"The appropriate Town Departments should review the proposed public art piece and location of the piece and
then make the appropriate recommendation to the Town Council. If there are any issues concerning the art
piece or location of the art piece, the Town Council should direct staff to work with the Public Arts Committee
to resolve those issues."
Mr. Mayer added that installation and associated costs were also discussed and staff, Dr. Kolwaite, and the
Committee agreed that those issues should continue to be addressed on a case-by-case basis, which had proven
to be successful in the past. He added that the stipulation also ensured that concerns regarding the art pieces
and/or their location should be referred to the appropriate Town department and be addressed and resolved by
staff prior to bringing the issue before the Council. He noted that the art pieces would continue to be covered
under the Town's insurance and as additional pieces were acquired, more staff time would be needed to ensure
that adequate maintenance, repairs, and refurbishments took place. He said that this might become a budget
issue in the future.
Town Clerk Bev Bender advised that there were no citizens present wishing to speak on this item.
Councilwoman Stevens MOVED and Councilman Archambault SECONDED a motion to approve Resolution
2003-70.
Councilwoman Ralphe expressed her appreciation to the members of the Arts Council, the Public Art
Committee and staff for the work that had gone into the plan and indicated that she wanted to offer a minor
amendment to the motion on the floor.
Councilwoman Ralphe MOVED to AMEND the motion by striking the second sentence in the stipulation listed
above, ("If there are any issues concerning the art piece or location of the art piece, the Town Council should
direct staff to work with the Public Arts Committee to resolve those issues"), as it would "bounce" decision
making back to the staff and the Arts Council. She stated the opinion that the decision-making role should
remain the responsibility of the Council. She gave an example of her rationale, i.e. suppose in the future a new
version of the Flag in the Toilet was brought forward. She said the Council should take full responsibility for
dealing with that issue and none of it should be referred to staff or to the Arts Committee.
Vice Mayor Melendez SECONDED the amendment to the motion.
Councilman Kavanagh stated that he did not see any problems with the art selected to date or in the future and
added the opinion that the controversy was location. Several controversies had arisen relative as to where pieces
should be placed, particularly at the Community Center. He expressed the opinion that staff was attempting to
resolve those types of issues before they were brought before the Council. He said that something that could
have been resolved at the staff level could become a Town public issue. He stated that he believed the entire
stipulation should remain unchanged.
Councilman Archambault asked what would happen if two opposing groups wanted to place a piece of art at
different specific locations. Mr. Mayer responded that he did not believe that situation was likely to occur if
there was only the one entity, the Public Arts Council and Public Arts Committee bringing forth the
recommendations. He concurred with Councilman Kavanagh's comment that if any issues such as locations, site
lines on a public right-of way,etc. arose,the intent was to resolve those matters before they were brought before
the Council.
Mr. Mayer clarified for Councilman Archambault that an issue such as a site line on a public right-of-way would
be better understood and more easily resolved by Public Works' staff rather than members of the Arts Council
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who were not as familiar with these types of matters. He added that the current language was vague and he and
the Arts Council Chairman developed the proposed language contained in the proposed stipulation.
In response to a question from Vice Mayor Melendez, Mr. Mayer said that the recommendations would come j
from staff but the Council would make the final decisions.
Councilwoman Ralphe stated that was her concern, that somehow the Council would not be the final decision
maker, and asked Mr. Mayer whether the proposed language would in any way remove their final decision
making authority. He responded that it would not and assured the Council that they would remain the final
decision maker.
A roll call vote was taken with the following results:
Councilwoman Stevens Nay
Councilwoman Nicola Nay
Councilwoman Ralphe Nay
Vice Mayor Melendez Nay
Mayor Nichols Nay
Councilman Kavanagh Nay
Councilman Archambault Nay
The motion FAILED UNANIMOUSLY (7 to 0).
Mayor Nichols called for the vote on the main motion.
The motion CARRIED UNANIMOUSLY(7 to 0).
AGENDA ITEM #8 — QUARTERLY FISCAL REPORT PROVIDED BY ACCOUNTING
SUPERVISOR JULIE GHETTI.
Accounting Supervisor Julie Ghetti presented a report of revenues and expenditures for the quarter ending
September 30, 2003. She highlighted the contents of a Budget and Activity Report for that period and stated
that the revenues for the General Fund and Highway User Revenue Fund were the Town's main operating funds.
She added that other funds were restricted and not used for operations. She noted that for the first quarter of the
current year, the Town's actual General Fund Revenues were $3 million as opposed to a budget of$3.2 million,
approximately $200,000 short. She added that this was typical for the first quarter and that by six months there
would be a better indication. She said that last year the actual revenues were$2.7 million compared to$2.6 that
was budgeted. She advised that the shortage was mainly in local sales tax revenue and most likely due to the
decreased retail activity during the summer months. She also reported that building permit activity for the first
quarter of the year exceeded projections and again said that a six-month review of permit activity would provide
a better prediction of a year-end forecast.
Ms. Ghetti commented on the Highway User Revenue Fund (HURF) and reported that $300,000 had been
received compared to $400,000 budgeted, while last year the figures were comparable with a difference of
approximately $20,000. She stated that the General Fund surplus for the first quarter was $300,000, which
meant that the Town took in $300,000 more than it spent, and in the HURF Fund they took in $100,000 more
than what was spent. She noted that compared to the first quarter of last year,the Town actually spent$500,000
more than they took in and$80,000 more than they took in with the HURF Fund, and stated that this fiscal year
the Town was doing much better. She said that the$300,000 would go towards the Town's fund balance.
Ms. Ghetti referred to a chart displayed in the Council Chambers that depicted local sales tax receipts for the
first quarter and reported that the Town received $1.4 million to date, $407,000 more than the first quarter for
the last fiscal year. She pointed out that this fiscal year, 42% of that was from retail compared to 34% last year.
She added that construction this year was 21% versus 31% last year. She discussed building permit activity and
noted that revenues were exceeding projections and were at 39% of annual projections, primarily due to
increased valuation and square footage of the permits. She advised that the Town issued 39 residential permits
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to date this year and 13 multi-family permits, which represented approximately 12% of what was budgeted for
the entire year.
Ms. Ghetti reported that the Town's cumulative General Fund balance as of September 30th was $4.4 million
and noted that the Town's fund balance policy required$4.7 million, approximately$300,000 short of achieving
that goal. She added that the HURF fund was $300,000; development fees were $1.3 million; the local sales tax
balance was$2.1 million, and municipal property was$900,000(for the Community Center).
Discussion ensued relative to General Fund expenditures by category for the first three months of the current
and prior fiscal year and the fact that the wages and benefits for the first quarter were $689,000, approximately
78% of the Town's quarterly budget; the fact that last year, the Town spent $1 million, which was 86% of its
quarterly budget and a savings of $391,000 had been realized; the fact that additional funds were spent on
contractual services, primarily due to funding for various groups that did not occur during the last fiscal year;
and the fact that $248,000 was transferred during the first quarter of last year (dedicated sales tax) and that no
transfers would occur this year.
In response to a question from Councilman Kavanagh relative to the decrease in the cost of repairs and
maintenance, Ms. Ghetti responded that this was part of the budget reduction plan. She agreed that in the long
run,this would be a matter of concern.
Ms. Ghetti also referred to a chart that depicted the difference in ratios of financial conditions between last year
and this year and explained that they represented the municipality's financial condition. She pointed out that the
Town was not reliant on external government resources and local funding was higher during the first fiscal year
than it was last year. She added that during the first quarter the Town took in more money than it spent and said
that last year it spent more than it took in. She noted that the data also showed that the Town had sufficient cash
to pay its short-term obligations and said that this had never been a problem for the Town. She stated she would
be happy to answer any questions.
Vice Mayor Melendez commented that Ms. Ghetti's presentation provided a fairly positive financial picture and
questioned why a Work Study Session was held to discuss the possibility of increasing development fees,
eliminating exemptions and perhaps raising a variety of taxes. He explained that he wanted the citizens to hear
the reasons behind that.
Mr. Pickering responded that that Town was on better financial ground, but not sound financial ground, and
wouldn't be until the Town's fund balances were higher. He added that the Town still had a problem with the
foundation of its finances and noted that they were still reliant on sales tax (over 50% of the budget), which
fluctuated, and on other governments for revenue. He reported that approximately 25% of the Town's revenue
came from the State. He pointed out that staff and the Council had projected out over the next five years and
said that this was one budget year. In the future, the projects that would be coming on line would allow the
Town to cover its operating costs. He added that there would also be capital costs and in order to accomplish
those goals,revenues must be added. He noted that in looking at the long-term projections,the Town was going
to be short of funds, specifically in the street maintenance area. He stated that this was the reason it was
necessary to look at revenue enhancements and take a long-term approach rather than just a short-term look.
Mayor Nichols requested that the next time this report was prepared that Ms. Ghetti attempt to include industry-
wide standards on the key ratios of financial conditions.
Mr. Pickering stated that he had tried to obtain those ratios for Arizona but for some reason they had not been
calculated in other communities. He added that staff could contact five similar municipalities that were the
same size as the Town and find out what their ratios were. He agreed that many other states calculate that figure
for all municipalities and this provided a much better picture of how each was doing.
Mayor Nichols suggested that the Maricopa Association of Governments (MAG) be contacted and requested to
compile this information for Maricopa County. Mr. Pickering indicated his intention to follow up on this issue.
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Additional discussion ensued between Councilman Archambault, Ms. Ghetti, and Mr. Pickering relative to the
fact that the $400,000 difference in local sales tax revenues from last year to this year was due to the increased
rate and the difference in the percentage was due to a higher collection last fiscal year during the first quarter but
that was an assessment, not a general sales tax; the fact that the Town was "right on target"percentage wise for
the first quarter of the fiscal year; the fact that the first quarter was typically slower since not as many people
were vacationing and spending as much money; and the fact that the retail end of the sales tax was increasing
while the construction portion was decreasing.
Councilman Kavanagh requested that staff prepare a report listing the various maintenance items that were
deferred, proposed future maintenance deferrals and the anticipated impacts on the Town. Mr. Pickering said
that staff would develop a long-term report on this matter and submit it to the Council for their review and
consideration. Councilman Kavanagh added that he was glad to see the shift from building sales tax to retail
sales tax and stated that this was the result of the wisdom shown by the previous Council in their decision to
allow the Target store to go forward.
Councilwoman Nicola noted that the Town was behind in anticipated revenue for the interest investment income
and asked whether this was due to the new policy that was in effect. Ms. Ghetti responded that Councilwoman
Nicola was correct and the amount should eventually catch up. She noted that interest rates had been extremely
low.
Mr. Pickering commented that this represented a shift on the Town's risk and said that it was virtually
eliminated at this point, which lowered the interest rate.
In response to a question from Councilman Archambault, Ms. Ghetti stated that there were some costs
associated with employees leaving the Marshals Department who were not gone by July 15t when the new fiscal
year began. Therefore there were some vacation payouts, which accounted for the variance.
Additional discussion ensued between Councilwoman Stevens, Mr. Pickering, Ms. Ghetti and Vice Mayor .4)
Melendez relative to the fact that Moody's received a copy of the Town's quarterly report and the fact that it
might take quite some time to improve the Town's bond rating as far as Moody's was concerned since one of
the things they wanted was for the Town to historically have a solid fund balance; the fact that the Town was
headed in that direction; and the fact that Moody's would also look at the Town's diversification of revenues
and were aware of the fact that the Town was strongly reliant on sales tax, which fluctuated; and the fact that
once the fund balances were increased and maintained over time,the negative outlook should disappear.
Ms. Bender advised that no one had submitted a request to speak.
Mayor Nichols thanked Ms. Ghetti for her presentation.
AGENDA ITEM #9 — CONSIDERATION WITH POSSIBLE DIRECTION TO STAFF REGARDING
BIDDING CONTRACTUAL PROSECUTORIAL SERVICES.
Mr. Pickering noted that the Town had looked at many of its contracts, auditing, banking, and prosecutorial, and
the possibility of going out to bid to get other vendors to submit proposals in an effort to ensure that the public
received the best contract for the lowest price. He explained that what made this specific position different from
the rest was that the Council appointed this position. He added that the Town Manager appointed all of the
other positions,but the Council appointed the Prosecutor,the Town Manager,and the Town Attorney,as well as
the Town Magistrate. He said that he did not want to usurp their power but did want to provide the Council with
background information and options.
Mr. Pickering stated that the first thing staff looked at was performing this service in-house and noted that the
current contract was approximately$100,000. He added that the goal was to determine whether money could be
saved. An analysis that was conducted indicated that they would basically break even by moving in that ,v)
direction. He said that staff recommended that at this time the,Council maintain contracting out for this service.
He added that staff developed a draft Request for Proposals (RFP) and had included that for the Council to
review. He emphasized that the Council, not staff, would make this decision and said they could continue with
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the service that was currently being provided to the Town. He noted that the Town's existing prosecutor, Mark
Iacovino, has done an outstanding job and in no way should this reflect on his firm's performance. He added
that the Council could direct staff to go out for bids and reject them all and noted that many options existed. He
Le indicated staffs intention to pursue whatever direction the Council desired.
Councilwoman Ralphe asked how other municipalities of the same size handled this service and Mr. Pickering
responded that a majority of them contract this service out. He added that the only time it would be beneficial to
hire an employee to perform this service in-house would be if money would be saved. He said that the analysis
did not come to this conclusion and he did not believe that there was enough work involved to justify the hiring
of a full time person.
Councilwoman Nicola questioned whether the Town should look at a minimum hourly rate (rather than a
maximum of 130 hours based on court statistics)and award an hourly rate on top of whatever the minimum was
as they do with the Town's current contract with the Town Attorney. She noted that current statistics did not
reflect the need for a whole lot of prosecutorial service and asked whether money could be saved by structuring
the RFP a little bit differently.
Mr. Pickering responded that staff could certainly look at other ways to structure the RFP but added that the
downside of that, even though he understood Councilwoman Nicola was questioning whether 130 hours were
needed, was that a cap was in place, no matter what happened the Town knew it would only spend $100,000 for
this service. He added that they could request that the vendors submit proposals both ways and their analysis of
the situation. He indicated staffs willingness to proceed in whatever direction the Council desired and added
that he could understand the concern regarding the necessity of the 130 hours,
Councilwoman Nicola requested that a more detailed report be submitted by the court to provide the Council a
clearer picture of activity. Mr. Pickering said that one of the items staff wanted to include in the RFP was to
stipulate the reporting information and type of report that the Council wanted to review. He noted that the
kw current contract listed a lot of activity but it was difficult to determine how many hours were actually spent.
Councilwoman Stevens asked when the Town's contract with the current prosecutor expired and was advised
that the contract ran on a month-to-month basis and carried on without a start and stop date.
Councilwoman Nicola commented on the lapses in prosecutorial services, sometimes four to six weeks due to
training, holidays, etc., and asked staff to put together some numbers on this. She added that perhaps they could
consider structuring the contract so that it was actual payment for services provided rather than a lump sum
divided over a twelve-month period of time.
Mayor Nichols stated that there were two issues before the Council, the first, should they go out for an RFP and,
if so,what should the RFP contain and how should it be structured. The Mayor asked whether anyone wanted to
make a motion to direct staff to go out for an RFP.
Councilman Archambault MOVED and Councilwoman Ralphe SECONDED a motion to direct staff to go out
with an RFP for this service.
Councilman Kavanagh spoke in opposition to the motion and stated the opinion that in the long run it would
cost the Town money and potentially reduce the quality of prosecution. He added that this service was one that
could go out to bid at any time if the Town was not satisfied with the services provided or believed they were
paying too much for the service, but said that the current contractor had done a great job and it would be
difficult to locate a better prosecutor than Mark Iacovino. He expanded on the excellent job Mr. Iacovino had
performed and the fact that due to the Town's fiscal difficulties he had not increased the cost for his services.He
added that he did not believe anything would be gained quality wise by going out to bid and rather than saving
co money,costs would escalate. He urged the Council not to proceed in this manner.
Councilwoman Nicola agreed that Mr. Iacovino was a great prosecutor but noted that not all of the hours
accounted for in the data provided were hours spent by him or even an attorney. Many were legal assistant and
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clerical hours. She questioned with the reduction of two law enforcement agencies down to one and the ensuing
decrease in citations issued as well as the fact that there had been no trial that a prosecutor had to prepare for
from July 1st to July 30`h, why dollars could not be saved. She stated that she supported going out for bid and ix
noted that timing was a concern. She said that both the RFP and timing would be discussed further but she
supported the motion.
Councilman Kavanagh agreed that not every hour of the prosecutor's time was spent before the court but noted
that it was still lawyers' time and still expensive. He stated that a prosecutor had to keep himself abreast of the
law, research cases, look at precedence, perform mediation, and attend continuing education courses, so
although he might not be in court 130 hours a month, that did not mean that he was not working 130 hours a
month.
Councilman Archambault expressed the opinion that the Town periodically needed to go out to bid as a service
to the public. He added that he had nothing against Mark and in fact believed him to be a great prosecutor. He
emphasized the importance of not allowing the issue to become personal.
Councilwoman Nicola noted that the staff report stated that a full time in-house attorney would cost a low of
$68,576 to a high of$101,318 and she reiterated the opinion that it was in the Town's best interest to look at
this.
Councilwoman Ralphe commented that she had been extremely pleased with Mr. Iacovino's services but stated
that 13 years ago the Town's government was vastly different and the community was much smaller. She added
that going out to bid on this and other contracts made sense based on the Town's growth.
Councilwoman Steven said that she would agree with Councilwoman Ralphe's comments except for the fact
that they were still at the 130 hours and if the hours were the same and the current prosecutor was doing a great
job, why would someone else take the job for the $61.00 an hour that Mr. Iacovino was being paid. She noted
that they were not looking at the hours,just at the salary, and said that she did not believe anyone would bid it as
low as it was currently.
Councilman Kavanagh referred to Councilwoman Nicola's statement that an in-house attorney could be hired
for$68,576 and stated the opinion that the analysis was flawed and relied on the condition that court staff would
provide clerical assistance. He added that it would be a violation of ethics for courtroom staff to work for the
judge as well as the prosecutor. He estimated that an additional$60,000 should be added to the figure.
Councilwoman Nicola stated the opinion that additional information was needed and asked that the Town
Manager be directed to provide more facts before a decision was made. She said that County attorneys made
less money than the figures discussed this evening and added that the Town did not require an excessive amount
of prosecutorial time. She commented that more discussion could take place once additional information had
been provided.
Councilman Kavanagh concurred that there were attorneys working for the County Attorney who probably
earned $68,000 a year but noted that they were new attorneys with no criminal experience and were being
broken in. He added that because of the County Attorney's large staff with supervising attorneys they could do
that.
Vice Mayor Melendez expressed the opinion that sufficient information had been provided. He added that his
decision was not being made on a personal basis, but rather a professional one, and he believed that the Town
already had a prosecutor who was performing an excellent job at a reasonable price and should be retained. He
agreed with Councilman Kavanagh's comments and said going out to bid would take more time and would not
be productive.
Mr. Pickering stated that he anticipated that Mr. Iacovino's contract cost would increase simply because he had
remained at the same rate for a long period of time. He noted that staff conducted surveys among other cities
and the prices included in the staff report were the result of those surveys. He agreed that there would be extra
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costs for clerical staff and said that the real issue from his point of view was not so much who the prosecutor
was but rather the hours and said this was extremely difficult for staff to estimate.
kiw Mayor Nichols commented that he had heard discussion on both sides of this issue and that someone had
commented that municipalities should go out for an RFP if they were dissatisfied with service or costs. He said
he believed he was hearing that they were happy with the service and the cost because the chances of it
decreasing as a result of issuing an RFP were slim. He said that he would vote in opposition to going out for an
RFP.
Councilwoman Stevens stated that she would like to leave their options open and suggested that when Mr.
Iacovino submitted a new hourly rate that this issue could be pursued again at that time if the Council believed
the amount to be out of line.
Mayor Nichols noted that the issue could be revisited at any time since no contract existed.
Councilwoman Nicola pointed out that the Town Code stated that the Town Council would appoint the Town
Prosecutor and all other prosecutors and asked whether Mr. Iacovino was the only prosecutor.
Mr. McGuire deferred to Judge Armbruster. Judge Armbruster addressed the Council and advised that in
addition to Mr. Iacovino, another individual had served in the position of prosecutor for the Town of Fountain
Hills,Ken Holms, who worked with Mr. Iacovino.
A roll call vote was taken with the following results:
Councilwoman Ralphe Aye
Mayor Nichols Nay
Vice Mayor Melendez Nay
Councilwoman Nicola Aye
Councilwoman Stevens Nay
Councilman Archambault Aye
Councilman Kavanagh Nay
The motion FAILED for lack of a majority vote(3 to 4).
Councilwoman Nicola raised a point of order and said that when they adopted the budget,they did not appoint a
prosecutor because they wanted to wait for the RFP process to occur. She stated that the Council appointed the
prosecutor and since the new Council was sworn into office, a new prosecutor had not been appointed for this
fiscal year.
Mr. McGuire responded that they were not required to ratify appointments with each new Council and said that
the contractual term, in this case, was indefinite. He added that he did not believe they ever had appointments in
the budget.
Councilwoman Nicola noted that for the past 13 years the Town had received a letter from the firm that stated
that they would provide the service on a contractual basis at a certain price payable in monthly increments. She
stated that that served as a de facto appointment but it was not done this year.
Mr. McGuire said that he believed an appointment was made 13 years ago and it remained in place until the
Council decided to appoint someone else to the position.
AGENDA ITEM #10 — DISCUSSION WITH POSSIBLE DIRECTION TO STAFF REGARDING
kilw GOALS AND PROCEDURES FOR THE DEVELOPMENT OF TOWN DIRECTIONAL SIGNS.
Mr. Pickering stated that this agenda item was a follow-up from the last Council meeting when the Council said
that they didn't want to delay working on developing an alternative to the A-frame signs, some type of
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permanent directional signs that the Town would control. He added that Tom Ward, who handled the other
directional signs for the Town, was present and would discuss this matter with the Council.
Mr. Ward said he was involved in the Town directional sign issue approximately five years ago and stated that
he wanted to start off by discussing staffs concerns regarding the Town's right-of-way, funding for the signs,
and whether a committee would be appointed. He advised that a committee was formed the last time this issue
was addressed and it was composed of two members of the Council as well as members of the business
community and staff. He added that when staff spoke with business owners, they talked about a type of block
addressing and said they might want to explore this area as well. He requested direction as to how the Council
envisioned the process, particularly for him if they were looking to have a Town directional sign that would just
address the area or the location and stay away from the business names themselves.
Mr. Pickering added that they were looking for general input and direction and said staff planned to bring this
issue back up at the February Workshop to address it in more detail. He stated that this would give the staff
additional time in which to research the issue and develop alternatives.
Councilwoman Nicola expressed the opinion that they were talking about two different things, business district
signage, which would be generic and permanent, and an alternative to the A-frame signs. She noted that a
majority of the Council determined that the community did not want A-frames after a certain amount of time.
She said that the idea was to provide the business community with some type of advertisement to replace the A-
frame signs that the Town and other neighboring communities used. She stated the opinion that they did not
need to be exclusive in discussing this and added that it would be good to look at both types of signage. She
agreed that a committee should be appointed to look at these issues and said she had spoken with at least one
sign company that had a prototype of some business signage that would require in most instances a right-of-way
encroachment permit from the Town. She explained that the framework was a tubular breakaway type that
would not be an impediment in the right-of-way like large concrete monument signs. She added that she would
be willing to serve on the committee.
Councilman Archambault stated that he also supported the formation of a committee and said it should consist
of two Councilmembers,two business representatives and two staff members.
Vice Mayor Melendez commended staff for moving so quickly on this issue to form a committee that was
discussed at a previous meeting. He said that they should move immediately to form the Committee so that
recommendations could be presented at the February Workshop. He added that members should include
members of the business community,developers,builders and members of the Council.
Mayor Nichols stated his support as well for the formation of the committee and for proceeding as quickly as
possible. He emphasized the importance of supporting the Town's businesses and noted directional signs were a
very key component of their success.
Councilwoman Stevens said that although she too supported this proposal, she believed the first step was
establishing a goal to be achieved. She added that if the goal did not mesh with the business owners' goal, an
acceptable resolution would never be reached. She advised that some business owners told her that they wanted
a way of having their names out on the street. She asked whether this was their goal and if they were trying to
get people to come just from Shea into Town or to get people into Town and highlight the street names. She
stressed the importance of identifying exactly what they wanted to achieve before a committee was formed.
Councilman Kavanagh concurred with Councilwoman Stevens' remarks and added the opinion that the
committee should be fairly large and diverse. He said that a couple members of Council should serve as well as
staff, a few business people (not just the ones involved in the A-frame issue), and a couple of people who were
critical of the A-frame signs. He suggested that staff review the minutes of the meeting and identify citizens
who spoke in opposition, such as Mr. Fredericks, and consider appointing him to the committee. He added that
401,
staff should also surf the web and drive around the valley taking pictures/slides in an effort to determine what
other cities do. He said that the results of their research, the finalists, should be reviewed by the committee and
then they should "go on the road" to Kiwanis and Chamber meetings and present their findings to the citizens
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and solicit their input. He commented that if the signs were going to be mainly advertising signs, then the costs
should be shared by those whose names were on the signs.
416, In response to a question from Councilman Kavanagh regarding whether the Arts Council provided aesthetic
input regarding the signs, Mr. Ward indicated that staff would look into that. Councilman Kavanagh said that he
would like them to do that because he wanted someone to look at the signs from a purely aesthetic standpoint.
He stated the opinion that for the sake of harmony, one option that should be brought forward to the committee
and the citizens was the kind of signs the Town now had, the flat signs, but perhaps with a slightly different
color to differentiate a commercial direction from a Town direction.
Mayor Nichols said that Councilman Kavanagh made some good points but added the opinion that they still had
not addressed Councilwoman Stevens' comments regarding identifying the overall objective for the committee
to work on.
Vice Mayor Melendez noted all of the time spent on this issue to date and said he believed the objectives were
very clear, to develop a sign program, as quickly as possible, that was professional, aesthetically pleasing and
effective for the business community. He added that the committee should now be formed and everyone
involved should be brought into this. He requested that they begin immediately and not delay any further.
Councilman Archambault agreed with the Vice Mayor relative to the fact that direction was given that the
Council wanted some type of signage to replace the A-frame signs. He said that was the goal of this particular
issue and stressed the importance of their being aesthetically pleasing and perhaps able to hold banners such as
the ones they were shown. He added that the purpose was to bring forward some ideas for the Council to
review.
Councilwoman Stevens said that she did not see the direction and stated that a huge difference existed between
finding a way for every business that currently had an A-frame sign to have some type of signage with
permanent signs. She added that the first was just signage to locate streets and stated the opinion that that was a
major difference and would make a huge financial difference as well. She stated that if the Council wanted to
provide an opportunity for every commercial business in Town to have their name on a sign, it would be quite
an undertaking. She added that if they were only trying to locate streets or business areas, it would be much
easier. She said that the Council needed to determine that in order for anything else to happen.
Councilman Kavanagh commented that Councilwoman Stevens had hit upon the real difficult part of this issue,
the question of"how much do you want?" He said he believed that most of the storeowners who attended the
meeting and supported the A-frame signs wanted to keep the A-frames. He added that he did not believe that
they would be happy with the monument signs that have been discussed because they wanted the space on the
A-frames not only to say "Joe's Pizza,"they want to add other wording. He said they were not only directional;
they were also a form of advertising.
Councilman Kavanagh stated that there were also signs that simply said "Enterprise Business District," which
was what other people wanted. He added that there were also some people who were"in between." He said that
perhaps one of the first jobs that the Committee should tackle was how much would go on the monument signs,
would it just be the name or the name and a little descriptive note. He expressed the opinion that the business
owners would reject monument signs that only contained the name of their businesses. He suggested that the
committee first determine what everyone was willing to accept, then come back before the Council for direction
and parameters.
Councilwoman Nicola noted that she held a meeting with over 25 business owners to talk about an alternative to
directional signage and the consensus was that the businesses' name and an arrow would suffice. She added that
a need existed for larger signs that identified certain business districts that are off the beaten path. She stated the
opinion that the committee, rather than staff, should research what other cities were doing and photograph their
signage. She commented that there was not going to be an alternative for A-frames because a need existed for
some advertising, special events, etc. She added that they could get started by forming the committee and
letting them "flush out"just exactly how far they were going to be giving suggestions and information back to
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the Council. She pointed out that they were only going to a Work Study Session, not a Regular Session where a
decision would be made, but the groundwork needed to begin. She stated that the business owners understood
that if there was a directional signage that had just their business name on it, they were going to be responsible
for that cost. She spoke in support of proceeding with the process and generating a large amount of input NJ
throughout the entire community.
Phil Gaziano addressed the Council and commended the Council on their positive attitude regarding this issue.
He spoke in support of having numbers on the streets,particularly when one street goes both ways. He said that
there was almost a standing committee in the Chamber of Commerce that hadn't been mentioned. He added that
because the Council placed a two-year limit on the A-frame signs, he believed they could put some type of limit
on making a decision as to when this would happen. He said that they could then give staff and the committee a
specific timeframe in which to get back to the Council with a policy that will govern signage.
Mayor Nichols asked Mr. Pickering whether he had received any helpful direction and he responded yes and no
but he would take it from there. He understood there was Council support for forming the committee and said
staff would try to provide as much structure as possible. He commented that Councilwoman Stevens brought
forth the real decision, were there going to be business names on the signs or just business districts. He
commented on the difficult issues associated with allowing the names, such as how many to allow.
Mayor Nichols stated that perhaps a compromise solution could be achieved and Mr. Pickering indicated staff s
intention to pursue this goal.
Mayor Nichols added that the Council indicated that this issue was a high priority item and stressed the
importance of being positive and proactive. He said that the business owners' input would be critical as well.
Councilman Kavanagh requested that the committee address a monument sign by Target and said when Laser
Drive was closed off, they promised the people in the business district back there that they would provide some
sort of street recognition because of their increased isolation. He added that the Barclay group said they didn't
have any problem providing space for the sign.
Councilwoman Stevens requested that the Committee be asked to submit their recommendations to the Council
by the first of February, 2004.
Vice Mayor Melendez agreed with Councilwoman Stevens.
Councilwoman Nicola asked whether it was necessary for the committee to make a recommendation rather than
just gather the information and provide it to the Council for them to base their decision on.
It was the consensus of the council that either way would be fine.
AGENDA ITEM#11—UPDATE BY THE TOWN MANAGER ON RURAL METRO.
Mr. Pickering provided an update on this agenda item and emphasized that rumors that were circulating that the
Town no longer had fire service and that the costs were skyrocketing were not true. He said the Rural Metro
was continuing to provide fire service and according to the company's president,with whom he spoke before the
meeting, the Town would continue to have the option of having Rural Metro as the Town's provider. He noted
that one of the things they would be working on in the very near future was a longer-term contract with Rural
Metro. He explained that the Town currently had a one year contract based on the possibility of a fire district,
but said they would attempt to negotiate a 3 to 5 year contract in case the Town continued to provide fire
service.
Discussion ensued relative to the fact that staff would explore all of the options; the fact that they had contacted
Carefree and Scottsdale regarding this issue; a future meeting that would be held with the Fort McDowell Indian ,
Community to discuss this issue; the option of developing a Town Fire Department; and the fact that either the
Town or the Fire District, if one was formed, would address these issues.
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Mr. Pickering assured the Council and the citizens of Fountain Hills that the Town had and would continue to
have fire service.
Councilman Kavanagh requested that staff contact the fire district petitioners and obtain a recent signature count
and Mr. Pickering said he would do so.
In response to a question from Councilwoman Nicola, Mr. Pickering advised that staff was continuing to work
towards IGAs with other communities. He responded to Councilman Archambault stating that an IGA for
mutual aid with Scottsdale was a must and one with Fort McDowell would be very promising. He was of the
opinion that"move-ups"would be a problem.
AGENDA ITEM #12 - COUNCIL ASSESSMENT AND REVIEW OF THE MEETING TO IDENTIFY
PROCEDURAL STRENGTHS AND WEAKNESSES AND DISCUSS POSSIBLE IMPROVEMENTS
FOR FUTURE MEETINGS.
Councilwoman Stevens requested that the Council focus on developing some type of process to be followed by
invited guests from the Senate and Legislature. She suggested that perhaps topics could be recommended and/or
Council could pose specific questions. She stated the opinion that this would make the presentations more
informative. She requested that the speakers focus more on Fountain Hills, rather than on State or valley issues.
She said that the speakers should be asked whether they had an issue they wanted to speak to that directly
impacted the Town because valley issues could be found in the daily paper. She added that if there were a topic
they wished to speak on, she would like the opportunity to ask them questions ahead of time on which they
might zero in. She added that if they didn't have anything specific to speak on, the time would be better spent
on Town business.
AGENDA ITEM #13 — 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) OR DIRECTING STAFF TO CONDUCT FURTHER
RESEARCH AND REPORT BACK TO THE COUNCIL.
None requested
AGENDA ITEM#14—SUMMARY OF COUNCIL REQUESTS BY TOWN MANAGER
Mr. Pickering stated that staff would report back to the Council with recommendations regarding the formation
and composition of the sign committee and would make sure that recommendations were provided to the
Council by February Pt.
Mr. Pickering commented that both he and the Mayor attempted to target the visiting speakers' comments, but
sometimes they got off track. He said they would follow up and talk to the representatives about remaining
focused on the Town. He added that staff would prepare a report on the maintenance and repairs and whether
some are being unnecessarily delayed. He stated that he would also find out the count on the petitions regarding
the fire district.
Mayor Nichols reminded Mr. Pickering to get some industry wide standards (contact MAG) and let the Council
know ahead of time the names of invited speakers and obtain input from them on topics.
AGENDA ITEM#15—ADJOURNMENT
Councilwoman Stevens MOVED that the Council adjourn and Vice Mayor Melendez SECONDED the motion,
which CARRIED UNANIMOUSLY. The meeting adjourned at 8:15 p.m.
L
TOWN OF FOUNTAIN HILLS
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By
ally Nic ols,Mayor
'val)
ATTEST AND
PEPARED BY:
evelyn . endr
Clerk
CERTIFICATION
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Session held
by the Town Council of Fountain Hills on the 20th day of November 2003. I further certify that the meeting
was duly called and that a quorum was present.
DATED this 18th day of December 2003.
Bevelyn J. Bend ,T n Clerk
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