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HomeMy WebLinkAbout2008.0918.TCREM.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF EXECUTIVE AND REGULAR SESSIONS OF THE FOUNTAIN HILLS TOWN COUNCIL SEPTEMBER 18,2008 • C AL TO ORDER—Mayor Schlum called the meeting to order at 5:03 p.m. AGENDA ITEM #1 - ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION: PURSUANT TO §38-431.03(A)(4), 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, (I) AN UPDATE REGARDING ALL PENDING LITIGATION MATTERS, AND (II) A POSSIBLE DOWNTOWN DEVELOPMENT AGREEMENT). Councilmember Keith McMahan MOVED to convene the Executive Session and Councilmember Ginny Dickey SECONDED the motion, which CARRIED UNANIMOUSLY by a majority vote of those present (6- 0). Mayor Schlum adjourned the Executive Session at 6:25 p.m. ITEM#2-RETURN TO REGULAR SESSION (ow • CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Jay Schlum Mayor Schlum called the meeting to order at 6:35 p.m. • INVOCATION—Leann Gratz, representing the Church of the Ascension • ROLL CALL — Present for roll call were the following members of the Fountain Hills Town Council: Mayor Jay Schlum, Councilmember Contino, Vice Mayor Leger, Councilmember McMahan, Councilmember Hansen, and Councilmember Dickey. Town Manager Rick Davis, Town Attorney Andrew McGuire and Town Clerk Bev Bender were also present. Councilmember Archambault was excused from the meeting. • MAYOR'S REPORT—None Mayor Schlum announced that Item # 15 was removed from the agenda at the request of SPAC Chair Mike Tyler and will be placed on the agenda for the first meeting in October. • SCHEDULED°PUBLIC APPEARANCES/PRESENTATIONS (i) Presentation by Sharon Morgan, President of the Fountain Hills Sister Cities organization and participating Fountain Hills students, regarding their activities during the June 2008, Dierdorf, Germany student exchange trip. Sharon Morgan introduced Ms. Lynn Trube and students who expressed their gratitude to the Council for the opportunity to share their experiences in Germany. Through photos, the Fountain Hills' students introduced their host families and many highlights of their trip. Sharon Morgan closed the presentation by expressing the e:\town council documents\9-18-08 executive and regular session minutes.docx Page 1 of 13 (1111w importance of the students having the opportunity to partake of a global experience and she thanked the Town for their help. CALL TO THE PUBLIC Vincent Marsello questioned as to whether the Council believed the playground equipment was safe for kids. He pointed out conditions at the park in his opinion that had elements of danger and suggested some solutions. He urged the Council to revisit their decision, admit they had made a mistake, and fund the upgrades to make the park equipment and surrounding area safer. CONSENT AGENDA AGENDA ITEM #1 - CONSIDERATION OF APPROVING THE TOWN COUNCIL MEETING MINUTES FROM AUGUST 25,2008 AND SEPTEMBER 4,2008. AGENDA ITEM #2 - CONSIDERATION OF APPROVING RESOLUTION 2008-34, ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST THE TOWN HAS IN CERTAIN PUBLIC UTILITY AND DRAINAGE EASEMENTS LOCATED AT THE NORTHERLY PROPERTY LINE OF PLAT 431, BLOCK 7, LOT 2 (17518 E. HAWLEY DRIVE) AS RECORDED IN BOOK 395, PAGE 41, RECORDS OF MARICOPA COUNTY,ARIZONA. EA08-08(HONJO) EDITOR'S NOTE: Resolution 2008-34, which was approved by the Town of Fountain Hills Town Council at the September 18, 2008, Town Council meeting, regarding the easement abandonment for the property located at 17518 E. Hawley Drive, was erroneously labeled with a number assigned to another resolution. Therefore, the resolution regarding the easement abandonment for the property located at 17518 E. Hawley Drive will, upon approval of these minutes by the Town Council, be renumbered as Resolution 2008-35 and thereafter known as Resolution 2008-35 in the permanent records of the Town. AGENDA ITEM #3 - CONSIDERATION OF APPROVING THE SECOND AMENDMENT TO THE HIKING LICENSE AGREEMENT BETWEEN MCO PROPERTIES L.P. AND THE TOWN OF FOUNTAIN HILLS. Councilmember Keith McMahan MOVED to approve the Consent Agenda as listed (items 1 - 3) and Councilmember Ginny Dickey SECONDED the motion. A roll call was taken with the following results: Vice Mayor Leger Aye Councilmember Dickey Aye Mayor Schlum Aye Councilmember Hansen Aye Councilmember Contino Aye Councilmember McMahan Aye Councilmember Archambault Absent The motion CARRIED UNANIMOUSLY by a majority vote of those present(6-0). L e:\town council documents\9-18-08 executive and regular session minutes.docx Page 2 of 13 REGULAR AGENDA AGENDA ITEM #4 - CONSIDERATION OF APPOINTING FOUR (4) CITIZENS TO SERVE ON THE PLANNING AND ZONING COMMISSION WITH EACH SERVING A 2 YEAR TERM, BEGINNING OCTOBER 1,2008,AND ENDING SEPTEMBER 30,2010. Mayor Schlum MOVED to appoint Dennis Brown, Jerry Caldwell, Paul McDonald, and Sherry Leckrone to the Planning and Zoning Commission. Councilmember Dickey SECONDED the motion. The motion CARRIED UNANIMOUSLY by a majority vote of those present(6-0). AGENDA ITEM #5 - CONSIDERATION OF APPOINTING ONE (1) CITIZEN TO SERVE ON THE MUNICIPAL PROPERTY CORPORATION BOARD FOR A 3 YEAR TERM, BEGINNING OCTOBER 1,2008,AND ENDING SEPTEMBER 30,2011. Mayor Schlum MOVED to appoint Roger Riggert and Councilmember McMahan SECONDED the motion. The motion CARRIED UNANIMOUSLY by a majority vote of those present(6-0). AGENDA ITEM #6 - INFORMATIONAL PRESENTATION BY THE FOUNTAIN HILLS TOWN SQUARE, LLC, REGARDING A 459,603 SQUARE FOOT MIXED-USE TOWN CENTER DEVELOPMENT PROPOSAL Mr. Dave Fackler presented an overview of their proposed plan for the downtown project. He reported they had finished negotiations with the Town and were hoping for approval of the development agreement. He listed the parties involved including the architects, the development firm, the investment company, the planners, the engineers and the contractor. He also described the overall mixed-use plan including the square footage dedicated to restaurant and retail, a multiplex theatre, office space, a condominium development, and shared parking. Mr. Fackler stated they hoped to begin construction no later than the 1st quarter of 2009 with closing on the property to take place in October 2008. He stated that Phase 1 included three buildings at Avenue of Fountains and Verde River Drive with 863 parking spaces. Vice Mayor Leger asked Mr. Fackler to address the question of the size and scope of the project and, in particular, the number of movie screens in the plan (10-12 theaters). Mr. Fackler responded that Fountain Hills and East Scottsdale were underserved as related to theatres with market studies showing that within a 6 mile service area,there were 130,000 households in easy driving distance to Fountain Hills. Councilmember Dickey "I wanted to express appreciation noting that you said that your desire would be to stay within the parameters of the zoning and I know you'll find a lot of reasonable people up here if something comes up if it's a shading sort of a deal or whatever. But, I really appreciate that you mentioned that. An also just to say that since this has been spoken about for quite awhile and in a lot of different iterations just to kind of emphasize that we all look at this with fresh eyes and know that this is something new and separate from before so we don't start having any kind of mix up on what is was before and know that we are moving forward." Mayor Schlum clarified that the layout had not changed greatly,just some of the players involved. He requested that Mr.Fackler review the timeline of the project. Mr. Fackler replied that they were currently under design and hoped to close on the financing and the land as early as October 15th, no later than November 15th. The concept plan package would be submitted to the Planning and Zoning Commission on November 3rd for their review, which would then put it before the Council in early December. He commented that as soon as the concept plan was approved, they would submit construction drawings for the building department's approval with hard construction beginning the first quarter of 2009. e:\town council documents\9-18-08 executive and regular session minutes.docx Page 3 of 13 In response to Mayor Schlum's question regarding the opening of the theatres, Mr. Fackler responded they hoped to open December 2009. AGENDA ITEM #7 - CONSIDERATION OF A SPECIAL EVENT APPLICATION FOR THE FANTASTIC FALL FESTIVAL SPONSORED BY THE TOWN OF FOUNTAIN HILLS TO BE HELD AT FOUR PEAKS PARK, WHICH IS SCHEDULED FOR OCTOBER 31, 2008 FROM 6:00 P.M.—9:00 P.M. AGENDA ITEM #8 - CONSIDERATION OF A SPECIAL EVENT APPLICATION FOR THE FOUNTAIN HILLS HIGH SCHOOL ATHLETIC CLUB HOMECOMING PARADE SPONSORED BY THE FOUNTAIN HILLS HIGH SCHOOL ATHLETIC BOOSTER CLUB TO BE HELD ON THE AVENUE OF THE FOUNTAINS,WHICH IS SCHEDULED FOR OCTOBER 2,2008,FROM 6:00 P.M. TO 7:00 P.M. AND WILL REQUIRE CLOSURE OF THE AVENUE OF THE FOUNTAINS FROM SAGUARO BOULEVARD TO LA MONTANA DRIVE FROM 5:30 P.M.TO 7:30 P.M. Kathy Worrell, Parks and Recreation Coordinator, spoke to both Agenda Item #7 and Agenda Item # 8: Ms. Worrell provided details on the Homecoming Parade recognizing students and parents who were present to support the parade. Ms. Worrell advised of the need to close Avenue of the Fountains from La Montana to Saguaro for this event and encouraged businesses to remain open and support the parade. She pointed out that by scheduling this event, the Town was responding to one of the Strategic Plan's goals of integrating the town and school more closely. Ms. Worrell presented information on the Fantastic Fall Festival, which would not have any traffic restrictions. Ms. Worrell recognized sponsors, concessioners, and reported that the Boys and Girls Club would simultaneously be offering an event for teens She commented on the fact that this event also met the Strategic Plan priority to strengthen our small town identity. She noted this event would take place at Four Peaks Park on ‘100 Friday, October 31, 2008 from 5:00 pm to 9:00 pm. Councilmember Hansen asked Ms. Worrell if she had received any positive response from the businesses on the Avenue. Ms. Worrell indicated there had been enthusiasm received from the merchants and also reported that art students from the school would be painting the windows of some of the businesses. Councilmember McMahan MOVED to approve the Special Event application for the Fall Festival and Councilmember Dickey SECONDED the motion. The motion CARRIED UNANIMOUSLY by a majority of those present(6-0). Councilmember Hansen MOVED to approve the Special Event application for Fountain Hills High School Athletic Club Homecoming Parade. Councilmember McMahan SECONDED the motion. There were no citizens wishing to speak on this item. The motion CARRIED UNANIMOUSLY by a majority vote of those present(6-0). AGENDA ITEM#9 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF WITH REGARD TO CHANGING THE DATE OF THE OCTOBER 2,2008 TOWN COUNCIL MEETING TO OCTOBER 1, 2008, DUE TO THE DATE AND TIMING OF THE FOUNTAIN HILLS HIGH SCHOOL ATHLETIC CLUB HOMECOMING PARADE. Mayor Schlum MOVED to move the date of the next Council meeting from October 2, 2008, to October 1, 2008, so that the Town Council could participate in the Homecoming Parade and Councilmember Keith McMahan SECONDED the motion. The motion CARRIED UNANIMOUSLY by a majority vote of those present(6-0). L e:\town council documents\9-18-08 executive and regular session minutes.docx Page 4 of 13 AGENDA ITEM #10 - CONSIDERATION OF TWO CONSTRUCTION SERVICE AGREEMENTS WITH CARUME CONTRACTING, INC. IN THE AMOUNT OF $41,660.27, AND PERFORMANCE PAVING & SEALING IN THE AMOUNT OF $10,889.93, FOR THE FOUNTAIN HILLS DESERT vie BOTANICAL GARDEN PARKING IMPROVEMENTS. Parks and Recreation Director Mark Mayer provided background information on the Botanical Garden improvements. He referred to a group of citizens who had come forward a couple of years ago to express an interest in resurrecting the Garden and to develop the site more fully, noting that many volunteer hours had been devoted to building a trail system and identifying the various species in the garden. Mr. Mayer presented several parking options that had been considered but for a variety reasons did not work out. In the end a need was established to provide off-street parking for public safety that would be on Town property as the proposed site was between the cross streets of Emerald and Kingstree on Fountain Hills Boulevard. He explained that to currently access the Garden, citizens would have to park on one of the cross streets and walk across Fountain Hills Boulevard; poor sight lines coming over the hill with vehicle speeds of 45 mph prohibited safe parking and exiting of the area. If the project was approved, it would include a de-acceleration lane, which would eventually be included in the cost that would normally be borne into the project for the widening of Fountain Hills Boulevard. He indicated that costs incurred now would save money down the road. Mr. Mayer explained that the funds had been carried forward from last year's budget in the amount of$15,000 and combined with new funds this year, which brought the total budget to $68,000. He pointed out that the requested amount for the agreements was lower than the budgeted amount. Although there would be additional costs, these contracts were the major portion of the project. He indicated that at this point the project was 23% below budget. Councilmember McMahan asked about the current status of the park. Mr. Mayer responded that all trail work had been completed and the concrete work for installing the identification tags was finished and he estimated that the Garden was 95% completed. The access trail had been improved but the difficulty was the parking situation. He stated that it was not legal to park along Fountain Hills Boulevard and dangerous to do so. Councilmember McMahan recalled who spearheaded the project when the garden was first constructed and had noticed it had fallen into disuse for years,but he also recognized it was coming back. Mayor Schlum indicated that the was looking for a motion to approve the Construction Service Agreements with Carume Contracting Incorporated in the amount of$20,701.61 for excavation of the parking lot site at Fountain Hills Desert Botanical Garden and off-site paving for a de-acceleration lane in the amount of $20,958.66 and performance paving and Sealing in the amount of$10,889.93 for on-site paving of the parking lot at Fountain Hills Desert Botanical Garden. Councilmember Ginny Dickey MOVED to approve the contract as stated and Vice Mayor Leger SECONDED the motion. Councilmember Hansen asked Mr. Mayer to explain the purpose of the wide paved area along the side of the road. Mr. Mayer stated that portion was designed to handle water flow from the hillside. He noted that because of the heavy flow, the area was beginning to erode and this project would help alleviate that problem. Mayor Schlum asked if there was anyone present from the Botanical group. Carrie LaPenta, Chairperson of the Botanical Garden group, addressed the Council and reported they were 99% done with improvements and that placement of identification signs still needed to be done. Their group was hoping to have the garden open to the public in January. Mayor Schlum asked Ms. LaPenta to explain more about the location and what made it unique. Ms. LaPenta said the Garden was about a 11/4 mile trail through natural undisturbed desert and they had made a trail accessible. The Garden would be self-guided facility that could be used for educational or recreational purposes. e:\town council documents\9-18-08 executive and regular session minutes.docx Page 5 of 13 Mayor Schlum thanked Ms. LaPenta and all the volunteers for their hard work and dedication. He reiterated part of this proposed project improvement would include the de-acceleration lane for the widening of Fountain Hills Boulevard in that area. Mayor Schlum asked if there were any members of the public who wanted to lible speak to this item and Town Clerk Bev Bender responded that no speaker cards had been submitted. Councilmember Contino asked Public Works Director Tom Ward to explain if the parking project was improved with the de-acceleration lane, would it have to be replaced again when the road was expanded to four lanes. Mr. Ward explained the area in question would not have to be removed. The center lanes of Fountain Hills Boulevard would have to be torn up but the new asphalt would not be replaced. Councilmember Contino asked what would happen to the two acres MCO had in the area and did this plans interfere with this project. Mr. Mayor responded the project was designed for this particular site and if MCO developed their property, this project would enhance theirs by creating a de-acceleration lane that would be of benefit to them. Councilmember Contino questioned the possibility of a Fire Station in this area that would share space with the Botanical Garden and if that scenario would result in the area having to be torn down. Mayor Schlum interjected that the Fire Department had indicated preference for placement on Shea Boulevard and said that he did not believe that the Fountain Hills Boulevard location was being seriously considered any further. Councilmember McMahan stated that future construction by MCO would not be impeded whether it was a fire station or another building. Mr. Mayer reiterated how the project would enhance any future plans by MCO. He also reported they had met with neighbors in the area and that due to the presence of the Botanical group, several homeless people, who had been using the area, were forced to leave. Councilmember Hansen said that she was struggling with this issue. She acknowledged that it was a great project, that it was wonderful that it was coming back, and that many people had worked so hard, but that the $52,000 expenditure was hard to justify right now. She had been told that a year or so ago a local contractor had been asked for a price to grade the property to provide temporary access and asked if there was a possibility to phase in the project. Mr. Mayer responded that the $15,000 originally requested was to do excavation work and the quotes now for the excavation portion were $20,000. The difficulty was the dust control measures and the need to put down a surface that would not create dust and drainage concerns. Councilmember Dickey stated that the Strategic Plan spoke to the desire for open space, small town attractiveness and promotion of tourism. The most important aspect of this was all of the time that the volunteers had engaged in the project and the history associated with it. She indicated her support for the project. Councilmember Hansen clarified the amount she had been told was between $5000 and $6000 and perhaps it was lower due to donations. Mayor Schlum inquired about the need for ongoing maintenance. Mr. Mayer reported that the group was committed to the ongoing maintenance of the facility and staff would only monitor the site and step in for any issue beyond the scope of the group. Councilmember Contino asked about the need for rest rooms at the Garden. Mr. Mayer said discussions had taken place as to the need for rest rooms and that ultimately it was decided that visitors would not spend that much time in the area and that access to public facilities were close. Councilmember Contino commented on his struggle with this decision and indicated that he would like to table the decision for more discussion. Vice Mayor Leger said he was cognizant of the economy and the budget; that he recognized his colleagues' concerns with spending money and pointed out that ; the current budget had been reduced significantly with projects coming in under budget; we could not stop spending in panic because of a downturn in the economy; the Town needed to remain frugal and to continue to look at projects that enhanced the beauty of the Town and that added to the quality of life, costs were lower now than they would be in the future; and from a safety issue, e:\town council documents\9-18-08 executive and regular session minutes.docx Page 6 of 13 this project was important. He noted that the Council had recently passed a dust control ordinance and that the Town needed to provide safe parking for this facility. Mayor Schlum said he was very sensitive to the costs associated with this project and the challenges of just grading the area. He recognized the impact the volunteers had on this project and expressed his support. He pointed out that temporary steps also had associated costs. A roll call was taken with the following results: Councilmember Hansen Nay Vice Mayor Leger Aye Councilmember Dickey Aye Councilmember McMahan Nay Councilmember Contino Nay Mayor Schlum Aye The motion FAILED(3-3) due to the tie vote. Discussion ensued as to whether there could now be a motion to table for further discussion. Attorney McGuire responded that it could come back at a later date, but the time for a motion to table had already passed with the motion to disapprove and that the item would have to come back under different circumstances. Councilmember Dickey asked for clarification that if something changed on the proposal, could it then be brought back or could this same proposal be brought back. Mr. McGuire replied if it was the exact same thing, it would have to be brought up at the next meeting; if it had changed, it was considered a new item and could come back at a different time. He stated that the item was not dead forever. He reiterated that the exact same proposal under a motion to reconsider at the next meeting was the only way the precise same item could come back and to reconsider this item at the next meeting it would have to be someone on the winning side, which in this case were the no votes. AGENDA ITEM #11 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF REGARDING ADOPTING REGULATIONS AND FEES FOR OFF-TRACK BETTING IN FOUNTAIN HILLS. (BRUNO'S SPORTS BAR AT 16737 E.PARKVIEW AVENUE,FOUNTAIN HILLS,AZ) Finance Director Julie Ghetti presented the results of her research from other cities that permit off-track betting (OTB). That summary included fees, revenues, state regulations and crime activity. She made suggestions as to what the Town might want to consider including regulating license status, zoning compliance, approved permit verification, number of betting windows and proof of operator agreements. The Mayor inquired if there was anyone present who wished to speak on this matter. The Clerk stated that Mr. Jack Mullen,Turf Paradise, was present to answer questions. Vice Mayor Leger asked Town Attorney Andrew McGuire to explain what the statutes were with regard to off- track betting. Mr. McGuire explained there was not much law on off-track betting. There was one small section of law in Title 5 that referenced off-site betting. In this case, this would be a site that was not previously regulated, locations not previously licensed were required to have approval from the city or town, and there were no standards by which to approve. He stated that most other communities that had voted to approve off- track betting had formed a set of local regulations. Vice Mayor Leger expressed concern that the agenda language. He felt that the Council was being asked to adopt regulations and fees and that would be "putting the cart before the horse". He stated the opinion that the Liw. decision that needed to be made first was to whether or not to bring off-track betting to Fountain Hills before approving regulations. e:\town council documents\9-18-08 executive and regular session minutes.docx Page 7 of 13 Councilmember Dickey stated her preference for the inclusion of possible regulations as part of the process as that would assist her in making her decision. She expressed that she would have difficulty making a decision Lir, until those were made available. Vice Mayor Leger suggested tabling the discussion as he did not agree with the agenda language. He felt the discussion should start with determining if the Council wanted off-track betting in Fountain Hills. If yes or no, then we should continue the process of discussion and getting input from experts with the second step as regulations. There was no point in asking staff to do hours of research if we were not ultimately going in the direction of off-track betting in Fountain Hills. He reiterated his opinion that there needed to be a motion on the table for approval to bring off-track betting to Fountain Hills. Mr. McGuire said he was not comfortable with a blanket approval and suggested that a better idea would be to move to authorize the beginning of the process, to say yes to bringing off-track betting to the Town subject to staff bringing back acceptable regulations and upon adoption of those regulations allowing off-track betting in certain locations. Councilmember Contino referred to the inter-office memo from the Finance Director Ghetti that stated during the August 7, 2008. Council meeting staff was asked to prepare an agenda item for the discussion and possible action to consider a request to permit off-track betting within the Town; because of that memo Mr. Contino he believed they already had a discussion on this. Councilmember Hansen pointed out that this item had been originally a subject brought forward under the agenda item used by one councilmember to see if there was support for placement on a future agenda for action. Vice Mayor Leger believed the memo clarified his point about permitting off-track betting and that this was the starting point. Mr. Leger MOVED to approve permitting off-track betting in Fountain Hills. cor Mayor Schlum asked Mr. McGuire to repeat his suggestion as to what a motion could be along the lines of what Vice Mayor Leger was stating. Mr. McGuire expressed concern regarding a motion that permitted off-track betting without anything more and how it could open the door to off-track betting without local regulations. He proposed the motion should direct staff to bring back policies and regulations by which any off-track betting facility would be permitted in addition as to the question of the "if' and the"how"both of which should be part of the motion. Mr. Jack Mullen addressed the Council pointing out that the Arizona Department of Racing and the Racing Commission were the overseers and regulators of off-track betting. He further stated towns could not change operations; that OTB was the most regulated industry in the State; and it was the State that had made the rule that required approval of the local government. He explained the requirements and compliance processes required by the state. Councilmember Hansen clarified the regulations being discussed did not refer to those of the State but how a permitted property would interface with the Town. Mr. McGuire stated land-use and Town licensing regulations as well as para-mutual wagering regulations should be reviewed. Staff had researched and recommended following the best practices of other communities to adopt local regulations similar to other Towns. He stated that it would be negligent on staff's part not to recommend doing that and to suggest the Council approve licensing without any regulations. Councilmember Dickey inquired as to whether a second was needed for the motion on the table. Mayor Schlum L., confirmed that there no second had been made to motion on the table. Vice Mayor Leger WITHDREW the motion based on counsel from the Town Attorney. Mr. Leger deferred to Mr. McGuire as to what motion would precede the other. e:\town council documents\9-18-08 executive and regular session minutes.docx Page 8 of 13 Councilmember Dickey MOVED to consider off-track betting with regulation and discussion as presented by staff at a future meeting. Mr.McGuire said the motion brought forward was broad enough. Vice Mayor Leger clarified that he did not want to be under the assumption that if they were moving forward to develop a policy that the assumption was they had approved off-track betting. Councilmember Contino asked for clarification as to whether they were giving the requestor a permit. Councilmember Dickey RESTATED the motion, which was to consider off-track betting with regulation and discussion as presented by staff at a future meeting if approved by a majority of the Council. Mayor Schlum asked Mr. McGuire if that would replace agenda item#11 or would there be further discussion on that item if that motion passed. Mr. McGuire clarified that in the packet submitted by the applicant there were 4 pages from the Tempe City Code that the Tempe City Council had adopted. He stated that by the motion stated staff would be directed to come back with similar regulations that could be adopted into the Fountain Hills' Town Code that would allow a facility to apply for a permit. Mayor Schlum asked if the motion did carry, would it mean they would move towards a policy and implementation; and would a failure vote indicate an interest in not having off-track betting in Fountain Hills. Mr. McGuire confirmed that would be the direction staff would take from it. Councilmember Hansen SECONDED the motion. Vice Mayor Leger questioned that if the motion passed, would the Council inherently have approved off-track betting. Mr. McGuire responded the motion would mean staff would come back with the "how" so Council could decide the"if' and "how" at the same time. Councilmember Hansen pointed out that since 44 other cities had these policies in place, we would not have to reinvent the wheel. Councilmember Contino asked how much time would be involved as he was concerned with inconveniencing the business. Mayor Schlum responded that what was on the agenda was not an approval of policy but a discussion with possible direction to staff. Mr.McGuire reminded the Council that if adopted, an ordinance did not become effective until 30 days after the ordinance was passed. If the ordinance was approved, and with the business owner knowing when it became effective,they could move forward with the State application process. Councilmember Dickey stated that if the issue was forced right now it may not pass. She indicated that she needed more information to make her decision. Councilmember Contino said it was not a matter of forcing but trying to determine a time frame to get these regulations done. Mayor Schlum pointed out that staff had provided the Council with examples of regulations from other cities so some information was already available. Councilmember McMahan stated that he was a strong proponent of off-track betting but he was willing to support Councilmember Dickey's motion to allow for more time. Councilmember Dickey RESTATED the motion at the request of Vice Mayor Leger, which was to move that the Council consider off-track betting with regulations and discussion as presented by staff at a future meeting if approved by the majority of the Council. L e:\town council documents\9-18-08 executive and regular session minutes.docx Page 9 of 13 A roll call was taken with the following results: ‘1°' Mayor Schlum Nay Vice Mayor Leger Nay Councilmember Contino Aye Councilmember McMahan Aye Councilmember Dickey Aye Councilmember Hansen Aye Councilmember Archambault Absent There were no citizens wishing to speak on this item The motion CARRIED by a majority vote of those present(4-2). AGENDA ITEM #12 - CONSIDERATION OF A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND ALBERT HOLLER AND ASSOCIATES FOR A 3-YEAR PERIOD BEGINNING JULY 1, 2008, FOR SALES TAX AUDITING SERVICES IN THE AMOUNT OF$42,000 PER YEAR. Finance Director Julie Ghetti addressed the Council and reported that in September 2007 the Town had received a Revenue Enhancement Analysis Report from T. L. Hocking and Associates that was a result of the initial findings of the Strategic Plan. One of the recommendations of the report had been to consider hiring an in- house sales tax auditor to complement the work of the external auditing firm. She explained that the Town's sales tax per capita rate was lower than comparable cities with a possible reason for the lower rate that the Town was not collecting all sales tax dollars that were due. However, other more significant factors were that the Town did not have a large commercial tax base. Therefore, staff had not included the addition of a full time sales tax auditor in the fiscal year 08-00 budget. She explained that staff was asked to analyze sales tax lay collections from residential rentals to determine if registered properties were collecting and reporting the rental tax. She acknowledged that with over 794 properties listed as rentals, this type of auditing was very labor intensive and without sufficient evidence that property owners might not be paying the rental tax it was difficult to justify the addition of a full time staff person. Therefore, staff was recommending the contract with the sales tax auditor be renewed and amended to include residential rentals.Ms. Ghetti stated that Mr. Holler was familiar with the contractors who were most likely to report incorrect tax amounts or not pay at all. She reported that since 1991 the Town had paid Mr. Holler's firm $254,000 but in return the Town had recovered over $1.2 million in unpaid sales taxes. Mayor Schlum asked if there were members of the public who wished to address this item. Town Clerk Bender responded that one speaker card had been submitted by Vincent Marsello. Mr. Vincent Marsello addressed the Council stating a large amount of sales tax that did not come back to the Town had to do with the fairs. He suggested the vendor's credit card number be verified against what was declared with the State to track lost tax revenues for collection. Councilmember Dickey MOVED to approve the contract with Albert Holler and Associations in the amount of $42,000 for sales tax auditing and Vice Mayor Leger SECONDED the motion. Councilmember Contino expressed his concerns that hiring a tax auditor was a ploy to come in and audit the books of Town businesses. He was looking for clarification on where they were going with this. Mayor Schlum asked Ms. Ghetti to explain what the scope of work was on the $30,000 contract with the Lifunderstanding that the additional $18,000 was to expand the scope of work for rentals. Ms. Ghetti explained the auditor was hired to primarily audit construction contractors and that they did not typically audit retail unless there was a complaint. There was no intention to change anything in the contract except to review the e:\town council documents\9-18-08 executive and regular session minutes.docx Page 10 of 13 residential rentals. Regarding artists at the fair, Ms. Ghetti clarified that staff worked with the Chamber and they were able to make sure artists were paying sales tax. She stated that every artist at the fair must provide the L. Town with a sales tax number and the Chamber was very good at obtaining that information and proving it to the Town. Mayor Schlum asked if the Town had received many complaints about Mr. Holler being invasive in his work practices since 1997. Ms. Ghetti responded that most of the tax dollars came from the contractors and the few retail businesses who had been contacted did not realize they had been making a mistake had rectified it right away;there was no focus on the auditor going door-to-door. Councilmember McMahan asked to add four caveats to the motion: that there be no unreasonable harassment of retailers and local business professional people; that a new effort be directed toward out of Town businesses in collecting sales taxes; that we do a new thorough study and direct attention to the rental properties in Town to make sure rental owners were paying their fair share. Vice Mayor Leger asked Councilmember McMahan for a definition of harassment. Mr. McMahan defined harassment as being over zealousness and bearing down on a person. Mr. Leger said it was extremely subjective to try and define harassment. Mayor Schlum asked Ms. Ghetti if the scope of work addressed the auditor's approach to the business community. Ms. Ghetti said the auditor had been doing a great job. She stated the idea was to educate them as the casual renter might not realize a rental tax was due and we would educate and inform them about the tax. As far as harassing, Ms. Ghetti said in the 18 years she had worked with Mr. Holler she had not had one complaint from a business. There was not one case where he had gone into a business unwarranted just to look at their books. His primary focus was on contractors since that was where the big dollars were. Mayor Schlum acknowledged local contractors for their help through the building department to monitor those businesses driving trucks into the community to be proactive in collecting their tax monies. He asked Mr. McGuire for clarification on the Councilmember McMahan's proposed amendment language. He pointed out that a first and a second on the main motion existed and asked if this was that an amendment to the motion. Mr. McGuire responded that if Councilmember McMahan's language was in the form of an amendment, they should get a second to decide if those items should be put on the motion. Councilmember Hansen interjected that one of Mr. McMahan's requested amendments had been newly added to the scope of work (third item) and was already included in the proposed contract. Councilmember McMahan stated that he trusted Julie and the staff and he WITHDREW his motion. Councilmember Contino expressed the position that the auditor had access to the taxes being paid and he should not bother those businesses that were paying their taxes. The motion CARRIED UNANIMOUSLY by a majority vote of those present(6-0). AGENDA ITEM # 13 - CONSIDERATION OF AN OPEN PURCHASE ORDER TO UNION DISTRIBUTING IN THE AMOUNT OF $116,813 FOR BULK FUEL PURCHASES OF UNLEADED AND DIESEL FUEL THROUGH THE ARIZONA STATE CONTRACT FOR FISCAL YEAR 2008-09. Julie Ghetti reviewed the current processes for obtaining fuel for Town vehicles stating that monthly reports were generated that broke down the fuel consumption by vehicle. The Town purchased fuel from Union Distributing paying the same per gallon cost as available under state contract. Ms. Ghetti provided information to the Council that showed a drop in fuel consumption in the past year due to the purchase of hybrid vehicles. In response to a question from Mayor Schlum, Ms. Ghetti confirmed that these costs were not fixed and would cur fluctuate with the market. e:\town council documents\9-18-08 executive and regular session minutes.docx Page 11 of 13 Councilmember Contino MOVED to approve the Purchase Order for Union Distributing in the amount of $116,813 and Councilmember Dickey SECONDED the motion. The motion CARRIED UNANIMOUSLY by cor, a majority vote of those present(6-0). AGENDA ITEM #14 - CONSIDERATION OF A PROJECT AGREEMENT WITH MARICOPA COUNTY ASSOCIATION OF GOVERNMENTS (MAG) TO REIMBURSE THE TOWN OF FOUNTAIN HILLS UP TO $288,228 FOR ENGINEERING FEES TO DESIGN THE SHEA BOULEVARD CLIMBING LANE PROJECT DURING FISCAL YEAR 2008-09. Public Works Director Tom Ward explained that the Town had been awarded a Surface Transportation Program Grant(MAG) to add a westbound climbing lane on Shea Boulevard. The grant was for 70% of the total amount ($396,753.80). The amount granted was 73%, which allowed for a contingency during the design process. Councilmember McMahan MOVED to approve the project agreement with MAG for the reimbursement grant in the amount up to $288,228 and Councilmember Contino SECONDED the motion. The motion CARRIED UNANIMOUSLY by a majority of those present(6-0). AGENDA ITEM #15 - CONSIDERATION OF ALLOCATING A SUM OF UP TO $20,000 FOR USE BY THE STRATEGIC PLANNING ADVISOR COMMISSION (SPAC) TO TAKE THE NECESSARY STEPS TO UPDATE THE TOWN OF FOUNTAIN HILLS' STRATEGIC PLAN WITH POSSIBLE DIRECTION BY COUNCIL TO SPAC REGARDING THE STRATEGIC PLAN UPDATE PROCESS. NOTE: Mayor Schlum had announced at the beginning of the meeting that Item # 15 would be placed on the agenda for the first meeting in October. AGENDA ITEM#16 - COUNCIL DISCUSSION/DIRECTION TO THE TOWN MANAGER Items listed below are related only to 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 In response to Vice Mayor's suggestion to take another look at Golden Eagle Park based on tonight's citizen input, Town Manager Rick Davis said staff would visit the park, inspect for any potential hazards, and report back to Council or provide a memo on their findings. AGENDA ITEM #17 - SUMMARY OF COUNCIL REOUESTS AND REPORT ON RECENT ACTIVITIES BY THE TOWN MANAGER Town Manager Rick Davis indicated he would like to bring someone in from Valley Metro to make a presentation to the Council at the October 1st meeting to discuss the status of transit in our area. He stated that he would be participating in a long range transit plan meeting in Phoenix the next day and discussed the possibility of the Town acquiring two transit vans to supplement local transit activities, particularly to service the handicapped, disadvantaged, and elderly. Mr. Davis reminded Council of the October 3rd half-day retreat at the Community Center to kick off the budget and reported that the Environmental/Sustainability Committee continued to meet regarding environment initiatives,to reduce the carbon footprint, and to care for current resources. Mayor Schlum thanked Mr. Davis for facilitating the meeting with the Fountain Hills School District. Mayor Schlum reported on his attendance at the Constitution Commemoration Service Celebration in Phoenix. He Ls" stated that he was proud to report that there were more students from Fountain Hills being recognized for their Constitution work than those in other districts. The first place award winner was Peter Andrelli from Fountain e:\town council documents\9-18-08 executive and regular session minutes.docx Page 12 of 13 Hills High School. He encouraged staff to continue to work with the School District to leverage more resources to make the most of what we have. L AGENDA ITEM#18 - ADJOURNMENT Councilmember Contino MOVED that the Council adjourn and Councilmember McMahan SECONDED the motion, which CARRIED UNANIMOUSLY by a majority vote of those present(6-0). The meeting adjourned at 8:59 p.m. TOWN OF FOUNTAIN HILLS 41111 By Afir . ScAIF m, Mayor ATTEST AND PREPARED BY: Bevelyn J. nd own Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Executive and Regular Session held by the Town Council of Fountain Hills in Town Hall on the 18th day of September, 2008. I further certify that the meeting was duly called and that a quorum was present. DATED this 1st day of October, 2008 Bevelyn . Ben r,Town Clerk L e:\town council documents\9-18-08 executive and regular session minutes.docx Page 13 of 13