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HomeMy WebLinkAbout2020.0225.TCRET.MinutesTOWN OF FOUNTAIN HILLS
MINUTES OF THE COUNCIL RETREAT
OF THE FOUNTAIN HILLS TOWN COUNCIL
FEBRUARY 25, 2020
CALL TO ORDER — Mayor Dickey
Mayor Dickey called the Retreat to order at 9:01 a.m.
ROLL CALL — Mayor Dickey
Present: Mayor Ginny Dickey; Vice Mayor Sherry Leckrone; Councilmember Mike Scharnow;
Councilmember Art Tolis; Councilmember Dennis Brown; Councilmember Alan Magazine;
Councilmember David Spelich
Staff Grady E. Miller, Town Manager; Aaron D. Arnson, Town Attorney; Elizabeth A. Burke, Town
Present: Clerk; ;
Council Retreat Overview
Mayor Dickey said that there had been a few comments about the layout of the room and the
audience having the back of the Councilmembers facing them. She said that last year they heard
complaints that the audience could not hear the Council speak and could not see the presentations.
Additionally, Mr. Ciccarone has provided more microphones so it easier to hear them. She added that
it was being taped and will be posted on the website.
Mr. Miller noted that packets this year were prepared using AgendaQuick, which provided a staff
report on each item. He said that they kept the lighter items at the beginning of the retreat.
Mayor Dickey thanked everyone present. She said that this was an opportunity to step back, assess
and look to the future. She thanked the Town Manager and staff for the agenda which was clear and
had careful preparation. She also appreciated the Council's engagement. She understood it was
difficult to get away for a whole day. She added that Councilmember Scharnow had submitted some
topics for consideration and she believed they have been incorporated into those listed on the
agenda.
4. Town Council assignments to attend and represent the Town of Fountain Hills in regional
organizations
Mayor Dickey said that they have had Councilmembers taking on responsibilities on boards of various
organizations. She has had a couple of requests to do something different, so she wanted to know if
anyone had any comments, or if they should wait until after the election when new members will be
on the Council.
Councilmember Magazine said that he would be willing to go to the Domestic Violence committee at
the League. He said that he also sits on GPEC (Greater Phoenix Economic Council) Board. He said they
would send them information on companies that may want to locate in Fountain Hills, but are not
able because there are no facilities or land available. He said that they could continue to be members,
but he did not see a value of sitting there with representatives of the various jurisdictions on items
that do not affect them.
Town Council Work Session of February 25, 2020 2 of 16
Mayor Dickey said that she has found a benefit in attending the various meetings, with Maricopa
County being the fast-growing county in the country. She then asked for Mr. Smith's thoughts on
sitting on the board.
Mr. Smith said that it is a Town Council decision, but he sees a lot of value in participating in GPEC.
One of the things is that he met with Joe and Nancy Bill and Chris Camacho, the Executive Director of
GPEC, and they are dedicated to getting that built. He said that the Town may not have the facilities.
There are a handful of them that they can respond to, but they are willing to meet them where they
are and support the initiatives the Town does have. He said that he is a supporter of GPEC for their
activities and their lifting the regional aspect; it adds a lot of value.
Mr. Miller said that he was hearing that membership is not a question, just representation on their
board. He said that he did think that they get in excess of their $10,000 membership. He said that just
the tools and software they have access to.
Councilmember Scharnow said that he sees Valley Metro as similar to GPEC, but there is still value in
having an elected official sitting on their board and he would continue.
Mr. Smith noted that there are different meetings associated with GPEC. They have the Mayors
Meeting every month, Board meetings are quarterly and the economic development directors meet
every month. Mr. Smith said that every other city/town that is a member has a member on the board.
Councilmember Tolis asked what the goals and objectives, and the mission, of the organization is. He
said that they need to have some sort of measurement and come back to say what they
accomplished.
Mayor Dickey said that they make of it what the member makes of it. Two of them led to proposals
that became legislative items. She was happy to know they had membership on that committee. He
attendance has led to some discussions that led to things that have happened in Town.
Mr. Miller said that for many years they had staff that did not believe that some of the grants through
MAG were worth going after. They believed that the paperwork and hardship to go through the
process was not worth it. Staff has been very active lately, and they are now getting a lot grants. He
said that there is a value. He said that GPECjust came forward with the Canadian Arizona event.
Mayor Dickey said that another example is the committee looking at homelessness. It is an
opportunity to get the information from other communities and exchange information. While they are
talking about engagement, she has had people living in the community wanting to help. There are so
many people that have talents from their experience in the past that have a lot to offer. An example is
with the Community Services Advisory Commission taking over discussion about parks and their use.
They were able to vet some issues.
Councilmember Tolis said that Mr. Smith mentioned that GPEC was interested in helping with the
Discovery Center, and asked in what capacity. Mr. Smith said that their CEO has a lot of contacts. He
can make in -roads with technology companies to donate or participate.
Town Council Work Session of February 25, 2020 3 of 16
5. Update on General Plan 2020 review and adoption process
Mr. Wesley gave a brief update on the General Plan process, reviewing the calendar. Mayor Dickey
said that they have another meeting tomorrow. She asked if they had the opportunity to see if the
Saguaro access road was in the Plan. Mr. Wesley said that he did not think that they were, but he
has conveyed that to their consultant. Mayor Dickey said that it was up in the air on whether they
need to do it or not.
Mayor Dickey said that there have been recent discussions about underground storage tanks and
possible leaking. She asked if there was any place in the General Plan that addresses
environmental hazards or their reactions to them. Mr. Wesley said that he did not recall one as
specific as that, but there are some environmental sections in general. They can look to see if it
could be more specific.
6. Discussion regarding the Strategic Plan Update Process
Mr. Miller said that this year the Strategic Plan will be expiring and the Strategic Planning Advisory
Commission (SPAC) has started to make plans for updating the Plan. He said that they are working
on a number of ways of engaging citizens through a visioning process, groups, and surveys.
He noted that Tammy Bell with the Leadership Academy had a citizen engagement process
outlined and she is going to see how it works, and possibly utilize those same tools to reach out to
citizens on important issues.
Mr. Miller said that there was some concern from SPAC about updating the plan at the same time
that the General Plan is going to the voters. He said that they are already making all of the steps
necessary to start at the midpoint this year. He said that they found that the last time they did this,
in 2015 or 2016, that they tended to have a lot of similar -minded people attend. They are going to
make sure that people invited are of various diverse backgrounds. They hope to get more
consensus and compromises in the end. It may end up being near the end of the year or as late as
January of 2021.
Councilmember Scharnow said that the table he was at on Saturday had a very diverse
background.
Mr. Miller said that there will be some new tools as well, such as online surveying and possibly a
telephone survey.
Discussion regarding the Town's procurement practices and procuring goods and services from
local vendors
Mr. Miller said that staff has looked at the process and vendors used locally. They do use a lot of
local vendors, but there is room for improvement. He then introduced Colby Wattling, the Town's
new Procurement Officer, which has been with the Town since last November.
Mr. Wattling then gave a PowerPoint presentation which addressed:
LOCAL VENDOR PROCUREMENT
FREQUENTLY USED LOCAL VENDORS
NIGP - OPINION ON LOCAL PREFERENCE
Town Council Work Session of February 25, 2020
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Mr. Wattling said that the type of bid or proposal determines how much lenience there is for local
preference. There is no local preference policy right now. He said that there are some towns that
will consider giving a preference to a local vendor if their price, minus the sales tax, would bring
the total within a percentage of the lowest bid.
LOCAL VENDOR FORUM
Discussion was held on different opportunities for improving the process and it was agreed that
everyone was on the same page as to giving local vendors a preference, when at all possible, and
seeing how other communities handle the issue as well.
Mr. Miller said that they will continue to do research and come back with minor revisions to their
policies to reflect the discussioni.
Discussion regarding the acquisition of a new pumper truck versus repair of the existing pumper
Fire Chief Ott said that they are in an unfortunate set of circumstances with their current engine as
it needs major repairs. According to the vehicle replacement policy, it exceeds the amount that
would justify spending the money. He has worked with Mr. Pock and Mr. Weldy and they have
determined that it was prudent to look for a replacement at this time.
He said that the current unit is a 2008, with a 15-year anticipated life. He said that they would
normally begin looking for a replacement in 18 months, but because of the costs involved of
needed repairs, they started looking now. They found what they wanted and if they were build it
themselves, it would cost another $100,000 and take 15 months.
Chief Ott said that this is a demo truck. Similar to their ladder, that was a demo truck and they
saved another $150,000. He said that they do have a number of trucks that the manufacturer will
produce. This is more of a stick build and it meets all of their needs and would be a truck that is
sustainable for another 15 years. It has less than 2,000 miles and will handle the hills in the Town.
Chief Ott said that the existing truck would either be used as a trade-in or sold at auction. He said
that there are funds in the Vehicle Replacement Fund for acquiring vehicles once they meet their
useful life. This one is being replaced a little early. Mr. Pock said that when the fund was set up, it
was not fully funded. Right now they have about $250,000 to $300,000 to go toward the purchase.
Mr. Miller said that there are funds within capital to allow them to acquire this and over the next
few years they will try and put that fund back into the full balance. He said that this item will be
coming before the Council next week at their Regular Meeting, but they wanted to provide some
information ahead of time.
9. Discussion regarding the proposed replacement of Council Chamber Audio/Visual Equipment
Mr. Ciccarone said that they installed the equipment in the Council Chambers in 2005 and a few
years later they added the camera system used to produce the meetings that are posted on
YouTube. Over the last few years they have had multiple equipment failures. They have had
complaints from people not be able to hear Council members and presentations.
he said that currently all of the speakers are on one system. They are the same over the dais as
they are over the audience and they cannot control them. The new system will enable them to
control the mikes from the dais.
Town Council Work Session of February 25, 2020
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Mr. Miller asked Mr. Ciccarone to explain what he does after each meeting. Mr. Ciccarone said
that an example is the Daybreak public hearing, which was about six hours long. It took another six
hours to be re -encoded for YouTube and uploaded --an hour for every hour of the meeting. He said
that he started the re -encoding, drives home and waits to upload the video. This allows everything
to be posted in the following morning. He said that with the new equipment it will be encoded
when reordered so it will be almost instantaneous.
Additionally, they are looking at some new microphones in the ceiling, similar to the u-shape on
the floor. He said that a lot of times people say they cannot see or read the presentations, and the
Town Council has a hard time seeing the screen. He said that the problems they had at the last
meeting had more to do with the Cox equipment, but some of that has to do with the Town's
equipment. He said that the Channel 11 equipment is from 2005. They are looking to go with high
definition which will provide better video and audio.
Mr. Ciccarone said that right now when something breaks, he has to provide a band -aid fix by
going on EBay or Amazon to find the old equipment. They are still using VCR's for some aspects of
the system. He said that the equipment has been on 24 hours a day for the past 15 years. With the
new system it will be easier to power it down and power it up.
Mr. Miller said that they have had this in the CIP. Mr. Pock said that they have approximately
$127,000 in the budget. Mr. Miller said that it is a lot of money. It is not like they are remodeling
the room; this is what goes on the air and it will be a much better product. They are also looking at
new monitors for the Council, and a new projector. The current projector is 2,100 lumens; the
newer ones are 5,000 to 6,000 lumens. They will not need to dim the lights as presentations will
be high quality and easier to read what is being displayed.
Councilmember Brown asked how many years ago they made a run at replacing the equipment.
Mr. Ciccarone said that it was five years ago. Councilmember Brown said that he is the one that
brought this back because he has received so many comments from the public.
Councilmember Magazine said that he totally concurred with this.
Mayor Dickey said that it is important with the emphasis they have been putting on transparency.
Councilmember Scharnow asked if this would help the Council get the presentations on the
laptop. Mr. Ciccarone said that the laptops are also from 2005. They are looking to have screens in
front of each Councilmember that will display what is on the big screen.
He said that once this is approved they would be around six to eight weeks out. There is a lot of
equipment to be purchased and configured. They would do it at their shop and roll it in the audio
rack. They would be looking at two to three months out altogether.
Mr. Miller said that they are receiving bids right now. It sounds like there is consensus on the
Council. The Town Council will ultimately have the say when it is brought back for approval.
Councilmember Spelich said that technology changes all of the time. He asked if there was a way
that the system could be leased. Mr. Ciccarone said that they can look into that, but part of the
issue they are running into is that all of the equipment is standard definition. They are trying to find
equipment like that today which is impossible as everything is HDMI. They are so far behind that
he cannot buy single components to replace. He said that the new system will be HD and HDMI. If
a component fails, they will be able to replace it. The new system will be more upgradable.
Mr. Miller said that they could look into the possibility of leasing. He said that they also talked
Town Council Work Session of February 25, 2020
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about phasing. Mr. Ciccarone said that it is all integrated. They only phasing that he sees possible
is the video and then the audio. Mr. Miller said that they are thinking that with economies of scale,
they would save on the labor side.
A break was taken from 10:37 a.m. to 10:58 a.m.
10. Update to the Town Council on mid -year FY 2019-20 fund balances and year-end projections
Finance Director David Pock gave a PowerPoint presentation which reviewed:
MID -YEAR REVENUES
MIDYEAR EXPENDITURES
MIDYEAR TPT COLLECTIONS All Funds
REAL ESTATE
CONSTRUCTION
MIDYEAR FUND BALANCES
COMMITTED (COUNCIL ACTION)
ASSIGNED (TOWN POLICIES)
UNASSIGNED (BUDGETED DAY TO DAY EXPENDITURES)
Discussion was held on the differences between the different funds. Mr. Pock explained that the
Unassigned category can move between the two classifications. Once they sign a contract, it
becomes Assigned.
OUTSTANDING BOND DEBT
RESTRICTED (EXTERNALLY RESTRICTED)
ESTIMATES
COMMITTED ESTIMATES
ASSIGNED ESTIMATES
UNASSIGNED ESTIMATES
TOTAL FUND BALANCE
COMPARISON
Brief discussion was held on the Vehicle Replacement Fund. Mr. Miller noted that they plan to
cover the purchase of the fire truck over the next few years. Accountant Beata Bogdan said that
there were two vehicle purchases on next week's agenda, but they are both funded out of the
HURF fund. Mr. Pock said that they will have time to build back up the Vehicle Replacement Fund
before more equipment is needed.
Mr. Miller said that when he began working for the Town, that fund was in the red. Three years ago
they started using future value versus current value. They have come a long way in this fund and
he feels strongly that it will remain int he black while they get it back to where it needs to be.
Councilmember Spelich asked if the Court Enhancement Fund included future monies to be
collected in the past delinquencies. Court Administrator Victoria Reuss said that $30 of every case
goes into that fund. She then reviewed how different amounts go into different funds as dictated
by the State.
Mayor Dickey asked Mr. Miller if he thought they had too many or not enough of the specific
funds. Mr. Miller said that for now he thought it was working very well with the reserves. He said
that they will see through the process that he will be coming forward with a PC and Server
Replacement Fund. Most organizations their size have had these types of funds for years. As they
Town Council Work Session of February 25, 2020
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start find their revenues not keeping up with the operating budget, they will see that the operating
budget is getting squeezed further. That is why it was important last year to increase the sales tax
from $.26 to $.29.
11. A preview for the Town Council on town -wide revenues for FY 2020-21
Mr. Pock began his presentation on Revenues, stating that when they look at the formulas, the
Town's population is stable, but many around the state are growing, and that reduces their
percentage of state shared revenues. He said that the average median income across Arizona is
growing. Those two things should be keeping it even for now.
Councilmember Scharnow said that potentially after the 2020 census and everything is
recomputed, they may see a major shift in the population. Mr. Pock said that was correct. He said
that in between the census estimates are made each year, so there could be a change.
Mr. Miller said that for this year they were anticipating a modest increase or no increase due to
MCSO since the year before last they had a horrible year with crimes. As a result they had a huge
adjustment this year of 12%. He said that they just received notice indicating that the percentage
of benefits and salaries is up to 65%; normal places it around 35%. He said that they are
anticipating a 5.2% increase, which includes the 3% administrative fee which is now built into the
base.
Councilmember Spelich asked when the Town will be on the hook to sign this again. Mr. Miller said
that it is a multiyear agreement. If the Town Council wanted to make change, they would have to
give proper notice. Councilmember Spelich said that he would like to discuss some aspects of the
contract. Mr. Miller said that changes would require an amendment to the IGA.
Mayor Dickey said that they have been reach out to Council and asking about proposed changes,
whether with increased speeding enforcement activity within the community. Without having to
change the contract they have been highly responsive to the requests of the Town. She said that
when they spoke with th Sheriff's Office, they were open to things not in the agreement that
should be because they want to serve each community the best way relevant to that community.
Councilmember Spelich said that in no way whatsoever does he have any concerns with the men
and women that serve the community. They have nothing to do with the budgetary process. His
problem is with the bean counters at MCSO and he would like to discuss those issues further.
Councilmember Tolis said that based on what Councilmember Spelich said, it sounds like it would
be appropriate to set up an executive session to discuss his concerns. Mayor Dickey said that if
they wanted to talk openly they could do that at a work session.
Councilmember Tolis said that he did not think they should talk about anything outside of
executive session having to do with contract negotiations.
Councilmember Scharnow asked if the 5.2% increase the Town was notified of included the 3%
administrative fee. Mr. Miller explained that the 3% administrative fee is now part of the base. The
5.2% is the overall increase based on benefit proportion and wage increases. Councilmember
Scharnow said that they really could not negotiate those types of increases. He said that they
would have this issue regardless of whether they contract for service or had their own department.
Town Council Work Session of February 25, 2020
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ECONOMIC CONDITIONS
Councilmember Magazine said that they are going to have a recession and he asked how that
would effect these rates. Mr. Pock said that they have it figured at 2.5% right now. If it starts to get
out of hand and they go into a deep recession, inflation will not be so much of an issue.
Councilmember Magazine said that the trajectory right now is not good; they are way overdue for
a recession, and adding the coronovirus, perhaps they should look at alternative scenarios.
Councilmember Tolis said that there are varying risks associated with financial models. This is
something they should have a work study on to look at potential risks.
TPT FORECAST
Mr. Miller said that in the past they have tried to be very considerate in not spending all revenues
based on sales tax. He said that they are starting to see online purchases and it is actually a big
contributor to the sales tax.
REVENUE FORECAST
EXPENDITURE FORECAST
FINANCIAL FORECAST
Mr. Pock said that this year they increased by five positions; they do not see that for next year. He
said that at the end of the fiscal year they will have $3.2 million in the rainy day fund, which is 20%
of the five-year average of the General Fund.
Councilmember Magazine said that as they go forward they should look at what they cna do to
increase that fund. At some point they are going to have to discuss the primary property tax, which
he tends to favor, but if they have a recession people are not going to pay for another tax.
Mayor Dickey said that they have to have a balanced budget. This does not reflect any increase in
any services or staff. Thinking about some of their e-mails, what most people are talking about are
park staff, senior programs, facilities, code enforcement, changing public safety services,
landscaping and median cleaning. She said that this has nothing new in it, and does not include
capital, streets, fountain improvements, etc.
At this time, a break was taken to allow attendees to get their lunch and return to their seats to
continue the work session.
TPT
STATE SHARED REVENUE
ENVIRONMENTAL FUND
Mr. Pock said that the Town's case regarding the environmental fund is being watched by many
municipalities around the state. As of December 31, the contractor gave the Town a list of
outstanding accounts. The Town has been contacting property owners, once it is verified through
the County records. They have no contract yet, They have identified a CPA in Mesa that charges
$4.50 per $36 collected. Mr. Miller said that they are looking at the state contract as well.
Mr. Pock said that there are 2,744 parcels that have paid in varying years; 607 parcels that have
not paid anything for the four years. They are going after them first.
Town Council Work Session of February 25, 2020
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Discussion was held on whether this information could be publicized. Mr. Miller said that it might
be good for them to have an executive session on this issue. There were varying views on whether
this would be a good idea.
USER FEE STUDY
Brief discussion was held on the ability to ensure that transient vendors are paying sales tax. Mr.
Miller said that for the first time the cities and towns were able to use the letterhead from
Department of Revenue, which gets their attention.
COURT FEES
Court Administrator Victoria Ruess came forward and said that they have already collected more
than they did this time last year. She said that this is not all Town money. It also goes to the state,
and the county. There are certain things that are automatically a part of a fine. Ms. Ruess reviewed
the activity between September 9, 2019 and February 5, 2020. She said that it is difficult to
determine what portion is attributed to enhanced court collection efforts because it depends on
where they are at with what they owe.
Councilmember Spelich said that since he was the one that brought this up, he would like her
overall impression of how things are going. He said that the number might be low to some, but
they should take into consideration that there is on the job training for the first 30-40 days,
learning the court system. He said that he was disappointed with the numbers, but he is still
optimistic. He said that he has locked up people with outstanding warrants, and he asked the judge
for his impression.
Judge Melton said that they are early in the process with Rachel. As they go along, her efforts will
bear fruit.
Councilmember Scharnow said that last year they were supplied with some possible revenue
enhancements. He did not know if any of that was on the table for this year. Mr. Miller said that if
they have ideas for exploring further, they can bring that back at a later time. He said that they did
some analysis and looked into a primary property tax. That is something that would have to go to
voters, and they are not ready for this year.
Mr. Miller said that one thing that has thrown them off is the public safety fee and environmental
fee case, which is in court. That type of methodology would be challenged at this point.
Councilmember Tolis said that they should be talking about this at a separate work session.
12. An update to the Town Council on increasing town -wide revenues
TPT
STATE SHARED REVENUE
ENVIRONMENTAL FUND
Mr. Pock said that the Town's case regarding the environmental fund is being watched by many
municipalities around the state. As of December 31, the contractor gave the Town a list of
outstanding accounts. The Town has been contacting property owners, once it is verified through
the County records. They have no contract yet, They have identified a CPA in Mesa that charges
$4.50 per $36 collected. Mr. Miller said that they are looking at the state contract as well.
Mr. Pock said that there are 2,744 parcels that have paid in varying years; 607 parcels that have
Town Council Work Session of February 25, 2020 10 of 16
not paid anything for the four years. They are going after them first.
Discussion was held on whether this information could be publicized. Mr. Miller said that it might
be good for them to have an executive session on this issue. There were varying views on whether
this would be a good idea.
USER FEE STUDY
Brief discussion was held on the ability to ensure that transient vendors are paying sales tax. Mr.
Miller said that for the first time the cities and towns were able to use the letterhead from
Department of Revenue, which gets their attention.
COURT FEES
Court Administrator Victoria Ruess came forward and said that they have already collected more
than they did this time last year. She said that this is not all Town money. It also goes to the state,
and the county. There are certain things that are automatically a part of a fine. Ms. Ruess reviewed
the activity between September 9, 2019 and February 5, 2020. She said that it is difficult to
determine what portion is attributed to enhanced court collection efforts because it depends on
where they are at with what they owe.
Councilmember Spelich said that since he was the one that brought this up, he would like her
overall impression of how things are going. He said that the number might be low to some, but
they should take into consideration that there is on the job training for the first 30-40 days,
learning the court system. He said that he was disappointed with the numbers, but he is still
optimistic. He said that he has locked up people with outstanding warrants, and he asked the judge
for his impression.
Judge Melton said that they are early in the process with Rachel. As they go along, her efforts will
bear fruit.
Councilmember Scharnow said that last year they were supplied with some possible revenue
enhancements. He did not know if any of that was on the table for this year. Mr. Miller said that if
they have ideas for exploring further, they can bring that back at a later time. He said that they did
some analysis and looked into a primary property tax. That is something that would have to go to
voters, and they are not ready for this year.
Mr. Miller said that one thing that has thrown them off is the public safety fee and environmental
fee case, which is in court. That type of methodology would be challenged at this point.
Councilmember Tolis said that they should be talking about this at a separate work session.
13. Review of current and future Capital Improvement Program projects
Public Works Director Justin Weldy began review of the Capital Improvements Program (CIP).
STATUS UPDATE
Panorama Storm Drainage Improvements
Mr. Miller said that he and staff met last months trying to identify capital funding, the status of all
current year projects, and what they will have left over. The good news is they found money to
make these improvements happen. For this year they have set aside design for the project for
Town Council Work Session of February 25, 2020 11 of 16
$97,000. They will probably see that contract come before them soon.
Mr. Weldy said that it would probably be around 90 days with the restoration. There is $400,000
from the environmental fee going toward this project. Mayor Dickey said that it would be good to
have this done during the summer when there are not so many residents.
56053
Mr. Weldy said that there were some complications with this project, and it was cancelled because
the necessary change orders exceeded the 10%. Due to federal funds received, ADOT was
obligated to cancel the project. He said that ADOT has just finished negotiating a settlement with
the contractor. When the Town gets the final numbers from ADOT staff will bring this back to
Council.
Mr. Miller said that this is a shovel -ready project. They did the design initially, but when they
realized the power lines and dry utilities were not where they were supposed to be, they stopped
the project. He said that they are going to get some firm numbers and he would like to get this
started this summer.
FY19/20 CAPITAL PROJECTS
Mr. Weldy said that at the end of FY20 they will have around $3.9 million as the ending balance.
Based on the Town's policy, half of those proceeds goes back into the CIP.
PROPOSED FY20/21 CIP
D6047
D6057
D6058
D6059
F4035
F4036
56058
Mayor Dickey asked how this relates to what was done the other night. Mr. Weldy said that they
will use the information approved the other night to request money with future Prop 400 and Prop
500 funding.
Councilmember Tolis asked if the corner of Shea and Fountain Hills Blvd. will be eliminated which
this project moves forward. Mr. Weldy said that it will not displace anything outside of the
right-of-way. They will just be adding one additional lane.
56061- Sidewalk Infill Program
S6062 - AOTF & Verde River Intersection
56063 - Palisades Median Landscape Improvements
Mr. Weldy said that he reached out to a well -respected landscaping company, but their bid was
not reasonable. He and Mr. Miller worked to determine the needs and what could be done. They
have put this in as a multi -year project where the first year they would reestablish and rehab the
irrigation and then each year work on the vegetation. They are anticipating $150,000 going toward
the first year. After further discussion, it was consensus of Council that while it would be nice to
have them beautified throughout town, at this time they just need to be cleaned up and have
decomposed granite replaced where it is gone. Mr. Miller said that when they come back with the
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CIP, they will see this looking different.
56064 - Desert Vista Park Crosswalk
Mr. Weldy reviewed this proposal. Discussion was held on whether this was the best location, or if
it could be done differently, such as under the roadway. He said that as it moves forward they will
look at all of the safety aspects. They would probably recommend a flashing beacon and it would
be illuminated at night. He clarified that this cost was for design only.
Councilmember Brown left the meeting at this time (1:57 p.m.)
T5005 - Palisades Blvd. and Eagle Ridge/Palomino Drive
Mr. Weldy said that this cost is just for the design. It will also help them understand the total cost
for construction in the future. Councilmember Tolis asked if this would be recouped from the
Copperwynd expansion. Mr. Miller said that it would include their prorata share of 20 or 25%, but
that is only if Phase 3 is built.
P3033 - Video Surveillance Cameras
Community Services Director Rachael Goodwin continued the presentation, noting that this was
for continuing their efforts at Four Peaks Park. This year the will have the bathroom renovation.
Next year they will continue the sidewalk and dugout, and include shade areas.
P3042 - Fountain Lighting Replacement
Ms. Goodwin said that they will see some photos later, but there are a number of lights that
illuminate the fountain at the base and on the shoreline and most of those lights are out. There is a
need to upgrade those. Most are dated and inconsistent with their goals as a Dark Sky community.
They would like to look at LED lighting and revamp the existing night visibility.
Councilmember Magazine said that he bumped into Ted Blank who said the experiment with the
painted bollards was very successful in terms of reducing glare.
P3045 - Four Peaks Park Playground Parking Lot
Ms. Goodwin said that this would provide additional accessible parking spaces at the facility.
FY20/21 CAPITAL PROJECTS
Mr. Weldy said that the total funding for these projects was $4.9 million, with a projected ending
capital fund balance of $784,000 if all were approved. He said that these costs do not include staff
time. The majority of this is design, construction, implementation, acquisitions.
Brief discussion was held on an item listed later on the agenda about the CIP and review of its
projects. It was agreed that staff would provide a quarterly report to the Council on the status of
CIP projects.
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FY19/20 VEHICLE REPLACEMENT
Mr. Weldy said that this is what was set out in the budget for the year. Working with Community
Services staff they were able to reduce the costs of some of their vehicles requested to get an
additional vehicle.
FUTURE CIP
22/23
23/24
24/25
Mr. Miller said that they were going to have a workshop just on the CIP. He said that they were
going through a process right now with the Pedestrian Safety Committee to discuss grant funding
through MAG. They are trying to get the small ones, like sidewalk infill, addressed sooner. Mr.
Weldy said that they have applied for and believe they are in a great position to receive such grant.
Mayor Dickey said that she saw the Pumphouse Replacement item. Ms. Goodwin said that it would
not be the structure, but rather replacement of the mechanisms within the pumphouse.
14. Review of current and future Facilities Replacement Program projects
Mr. Miller said that back in FY14/15 when Ken Buchana was Town Manager, they had a study done
that identified all of the different assets in Town and when they needed to be replaced/repaired.
They set aside so much money a year, and they identified $1 million a year to adequately save for
these items. They have not been able to do much more than $500,000 to $600,000 a year.
FY19/20 IN -PROCESS PROJECTS
Mr. Miller said that they have been working on the balcony repair at Town Hall, which was leaking
into the judge's chamber below. He said that after the projects this year they are estimating a
year-end balance of $1.2 million and after the proposed FY20/21 projects an estimated
year -ending balance of $1.1 million.
15. Review of fund balance classifications, current reserve policies, and suggested updates
Mr. Polk continued the presentation.
FUND BALANCE CLASSIFICATIONS
RESERVE POLICY - RAINY DAY FUND
Mayor Dickey asked if the Town made interest on this fund. Mr. Polk replied absolutely.
ASSIGNED FUND BALANCE
TRANSFER OF EXCESS REVENUES
Councilmember Magazine said that he would caution against prepaying Town debt. Mr. Polk said
that under the new IRS rules, the last tax packages, there is no refunding being allowed.
UNINTENDED CONSEQUENCES
PROPOSED REVISIONS
Mr. Miller said that he thinks it was a good policy at the time, prior to them having these
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replacement funds, but once the funds were established, they should have revised the policies. Mr.
Polk said that this does move $1.5 million into unassigned funds. He said that once they revise the
policy they wil bring it back to Council for formal adoption.
16. Discussion regarding a proposed Fountain Park Infrastructure and Maintenance Assessment
Ms. Goodwin said that there has been a lot of discussionabout the fountain and the lake, with it
turning 50 this year. The lake liner is turning 20 and its maintenance needs to be looked at. She
then showed pictures of the current condition of the fountain, its corrosion and standard wear and
tear.
THE FOUNTAIN, LINER, AND LAKE
THE LAKE LINER
Ms. Goodwin said that the current liner was the second highest quality of liner manufactured at
that time. The only higher quality goes into nuclear power plant storage. She said that they have
started down the path of looking at the CIP and one they get the idea of when, where and how
that research would go much deeper.
AN ENGINEERING ASSESSMENT
Ms. Goodwin said that while they have located historical data from the last time this was done,
they do have some unknowns. She said that it is a special project, and there are not a lot of
comparisons. They reached out to two firms to get an idea of what they were looking at. She said
that one of the firms was the one that did the project back in 2000. She said that the two firms
were Black & Veach and HDR, which are both national level firms.
Mr. Miller said that time is of the essence. This is the 50th anniversary. He does think this is the
namesake of their community and with it being the 50th anniversary, there is a lot of momentum
to get an idea of costs and get it referred to the Town in November. Ms. Goodwin said that they
cannot afford to not have some sort of plan in place.
Councilmember Tolis said that he would agree that this is something they need to get focused on.
He would hope that in any proposal they would have a lot of public participation as to what their
visions may be for Fountain Park. It is not just fixing the liner; it is due for a reimaging of the Park
in many aspects.
Councilmember Scharnow asked when they were going to be discussing the Pavement
Management Plan. Mr. Miller said that they are trying to get that scheduled at a regular meeting
with a very light agenda. He said that he would like to do what happened last time. They would
have a citizen committee to study and evaluate the proposed plan and come back with their
findings as to a number of what should be bonded for streets.
Councilmember Scharnow asked if the study would include review of the soil conditions. Ms.
Goodwin said that they could add that to the scope. They do think tht the water quality in the
future will affect the soil. Mr. Miller said that storage is going to be absolutely critical. They do not
want to have a loss of all of the vegetation.
Mayor Dickey said that they had an opportunity to get the sanitary District intricately involved in
this and the storage part is important. She said that they have some knowledge now. To
Councilmember Tolis's point, perhaps there is a way to mitigate some of the issues at the park.
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Councilmember Tolis said that they have talked in the past about engineering an entrance off of
Avenue of the Fountains, making it more pedestrian friendly. He said that they are paying off two
bonds; now they could potentially go to the voters and ask them to pass a park improvement bond,
which would have a minimal effect.
Mayor Dickey said that the challenge is that they have an everyday infrastructure and as they go
forward they need to make sure that if they put off bonding for streets that they are addressing the
$3 million question per year. They need to show a lot of repsonsiibility and make sure that people
are engaged and seeing everything for the next five years. Councilmember Magazine said that they
need to do bonds for 20 years and not 5, as was done in the past.
17. Discussion of Arizona State Retirement (ASRS)
Mr. Trimble said that they wanted to bring forward the discussion of looking into having the Town
join the Arizona State Retirement (ASRS) system. He said that when the Town was first
incorporated the decision was made to not opt into the ASRS system. They have found over the
years that it is becoming a deterrent in trying to recruit employees, especially for those that
already have years in with the ASRS.
Mr. Miller said that during the last five years they have been able to do parity with benefits. He
said that he wanted to be clear that this is not the Public Safety Personnel Retirement System.
Mr. Trimble said that what they are requesting today is if the Council supported us moving forward
with researching this further, and meeting with employees for their input. If it is not popular once
that is done, then they would stop there. Councilmember Spelich said that he was all for giving the
Town employees whatever they want within reason, but he would caution them to look into this
greatly. He said that the cost of healthcare with ASRS is outrageous. Mr. Miller noted that with the
current system, there is no healthcare available at all.
Mr. Miller said that he was hearing consensus to at least pursue researching this. He said that they
want to get the employees the factual information.
18. Discussion of Proposition 500 and its impact on Fountain Hills and the region
Mayor Dickey said that they would not be discussing this now as the Council will receive a
thorough presentation from ADOT at their March 3, 2020, meeting.
19. Review and Consider Changes to Town Council Prioritization Process for Projects Contained in the
Capital Improvement Program
Discussed earlier in the meeting.
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20. ADJOURNMENT
The Work Session of the Fountain Hills Town Council held February 25, 2020, adjourned at 3:10 p.m. Staff
was thanked for their work in preparing for the session and the audience was thanked for attending.
I f <ePdl Ril 2 ril11L y /_W L' 11110
Gin 0ickey, Mayor
ATTEST AND PREPARED BY:
lizrurke, Town C er