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HomeMy WebLinkAbout2021.1207.TCRMWS.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE COMBINED REGULAR MEETING/WORK SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL DECEMBER 7, 2021 1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE — Mayor Dickey Mayor Dickey called the Regular Meeting of the Fountain Hills Town Council held December 7, 2021, to order at 5:30 p.m. and led the Town Council and audience in the Pledge of Allegiance. 2. MOMENT OF SILENCE A Moment of Silence was held. 3. ROLL CALL—Mayor Dickey Present: Mayor Ginny Dickey; Councilmember Mike Scharnow; Councilmember David Spelich; Councilmember Gerry Friedel; Councilmember Sharron Grzybowski; Councilmember Peggy McMahon; Vice Mayor Alan Magazine Staff Town Manager Grady E. Miller; Town Attorney Aaron D. Arnson; Town Clerk Present: Elizabeth A. Klein 4. REPORTS BY MAYOR, COUNCILMEMBERS AND TOWN MANAGER Mayor Dickey stated that she was removing item 7J from the Consent Agenda and it would be the first item under the Regular Agenda. Mr. Miller gave an update on the Town's COVID policy, noting that he and staff, along with the Mayor, have been meeting periodically to review numbers and as of January 1, 2022, the signs at Town facilities will now recommend masks, rather than require them. He said that they will continue to monitor the numbers and this could change in the future. Councilmember McMahon said that she attended the Thanksgiving Parade; it was fun having the Council together, and there was a good turnout. She said that her Leadership Academy class worked on the poinsettia tree on the Avenue and she also attended the Stroll in the Glow. She attended a Maricopa Association of Governments (MAG) Economic Development Council meeting. She said that Phoenix is the fifth largest city in the country and the economic outlook for Maricopa County is great. Councilmember Friedel said that he attended a MAG Domestic Violence Council meeting and viewed the Arizona Points which allows for electronically-submitted information and cases. He said that he would like to see if they could place a link to the site from the Town's website. He also attended the Stroll in the Glow and it was great to see everyone out there. He attended a few Chamber events, and also the Leadership Academy Graduation. Combined Regular Meeting/Work Session of December 7, 2021 2 of 18 Councilmember Scharnow said that he was involved in the parade and the new route was well received. He said that he had seen some posts on social media about there being less lights this year on the Avenue of the Fountains, compared to last year. He said that some of the lights had been moved over to Centennial Circle and, also, last year they had paid for extra lights in honor of the 50th anniversary of the fountain and 30th anniversary of incorporation. He said that the Noon Kiwanis held their annual Breakfast with Santa, cosponsored with the Town of Fountain Hills. Councilmember Spelich said that he missed the parade this year as he was scuba diving and having lobster instead of turkey. He said that his father was a pilot in the Navy assigned to Pearl Harbor. On this date, he asked everyone to remember all the brave people they lost on that day. Councilmember Grzybowski said that she also attended the Leadership Academy graduation, and if anyone was interested in attending the class next year the applications should be out in late spring. She also attended two east valley meetings--Economic Vitality and Transportation/Infrastructure. She also helped with the Turkey Trot t-shirt pick up and was able to attend Part Two of a recent GPAC meeting. Mayor Dickey said that she was glad that Councilmember Grzybowski was able to attend the one session. Mayor Dickey said that she attended a MAG Regional Transportation meeting where they approved the Prop 400 County transportation draft plan and ARPA Investment, including a report on enabling legislation. She also was part of Career Day with Mrs. Male's middle school class, where students practice how to interview for jobs. She said it was fun meeting the kids and hearing about their hopes and plans. She attended a River of Time Museum board meeting, and wrap up of their exciting year. She said that more and more activities in a week or two are reflective of community life in general: the Chamber had a grand re-opining, families and friends gathered for the Turkey Trot and the Thanksgiving Parade. It is not often you get to light the Menorah and launch a Stroll in the Glow, then meet a WWII pilot at the Pearl Harbor Memorial within days of each other. Mayor Dickey said that they marked the passing of Joe Goyena, a man and family that are woven into the fabric of the community, who will forever be a part of it. A. RECOGNITION: Stellar Students of the Month for November Mayor Dickey read the names of each of the Stellar Students of the Month for November 2021, and what was written about each of them from their schools. They are: Isabella Cruz Lopez McDowell Mountain Elementary School Abe Socher McDowell Mountain Elementary School Mia Garcia Fountain Hills Middle School Ian Elliott Fountain Hills Middle School Combined Regular Meeting/Work Session of December 7, 2021 3 of 18 Lindsey Eminhizer Fountain Hills High School Ayden Nguyen Fountain Hills High School Each student was presented with a certificate and letter and a group photograph was taken. B. RECOGNITION: Award from the Arizona Parks and Recreation Association for Youth Program. Adam Robinson, representing the Arizona Parks and Recreation Association, and Recreation Manager for the Town of Queen Creek, came forward. He said that over the last few years, the public has seen the benefit of parks and recreation programs. This award is a highly-competitive category. Normally they would have a banquet during the annual state conference, but because they were unable to do that this year they wanted to present it at a meeting. A short video about the program was watched. Mr. Robinson then presented the Outstanding Sports Program Award to Kade Nelson for the program Return to Recess. Mr. Nelson expressed his appreciation to their community members as it was a team award. He said that many wonderful hands played a part. He said that the essence of the program brought together experts in different types of sports to lead kids in different activities and Stephanie Beck was their instructor, disciplinarian and fun-maker. He then introduced each of the community members that assisted with the program and those present came forward for a photo: Disc Golf Club, Fountain Hills Little League, Fountain Hills Soccer Club, Brilliant Victory Skateboards, Fountain Hills High School Sand Volleyball Team, and the Pickleball Club. 5. SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS A. PRESENTATION: Monthly Update by Captain Larry Kratzer with Maricopa County Sheriffs Office Captain Kratzer reported that with winter residents returning, they have had more vehicle accidents. He said that they recently participated in the Leadership Academy and this year they brought out one of their EOD robots and one of their larger drones used for a variety of things. He reported that last year their School Resource Officer, Mike Gross, retired and they are transitioning a new one. She was a prior teacher before joining law enforcement and she will be sent to become nationally certified. She also attends the Drug Coalition meetings. Captain Kratzer said that with recent crime trends, he would encourage residents that if they see something, to call the nonemergency line. Last night the water dispensers at a few stores were broken into, which is similar to activity happening in other communities. Also, there is a trend for stealing of catalytic convertors. He said it is costly to replace them at $1,000 to $5,000. They are being stolen for the precious metals used in making them. He said there are a few ways to not be a victim such as parking in a well-lit or high-traffic area, and etching the VIN# on their catalytic converter. Councilmember Scharnow asked if a car owner would know right away if their catalytic convertor had been stolen. Captain Kratzer said that they would. The exhaust will be quite Combined Regular Meeting/Work Session of December 7, 2021 4 of 18 loud; they will know right away. Councilmember Spelich said that while they were out of town his friends staying at his place set off the alarm and MCSO arrived. 6. CALL TO THE PUBLIC Pursuant to A.R.S. §38-431.01(H),public comment is permitted(not required)on matters NOT listed on the agenda.Any such comment(i)must be within the jurisdiction of the Council, and(ii)is subject to reasonable time, place, and manner restrictions. The Council will not discuss or take legal action on matters raised during Call to the Public unless the matters are properly noticed for discussion and legal action.At the conclusion of the Call to the Public, individual councilmembers may(i)respond to criticism, (ii) ask staff to review a matter, or(iii)ask that the matter be placed on a future Council agenda. Ms. Klein reported that one written comment card had been submitted by Sharon Ehrlich asking that the mask requirement be kept in place. 7. CONSENT AGENDA ITEMS All items listed on the Consent Agenda are considered to be routine, noncontroversial matters and will be enacted by one motion of the Council.All motions and subsequent approvals of consent items will include all recommended staff stipulations unless otherwise stated. There will be no separate discussion of these items unless a councilmember or member of the public so requests. If a councilmember or member of the public wishes to discuss an item on the Consent Agenda, he/she may request so prior to the motion to accept the Consent Agenda or with notification to the Town Manager or Mayor prior to the date of the meeting for which the item was scheduled. The items will be removed from the Consent Agenda and considered in its normal sequence on the agenda. MOVED BY Vice Mayor Alan Magazine, SECONDED BY Councilmember Mike Scharnow to approve the Consent Agenda Items 7-A through 7-K, except 7-J. Vote: 7 - 0 Passed - Unanimously Mayor Dickey stated that Item 7-J had been removed from the consent Agenda and would be discussed first under the Regular Agenda. A. CONSIDERATION AND POSSIBLE ACTION: Approval of the minutes of the Special Meeting of November 16, 2021; and the Regular Meeting of November 16, 2021. B. CONSIDERATION AND POSSIBLE ACTION: Approval of budget transfers for the General Fund and Capital Projects Fund. C. CONSIDERATION AND POSSIBLE ACTION: Approving the 2022 Town Council Meeting Dates and Summer Break. D. PUBLIC HEARING, CONSIDERATION AND POSSIBLE ACTION: Approval of Liquor License Application for Batchelor's Pad BBQ, located at 13407 N. La Montana Drive, Fountain Hills, Arizona, for a Series 12 (Restaurant) license. E. CONSIDERATION AND POSSIBLE ACTION: Approving a Map of Dedication for Keystone Fountain Hills. Combined Regular Meeting/Work Session of December 7, 2021 5 of 18 F. CONSIDERATION AND POSSIBLE ACTION: approving a Special Event Liquor License application for the Fountain Hills VFW Post 7505 for a second location beer garden in conjunction with the Fountain Festival of Arts and Crafts on February 25, 26, and 27, 2022 G. CONSIDERATION AND POSSIBLE ACTION: approving a Special Event Liquor License application for the Fountain Hills VFW Post 7505 for a beer garden in conjunction with the Fountain Festival of Arts and Crafts on February 25, 26, and 27, 2022 H. CONSIDERATION AND POSSIBLE ACTION: approving a Special Event Liquor License application for the Fountain Hills Community Services for a beer garden in conjunction with the Music Fest on April 1 & 2, 2022. I. CONSIDERATION AND POSSIBLE ACTION: Resolution 2021-37 Adopting the Youth Field, Court, and Sport League Fee Waiver Policy. J. CONSIDERATION AND POSSIBLE ACTION: Approval of Amended and Restated Employment Agreement between the Town of Fountain Hills and Grady E. Miller. The following individuals addressed the Town Council in opposition to approval of this item: • Bridget Biermann • Mark Biermann • Brenda Kalivianakis • Ronald Bredemann • Liz Gildersleeve Comments received included: • Are we being fiscally responsible? • Is this a COLA given to all staff? If not, what message are they sending to the rest? • We have heard that the Town Manager is looking for work elsewhere. • With a downturn in the market due to COVID, can they justify this increase? • She is not saying that he is not a great guy. • Over the last 30 days of talking to people, as he runs for Council, one of the big topics is transparency and what is happening. Looking at the agenda, this was not exposed to the public. • He has no qualms with Mr. Miller; they are in Rotary together. • If someone is doing a great job, they should let the world know. • Everything comes down to communication. • From what she understands, employees will get a 3.5% raise and then they are adding another 17% raise to Mr. Miller. • The optics are terrible. • She has spoken to numerous people and no one had heard about it. They expressed outrage with such a lavish increase, and they said that government seems to be out of touch. • Small towns need to limit spending. • His current salary is 298% of the average salary. • Roads need repair. • A raise was in order, but this raise is excessive. Combined Regular Meeting/Work Session of December 7, 2021 6 of 18 • Does not know him personally, but in seeing how it compares with other cities, he is being tremendously overpaid and the position itself probably does not deserve someone of that nature. • Taking the number of residents in each city and dividing that into the pay, this dollar amount is excessive. • Going from $154,000 to $180,000 for a base salary seems generous. Her estimation of his other benefits total $250,000. • Why does he need a $600/month car allowance? Cell Phone, Retirement, Insurance, Vacation/Sick Days and 80 hours of annual management leave. • On top of that, vacations, reimbursement of travel expenses, professional membership, and a six months severance package if terminated without cause. • The relationship between the Town Manager and Mayor are too cozy. Ms. Klein then read the names of those submitting written comments in opposition to the increase: Gary Hoger, Richard Belanger, Richard Rutkowski, Todd and Linda Schwaba, Crystal Cavanaugh, Larry Meyers, Wayne Montefour. Deputy Town Manager/Administrative Services Director David Trimble said that pursuant to Mr. Miller's contract, they generally have an annual performance review, focusing on four areas: achievement, personnel management, fiscal, overall management. He said that individuals review forms were distributed to Councilmembers by the attorney's office and then an executive session was held to review and discuss. They held another executive session to discuss salary for the purpose of making a market salary adjustment, after which they came to consensus and directed Mr. Arnson to prepare a contract to be voted on by the Town Council. During this discussion the Council was provided some materials that reflect comparable salaries throughout the Valley and the State of Arizona and that is what guided the discussions, and the material was provided by the League of Arizona Cities and Towns. Mayor Dickey said that the evaluation is something they do in executive session and they have been trying to figure out what they can and cannot say. With regard to the item being on the consent agenda, sometimes it is routine and she was in the routine mode. She is glad that it was taken off; it was an oversight. Vice Mayor Magazine said that he had no idea where the public got their numbers. Councilmember Spelich asked, in their research, what cities/towns pay their employees a stipend for not taking health insurance. In all of his years, Chicago did not compensate him for not taking it. Councilmember Scharnow asked how much it would have cost the Town if he had taken the Town's insurance. Mr. Trimble said that he was not sure of the exact amount, but single coverage only is over $1,000 per month. Councilmember Scharnow said that, in general, when they did their reviews, all four major categories he scored high on all based on a point system. He equates it to a CEO position in the private sector. He feels that Mr. Miller does a tremendous job dealing with all levels in how he does his job. When he was first hired as Administrative Services Director, the town manager at that time was making less because he knew he would be retiring. When Mr. Miller took over for him, it was already lower than comparable-sized towns and that was another factor. Combined Regular Meeting/Work Session of December 7, 2021 7 of 18 He said that he did not think it was fair to compare him to comparable positions in other states, as some are not doing as well as Arizona. It is a more fair and better comparison by looking at the salaries in Arizona. He said that another issue is that the Town is next to larger communities, and they have had to raise the salary ranges in order to keep good employees. He wants to keep Mr. Miller; he is doing a great job. With regard to communication and transparency, they do the reviews in private and come out and vote on a contract. They are not hiding anything, and he was not quite sure what that was all about. Vice Mayor Magazine said that one of the speakers said that if Mr. Miller was doing such a great job they should let the world know. January 1 will begin his 16th year in elected office over two jurisdictions. He has worked with seven managers, county and town, and everyone of them did a good job. Mr. Miller stands out above all of them. He said that Mr. Miller is incredibly responsive to the Town Council and citizens. There are many other cities/towns in the valley that would love to have him as their manager. Councilmember Grzybowski said there was a comment that a rumor was going around about him interviewing for other jobs. As a white-collar worker, if they are not out there at least once a year, they will fall behind in their interviewing skills. She had no problem with that if it was going on. Councilmember Spelich said that when he was elected he ran as a fiscal conservative. He started in 1990 with Cook County, went onto a smaller municipality, and then Chicago. In his entire career he has never gotten a 20.5% pay raise. He said that there is no personal slight against the Town Manager, although he has done things he does not agree with. He asked if anyone in the room would think that a $155,000 (with $13,000 in stipends) would be an average salary. He said that he would be doing cartwheels if he made that type of money. And, now they are looking to raise that amount to $180,000. He said that they recently received $2.9 million from the Cares Act. The last meeting they made a budget transfer of $3.8 million. If it was not for those, the Town would be hurting. Just because they are flush with cash now does not mean they will be in the future, and this is not a one-time expense. Roads are in disrepair. He said that they gave other employees a 3.5% increase, and he asked what tone that sets for them. He said that he has the ability to find a job elsewhere if he does not like Fountain Hills, but he chooses to stay. He said that he is vehemently opposed to this, and he was not able to attend the discussions in executive session. He never would have gone along with this if he had. When he arrived back in town and saw this on the consent agenda, his head exploded. It should have been on the regular agenda. Mayor Dickey said that this is a 16% increase. Councilmember Spelich said that he will be getting another 3.5% in January when everyone receives their increase. Mayor Dickey said that a lot of the accomplishments across all levels are a result of the staff and directors doing amazing jobs under Mr. Miller's leadership. The staff relationship was part of their evaluation. She said that it is natural for everyone to not be happy with their supervisor all the time, but with their accomplishments happening in town, under his leadership staff is doing well. Additionally, some of those other communities are part of the Arizona Statement Retirement System, which Fountain Hills is not, and it is difficult to get people to come here who are part of that system. She said that the other benefits are not extravagant and none are being altered. They have a close working relationship with him, and he is on call 24/7. Combined Regular Meeting/Work Session of December 7, 2021 8 of 18 Councilmember Friedel said that everyone sitting at the dais knows how he feels about lump sum adjustments being tied to performance. The optics of a $25,000 bump are not justifiable. He said that in his 45 years in the private sector, no one had a car allowance, or a 16 or 17% raise. He said that he has a hard time swallowing this, although he does deserve a raise. Mayor Dickey said that other town managers have car allowances. They need to compare apples to apples; he does not have a golden parachute. Councilmember Scharnow said that his previous comment was not to suggest that the position should be compared to a CEO, but rather the structure of the organization itself. He said that if they talk to cities/towns across the state, turnover rate for managers is very high. Mr. Miller has been here a number of years and they want to keep him. Looking at Fountain Hills and the cost of living, it is also high in Paradise Valley and Sedona. Additionally, he attends a lot of regional and manager meetings; he is not just driving to work and back. He said that it is true that they had federal funds being injected, but businesses in general are recovering and sales tax revenues are up. Even without the federal funds, he believes they are in a healthy position. The roads will need millions of dollars, and a committee has been established to bring back options for consideration. With regard to an increase being tied to performance, he said that Mr. Miller's is. Mayor Dickey added that the Council made a purposeful decision to not use any of the federal dollars for ongoing expenses. They transferred those funds for capital projects such as the lake liner, etc., which are one-time expenses. Councilmember McMahon said that Mr. Miller encourages growth and dedication of staff and it has been reflected in the awards being received. The parks have improved over the last years. She said that Mr. Miller serves with grace and works 24/7; his dedication is unbelievable and they need to keep him. Councilmember Magazine said that he did not know where some of the information comes from. Even if they do not have car allowances in the private sector, 20 years ago he received a brand new Mercedes and BMW, and gas and insurance was taken care of. MOVED BY Vice Mayor Alan Magazine, SECONDED BY Councilmember Peggy McMahon to approve the Amended and Restated Employment Agreement Between the Town of Fountain Hills and Grady E. Miller. Vote: 5 - 2 Passed NAY: Councilmember David Spelich Councilmember Gerry Friedel K. CONSIDERATION AND POSSIBLE ACTION: Adoption of Resolution 2021-38, abandoning the 1 Foot Vehicular Non-Access Easement along a portion of the south side of 15835 E. Firerock Country Club Drive. Combined Regular Meeting/Work Session of December 7, 2021 9 of 18 8. REGULAR AGENDA A. CONSIDERATION AND POSSIBLE ACTION: Acceptance of public art concept for Casas Del Lago Apartments. Community Services Director Rachael Goodwin said that Casas Del Lago, a 23-unit apartment rental community, located at 16655 East El Lago Blvd is subject to the Town of Fountain Hills Public Art requirement. Casas Del Lago is required to either make a financial contribution to the Public Art Program of 0.75% (three-quarters of one percent) of the total construction cost, or an art installation of equivalent or greater value. In lieu of paying the public art fee, the developer has opted to install public art on the property that adheres to the guidelines of the Public Art policy, including public access and 24-hour visibility. The piece will be located on the corner of El Lago Blvd at Verde River Drive. The construction cost is estimated at $3,500,000 of which $26,250 represents the value of 0.75%. The proposed art installment is entitled "Movimento Organico" and was created by artist Luigi Cantone and has an estimated value of $27,000. The additional cost of delivery and installation once completed will be borne by the developer. The installation of the piece is required before a Certificate of Occupancy can be issued. The proposed art concept has been reviewed and approved by the Public Art Committee. MOVED BY Vice Mayor Alan Magazine, SECONDED BY Councilmember Sharron Grzybowski to accept the public art application for the sculpture and authorize it to be installed at the designated location at Casas Del Lago Apartments. Vote: 6 - 1 Passed NAY: Councilmember David Spelich B. CONSIDERATION AND POSSIBLE ACTION: Adoption of Resolution 2021-36 approving the Fountain Lighting Policy. Ms. Goodwin said that in 2020, new LED color changing lights were added to the fountain in Fountain Park. These lights have been well received by the public and staff regularly receive requests to change the colors to celebrate holidays, personal milestones, anniversaries, birthdays, etc. Due to the nature of these requests, a policy has been developed to determine guidelines for when and how the fountain lights will be used. The fountain lights require manual programming, generally overseen by Parks staff. When display colors are changed, staff time and presence are required to begin and end the display period. Currently, the lights cannot be changed remotely or through virtual or cloud technology. Visibility of the lights is limited to evening hours, therefore viewing times vary seasonally as colors are not detectable during daytime hours. Councilmember Scharnow asked if they calculated the cost of having staff there. He said that he did not want to gouge anyone, but they should cover the costs. Ms. Goodwin said that at this point they are not recommending a fee. She said that the policy, as presented, minimizes the amount of staff time. Combined Regular Meeting/Work Session of December 7, 2021 10 of 18 Vice Mayor Magazine said that this requires more staff time, and he does not see the need for a policy. Councilmember McMahon said that she feels it will dilute the uniqueness of the fountain. Ms. Goodwin asked if there were a number of times per month that Council would be comfortable with, or there was the option to allow staff only to determine when colors change. Further discussion ensued and it was agreed that it should be limited to holidays and recognized causes, reducing the number of runs in a month. Mr. Miller said that it sounds like staff is close to what the Council is wanting, and suggested that they bring it back for action some time in January. C. CONSIDERATION AND POSSIBLE ACTION: Ordinance 21-20 providing penalties for violation of Town Code Article 8-6, Vacation Rentals. Development Services Director John Wesley said that in January 2021 the Town Council approved an ordinance establishing Article 8-6 of the Town Code. This Article provides basic requirements and regulations as allowed by State Statute regarding the registration and operation of vacation rentals. Since the adoption of this ordinance, staff has been working to notify known owners of rental properties to provide the contact information required by the ordinance if the property is being operated as a short-term rental. To date, the town has received registration for 80 properties. It is estimated there are over 200 such properties in Fountain Hills. Staff meets periodically to review efforts to enforce the requirements and determine if there are additional steps that can be taken to help mitigate the impacts of this use in the community. During a recent meeting on this topic, it was noted that the ordinance adopted by Council last January did not include any penalty provisions. Therefore, as a default, any violation would be considered a civil penalty. Staff determined this would be an appropriate penalty for a person who fails to register a rental property and provide the contact information, but that it would be more appropriate to make it a criminal penalty for violation on the use of the property. Councilmember Spelich said that he has had people tell him they were having a hard time registering their properties. Mr. Pock said that the Town's registration is a simple on-line form. He would guess that anyone having a problem is working on the Department of Revenue's website. Councilmember Spelich suggested that they make sure the process is working and publicize it on social media, with a step-by-step process, and let everyone know when penalties will be enforced. Mr. Pock said that the steps taken by Finance have been informational; this is not connected to the business license process. Mr. Miller noted that the Town does not charge a fee. Mayor Dickey said that there was a recent article about Paradise Valley, and the experiences they have had. Combined Regular Meeting/Work Session of December 7, 2021 11 of 18 MOVED BY Councilmember Mike Scharnow, SECONDED BY Councilmember Sharron Grzybowski to adopt Ordinance 21-20. Vote: 7 - 0 Passed - Unanimously D. PUBLIC HEARING, CONSIDERATION, AND POSSIBLE ACTION: Ordinance 21-12, amending Chapter 18, Town Center Commercial District, and Chapter 25, Entertainment Overlay District, by adjusting and clarifying provisions for outdoor seating in the public right-of-way. Mayor Dickey opened the Public Hearing. Mr. Wesley said that staff initiated this request to amend the Town's Zoning Ordinance to adjust and clarify certain provisions in Chapter 18, Town Center Commercial District (TCCD), and Chapter 25, Entertainment Overlay District (EOD), regarding outdoor seating areas for food and beverage service in sidewalk areas within the Town's right-of-way (ROW). Currently, Chapter 25 allows outdoor seating in sidewalk areas in the Entertainment Overlay District (the north side of Avenue of the Fountains) with a Council-approved encroachment permit. The south side of the Avenue of the Fountains is zoned TCCD. This zoning district allows outdoor seating for dining, but not on sidewalks or in the ROW. The goal of these text amendments is to make the regulations on both sides of the street the same. Councilmember McMahon asked if they would make sure there was still room for pedestrians. Mr. Wesley replied that they would. Mayor Dickey closed the Public Hearing. MOVED BY Councilmember Gerry Friedel, SECONDED BY Councilmember Sharron Grzybowski to adopt Ordinance 21-12. Vote: 7 - 0 Passed - Unanimously A break was taken from 7:41 p.m. to 7:56 p.m. E. PUBLIC HEARING, CONSIDERATION, AND POSSIBLE ACTION: SPECIAL USE PERMIT to allow 17 residential units on a 1.62-acre property generally located north of the northeast corner of N. Saguaro Boulevard and E. Shea Boulevard (AKA 9637 N. Saguaro Boulevard; APN#176-10-805) on the C-1 (Neighborhood Commercial) zoning district. Senior Planner Tavassoli said that the 1.62-acre subject property, located north of the northeast corner of Saguaro and Shea Blvd., is vacant and zoned C-1 (Neighborhood Commercial and Professional). This zoning is established to provide a location for modest, well-designed commercial enterprises to serve the surrounding neighborhood, such as medical offices, banks, food establishments and retail. The subject property is part of the Redrock Business Center, which was originally platted in 1972 and re-platted in its current configuration in 1997. Currently, among other things, the center houses indoor car showroom, a fraternal order, a butcher shop and a wellness center. The Monterro condominium neighborhood is adjacent to the north, and the former MCO Combined Regular Meeting/Work Session of December 7, 2021 12 of 18 realty office is to the south. The applicant is proposing a small development with 5 townhome-style buildings consisting of a total of 17, two-story residential units.The bottom floors of each unit will contain a two-car garage, while the second floor contains the majority of the living area and balcony. The purpose for the special use permit request is to allow a residential use in a commercial district, as required by the zoning ordinance.The alternative would be to rezone the property to an appropriate multiple-family zoning district. The applicant has chosen the Special Use Permit option due to this lot being part of the larger business center. The primary ingress/egress will be off of Saguaro Blvd, with limited access from the interior of the Redrock Business Center. The applicant will maintain a 20-foot building setback from the Monterro condominiums to the north, which is the required building setback to a residentially zoned property, and will contain a landscaped open area. The applicant has provided building elevations to show facade treatment, wall articulation, and other modern architectural elements. Councilmember Friedel said that when the medical center gets built out it could create a traffic problem. Mr. Tavassoli said that a traffic impact statement will be required, to be reviewed and approved by the town engineer. Councilmember McMahon asked if the development could be requested to do the study prior to the Council approving the application. Mr. Tavassoli said that he believed it could be required; however, the property is already zoned for commercial uses and a number of uses could go in that would generate more trips. Vice Mayor Magazine asked if the developer was present. He said that there are two left-hand turns and he has real problems with that. Mayor Dickey opened the Public Hearing. She said that if this was C-1 commercial they would not have to do a traffic study. Mr. Miller said that was correct; they could have an In and Out come in without any traffic requirements being imposed, so this is potentially a better use. Councilmember Spelich said that this is going to be a bad nightmare. He is all for voting for things when he has all the information in front of him, but if they want this project to go through, they need to bring a traffic study. Vice Mayor Magazine said that he agreed. Councilmember Scharnow said that he also agreed. He asked staff if the applicant would have to redo the driveway if it was not done to code. Mr. Tavassoli said that it does look like it is deteriorating. Councilmember Grzybowski said that the recommendation by the Planning and Zoning Commission was for approval with the added stipulation that a traffic impact statement be done. She said that she does not know more about traffic impact statements than the Town's engineer. Mayor Dickey agreed. Councilmember Friedel asked if it was possible to have a right-turn lane only, and use Monterey to access Shea. Maria Pettit, Fountain Hills, said that she wanted to confirm that there would be a 20' setback from the wall between this development and the townhomes. Combined Regular Meeting/Work Session of December 7, 2021 13 of 18 Vice Mayor Magazine asked the developer if they would do the traffic impact statement first before the Council approved the application. Mr. Kirk Harr said that they have gone through the Planning and Zoning Commission and came to this meeting with the same requirement. If they get the Council's approval, then they invest the money on whatever is required. So, the answer is no. Ms. Dori Wittrig, Fountain Hills realtor, said that Mr. Harr has an amazing story. He moved here from the Pacific Northwest where he was a homebuilder of affordable housing with high quality. She said that this community also needs affordable housing and they cannot find land for it. They thought that 17 homes, with 17 families going in and out of the site, would be a perfect location. Currently in Fountain Hills today there are 54 homes on the market and only half of the 54 are affordable. There are 10 homes priced under $600,000 and of those the average is 1,209 square feet with a one-car garage. She said that this type of product is what the community needs and what the Town's Vision states. She did not understand their haggling. Ms. Wittrig said that their plan was to build homes, 1,650 sq. ft. with 3 bedrooms, 2 baths, two-story, at or just under the $500,000 price range. It is not the most affordable, but compared to what they have to offer it is. Vice Mayor Magazine said that he agreed with that. He is hung up on what could be a tragedy in the making. Ms. Wittrig said that the Town's Engineering Department recommended this. Mayor Dickey said that she liked the idea of moving ahead with the stipulation as recommended by the Commission. Mr. Arnson said that if a stipulation is not met there is a provision that talks about revocation, so they would not issue the building permits. He said that another section of the code does not preclude a continuance, but it does not expressly allow for one either. He said that the Council's options are, 1)approve as recommended; 2) impose other conditions, or 3) deny the application. Councilmember Spelich said that he was taken aback as being "haggling." If he is forced to make a decision without all of the information, it will be to deny. Councilmember Scharnow said that if they slid everything to the left and have the driveway be a right-hand turn only, it should work. Mr. Wesley noted that special use permits are good for six months. The developer has to get building permits within six months unless they obtain an extension. Vice Mayor Magazine asked, for the sake of discussion, if this was turned down and someone came in with a bank under C-1, what requirements would be placed on them. Mr. Tavassoli replied that they would come to Development Services with a formal site plan submittal which would go through various reviews, including the Town Engineer. Based on the Engineer's experience, he still has the capacity to require a TIS. Vice Mayor Magazine asked who would be responsible to provide the TIS if one was required. Town Engineer David Janover said that if there are any mitigating impacts, whether closing the median, left-turn pockets, or anything needed to improve the traffic, it would be the responsibility of the developer. Vice Mayor Magazine asked who would be responsible if it came back that a signal was needed. Mr. Janover said it would be up to the developer. After further discussion, Mr. Janover explained that regardless of whether a commercial Combined Regular Meeting/Work Session of December 7, 2021 14 of 18 application came in, or this application, at this site he would require a Traffic Impact Statement. MOVED BY Vice Mayor Alan Magazine, SECONDED BY Councilmember David Spelich to deny the application. Vote: 3 - 4 Failed AYE: Councilmember David Spelich Councilmember Gerry Friedel Vice Mayor Alan Magazine Mayor Dickey asked if this was approved with the stipulation, it would have to come back to the Council with an acceptable traffic mitigation plan. Mr. Miller said that the current stipulation is that the traffic impact statement go to the town engineer, but they could add that it come before Council if they preferred. Councilmember McMahon asked if there was any way to ask the Commission why they approved it, so they had a better understanding. Councilmember Grzybowski noted that the minutes of the last Planning and Zoning Commission were not available on the Town's website. Councilmember Scharnow asked if one of the recommendations could be to close the median completely. Mr. Janover said that may be a recommendation, however, the medical center uses it. But, they will look at different options. Councilmember Scharnow said that after all the discussion, he is comfortable with the recommendation presented by the Town Engineer. Mayor Dickey closed the Public Hearing at this time. MOVED BY Councilmember Mike Scharnow, SECONDED BY Councilmember Sharron Grzybowski to approve the Special Use Permit to allow residential uses at 9637 N. Saguaro Blvd for a maximum of 17 dwelling units, subject to the stipulations as recommended by staff and the Planning and Zoning Commission. Vote: 5 - 2 Passed NAY: Councilmember David Spelich Councilmember Gerry Friedel F. PUBLIC HEARING, CONSIDERATION AND POSSIBLE ACTION: Regarding Ordinance 21-18, amending Chapter 4 (Nonconforming Uses and Structures) and Chapter 10 (Single-Family Residential Zoning Districts) by adding new provisions for extensions to nonconforming structures on corner lots zoned for single-family residential use. Combined Regular Meeting/Work Session of December 7, 2021 15 of 18 Mayor Dickey opened the Public Hearing. Mr. Tavassoli said that over the past few years, staff has received several building permit applications for dwellings on corner lots with the additions being on the street-side yard of single-family homes (not along the front yard) in small-lot subdivisions. Many such permit requests were denied on the basis that the proposed extensions did not meet the required minimum street-side building setback from the property line. Often the existing residences were already built within the required setback of the street side yard. Such existing structures are often identified as a "nonconforming structure", which is defined by the zoning ordinance "as a structure which was lawfully erected prior to the adoption of[the current] ordinance but which, under [the current] ordinance, does not conform with the standards of coverage, yard spaces, height of structures or distance between structures prescribed in the regulations for the district in which the structure is located." The Town contains numerous nonconforming structures, and most appear to have been built prior to incorporation of the Town in 1990. Currently, the zoning ordinance requires that all extensions to nonconforming homes comply with the current development standards. Staff has observed that corner lots in the aforementioned zoning districts are not necessarily wider than interior lots. Thus, staff believes the required 20-foot street side setback creates a more restrictive building envelope, especially for owners of nonconforming homes who wish to build additions that are compatible with the exterior appearance, promote interior functionality, and positively impact property values throughout the neighborhood. Mayor Dickey closed the Public Hearing. MOVED BY Councilmember Mike Scharnow, SECONDED BY Councilmember Sharron Grzybowski to adopt Ordinance 21-18. Vote: 7 - 0 Passed - Unanimously G. CONSIDERATION AND POSSIBLE ACTION: Approving Amendment No. 2 to Professional Services Agreement 2019-079 with JE Fuller Hydrology & Geomorphology, Inc. This item was postponed to the next meeting. 9. COUNCIL DISCUSSION/DIRECTION to the TOWN MANAGER Item(s)listed below are related only to the propriety of(i)placing such item(s) on a future agenda for action, or(ii)directing staff to conduct further research and report back to the Council. 10. ADJOURNMENT MOVED BY Councilmember Gerry Friedel, SECONDED BY Councilmember David Spelich to adjourn. Vote: 7 - 0 Passed - Unanimously Combined Regular Meeting/Work Session of December 7, 2021 16 of 18 The Regular Meeting portion of the December 7, 2021, meeting adjourned at 8:55 p.m. WORK SESSION AGENDA 1. CALL TO ORDER Mayor Dickey called the Work Session portion of the December 7, 2021, meeting to order at 8:55 p.m. 2. PRESENTATION: Proposed Strategic Priorities and Supporting Tasks for inclusion in the major update of the Town of Fountain Hills Strategic Plan as recommended by the Strategic Planning Advisory Commission. John Craft, Chairman of the Strategic Planning Advisory Commission, came forward and introduced other members of the Commission that were present: Mary Edmond, Cynthia Magazine, Bernie Hoenle. Those not present were Vice Chairman Patrick Garman and Commissioners Chad Bernick and Gerard Bisceglia. Chairman Craft began a PowerPoint presentation to review the draft Strategic Plan, which addressed: TARGETED COLLABORATIVE ECONOMIC DEVELOPMENT PROMOTE LONG-TERM FINANCIAL SUSTAINABILITY OF COMMUNITY INFRASTRUCTURE, ENVIRONMENTAL AND SOCIAL RESOURCES Two-Year Budget - Discussion was held on whether the Town could even do a two-year budget cycle. Mr. Miller said that he was not keen on the idea as there are challenges with it. Councilmember Scharnow said that he was not opposed to studying the issue. Chairman Craft said that they did some research across the country with different-sized communities, and they do a mid-cycle refresh. Mr. Miller said that is one of the League priorities for this year's legislative session, to allow for amendments after a budget is adopted. Mayor Dickey said that she is concerned that the work to study the issue would take staff away from other more important items. Grant Writer - Mr. Miller said that staff believed that the new software in finance will help them with grants. Councilmember Spelich said that he had suggested a grant writing team be put together, but the reason it was shot down was the fact that when they ask for grants they need money to back up the grants. Mr. Miller said that this was coming from SPAC. Mr. Miller said that it depends on the grants; some are 70/30 splits and others may be 90/10. It depends on the nature of the grant. Councilmember Grzybowski said that they need to remember they have to build it into the budget. Mr. Miller said that the Finance Director does put in some contingency each year for the potential that they may get a grant. Councilmember Friedel said that there are also companies out there that will help write grants. Chairman Craft said that their reason for recommending a permanent grant writer was so they could be proactive versus reactive. Outsourcing - Mayor Dickey said that she likes the engagement of their own staff. Combined Regular Meeting/Work Session of December 7, 2021 17 of 18 Chairman Craft said that this was not to suggest they outsource across the board. IMPROVE PUBLIC HEALTH, WELL-BEING AND SAFETY IN COMMUNITY Vice Mayor Magazine said that he has been beating this drum for a few years, that they have a lot of resources and could be known around the Valley and the state as the leader in health and well-being. Mr. Miller said that when the plan comes back to the Council they will designate the "go to" individuals and apply dates on when things should be accomplished. He said that they talked the concept of branding, and that will be on the Council Retreat agenda. Chairman Craft said that part of the final plan is they will take each task and score its level of complexity. Some will take more time and effort, and they will build a timeline. MAINTAIN CURRENT INFRASTRUCTURE WHILE PREPARING OUR TOWN FOR EMERGING TRENDS THAT INCREASE PUBLIC SAFETY AND QUALITY OF LIFE Mayor Dickey said that they did the road study which addresses the aspect having to do with roads. She asked how the Active Transportation Plan falls into this. Mr. Miller said that this plan will take that to the next level. Chairman Craft said that they have a more comprehensive view in the final report and will be updated with a SWAT Analysis. Mayor Dickey said that they appreciated the presentation very much. Chairman Craft said that the reason they wanted to get this before the Council is to establish priorities at this point. Mr. Miller said that SPAC has done a great job. They are the Council's appointed body, so if that is what they want to do they will help make it happen. Mr. Miller said that for the first time ever SPAC came before the department heads for their input. Vice Mayor Magazine said that it would be helpful to the Town Council to know what things Mr. Miller does not agree with. Mr. Miller said that they have made some adjustments and he was 98% okay with the plan. 3. ADJOURNMENT The Work Session of December 7, 2021, adjourned at 9:43 p.m. TOWN OF FOUNTAIN HILLS f 1 Ginny ickey, /layor Combined Regular Meeting/Work Session of December 7, 2021 18 of 18 ATTEST AND PREPARED BY: Eli abeth . ein, Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Combined Regular Meeting/Work Session held by the Town Council of Fountain Hills in the Town Hall Council Chambers on the 7th day of December, 2021. I further certify that the meeting was duly called and that a quorum was present. DATED this 4th day of January, 2022. lEli 0-in Town Clerk