Loading...
HomeMy WebLinkAbout2013.0418.TCRM.Minutesz:\council packets\2013\r130502\13041813m.docx Page 1 of 17 TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL APRIL 18, 2013 * CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Kavanagh called the meeting to order at 6:30 p.m. in the Town Hall Council Chambers * INVOCATION – Fred Widom - Founder of Congregation for the Temple Beth Hagivot * ROLL CALL Present for roll call were the following members of the City Council: Mayor Kavanagh, Councilmember Leger, Councilmember Brown, Councilmember Dickey and Councilmember Yates. Town Manager Ken Buchanan, Town Attorney Andrew McGuire and Town Clerk Bevelyn Bender were also present. Vice Mayor Elkie and Councilmember Hansen were absent from the meeting. * MAYOR’S REPORT i) The Mayor may review recent events attended relating to economic development. The Mayor advised that she was invited to a social event which she attended in order to network with some of the companies that are represented in Fountain Hills and also to discuss some of their current issues with members of the legislature. She noted that her husband was also in attendance. She advised that there was a guest speaker as part of the presentation and the Governor, since she was in attendance as well, was given a few minutes for a welcome. She stated that unfortunately, the Governor used that opportunity to insult her personally in front of a few hundred people because the Mayor has opposed the Governor's attempts to grab away the Town's construction sales tax. She added that she has spoken about the tax before, which is sometimes referred to as the TPT, and how it would cost the Town a loss in revenue in the amount of approximately $300,000 per year and most likely a lot more once the Ellman property is developed. She assured the residents of the Town that this does not deter her in any way from fighting this tax issue or any future issues that she views will harm the Town. Mayor Kavanagh advised that she also attended the Korea American Trauma Center at Rural Metro headquarters. She noted that doctors from South Korea traveled here to learn brain trauma techniques used by Rural Metro and said that she was very impressed and proud of that fact. The Mayor said that she met with East Valley Mayors and they are united in their attempt to fight the State's takeover of their auditing systems and their construction sales tax. Mayor Kavanagh also welcomed delegates from the Trails Symposium and encouraged them to enjoy the wonderful hotels, restaurants and amenities that Fountain Hills has to offer. In closing, the Mayor said that she is sure she speaks for the entire Council when she says that their prayers go out to the victims and families of the terrorist attack in Boston. She noted that this is a sad reminder that they must all do their part to keep their Town safe. * SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS (i) PRESENTATION BY ARIZONA STATE REPRESENTATIVE MICHELE UGENTI REGARDING MATTERS RELATING TO ANY NEW LEGISLATION THAT MAY IMPACT FOUNTAIN HILLS AND ITS CITIZENS. z:\council packets\2013\r130502\13041813m.docx Page 2 of 17 Mayor Kavanagh announced that State Representative Michele Ugenti had to reschedule her update but will be present at the May 16th meeting. (ii) PRESENTATION BY DEPUTY TOWN MANAGER JULIE GHETTI REGARDING THE TOWN'S BUDGET REPORT FOR ALL FUNDS FOR THE THIRD QUARTER ENDING MARCH 31, 2013. Deputy Town Manager Julie Ghetti addressed the Council relative to this agenda item and said that they ar e getting close to fiscal year end and staff has prepared some projections for the Council to review. Ms. Ghetti highlighted a brief PowerPoint presentation (Copy available on-line and in the office of the Town Clerk), and highlighted the following for the quarter ending March 31, 2013: * Revenues by Fund - $12.6 million * General Fund Revenues by Source * General Fund Revenues - $9.5 million * State Shared Revenues - $3.6 million * Local Sales Tax Collections by Type - $5.8 million * Highway User Revenue Funds (HURF) - $0.9 million * Other Funds - $9.3 million * General Fund Expenditures for the 9-month period ending March 31, 2013 * General Fund Expenditures by Department - $9.1 million * End of Year Projections - General Fund Revenues - $12.9 million * Fund Balance Ms. Ghetti stated that although retail is down by approximately .3 % that is not inconsistent with other municipalities throughout the State. She noted that pavement management remains a high priority for the Town and adjustme nts to the budget have been made to accommodate this. She added that the revenues are tracking lower than the budget and if everything remains on track, the approximate possible shortfall is $600,000. She pointed out that they still have a couple of months of visitors/tourism season so the gap might close up a little bit. Ms. Ghetti, in summary, stated the following: * General Fund revenues are higher than last fiscal year but slightly lower than the budget * General Fund expenditures will not exceed revenues * Pavement management remains a priority and will be funded * The next two months will provide better data for the year-end prediction Ms. Ghetti indicated her willingness to respond to questions from the Council. Mayor Kavanagh thanked Ms. Ghetti for her presentation and expressed concern about the $600,000 shortfall. She pointed out that most of the Snowbirds left early this year because Easter came early and said that she hopes they will be able to make that money up. There were no questions from the Council relative to this item. CALL TO THE PUBLIC Town Clerk Bev Bender advised that there were no citizens wishing to speak under this agenda item. CONSENT AGENDA AGENDA ITEM #1 – CONSIDERATION OF APPROVING THE TOWN COUNCIL MEETING MINUTES FROM MARCH 21 AND APRIL 4, 2013. Councilmember Yates MOVED to approve the Consent Agenda as listed and Councilmember Dickey SECONDED the motion. z:\council packets\2013\r130502\13041813m.docx Page 3 of 17 There were no citizens wishing to speak on these agenda items. A roll call vote was taken as follows: Councilmember Dickey Aye Vice Mayor Elkie Absent Councilmember Leger Aye Councilmember Hansen Absent Councilmember Yates Aye Councilmember Brown Aye Mayor Kavanagh Aye The motion CARRIED UNANIMOUSLY by those present (5-0). REGULAR AGENDA ITEMS AGENDA ITEM #2 – CONSIDERATION OF ACCEPTING TWO PIECES OF DONATED ART TITLED, "QUIET PURSUIT" AND "INFINITY RING" FOR PUBLIC DISPLAY IN FOUNTAIN PARK. Director of Community Services Mark Mayer addressed the Council relative to this agenda item an d highlighted a brief presentation (Copy available on-line and in the office of the Town Clerk). He advised that the Public Art Committee is recommending the acceptance of two donated pieces of art for public display. He noted that the first piece is a bronze sculpture titled, "Quiet Pursuit," by artist Mike Dwyer, and it depicts a bobcat and is being donated by local residents Dr. Michael and Jeanne McGonigle. He said that the piece is valued at $5,400. He added that the second piece, also a bronze sculpture, is titled, "Infinity Ring," by artist Charles Sherman, and has a value of $3,900. He stated that this piece will be on loan for up to one year while a fundraising campaign is conducted (the price has been negotiated down to $2,500 payable within a year after delivery). He discussed annual insurance costs for both pieces in the amounts of $23.22 and $16.77 respectively, proposed locations for the pieces in Fountain Park adjacent to the amphitheater and referred to letters from Sandi Thompson, Chair of the Public Art Committee, relative to this proposal. Mr. Mayer indicated his willingness to respond to questions from the Council. There were no questions from the Council and no speaker cards were submitted. Councilmember Brown MOVED to approve the acceptance of the two pieces of art for public display and Councilmember Yates SECONDED the motion, which CARRIED UNANIMOUSLY by those present (5-0). AGENDA ITEM #3 - CONSIDERATION OF RESOLUTION 2013-25, DECLARING THE "TOWN OF FOUNTAIN HILLS ENCROACHMENT REGULATIONS, APRIL 18, 2013" A PUBLIC RECORD PURSUANT TO ARIZ. REV. STAT. § 9-802. Mayor Kavanagh advised that there will be one staff report/discussion on Agenda Items #3 and #4 but separate motions will be required for each item. Director of Development Services Paul Mood addressed the Council relative to both agenda items and briefly highlighted the contents of a staff report (Copy available on-line and in the office of the Town Clerk). Mr. Mood informed the Council that staff initiated this change and noted that Chapter 16 of the Town Code relates to encroachments into the public streets and sidewalks. He said that the proposed revisions are intended to clarify requirements to safely perform work done under an encroachment permit. He highlighted the eight major revisions for the benefit of the Council contained in the staff report found in the packet. Mr. Mood stated that staff recommends approval of the Town Code revisions to Chapter 16 and indicated his willingness to respond to questions from the Council. There were no citizens wishing to speak on these agenda items. z:\council packets\2013\r130502\13041813m.docx Page 4 of 17 Councilmember Yates asked Mr. Mood to explain what a certified set-up contractor is and Mr. Mood stated that the contractors would have to be certified by ATSA, a certified traffic signal safety association. Councilmember Yates noted that this would add an additional cost and asked if the plans were already drawn up by a certified engineer whether that would suffice. Mr. Mood responded no and said all certifications have to be verified. Councilmember Yates commented that he understands the health and aspects of it but was just bringing up the cost concerns. Councilmember Yates MOVED to approve Resolution 2013-25, declaring "The Town of Fountain Hills Encroachment Regulations, April 18, 2013" a public record pursuant to Ariz. Rev. Stat. § 9 -802 and Councilmember Brown SECONDED the motion, which CARRIED UNANIMOUSLY by those present (5-0). AGENDA ITEM #4 - CONSIDERATION OF ORDINANCE 13-02, ADOPTING THE PUBLIC RECORD ENTITLED THE "TOWN OF FOUNTAIN HILLS ENCROACHMENT REGULATIONS, APRIL 18, 2013" BY REFERENCE PURSUANT TO ARIZ. REV. STAT. § 9-802 AND AMENDING CHAPTER 16 OF THE TOWN CODE, ALL RELATING TO ENCROACHMENT PERMITS. (For discussion of this item, see Agenda Item #3 above.) Councilmember Brown MOVED to approve Ordinance 13-02, adopting the public record entitled "The Town of Fountain Hills Encroachment Regulations, April 18, 2013" by reference pursuant to Ariz. Rev. Stat. § 9-802 and amending Chapter 16 of the Town Code, all relating to encroachment permits and Councilmember Yates SECONDED the motion, which CARRIED UNANIMOUSLY by those present (5-0). AGENDA ITEM #5 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF REGARDING THE AVENUE OF THE FOUNTAINS IMPROVEMENT PROJECT. Town Manager Ken Buchanan advised that on December 20, 2012, Council approved a professional services contrac t with Landmark Design for the design of the Avenue of the Fountains median improvements. He said that tonight the plan is being presented for one last review before the Town goes out to bid. Mayor Kavanagh thanked Mr. Buchanan for his overview. Development Services Director Paul Mood addressed the Council relative to this agenda item and highlighted the contents of a staff report and presentation (Copy available on-line and in the office of the Town Clerk). He said that staff has been working with Landmark Design and representatives from the company are present in the audience. He noted that staff presented a concept to the Council in January 2013 and in going over the design and looking at budget issues they had to make some modifications to the Concept Plan that the Council received at that time. He explained that as presented the proposal would have run $150,000 over budget. He briefly highlighted the proposed eight architectural and landscape revisions contained in the staff report, which included: * Reduced fountain foot prints at east median center plaza * Reduced picnic area footprints and number of picnic tables * Eliminated benches at art nodes * Reduced the number of picnic tables at both center plazas from four to two * Eliminated planters at center plazas * Open turn areas have been created for larger event tents * Eliminated shade canopies (8 total) at picnic areas and center plazas (bid alternate) * Removed 30 trees - 15 trees to remain and 60 new trees added (eleven 48" trees and forty nine 36" trees) Mr. Mood explained that the plan calls for 32 electrical receptacles and explained how they would work. He added that staff is proposing composed aggregate poles for the lighting and noted that there are 17 pedestrian lights that are 8- feet tall and they will light the pathway. He provided additional information on the lighting package and discussed fountains/water features (an additional option is being proposed for consideration). z:\council packets\2013\r130502\13041813m.docx Page 5 of 17 Mr. Mood discussed costs and said that staff is estimating the base cost of the project to be $1,120,000, with an Owner's Allowance of approximately $40,000 and an SRP Allowance of approximately $40,000 for a total of $1,200,000. He also provided information relative to bid alternatives on the following: * Water Feature "D" Redesign $ 30,000 * Brick Paver Pathway + 15,000 * Shade Canopies (8 Total) + 66,000 * Lighting Package +125,000 TOTAL + $176,000 Mr. Mood stated that if Council has no revisions to the scope of work and staff receives SRP design plans and "no conflict" letters from all utility companies, the following tentative schedule is being proposed: April 29 Make plans and specifications available for download on the Town's website May 1 Advertise for construction bids in Fountain Hills Times May 2 Advertise for construction bids in Arizona Business Gazette May 8 Advertise for construction bids in Fountain Hills Times May 9 Advertise for construction bids in Arizona Business Gazette May 14 Mandatory pre-bid conference for general contractors June 20 Construction contract on Council agenda for approval June 24 Issue Notice to Proceed to contractor Mr. Mood reiterated that the current design of the base project with owner's and SRP allowance is $1.2 million. Alternatives for the west median center fountain, brick paver pathway, shade canopies and light package will be bid separately by the contractors. The base bid and alternates are anticipated to be presented to Council for approval on June 20th. Staff currently does not have SRP power design or "No Conflict" utility letters. Bidding the project without these items may cause delays and/or change orders during construction. Mr. Mood advised that SRP, the Fountain Hills Sanitary District and Century Link have advised staff that they do not have any conflicts. He indicated his willingness to respond to questions from the Council. Mayor Kavanagh thanked Mr. Mood for his presentation and asked if they go with this package would the cost include the lights under the shade canopies and Mr. Mood stated that the lights are included in the $125,000. The Mayor asked if the lights are going to light up the seating areas as well and Mr. Mood replied that there will be some lighting. He also stated that a public address (PA) system is not included and a mobile system would have to be utilized. He advised that the 100% design is in and they are just confirming a few numbers and reviewing the plans to make sure everything matches up. He noted that utilities are the big thing right now. Councilmember Dickey asked what the next item has to do with this and Mr. Mood explained that SRP requires a contract to do their design and the next item is for SRP to design the power as well as set the switch and transformer and pull all the wires once our project has installed all the trench and conduit. Councilmember Dickey asked if the $40,000 is for contingency and Mr. Mood stated that it was to be used for the 700 feet of trenching that the Town has to do. In response to a question from Councilmember Yates regarding infrastructure, both long and short term, Mr. Mood stated that with SRP they are doing the three-phase power, which is technically more efficient -- they can use different pumps. He added that single phase would be cheaper but the problem with that is that the service is on Plat 208 behind the buildings and for the upgrade in the amp's they would have to drill under the breezeway so construction costs would equal out. Councilmember Brown commended and thanked Mr. Mood, staff and Landmark and their team for their efforts; he said that the package is affordable and will do a ton for the Downtown area. He said they have come up with an absolutely fabulous design and had become a real fine project. z:\council packets\2013\r130502\13041813m.docx Page 6 of 17 Mayor Kavanagh expressed appreciation to Councilmembers Yates and Brown for overseeing the project. There were no citizens wishing to speak on this agenda item. No motion was required for this agenda item. AGENDA ITEM #6 - CONSIDERATION OF A DISTRIBUTION DESIGN AND CONSTRUCTION CONTRACT WITH SALT RIVER PROJECT, FOR THE AVENUE OF THE FOUNTAINS MEDIAN IMPROVEMENTS IN THE AMOUNT OF $26,800, AND AUTHORIZE THE TOWN MANAGER'S SIGNATURE. Mr. Mood addressed the Council and said that this contract is for Salt River Project (SRP) to actually design the power for the east median. He noted that they will actually set the switch/transformer once the trenching has been completed and the conduit has been placed (they will come out and inspect it and then pull the wires). There were no citizens wishing to speak on this agenda item. Councilmember Yates MOVED to approve a Distribution Design and Construction contract with Salt River Project for the Avenue of the Fountains Median Improvements in the amount of $26,800 and authorize the Town Manager 's signature and Councilmember Brown SECONDED the motion, which CARRIED UNANIMOUSLY by those present (5-0). AGENDA ITEM #7 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF REGARDING ORDINANCE 00-12 THAT INCREASED THE SALES TAX RATE FROM 1.2% TO 1.6% AND DESIGNATED .1% FOR DOWNTOWN DEVELOPMENT. Town Manager Ken Buchanan addressed the Council relative to this agenda item and advised that this is a request to revisit a portion of Ordinance 00-12 that increased the sales tax rate from 1.2% to 1.6% and designated a .1% excise tax for economic development pursuits to develop the Downtown. He noted that currently in the 2012 -13 Annual Budget, the Avenue of the Fountains Median Project is being funded with $1.7 million from this Downtown Development Fund. He said that the 2013-14 Annual Budget proposes utilizing the Downtown Development Fund to fund the following: Implement the recently adopted Economic Development Plan; provide marketing/promotion for new Town tourism events; provide holiday lighting; participate with the Greater Phoenix Economic Council; fund a fee for a service contract with the Fountain Hills Chamber of Commerce's Tourism Bureau and fund a fee for a service contract with the JumpStartBiz business incubator. He stated that the recommendation is to extend the excise tax to implement the aforementioned. He added that in the Economic Development Plan there is a specific Action Plan that talks about implementing the Specific Area Plan for Downtown so the funding could and should be used for priorities that will be determined in the future. Mr. Buchanan indicated his willingness to respond to questions from the Council. There were no citizens wishing to speak on this agenda item. Councilmember Dickey thanked the Mayor for placing this on the agenda for her and said she thinks this is a policy discussion and as they go forward with the budgeting it will help clarify it a little bit for her. She said if you look at th e minutes they were pretty clear as to what the intention was when they set that asid e and it is a very serious decision obviously to raise a sales tax or any kind of a tax and the minutes make it clear that the money was to be used in the Downtown area. She said if they looked historically at how the funds have been used, they (current and recent Councils) have obviously kept that in mind. She noted that a while ago when the Town had an Economic Development Planner, her salary was charged at 80% for the Downtown Development Fund and then it was changed to 50% thinking that was a little bit more in line with where her time was actually spent (half Downtown and half with the rest of the Town). She stated that they just went through the median project and other projects like that which the money might not have been available for if that revenue source had not been set up as it was in 2000. She pointed out that in October they had a meeting and talked a little bit about this and they acknowledged that when it was set up it was almost like having a contract with people when that tax was passed that it was for the Downtown. She said that her concern with an overall change -- if it does go to the General Fund or generally to economic development -- it could be diluted because to her it was set up with something definite in mind. She added that if they look at the z:\council packets\2013\r130502\13041813m.docx Page 7 of 17 median project and other things like the north side of the Avenue, other ways they have spent that money, we have to acknowledge that the money wouldn't have been available if they made this change. She stated that those are her concerns and she is grateful that they are talking about it openly and this way when they go through the budgeting if the Council decides to change how those funds can be used then she won't be saying it shouldn't be coming from that fund, that could be behind them possibly, and then they can look at the amounts like a regular budgeting exercise. She reiterated that she appreciates that and said she obviously she is not very much in favor of changing the intention of it so she believes it is up to everybody to discuss what they think is an appropriate use of these funds. Councilmember Yates said just for the record they are not raising taxes -- he just wanted to make that clear to everyone. Mayor Kavanagh advised that she did receive a couple of e-mails from residents who were confused about this agenda item and she concurred with Councilmember Yates’ clarification. Councilmember Leger stated that he thinks everyone has had an opportunity to review the minutes from 2000 and although it was a little bit ambiguous, he thinks it was clear that the intention was in fact for Downtown development and almost more specifically infrastructure development. He added that throughout the years he thinks Council after Council has utilized it for that particular purpose. He said that the Finance Director has maintained that amount in a dedicated excise tax fund that is utilized for that particular purpose. He added that he is a little sensitive about that commitment that they have made and honoring that commitment. He said that at the same time, however, in honoring that commitment ten years have passed and the Town has changed. He stated that they need to honor that commitment and take a look towards the future -- their needs have changed. He commented that if they look at the Downtown area, he thinks the intention was well intended and met in that they have developed the north side of the Avenue and are in the process of enhancing the infrastructure on the median. He further stated that there have been other projects ov er the years where that money has been used for like the Swaback plan and enhancing Downtown development. He noted that he is always one who likes to honor commitments that have been made and his intention is to propose a motion that would honor the past and the commitment that was made as well as looking towards the future -- in essence, maintaining the intended scope but expanding that scope to be more contemporary and more in line with the Town's Economic Development Plan. He said that those are his thoughts at this point and he would like to hear from other members of the Council; he is prepared to make a motion that would clarify where he is coming from. Councilmember Yates advised that he agrees conceptually with what this was intended for but the t erm "economic development" is kind of all inclusive -- it's a pie to set aside funds just for one specific thing. He said that although it may be well intended, they may not be getting the maximum value out of that and he thinks that what Councilmember Leger is saying is how can they leverage this. He stated that truth be told they have three commercial districts -- Downtown, the Shea Corridor and a little bit of Saguaro. He added that it's not like these funds could be abused or diluted and their intent is well founded. He said that he thinks there is a possible way to leverage this in the right way and in a productive manner. Mayor Kavanagh agreed that it is 13 years later and a lot of things have changed. She said that when she read this they did say older areas Downtown and new development, talking about the Avenue, so she thought it was kind of ambiguous and she underlined anything that had to do with Downtown money in the minutes. She noted that most of the minutes were all about the Preserve and there was very little reference to or defining the Downtown. She advised that she called two of the Council people who were involved in this at the time, including former Mayor Sharon Morgan who served as Mayor at the time and former Vice Mayor Sharon Hutcheson, as well as her husband, and what she got from them was that they all agreed that they were non-specific for a purpose. She said that Sharon Hutcheson told her that "they knew they couldn't predict the future and they didn't want to lock the money to a specific set of streets or projects, tying the hands of the Council and that is why they were very non -specific and just called it Downtown." She further stated that Sharon Morgan told her that during the discussions subsequent to this there was lots of discussion about lots that were empty and the Chamber area as well as other parts of Town and they were hoping to fill in those areas. She added that John Kavanagh was also on the Council at that time and his discussion centered around Plat 208, a pretty large area, and that they could use some of that money to upgrade that -- the Avenue side -- they didn't want one side to look depressed if the other side came in looking brand new. She reiterated that the three of them seemed to be in agreement that they were non-specific on purpose because they didn't know what was going to happen ten years from then. z:\council packets\2013\r130502\13041813m.docx Page 8 of 17 Mayor Kavanagh further stated that she can't find anywhere in there where they designated streets and she knows their subsequent plan, the Swaback plan and the Downtown Area Specific Plan, are broader. She said that while she appreciates the fact that they were concerned with the Downtown, she believes they were leaving the door open by not specifically mentioning streets so that the future could be decided by whatever Council was here and whatever circumstances they happened to encounter. She pointed out that because of their downturn in the economy, they need whatever money they can get -- their money is very limited -- and she is always concerned about whether they are going to be losing their construction sales tax. She emphasized that tourism and marketing are extremely important and their JumpStartBiz program has been successful. She expressed the opinion that they wouldn't have an objection to the current Council gearing this money towards economic development. Councilmember Leger commented that in reflecting on this, he agrees with the Mayor wholeheartedly, it was very general with bullet points and one even said the linear mall, which is infrastructure. He added that it also talks about vital interests in a viable Downtown area. He noted that since that resolution, precedent has utilized that money primarily for infrastructure but he is a little sensitive going forward for this Council an d future Councils so his motion is going to include the words "infrastructure improvement" and he wants to try and delineate that from "economic development." He stated that the Economic Development Plan talks about business attraction and retention, etc . He indicated his intention to put forth a motion and find out how the rest of the Council feels about it and they can go from there. He added that the goal from his perspective is to preserve the integrity of the original resolution, however expanding the scope in consideration of the Town's Economic Development Plan and that is his rationale behind the following motion. Councilmember Leger MOVED that commencing Fiscal Year 2013-14, 40% of the tenth of a percent of excise tax is to be dedicated to the "Downtown Town Center" business area for infrastructure improvements and development with 60% of the tenth of a percent of the excise tax dedicated t o Town-wide economic development and the Economic Development Plan implementation. Councilmember Leger noted that a stipulation in terms of preserving their commitment to what he thinks the citizens felt Downtown development was; stipulation here was that a tenth of a percent of the excise tax fund balance at the end of this Fiscal Year is maintained for the Town Center Downtown business area development infrastructure improvement. Councilmember Leger stated that he is trying to be as clear as he can and choose his words so that future Councils have a little more meat on the bone to get their arms wrapped around. Councilmember Dickey SECONDED the motion. Mayor Kavanagh said that she isn't quite sure how Councilmember Leger arrived at the percentages -- the 40% and the 60%. Councilmember Leger stated a couple of ways and first of all he bounced his idea off of the Town Manager and having just gone through a budget process, he was looking at a 50 -50 split but he felt comfortable with a 40-60 split. He added that he is also looking at their packet and when you look at the money they are looking at to implement the Downtown Development Plan, which includes tourism and other things, that amount of money kind of comes out to about 60% of what their total revenue is for that particular line item. He said that at the same time, that 40% is preserved specifically for infrastructure improvements for the Town Center area, which they now call Town Center so it was not an arbitrary decision; it was based on kind of looking at what they are proposing this year. He further stated that for those who have had some history up here that when the Council looks at these types of items, they have had some flexibility budget by budget in terms of maybe modifying percentages and he thinks this is a good starting point. He said for example 80-85% of their construction sales tax revenue for a number of years was dedicated to capital improvement. He noted that when they went into a downturn and they weren't doing a lot of capital projects and the General Fund was really hurting they came back and passed a resolution and tweaked that percentage (50-50%), which what is being maintained today. He reiterated that the 60-40 is not arbitrary -- it preserves the integrity of Downtown infrastructure and also targets a significant amount of money for the implementation of the Economic Development Plan. Councilmember Yates commented that he agrees with leaving the funds that are left over as the baseline for the infrastructure but asked if it was Councilmember Leger's intent in moving forward is that the 60% economic z:\council packets\2013\r130502\13041813m.docx Page 9 of 17 development program and implementation would be at zero that that base couldn't be used at all for any of that even though that makes up 40% of the whole plan. Councilmember Leger responded that from his perspective, starting in Fiscal Year 2013-14 they are starting basically from ground zero with the 40% and the 60%. He added that because that one tenth of a percent was self believed and historically a precedent, that money was spent for Downtown infrastructure/development and he thinks it makes sense to take that amount and push it on that side. He said that he would envision this is that they have this one tenth of a percent and basically now they have two dedicated funds and it becomes really perfectly clear. He stated let's say they start talking about the Avenue project and they want to do a lighting project down the road or canopies, he is saying Town Center. He added that they can go into the parks -- they have been talking about lights on the path forever so there are a lot of infrastructure needs. He asked how many times has Councilmember Hansen said that they need to do some infill on their sidewalks so he thinks there are some capital needs that makes hi m believe they need to preserve some of the money in a savings account and move it over; beginning next year both funds are starting at zero but one just has a little more in the bank than the other one. Councilmember Yates stated that for example that if they say the implementation plan starts with $100 -- is Councilmember Leger saying that they couldn't use $40 from the existing funds and then find the $60 from some other source or is this a line item and he wants this 100% for infrastructure only and not for any other economic development? He added that obviously there is portion of that that goes towards helping the Downtown as well. Councilmember Leger replied that the way the motion read is that the 40% would be for the Town Center infrastructure improvement and development. He said that there is some room in there for interpretation. He added that the 60% would be dedicated to Town-wide economic development. He noted that what they always get into is the Shea Corridor, and the Town Manager has spoken to them a lot about this. He stated that if you look outside of Town Center, there are a probably a lot more sales tax dollars being contributed out there. He added that what he thinks this does is it segregates the fund with an emphasis on infrastructure and what they are calling economic development, which is defined by their plan. Councilmember Dickey said that another way to look at that is the balance that is there now was collected under this old assumption and it feels like to her that since it has already been collected that is what is should be used for. She added that if they are making a change now, a legitimate change as they move forward that 60% is for any economic development but she feels that it is a contract and she doesn't think it is really that vague. She pointed out that the motion was .001 for Downtown development -- that's what the motion was -- and that is really not that vague. She noted that she thinks moving forward it would be a lot more comfortable if they make this change and then start using that money. She said that this is kind of forcing them to re-evaluate a little bit but she feels that up to this point it has been collected under that and she would like to honor that. Councilmember Leger further clarified his response to Councilmember Yates' question and said that the Council just had a presentation by Mr. Mood and he talked about $1.2 and it might be a lit tle higher than that and by the end of this Fiscal Year that fund balance is not going to be that high so they are going to be moving over a couple of $100,000 or $300,000 - $400,000 unless they extend the use of that fund (what it was intended for). Mayor Kavanagh indicated that she was looking for clarification and asked Councilmember Leger if he is saying whenever the fund balance is after they do the Avenue, whatever they collect from now on is divided or is he saying that the fund balance is only used for the Town and we are starting from zero money for the 40-60% split. Councilmember Leger said envision two buckets and in one bucket 40% of the one tenth of one percent goes into one bucket and 60% of the one tenth of one percent excise tax goes into the other. He stated that the one bucket for the Downtown already has a little something in it because that was the intention from the policy that they have been operating under since 2000 and which the Mayor stated was broader. He noted that he has been on the Council for six, seven years and they have always interpreted that as pretty much Downtown development and there is some precedent there. He advised that he is just trying to honor that and preserve that integrity and as he said earlier now they ar e engaged in a policy change for going forward and that is why he is talking about creating these two buckets in Fiscal Year 2013-14 and not at this particular point in time. z:\council packets\2013\r130502\13041813m.docx Page 10 of 17 Mayor Kavanagh questioned whether the money that they have left over now from th e median project what is left in the balance from the excise tax is going to be divided 40-60% or not. Councilmember Leger responded "no." Mayor Kavanagh asked what that is going to be used exclusively for, infrastructure? Councilmember Leger stated that that would be in the dedicated fund for Town Center infrastructure improvements and development. He added that for example if they develop the south side of the Avenue, whether it is infrastructure or incentives that could be used for that because that's the Downtown Center area. He pointed out that the Economic Development Plan doesn't really talk about development, construction development; it talks primarily about business attraction/retention, marketing and tourism. He further stated that as they looked at Fiscal Year 2014-15, and he thinks most of them will still be there, he believes it is going to be a lot easier to make decisions about how much money they want to spend on economic development because they will have a dedicated source and they ca n basically say let's spend a higher percentage on attraction versus retention. In response to a question from Councilmember Leger, Mr. Buchanan reported that last year JumpStartBiz came out of the excise tax. Mayor Kavanagh advised that she understands what Councilmember Leger is saying but she has a problem with tying the money down. She said they would be making a decision now that says they can't use any more of this money for something else and yet there might be a need for them to have to use that money for something else. She pointed out that if the Town loses its construction sales tax they are going to lose $300,000 a year and if they end up with a shortfall that will be $600,000 on top of that. She stated that she really doesn't feel comfortab le tying up any money and she thinks they all know the spirit of they would like to use as much of this money as possible for Downtown and they would like to zoom in on economic development, but to tie up a certain percentage of that and say they can't use any of it if circumstances changed and the economy gets worse (no construction sales tax or if sales tax revenues go down as far as retail has gone down) she feels they shouldn't tie themselves to a certain percentage. She noted that that is a dedicated fund and they have an awful lot of those where they can't touch the money so she wouldn't be in favor of specifying a certain amount. She added that as far as she is concerned, she understands the spirit of what has been proposed and discussed and she still agrees after talking to former Vice Mayor Hutcheson that they said Downtown but they specifically did not specify certain streets because they were leaving it open and did not want to tie future Councils' hands. She further stated that she doesn't see any language in there that says this can only be used for Avenue of the Fountain or for infrastructure -- it is so vague. She added that regardless of what the minutes say it is 13 years later, they have a really bad economy and they don't know what's coming. She stated that she would not be in favor of tying the money to anything specific and thinks they will use their best judgment when each issue comes up and decide what is best for the Town at the time. Councilmember Leger commented that if they didn't have a dedicated fund they would not be able to afford the median project and they would not have improved the north side of the Avenue. He said that he has been at this for several years and when they talk about a downturn in the economy they are looking at their revenues leveling off and looking at 20-30% and they had dedicated funds preserved and they protected those funds because if they didn't they probably wouldn't have had the money to do this project and they wouldn't have fund balances that they did or the General Fund reserve because if things aren't protected the money is spent. He added that for six years rather than spending money what they did was reorganized and downsized the organization and did what they had to do to get through. He pointed out that there are significant needs in the Downtown area and he is simply saying that they need to preserve some money for that. He further stated that he understands that the Mayor talked to some former Council people who dealt with this over the years and did a great job in doing what they did but from his perspective it is practice and precedent that sets the course -- and their practice and precedent has been to preserve those funds and use them for Downtown development. He said with that being said he has a motion on the table and a second and he would like to call for the vote. Councilmember Yates questioned whether they could continue discussion on this and Councilmember Leger said he is basically saying that he is ready to vote on this but he is not adverse to further discussion taking place. z:\council packets\2013\r130502\13041813m.docx Page 11 of 17 Councilmember Yates advised that his concern with this is with what has been discussed -- originally money was being saved for the Downtown and a portion of that money included some economic development activity. He stated that Councilmember Leger is specifying it for infrastructure and he doesn't think that the Mayor is saying she wants to take the rest and put it into the General Fund but he is leaning more along the lines that they are starting at ground zero and he thinks some of that money was intended for economic development activities as was pointed out -- whether it be the JumpStartBiz or those other fund things. He added that to say they are starting next year at ground zero and having nothing to start their Economic Development Plan but they have that lump sum for infrastructure, he thinks it was the intent that some of that was to go towards economic development activities. He stated that he has concerns about 100% going to infrastructure and then they are at ground zero and he understands Councilmember Leger's intent and he will go along with it but he thinks there was another intent that goes along this. Councilmember Leger commented that he has thought that through too and he thinks they look at the facts and the numbers. He stated that in projecting $350,000, 40% of that is $140,000 and 60% of that is $210,000 and that is pretty much what they are budgeting for economic development for Fiscal Year 2013-14 and that is where he arrived at his numbers. He noted that they are not starting out at ground zero, they will have that money, but at the same time they will be preserving the infrastructure. He added that as he has said over the years, how many times has someone come before them and said, "Let's use the Downtown Development Fund for this or that" and basically the Council stood its ground and responded "No, that is not Downtown development." He added that that is what starts happening unless they have dedicated funds. He said to the Mayor's concern, if they entered into a crisis situation they could call a meeting, make a motion, pass a resolution and change/move the percentages around if they choose to. He said that they have done that in the past so he doesn't look at it as being locked into anything -- they can decide how to manage that. Mayor Kavanagh commented that it is a lot harder to undo something once you have done it and she still does not want to lock any of the funds into anything. She added that she thinks they are up there as a Council to look at individual situations and make decisions at that time and that is what she would like to see. She noted that in the past she thinks they made the right decision about using the funds for the Avenue and they will make good decisions in the future but she would rather it be a Council decision than be locked in and not be able to use that money. She pointed out that there is nothing in the minutes that says Downtown is Avenue of the Fountains and if someone can find that language they can show it to her. She said after talking with two former Councilmembers and one former Mayor who were in office in 2000 when this occurred and were all in agreement she cannot say that any of this is directed just to the Downtown. Councilmember Leger stated that he is not sure the Mayor has heard anything that he has said and the Mayor replied that she has heard everything that he has said and she disagrees. Councilmember Leger commented that the Mayor can disagree but precedent has been set in terms of how that money has been spent. He said that the Mayor made a comment about not locking things in but this Council just approved a Pavement Management Program and they are locking money into that for the next seven or eight years. He advised that he does not have an issue with that because they have been talking about pavement management and doing things of that nature for a while. He stated that at this point it isn't what Person A or Person B said to the Mayor, and he trusts that everything they said to her is true, but the citizens of this Town and the practice that they have been going by was one tenth of a percent for Downtown development and infrastruct ure improvements. He added that he doesn't know what is so difficult about that -- it is identifying a need yet we are looking at a policy and moving it forward to cover the cost of a new program called economic development. Councilmember Dickey stated that she doesn't think they were saying Avenue of the Fountains -- she thinks it's that whole area and again, when it comes to economic development it is the entire Town we’re talking about. She said that when they first started talking about the median some people were opposed to it and one of the justifications the Council gave for going ahead with it was that they would be doing it from a fund that they can't use for anything else. She added that people would ask why they didn't fix Saguaro with that money or something else and the Council would tell him because this is specifically for that. She further stated that if they are going to make that change she would like to know if the Mayor's intent is to put the entire amount into the General Fund. The Mayor responded no. z:\council packets\2013\r130502\13041813m.docx Page 12 of 17 Councilmember Dickey said that what she thinks Councilmember Leger is suggesting is splitting it 60-40%, but it's still economic development -- is that locking it in? The Mayor responded that she is not talking about putting it into t he General Fund, she is talking about leaving it as is and having the Council decide if they want to use it at the time (case by case basis) just like they decided to use it on the median, JumpStartBiz, etc. She added that they have the fund and she thinks the Council should make the decisions on how to use it. Councilmember Dickey stated that she appreciates what the Mayor is saying but they only paid portions of the m because they kept in mind that it was only legitimate to use portions of it so they only used 50% of it here or there. She read the following motion from the minutes of the 2000 meeting as follows: "Vice Mayor Hutcheson moved to approve Ordinance 00-12 by increasing the sales tax rate by a total of 0.004 and designating .003 for mountain preservation and designating .001 for downtown development." She said that the motion is pretty clear and if they want to change it, she thinks they need to change it, rather than every time something comes up saying well, let's take it out of that. She added that she would rather do what Councilmember Leger is saying and then they can go forward. Mayor Kavanagh said that the question is what is Downtown and noted that they have signs that go as far as Safeway that say Town Center. She asked if they are talking all the way to Safeway and are they including Saguaro -- what exactly is the Downtown. She noted that they may do something in one of the other business corridors, which is part of economic development. Councilmember Dickey referenced the map in the packet (copy on-line and on file in the office of the Town Clerk) and commented that it does go to Fountain Hills Boulevard; it goes from Panorama to Fountain Hills Boulevard, El Lago and Palisades and then even to La Montana beyond Palisades, so it is quite a bigger area, so it would go to Safeway. Councilmember Brown said that he hears the concern about what happens if the downturn continues and if they have a major loss of money and need money and added that if that is the case then they will regroup and redo everything that they have to do to keep this Town afloat. He advised that he has to concur that this money has been set aside for a very specific reason and they have had people stand before them time and time again askin g for it and the Council and previous Councils have been very dedicated to making sure that it was used for Downtown economic development and that was set up 13 years ago and he thinks it is time for them to work a little further than the Downtown area. H e pointed out that they are looking at tourism and being very generous in that area so why not go ahead and do a 40-60% split as is being proposed. Councilmember Leger advised that in his motion he specifically said the Downtown Town Center business area, which is a rather large area that has been defined as their Town Center in a previous project that Councilmember Yates was involved in. Councilmember Yates asked Councilmember Leger if they have $100 left at the end of this year, is he going to split it 60-40% with 40% going towards infrastructure and then the 60% and then we are starting with zero, so 100% of whatever is left over goes into the infrastructure of Downtown or the Town Center area and then they are starting over with zero. He added that Councilmember Leger made reference earlier that the amount that is being proposed for economic development activity is going to get funded from what is left over. He asked whether he misunderstood that. Councilmember Leger responded that as he mentioned, if they are bringing in $350,000 with a tenth of a percent they will have $210,000 available from the excise tax. He noted that this expenditure and this proposal is for Fiscal Year 2013-14. He added that the money will be there for the program -- it will not be specific, it will generally be there to spend how they want on the program. There being no further discussion on this item, the Mayor called for a vote on the motion. A roll call vote was taken with the following results: Councilmember Yates Aye Councilmember Leger Aye Councilmember Brown Aye Councilmember Dickey Aye Councilmember Hansen Absent Vice Mayor Elkie Absent Mayor Kavanagh Nay The motion CARRIED by majority vote of those present (4-1). z:\council packets\2013\r130502\13041813m.docx Page 13 of 17 AGENDA ITEM #8 - CONSIDERATION OF APPROVING AN EXTENSION OF TIME FOR THE EXPIRATION DATE OF THE SECOND AMENDED AND RESTATED LICENSE AGREEMENT WITH COXCOM, INC., DATED MAY 1, 2007, FROM APRIL 30, 2013 TO JULY 31, 2013. Town Manager Ken Buchanan addressed the Council relative to this agenda item and advised that staff has been in negotiations with Cox Communications to renew their cable license agreement, which expires on April 30, 2013. He said that it doesn't appear that staff will complete the new agreement by that date and is requesting, in cooperation with Coxcom, that the Council approve an extension of time for the expiration date of the seconded amended and restated license agreement from April 30, 2013 to July 31, 2013 to complete the language and get the agreement back before both entities. There were no citizens wishing to speak on this agenda item. Councilmember Yates MOVED to approve an Extension of Time for the expiration date of the Second Amended and Restated License Agreement with Coxcom, Inc., dated May 1, 2007, from April 30, 3013 to July 31, 2013 and Councilmember Brown SECONDED the motion, which CARRIED UNANIMOUSLY by those present (5-0). AGENDA ITEM #9 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF REGARDING RESOLUTION 2013-13, ADOPTING THE TOWN OF FOUNTAIN HILLS' FIRE DEPARTMENT MASTER PLAN. Mr. Buchanan informed the Council that the Town does not have a formal Fire Department Master Plan in place and in talking with the Fire Chief he asked him if he would put together a Master Plan for the Council's consideration, which would serve as a guiding document for future planning and resource allocation. He said that Chief LaGreca would highlight the presentation on this item and staff recommends approval. Fire Chief Scott LaGreca addressed the Council and said that the Fire Department thought it would be a good idea to begin crafting a Fire Department Master Plan, which would serve as a living document taking them from this point to the end. He noted that they have always presented to the Council a three-year operational plan in a Work Study environment. He reviewed the Plan included in the packet (Copy available on-line and in the office of the Town Clerk), which covered the following topics from the Table of Contents: * Organizational Overview * Fire Station Locations * Apparatus * Insurance Services Office * Mutual Aid * Fire Protection and Emergency Services Agreement * Fire Department Monthly Report * Fire Department Operational Plan * Rural/Metro and Fountain Hills Fire Department History Chief LaGreca informed the Council that the development of a Fire Department Master Plan is a major component of the Town's Strategic Goals & Priorities -- Public Safety, Health and Welfare and discussed both the purposes and the benefits of adopting such a plan. He thanked the Council for their past and on -going support and indicated his willingness to respond to questions. Mayor Kavanagh thanked Chief LaGreca for the presentation and said that she knows with all the discussions she has had with him and Rural Metro that their number one concern is response times for both Fire and EMS (Emergency Medical Services). She stated that with the new methods for brain trauma that is even more important because every minute counts. Chief LaGreca agreed and said that this forces them to continuing doing what they are already doing -- trying to measure what they are doing going forward and this will give them another tool by which to measure what they are doing. He commented that response times are the "Holy Grail" for them. z:\council packets\2013\r130502\13041813m.docx Page 14 of 17 Mayor Kavanagh advised that people at Fountain View Village had great things to say about the department. Councilmember Leger stated that he has read the proposed Master Plan and believes it was well done and very informative. He indicated that he had just a couple of basic questions to pose and said that the Council is constantly talking about quality of life and there is no quality of life without public safety. He referred to the 5 -minute response time and asked what Scottsdale's response time is. Chief LaGreca responded 4 minutes and they are getting closer to meeting that goal because they have built three new stations and have more on the books. Councilmember Leger commented that if they add a third station they are adding costs for that and equipment as well as manpower. He stated that his concern is the affordability of the plan but he recognizes that it is a future plan and they don't know where the Town will be revenue wise at that point. He asked the Chief if he had any idea a bout what the plan would cost in today's dollars. He noted that the current contract cost is $3.1 million. Chief LaGreca estimated that it would cost between $1 million and $1.5 million. Councilmember Leger noted that they would be looking at approximately $4.5 million to operate this model and future costs will be higher. He added that it is an ambitious plan and he is all for the 5 -minute response time and anything they can do to enhance that. He said that the department has shared their matrix with the Council over the years and asked if any consideration has ever been given to two well placed fire stations -- could two well placed fire stations address response times in the Town? Chief LaGreca replied no and stated that if they were to meet ISO requirements the Town would need to have five fire stations. There were no citizens wishing to speak on this agenda item. Councilmember Dickey MOVED to approve Resolution 2013-13 adopting the Town of Fountain Hills' Fire Department Master Plan and Councilmember Leger SECONDED the motion, which CARRIED UNANIMOUSLY by those present (5-0). AGENDA ITEM #10 - CONSIDERATION OF APPROVING AN EXPENDITURE FROM THE VEHICLE REPLACEMENT FUND, IN THE AMOUNT OF $292,291.61 FOR VEHICLES AND EQUIPMENT, AS SCHEDULED IN THE VEHICLE REPLACEMENT SCHEDULE. Deputy Town Manager/Finance Director Julie Ghetti addressed the Council and reviewed the Staff Report relative to this agenda item (Copy available on-line and in the office of the Town Clerk). She advised that a few years ago the Council approved the creation of the Vehicle Replacement Fund that accumulates resources to provide an authoritative, decision-making process for the evaluation, selection and multi-year scheduling of vehicle replacements based on a projection of available fiscal resources and the vehicles age, mileage, engine hours and repair costs. She explained how the fund works and said that staff is recommending the replacement of vehicles provided in the Staff Report. She noted that all of them are due or overdue for replacement this Fiscal Year. She stated that staff had budgeted $401,000 for vehicles this year, the replacements will cost approximately $300,000 and the fund has $885,000 in it. She pointed out that if the Council approves this there is a chance that some of the vehicles may not be here by June 30th and staff would have to re-appropriate this for next year. In response to a question from Councilmember Yates, Ms. Ghetti explained that miles versus age has been a topic of discussion particularly as they have gone through the economic downturn. She noted that there was a reluctance to replace a vehicle that only had 60,000 miles on it but was 10 or 11 years old. She advised that staff reviewed the policy, which is designed to systematically set aside funds for each specific vehicle. She pointed out that the policy is designed so that vehicles are replaced at either 100,000 miles or after 10 years' of use and sometimes 12 years for some of the trucks. She explained that a vehicle with only 60,000 miles on it but 10 years old will generate greater value at the vehicle auction and that money goes right back into the fund. She stated that it is definitely a philosophical discussion and they have had it quite a bit because there is a reluctance to replace a vehicle with low mileage. z:\council packets\2013\r130502\13041813m.docx Page 15 of 17 Councilmember Yates thanked Ms. Ghetti for her explanation and said it appears that the policy represents good financial management. Councilmember Dickey asked what HURF is related to -- what department is that and Ms. Ghetti advised that HURF is streets. Councilmember Dickey stated that HURF is the revenue source not an expenditure and asked whether HURF funds are being used for those four items. Ms. Ghetti replied that when she says HURF Fund she means Streets Fund and HURF revenues go into the Streets Fund and they refer to it as the HURF Fund. She said that for revenues and expenditures each year for howeve r many vehicles the HURF Fund has they are charged and money is taken from that fund and put over into the Vehicle Replacement Fund for the vehicles that they have. She noted that they used the street sweeper and she doesn't remember how many thousands of dollars that was per year but they made the decision not to replace the vehicle so they no longer have to put that money aside because the work is now being outsourced In response to a question from Councilmember Dickey, Director of Community Services Ma rk Mayer explained that the item listed in the Staff Report is what is called a Tenant Sweeper, much smaller than a Street Sweeper, and they use it for everything -- sidewalks, tennis courts, parking lots, cleanup after storm and wind damage, etc. There were no citizens wishing to speak on this agenda item. Councilmember Leger commented that this evening they had a discussion on the pros and cons of so called dedicated funds and asked if this is a dedicated fund. Ms. Ghetti responded that it is a dedicated fund, used specifically for vehicle replacement. Councilmember Dickey stated that she is getting back to the HURF thing and asked would staff put that under Development Services -- would that be the department? Ms. Ghetti replied that it is a department but it is coming out of the Vehicle Replacement Fund -- the HURF Fund or the Streets Fund is charged every year for every vehicle but the funds are taken out of the Streets Fund and they go over to the Vehicle Replacement Fund so that is where the money is coming from to pay for these vehicles. Councilmember Dickey commented that she is always having a hard time with this -- having a department named HURF because HURF is a fund source. She said that they didn't do the same with MAG so she always gets confused as to whether this is a source, an expenditure or a department but she just wants to make sure where the money is coming from. Ms. Ghetti reiterated that the HURF Fund is a fund and HURF revenues go into the HURF Fund. She noted that most of the other cities call it the HURF Fund. Councilmember Yates MOVED to approve an expenditure from the Vehicle Replacement Fund, in the amount of $292,291.61 for vehicles and equipment, as scheduled in the Vehicle Replacement Schedule and Councilmember Dickey SECONDED the motion, which CARRIED UNANIMOUSLY by those present (5-0). AGENDA ITEM #11 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF RELATING TO ANY ITEM INCLUDED IN THE ARIZONA LEAGUE OF CITIES AND TOWNS WEEKLY LEGISLATIVE BULLETIN OR RELATING TO ANY ACTION PROPOSED OR PENDING BEFORE THE STATE LEGISLATURE. Town Manager Ken Buchanan addressed the Council and said that he would be happy to respond to any of the pieces of legislation that staff has pointed out and added that staff does not have up to dat e information because on a number of them because they were discussed today. He added that he knows that the Mayor is up to date on the TPT (Transaction Privilege Tax). z:\council packets\2013\r130502\13041813m.docx Page 16 of 17 Mayor Kavanagh advised that it seems that there is an agreement on the portal part and that's the administration. She said that the Governor's office, the Mayors and the League are all in agreement on the portal. She added that as far as the auditing, there has been some movement there where the Department of Revenue (DOR) would be the s ole authority for remote sellers and for multi-jurisdictional businesses. She stated that the Town would have the ability to audit a single business that is only in Fountain Hills. She noted that there is still a question that they brought up that hasn't been addressed and that is what if it is a multi-jurisdictional business like Target that is in other areas but the Town wants to audit just the Town's Target, not all the Targets, and DOR was considering at their last meeting possibly allowing the Town to do that business if they only did that one. She added that if they are talking about businesses that are in are also in other cities and towns, they also have to be concerned about building and if someone builds a house here, Toll Brothers or MCO, they know those builders are also in other cities and towns, so does that mean if one house is built here we can't audit that house but they have to go through the DOR. She said that there is still a lot more that has to be worked out. Mayor Kavanagh stated that as far as the TPT, right now they are still pushing to just wait and get some good statistics on that. She added that they have come out with a new set of figures and they are talking about a $72 million loss so they don't know where they are -- they've got everything from we are going to make $30 million to we are going to lose $130 million -- so they are asking for a neutral third party to come in an provide the actual figures on where we would be if this system is changed. She noted that the Town does not want it to change because it will result in a lot of lost revenue. Mayor Kavanagh said that they don't know what is going on with SB 1321, which turned into HB 2404. Councilmember Dickey announced that they retained it today so that is good and Mayor Kavanagh said that is the last she heard, that they retained it in the Senate Committee of the Whole (COW) but sometimes that could mean that they don't have enough votes. Councilmember Dickeys said that they have retained it a couple of times so t hat is good. She commented that when Senator Reagan was here she talked about 1403 which became 2573, which died but Senator Burgess held a hearing on it last week and nothing happened on it officially but it was a hearing about the urban trail/bike trails, etc. She inquired about it and heard back from Senator Reagan who said that the bill does not apply to anything purchased with public or taxpayer dollars and reviewed that there were things would have to happen in order to stop them from what they are doing. She stated that they don't believe they could use this statute to preclude municipalities from developing public transit program, building hiking trails, etc. She asked Town Attorney Andrew McGuire whether he would agree with that. Mr. McGuire advised that Rene did a very good job at pointing out some of the very obvious arguments that the Town would make if anyone did attempt to use this statute to prevent a program like that. Councilmember Dickey clarified that at their next meeting they might be having a presentation by Valley Metro about the plan and reiterate again that there were no incentives that the Town is getting to do this at all -- we are just looking to see what options are there for the Town's residents. Mayor Kavanagh said that she doesn't think that the bill will go anywhere and thanked Councilmember Dickey for keeping an eye on it. Councilmember Leger thanked Mayor Kavanagh for all of her hard work on the TPT and asked her to keep up the good work. Mr. Buchanan referred to SB 1321 and asked if the Council had any direction to provide as far as staff staying on top of this to make sure that it doesn't come back. He noted that that is the energy code and the uniformity of that and staff has concerns about it. He is asked if staff can stay on top of that one. Mayor Kavanagh stated that that one has been amended and they don't know how it has been amended. The Council agreed that Mr. Buchanan should stay on top of this piece of legislation. z:\council packets\2013\r130502\13041813m.docx Page 17 of 17 AGENDA ITEM #12 - COUNCIL DISCUSSION/DIRECTION TO THE TOWN MANAGER KEN BUCHANAN. Items listed below are related only to the propriety of (i) placing such items on a future agenda for action or (ii) directing staff to conduct further research and report back to the Council. A. None. AGENDA ITEM #13 – SUMMARY OF COUNCIL REQUESTS AND REPORT ON RECENT ACTIVITIES BY THE TOWN MANAGER KEN BUCHANAN. None. AGENDA ITEM #14 - ADJOURNMENT. Councilmember Yates MOVED to adjourn the meeting and Councilmember Brown SECONDED the motion, which CARRIED UNANIMOUSLY by those present (5-0). The meeting adjourned at 8:36 p.m. TOWN OF FOUNTAIN HILLS By _______________________________ Linda M. Kavanagh, Mayor ATTEST AND PREPARED BY: _________________________ Bevelyn J. Bender, Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Session held by the Town Council of Fountain Hills in the Town Hall Council Chambers on the 18th day of April, 2013. I further certify that the meeting was duly called and that a quorum was present. DATED this 2nd day of May, 2013. _____________________________ Bevelyn J. Bender, Town Clerk