HomeMy WebLinkAbout2014.0206.TCREM.Minutesz:\council packets\2014\r140220\140206m.docx Page 1 of 10
TOWN OF FOUNTAIN HILLS
MINUTES OF THE EXECUTIVE AND REGULAR SESSIONS OF THE
FOUNTAIN HILLS TOWN COUNCIL
FEBRUARY 6, 2014
EXECUTIVE SESSION
* CALL TO ORDER
Mayor Kavanagh called the Executive Session to order at 5:30 p.m. in the Fountain Conference Room - 2nd Floor.
AGENDA ITEM #1- ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION: PURSUANT TO
A.R.S. §38-431.03(A)(4), DISCUSSION OR CONSULTATION WITH THE ATTORNEYS OF THE PUBLIC
BODY IN ORDER TO CONSIDER ITS POSITION AND INSTRUCT ITS ATTORNEYS REGARDING THE
PUBLIC BODY'S POSITION REGARDING CONTRACTS THAT ARE THE SUBJECT OF
NEGOTIATIONS, IN PENDING OR CONTEMPLATED LITIGATION OR IN SETTLEMENT
DISCUSSION CONDUCTED IN ORDER TO AVOID OR RESOLVE LITIGATION (SPECIFICALLY,
RELATING TO ADERO CANYON.)
ROLL CALL: Present for roll call were the following members of the Fountain Hills Town Council: Mayor Linda
Kavanagh, Councilmember Ginny Dickey, Councilmember Dennis Brown, Councilmember Cecil Yates and
Councilmember Henry Leger. Town Manager Ken Buchanan, Town Attorney Andrew McGuire, Senior Planner Bob
Rodgers, Jim Strickland (via telephone conferencing), Bond Attorney Scott Ruby and Town Clerk Bevelyn Bender
were also present.
Vice Mayor Hansen and Councilmember Elkie were absent from the meeting.
Councilmember Yates MOVED to enter into the Executive Session at 5:30 p.m. and Councilmember Brown
SECONDED the motion, which CARRIED UNANIMOUSLY by those present (5-0).
AGENDA ITEM #2 - ADJOURNMENT.
Without objection, the Executive Session adjourned at 6:26 p.m.
REGULAR AGENDA
* CALL TO ORDER AND PLEDGE OF ALLEGIANCE
Mayor Kavanagh called the meeting to order at 6:36 p.m. in the Town Hall Council Chambers.
* INVOCATION – Pastor Justin Erickson, Four Peaks Community Church
* ROLL CALL
Present for roll call were the following members of the Town Council: Mayor Linda Kavanagh, Councilmember
Ginny Dickey, Councilmember Dennis Brown, Councilmember Cecil Yates and Councilmember Henry Leger. Town
Manager Ken Buchanan, Deputy Town Manager Julie Ghetti, Town Attorney Andrew McGuire and Town Clerk
Bevelyn Bender were also present.
Vice Mayor Hansen and Councilmember Elkie were absent from the meeting.
* MAYOR’S REPORT
None.
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* SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS
i) The Mayor may review recent events attended relating to Economic Development.
The Mayor stated that she would like to highlight three meetings that she attended this month. The first was the
Maricopa Association of Governments (MAG) meeting and she said that there was discussion centered around the
restoration of the of the HURF (Highway User Revenue Funds) by the Legislature. She noted that the Legislature is
proposing $119 million from their surplus fund for FY 15 and FY 16 each. She reported that MAG members voted to
support this restoration by sending a letter to each Legislator. She added that right now there is no Legislative action
planned for restoration in FY 17 since it is predicted that even with just cost -of-living increases in the budget, Arizona
will be facing a $500 million shortfall.
Mayor Kavanagh advised that as to the past reduction in HURF funds that go to the cities and towns, the Legislature
has been funding DPS (Department of Public Safety) from that source and said it was noted at the meeting that one of
MAG's chief functions is the expansion of our highway and freeway systems. She pointed out that each time that is
done, more DPS officers are needed for the new stretch of road and currently there is no other funding source for DPS.
She further stated that the transportation plan was voted on at that meeting and that is the general focused plan to 2013.
She added that there was a lot of discussion about getting people to use mass transit instead of their vehicles but there
is no real push for connectivity in the plan they have right now. She said that it is understandable that with the amount
of congestion they are dealing with in the metropolitan areas and the limited funds, that they are doing the best with
what revenue they have. She noted that that still leaves Fountain Hills out of any consideration for connectivity to the
mass transit system but emphasized that that does not mean that she is going to stop trying.
Mayor Kavanagh also provided an update on the GPEC (Greater Phoenix Economic Council) meeting, a continuation
of discussion of the Velocity Program, to bring high tech jobs to the Valley and the push for education in the high
technology fields, especially engineering, starting at the K level and following through to college. She advised that the
only way that the Valley can compete with other cities like Austin, for example, (a big competing city) is to be able to
supply the high tech labor pool that a corporation is looking for when deciding where to locate.
The Mayor also discussed the MAG Economic Development Committee meeting and stated that they heard
discussions about furthering trade with Canada and Mexico, seeking business opportunities for relocation to the Valley
and also expansion of tourism. She noted that the important part of that discussion focused on a more cohesive plan
for a joint effort with all the cities and towns and more of a unified effort by the various State agencies. She ended her
briefing and said that Councilmember Brown would now like to speak.
Councilmember Brown advised that he took an interesting telephone call last night from the Director of Southwest
Kidney Dialysis Center and reported that Fountain Hills has been selected to be the location for the ir next expansion.
He said that they will be building a new center in Town and pointed out that the Senior Services Commission has
played a huge roll for well over a year in attracting this company to Fountain Hills and thanked them for their efforts.
He requested that Town Manager Ken Buchanan do everything he can to expedite the permitting process -- not for the
facility, but rather for the citizens of Fountain Hills who currently have to travel many miles to receive their dialysis
treatments. He stated that they should open their doors wide because it has been a long, constant effort to get
Southwest Kidney Dialysis Center to come to Town.
Mayor Kavanagh thanked Councilmember Brown for his efforts in this regard.
CALL TO THE PUBLIC
Town Clerk Bevelyn Bender advised that one citizen wished to speak to the Council under this agenda item.
Linda Bordow addressed the Council and said that the Town set in place many years ago regulations were set into
place about what foliage can and cannot be planted in Fountain Hills in order to preserve water. She stated that she is
here this evening to request that the Council reconsider that as far as the planting of fruit trees. She commented on the
dangers of genetically modified foods, which are causing a lot of health issues for a lot of people. She added that it
would be nice if the Town could grow its own citrus and noted that the Town has a lot of citrus in it but they stopped
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that years ago. She discussed the various positive impacts of allowing citrus to be grown and encouraged people to go
to the Farmer's Market, which has some great, local produce.
Mayor Kavanagh thanked Ms. Bordow for her comments.
CONSENT AGENDA
AGENDA ITEM #1 - CONSIDERATION OF APPROVING THE TOWN COUNCIL MEETING MINUTES
FROM JANUARY 8 and 16, 2014.
AGENDA ITEM #2 - CONSIDERATION OF APPROVING A SPECIAL EVENT LIQUOR LICENSE
APPLICATION SUBMITTED BY ROBERT SCHMITZ, REPRESENTING THE AMERICAN LEGION
POST 58, FOR THE PURPOSE OF A FUNDRAISER. THE EVENT IS SCHEDULED FOR FRIDAY -
SUNDAY, FEBRUARY 21-23, 2014 FROM 9:00 A.M. - 10:00 P.M., AT THE AMERICAN LEGION IN
CONJUNCTION WITH THE GREAT FAIR.
AGENDA ITEM #3 - CONSIDERATION OF APPROVING A SPECIAL EVENT LIQUOR LICENSE
APPLICATION SUBMITTED BY SHERYL WOOD, REPRESENTING THE AMERICAN LEGION
AUXILIARY FOUNTAIN HILLS UNIT 58, INC., FOR THE PURPOSE OF A FUNDRAISER. THE EVENT
IS SCHEDULED FOR FRIDAY-SUNDAY, FEBRUARY 21-23, 2014 FROM 9:00 A.M. - 5:00 P.M., ON THE
AVENUE OF THE FOUNTAINS IN CONJUNCTION WITH THE GREAT FAIR.
AGENDA ITEM #4 - CONSIDERATION OF APPROVING A SPECIAL EVENT LIQUOR LICENSE
APPLICATION SUBMITTED BY JEAN LINZER, REPRESENTING THE FOUNTAIN HILLS AND
LOWER VERDE VALLEY MUSEUM AND HISTORICAL SOCIETY FOR THE PURPOSE OF A
FUNDRAISER. THE EVENT IS SCHEDULED FOR FRIDAY, FEBRUARY 28, 2014, FROM 5:30 - 9:00 P.M.
AT THE COMMUNITY CENTER.
AGENDA ITEM #5 - CONSIDERATION OF APPROVING A SPECIAL EVENT LIQUOR LICENSE
APPLICATION SUBMITTED BY DONALD ANDERSON, REPRESENTING THE SONS OF AMVETS
SQUADRON #7, FOR THE PURPOSE OF A FUNDRAISER IN CONJUNCTION WITH THE ST.
PATRICK'S DAY CELEBRATION. THE EVENT IS SCHEDULED FOR SUNDAY, MARCH 16, 2014,
FROM 10:00 A.M. - 6:00 P.M. AT FOUNTAIN PARK.
AGENDA ITEM #6 - CONSIDERATION OF RESOLUTION 2014-09, APPROVING THE TOWN OF
FOUNTAIN HILLS. ARIZONA TOWN COUNCIL RULES OF PROCEDURE, AMENDED AND
RESTATED FEBRUARY 6, 2014.
Councilmember Yates MOVED to approve the Consent Agenda as listed and Councilmember Dickey SECONDED
the motion.
A roll call vote was taken with the following results:
Mayor Linda Kavanagh Aye
Councilmember Ginny Dickey Aye
Councilmember Dennis Brown Aye
Councilmember Cecil Yates Aye
Vice Mayor Cassie Hansen Absent
Councilmember Tait Elkie Absent
Councilmember Henry Leger Aye
The motion CARRIED UNANIMOUSLY by those present (5-0).
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REGULAR AGENDA
AGENDA ITEM #7 - CONSIDERATION OF RESOLUTION 2014-02, APPROVING AN
INTERGOVERNMENTAL AGREEMENT WITH FOUNTAIN HILLS UNIFIED SCHOOL DISTRICT, TO
MAKE SCHOOL FACILITIES AVAILABLE TO THE TOWN IN THE EVENT OF AN EMERGENCY OR
DISASTER.
Fire Chief Randy Roberts addressed the Council relative to this agenda item and said that one of the responsibilities of
the Fire Department is to do emergency planning. He noted that one important aspect of preparedness is to have
agreements in place with other entities so that if an event does occur, the sharing of resources can occur quickly and
easily with pre-arranged terms and expectations for everyone involved. He referred to the proposed IGA
(Intergovernmental Agreement) with the Fountain Hills School District (Copies of the staff report and IGA are
available on line and in the office of the Town Clerk) and said that it will allow the Town to use their facilities during
times of large emergencies or disasters for the sheltering of evacuated population. He added that in the future, the
Department, with the consent of the Council, would like to enter into IGAs with other entities that have potential
resources for the Town to use. He informed the Council that the School Board has reviewed and approve d the
proposed IGA and indicated his willingness to respond to any questions from the Council.
There were no questions or comments from the Council.
Councilmember Brown MOVED to approve Resolution 2014-02, approving an Intergovernmental Agreement (IGA)
with Fountain Hills Unified School District and Councilmember Leger SECONDED the motion.
There were no citizens wishing to speak on this agenda item.
The motion CARRIED UNANIMOUSLY by those present (5-0).
AGENDA ITEM #8 - CONSIDERATION OF RESOLUTION 2014-10, ACCEPTING A UTILITY
EASEMENT AGREEMENT WITH BUCKEYE WEST, LLC, DBA SUNRIDGE CANYON GOLF CLUB.
Community Services Director Mark Mayer addressed the Council relative to this agenda item and said that the
agreement before the Council is the result of a couple of years of work and provided brief background information on
this item. He advised that since Buckeye West LLC purchased the Sunridge Canyon Golf Club several years ago, staff
has been working with the new owner to provide a Utility Easement Agreement, which would allow Town staff to
enter upon golf course property to operate pumps that bring effluent water to Golden Eagle Park for irrigation
purposes. He noted that the agreement would also require insurance coverage by both parties. He said that the
discussions have been ongoing, except for an extended period of time when the provision of effluent water from the
Sanitary District was being threatened until needed leases were obtained by the District.
Mr. Mayer further advised that both the Town and Buckeye West have reached an agreement on terms, which includes
an annual payment to Buckeye West of $5,000, to offset the cost of treating the effluent water for algae, etc., while in
their lake and prior to the water being pumped to Golden Eagle Park for irrigation purposes. He said that staff
recommends acceptance of the agreement and indicated his willingness to respond to any questions from the Council.
There were no citizens wishing to speak on this agenda item.
Councilmember Yates MOVED to approve Resolution 2014-10 and Councilmember Brown SECONDED the motion,
which CARRIED UNANIMOUSLY by those present (5-0).
AGENDA ITEM #9 - PUBLIC HEARING ON THE TOWN'S INFRASTRUCTURE IMPROVEMENTS PLAN
AS REQUIRED BY A.R.S. §9-463.05.
Mayor Kavanagh declared the public hearing open at 6:51 p.m.
Town Attorney Andrew McGuire stated that the Town has been going through the required process of adopting new
development fees and the pace has been moving as quickly as possible. He noted that one of the requirements is to
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hold a public hearing, which they are doing this evening, and then staff will bring this back before the Council within
another 30 days or so (March 10th) for the adoption of the IIP (Infrastructure Improvements Plan), which is the first
step. He added that the adoption of the fee stud y will occur 60 days following that. He said that this is step one and
the Council's opportunity to hear from the public and whether they have any concerns about the IIP. He stated that if
there are no concerns then they will move on to the next step in the process in March.
There were no citizens wishing to speak on this agenda item.
Mayor Kavanagh declared the public hearing closed at 6:52 p.m.
AGENDA ITEM #10 - CONSIDERATION OF THE INTERVIEW PROCESS TO BE USED TO FILL THE
TOWN OF FOUNTAIN HILLS VACANCY FOR THE PRESIDING JUDGE POSITION.
Town Manager Ken Buchanan addressed the Council relative to this agenda item. He advised that since Judge
Eisenberg tendered his resignation, the Town has been utilizing the services of Pro Tem Judges. He stated that the
recruitment process for a Presiding Judge began on December 16th with a January 13th deadline for receipt of
application packets. He reported that 22 applications were received and the Human Resources Administrator and
Court Administrator reviewed the application packets and agreed on fi ve candidates that meet the minimum
qualifications. He informed the Council that in the past, interviews were conducted by a panel consisting of the
following positions: A Presiding Judge from another municipality, a Councilmember, the Town Manager, the Court
Administrator and the Human Resources Administrator. He said that his recommendation would be that the process
remain under the purview of the Town Council since this is an appointed position and that staff assist the Council with
the process. He stated that staff is seeking Council direction as to whether they wish to continue with the interview
process for the new Presiding Judge as outlined or direct staff to move forward with a different process to be
determined at this time. He requested input from the Council so that staff can proceed with the process. He advised
that Human Services Administrator Joan McIntosh is present to respond to any questions from the Council.
Mayor Kavanagh requested input from the Council on this item (Council interviews and selection).
In response to a request for clarification from Councilmember Dickey, Mr. Buchanan stated that he is recommending
that the full Council have an opportunity to interview all of the selected candidates rather than having a sub -committee
do that for them and bring forth their recommendation.
Councilmember Brown advised that he concurs with the Town Manager's recommendation and added that he would
like to have the opportunity to interview the three or four selected candidates.
Councilmember Yates asked if any precedence has been set among the various municipalities regarding the hiring of a
Presiding Judge.
Mr. McGuire responded that there are many different processes in place throughout the various municipalities and
stated that whatever the process the Council feels more comfortable with would be the best fit for them -- there is no
formula for it.
Mayor Kavanagh said that she is in favor of Mr. Buchanan's recommendation and added that she would like to see the
entire Council make this decision rather than a sub-committee.
There were no citizens wishing to speak on this agenda item.
Councilmember Leger advised that he is pretty much in favor with everything he has heard but said that he is just
wondering if there is any value to having the Court Administrator participate in the process with the Council. He
noted that the last time they did this there were a lot of logistical questions that came up and the Court Administrator
was able to provide input that clarified these matters.
Mr. Buchanan commented that that is an excellent idea and stated that the staff support he previously mentioned as
part of his recommendation was intended to be made up of the Court Administrator and Human Resources
Administrator (both will assist the Council with the process).
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Councilmember Yates MOVED to interview for the position of Presiding Judge as recommended by the Town
Manager and Councilmember Leger (the Council will do the interviews with the assistance of the Court Administrator
and Human Resources) and Councilmember Dickey SECONDED the motion, which CARRIED UNANIMOUSLY
by those present (5-0).
AGENDA ITEM #11 - PRESENTATION BY DEPUTY TOWN MANAGER JULIE GHETTI REGARDING
THE TOWN'S BUDGET REPORT FOR ALL FUNDS FOR THE SECOND QUARTER ENDING
DECEMBER 31, 2013.
Deputy Town Manager Julie Ghetti addressed the Council relative to this agenda item and highlighted a brief
PowerPoint presentation on the Quarterly Financial Report (2nd Quarter Ending December 2013). Copies of the
presentation are available on line and in the office of the Town Clerk.
Ms. Ghetti's presentation included the following:
* All Funds Revenues
* General Fund Revenues by Source
* State Shared Revenues
* Local Sales Tax
Retail
Restaurants
Telecom
Construction
* General Fund Expenditures by Department
* Other Funds
Highway User Revenue Funds (HURF)
HURF Expenditures
Restricted Funds
Fund Balance
Ms. Ghetti presented the following report summary:
* General Fund revenues and expenditures are balanced
* Reserve Fund balances remain healthy for all funds
* General Fund revenues are 7% under budget but higher (2%) than last fiscal year
* General Fund expenditures are 6% under budget and 1.8% higher than last fiscal year
* Pavement Management remains a priority and is funded through HURF and Vehicle License Tax (VLT) revenues
* Local economic indicators remain positive with a 6% increase over the prior year
In response to a question from Councilmember Dickey, Ms. Ghetti confirmed that the Town collects sales tax on
medical marijuana dispensaries and that it is considered to be retail.
Councilmember Leger commented that this is one of many presentations that Ms. Ghetti has provided to the Council
and this may be her last presentation prior to her retirement. He stated that her presentation was excellent, as usual and
she has done a tremendous job. He thanked her for educating him on the complexities of municipal finance, especially
when he was newly elected. He expressed his appreciation for all she has done and wished her the best of luck in the
future.
AGENDA ITEM #12 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF RELATING TO ANY
ITEM INCLUDED IN THE LEAGUE OR ARIZONA CITIES AND TOWNS WEEKLY LEGISLATIVE
BULLETIN OR RELATING TO ANY ACTION PROPOSED OR PENDING BEFORE THE STATE
LEGISLATURE.
Town Manager Ken Buchanan referred to the copies of the Legislative Overview from the Arizona League of Cities &
Towns that were provided to the Council. He reported that they did put in House Bill 2378 regarding the prohibition
of municipal taxes and fees and added that this one is pretty much centered towards Paradise Valley and the fire fee
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that they charge. He noted that this grandfathers them in but prohibits anyone else from doing what they did. He said
as discussed at the Retreat, staff will keep tabs on this and report back to the Council.
Mayor Kavanagh commented that one of the most popular ones that they have been getting e-mails on is House Bill
2379, Maricopa County Library District. She provided a brief summary of the legislation and not ed that current law
allows for secondary property taxes to be levied to fund special taxing districts. She said that most special taxing
districts have no limitation on the growth of secondary property tax levies but some districts do have maximum tax
rates which they cannot exceed. She advised that this bill limits secondary property taxes levied by the County free
library, the County jail and Public Health Services District to the amount levied in the preceding tax year, adjusted
annually by a percentage equal to the rate of change in the levy limit between the current year and the preceding year
for the County in which the district presides. She explained that there were certain districts that could increase their
tax rate every year and there was no cap on that and they could do that without a vote of the people. She noted that
this bill will cap that at 2% but added that after receiving e -mails and discussing this with Representative Kavanagh,
"the devil is in the details." She stated that Maricopa County does have a problem similar to Pima County -- the
Maricopa County Library District is using $6 million in prior year property tax monies in their 2014 library budget and
they would end up with a loss of $14.5 million. She asked what they could do about it and whether it looks as though
this would go through and was told it does look like it will go through so the Town needs some kind of a fix on this.
She stated that Representative Kavanagh has developed one proposal and he is also open to discussing this with the
Library Board -- the suggestion is to use a one year transitional provision setting the 2015 rate taking into account their
usage of prior year balances and after 2015 they would only be able to increase by 2%. She added that in the end t his
would make them even with everyone else (it brings it up to fair for the next year because right now they wouldn't
even have enough to cover their budget). She said that this is a complicated situation but she knows that the Council is
aware of it.
Councilmember Dickey advised that even though there seems to be some options in the Legislature to fix this, she
thinks the Council could just decide themselves whether they want to take a stand or a position on this to oppose the
bill. She said that perhaps that would encourage their legislators and all of them on the committees that will be looking
at this (at least this would be a clear message from the Town).
Mayor Kavanagh stated that she would be willing to say that in its present form this bill is c ertainly not acceptable and
encourage them to fix it. She expressed the opinion that they really did want to fix it but they just didn't realize that
Maricopa is in the same situation as Pima. She said that Mr. Buchanan can let them know that in its pres ent state it is
unacceptable and needs to be fixed. She added that it would be a great idea for someone from the Library Board to
actually sit down with Representative Kavanagh who has offered to add something to help fix this bill.
Councilmember Dickey noted that the overall premise of this bill is still a legislative over-reach to Maricopa County in
general, not just the Library District (over-reach into what the Counties, elected boards, can do). She reiterated her
support to oppose this legislation.
Discussion ensued relative to the fact that the League is not taking a position on this because they feel that taxpayers
might like this; capping it at 2% to look out for the taxpayers; Councilmember Leger's comment that he agrees with
Councilmember Dickey's comment about this being legislative over-reaching and his brief summary of the
history/previous examples of legislative over-reaching; the fact that the Library is probably one of the Town's best
assets; Councilmember Leger's statement that the County Library District has done a great job managing expenses and
his opinion that this bill should be repealed and the Town should send them that message; the fact that the County used
their surplus rather than raising the tax rate and this would just cap it al ong with all the other districts (make them all
the same at 2%).
Councilmember Dickey MOVED to direct the Town Manager and/or staff to submit to the appropriate legislators a
statement on behalf of the Council in support of the Maricopa County Library District and the Fountain Hills' Friends
of the Library enjoined with them to urge defeat of House Bill 2379 and Councilmember Brown SECONDED the
motion.
There were no citizens wishing to speak on this item.
A roll call vote was taken with the following results:
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Mayor Linda Kavanagh Nay
Councilmember Ginny Dickey Aye
Councilmember Dennis Brown Aye
Councilmember Cecil Yates Aye
Vice Mayor Cassie Hansen Absent
Councilmember Tait Elkie Absent
Councilmember Henry Leger Aye
The motion CARRIED BY MAJORITY VOTE of those present (4-1) with Mayor Kavanagh voting Nay.
Mayor Kavanagh explained that she voted Nay because she thinks it is a good fix for the taxpayers and she also thinks
that this could be worked out to the satisfaction of the Library District working with the Legislature.
Town Clerk Bevelyn Bender advised that one citizen wished to speak to the Council.
Linda Bordow addressed the Council relative to Senate Bill 1063 and said that she believes that currently there i s no
storage facility outside of the Council Chamber's building for firearm storage.
Mayor Kavanagh advised that she is incorrect and noted that there is one by Town Hall.
Ms. Bordow said that in that case she withdraws her statement.
The Mayor continued with a review of the Legislative Bulletin and referred to Senate Bill 1161, a bill that has been
held and will probably not go forward. She stated that this is one that the League is already opposing for the Town.
She asked whether anyone disagreed with that.
Councilmember Dickey pointed out that the Legislature’s Request to Speak function, which they decided to change the
day the Session started is not working so she put in her Request to Speak against Senate Bill 1161 and it was not
recognized and did not register. She asked whether the Council as a whole had decided to oppose that bill.
Mayor Kavanagh said no, this is the first time it has really come up. She added that she experienced the exact same
problem -- they wouldn't take her comment. Representative Kavanagh looked into it and was told that they were
having technical difficulties that were fixed for a while but reoccurred.
Discussion ensued relative to problems associated with the Legislature’s Request to Speak function and the Mayor
suggested that Mr. Buchanan contact them and explain the difficulties they have been experiencing as far as registering
to speak.
Mayor Kavanagh also discussed the Utility Tax Exemption that the Governor is proposing and explained that it would
eliminate the State and local TPT tax from the sale of electricity used in the manufacturing and smelting as an
economic development incentive. She noted that the League is going to be working against this and they say it would
result in a $30 million loss to the State. She added that first it was just going to impact the State but now cities and
towns would be affected too. She stated that the League said this is written so broadly now that someone could
actually be working in their garage on a project and could claim that they don't have to pay tax for electricity to do that.
Mayor Kavanagh further stated that there were just updates on the TPT and HURF and there are some pension bills
going around which the League seems to be in favor of.
Councilmember Dickey referred to House Bill 2378 and said she would like to know why this is even okay at all
because it says that a city, a municipality, cannot levy or assess a tax or a fee against property owners based on the size
or value of their property in order to fund any public service. She commented that if the Town's fire inspections are
based on square footage and permit fees for homes are based on how big the homes are, she would like to know if this
has the ramifications that it appears to have – the Town cannot charge a fee for any public service or the storm water
fee, if that gets based on the size of a water meter.
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Town Attorney Andrew McGuire replied that people are upset about that because of what Councilmember Dickey
mentioned and also because the statute's exemption "seems to eat itself." He said that if you talk to Paradise Valley,
they believe that they are authorized to levy this fee under Title 9 to the exception consumes the rule and it is not only
a circular bill now, it also has other problems. He added that there is concern that the authors are not taking into
consideration what municipalities actually do and most of that is fee based. He stated that hopefully this bill will not
move forward.
Councilmember Dickey expressed the opinion that the Council might want to take this further because this is moving
forward and their particular legislators seem to be in favor of it. She said maybe there is a message that needs to be
communicated.
Councilmember Dickey MOVED to direct the Town Manager to explore the ramifications of this proposal to the
ability of the Town of Fountain Hills to raise revenue in the future so that they may decide whether or not to take a
position and Councilmember Brown SECONDED the motion, which CARRIED UNANIMOUSLY by those present
(5-0).
AGENDA ITEM #13 - 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 #12 – SUMMARY OF COUNCIL REQUESTS AND REPORT ON RECENT ACTIVITIES
BY THE TOWN MANAGER KEN BUCHANAN.
Councilmember Dickey noted that Ms. Bordow earlier in the meeting had mentioned low-water vegetation and she
thought there should be follow up on this because she thinks there are parts of yards where people can do something
like that.
Mayor Kavanagh asked for some history on the vegetation regulations (low water, citrus).
Mr. McGuire explained that there was a Desert Plant Preservation change to the ordinance about six years ago but said
that most of the plant restrictions are from the State on the low -water plant list and most are also exempted on private
property (it is for public property). He stated that staff could certainly follow up on that.
AGENDA ITEM #13 - 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 7:38 p.m.
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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 Executive and Regular
Sessions held by the Town Council of Fountain Hills in the Fountain Conference Room - 2nd Floor (Executive) and
Town Hall Council Chambers (Regular) on the 6th day of February, 2014. I further certify that the meetings were duly
called and that quorums were present.
DATED this 20th day of February, 2014.
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Bevelyn J. Bender, Town Clerk