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HomeMy WebLinkAbout2014.0220.TCRM.Minutesz:\council packets\2014\r140306\140220m.docx Page 1 of 11 TOWN OF FOUNTAIN HILLS MINUTES OF THE STATE OF THE TOWN ADDRESS AND THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL FEBRUARY 20, 2014 * CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Kavanagh called the meeting to order at 6:31 p.m. in the Town Hall Council Chambers * INVOCATION – A moment of silence was observed by all in attendance. * ROLL CALL Present for roll call were the following members of the Town Council: Mayor Linda Kavanagh, Councilmember Ginny Dickey, Councilmember Cecil Yates* and Councilmember Henry Leger. (*Councilmember Yates participated in the entire meeting through the use of telephonic equipment.) Town Manager Ken Buchanan, Town Attorney Andrew McGuire and Town Clerk Bevelyn Bender were also present. Vice Mayor Cassie Hansen and Councilmember Dennis Brown were absent from the meeting. * MAYOR’S REPORT i) Mayor Kavanagh's State of the Town Address Mayor Kavanagh thanked everyone for coming out tonight and said for all of those who couldn't make it here, she wanted to thank them for watching at home. She said it has been her honor to be their Mayor for the past 18 months and noted that much has been accomplished during that time. She noted that they can look forward to infrastructure improvements, including the rebuilding of Saguaro Boulevard and the implementation of a good, sound pavement management plan into the future. She reported that the median on Avenue of the Fountains will get a much needed make-over with shade and benches and new fountains and an electrical and irrigation system they can count on. She stated that it will be a great improvement to their parks' system for all to enjoy. The Mayor further advised that their business community finally got the small changes to the sign ordinance th ey have been hoping for to help their businesses thrive in these difficult times. She added that there also has been a lot of streamlining in government, everything from making it easy for a restaurant to put tables and chairs outside to take advantage of their gorgeous sunshine to more accessible forms and permits now put on the Town's website for the convenience of the store owners. Mayor Kavanagh reported that they have strengthened their partnership with their neighbor, the Fort McDowell Yavapai Nation, welcoming in their new President and Council and said that they have pledged to work together to improve the economic climate for both of them, to support each other's events and to strengthen their lasting friendship. She said that they have developed a good, sound economic development plan to take Fountain Hills into future years and have just recently taken on the important task of promoting tourism. She added that all of this has been accomplished with a very limited staff, working hard each day, d edicated to their jobs, to bring them -- the residents -- the service they deserve. She noted that they have expanded their volunteer program, taking advantage of the Town's residents' expertise and very generous gift of their time and this has enabled th em to continue many of the wonderful events and programs that have become a part of their lives. The Mayor stated that they have developed a strong, working relationship with other East Valley cities that enabled them to defeat a legislative bill that would have been devastating economically to their Town. She pointed out that the fight started right here, in little Fountain Hills, an d pitted them against the goliaths of State government and they won with important help from their State Representative John Kavanagh, who was rewarded by the Arizona League of Cities & Towns for his efforts. z:\council packets\2014\r140306\140220m.docx Page 2 of 11 Mayor Kavanagh said that she promised the residents when she took office that she would work hard for them, keep their government transparent, listen to what the residents had to say and spend every taxpayer dollar carefully ... and she has also even managed to save a few animals along the way. She advised that she has kept that promise and reaffirms it this evening. She thanked everyone and said they will now move on t o a slide presentation. She thanked all of the staff who contributed to the presentation they were about to see and expressed special thanks to Shaunna Williams for the reception and the outstanding job she has done with this presentation. Mayor Kavanagh highlighted a PowerPoint presentation on the State of the Town (Copy are available on line and in the office of the Town Clerk). The following topics were discussed: * Quarterly Financial Report ending December 2013 * All Funds Revenues * General Fund Revenues by Source * Local Sales Tax Retail Restaurant Telecom Construction * General Fund Expenditures by Department * Highway User Revenue Funds (HURF) * Restricted Funds The Mayor provided the following summary of the presentation: * 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 revenues * Local economic indicators remain positive with a 6% increase over the prior year Mayor Kavanagh referred to a picture of the Town's recently hired part-time Economic Development Specialist, Scott Cooper, and said that he is a great addition to the Town's team. She briefly noted his background and experience. She stated that they are very happy to welcome Mr. Cooper on board and he is already doing a great job for the Town. The Mayor continued with the presentation and discussed the following: * Development Services * Saguaro Boulevard Improvements * Avenue of the Fountain Median Improvements * Pavement Management Program * Recycling * My Republic Rewards Community Grant Program * Community Services * Recreation/Awards Received * Tourism * Parks * Fountain Hills Integrated Trails * Senior Services * Community Center * Fountain Hills Rural/Metro Fire Department and Response Data * Fire Department Leadership Changes * Fire Station #1 Addition & Remodel * New Engine #822 * Law Enforcement - Maricopa County Sheriff's Office * Major Law Enforcement Cases z:\council packets\2014\r140306\140220m.docx Page 3 of 11 * School Resource Officer * Fountain Hills Municipal Court * Valuable Contributions by Town Boards & Commissions * Volunteer Program * Give a Lift Program * Make A Difference Day * Mayor's Youth Council * How to Apply to be a Volunteer * Fountain Hills Coalition * Collaboration Across Sectors & Major Successes * Youth Involvement * Coalition Awards and Accomplishments ii) League of Arizona Cities and Towns 2-13 Champion Award presentation to State Representative John Kavanagh Mayor Kavanagh advised that the Legislature is running very late tonight and so this agenda item has been postponed and will be on the agenda of a future meeting. * SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS i) Update by Councilmember Ginny Dickey regarding the recent Maricopa Association of Governments Regional Domestic Violence Council meeting held February 6, 2014. Councilmember Dickey provided a brief update on the Maricopa Association of Governments Domestic Violence Council meeting that was held on February 6, 2014. She advised that there were some presentations and a report assessing the Department of Public Safety data through a partnership they have with the Arizona Criminal Justice Commission (talked about missing criminal history information and how it undermines the ability for the justice system to really effectively deal with repeat offenders). She noted that all of the presentations were detailed and had recommendations at the end. She discussed a survey that was conducted that was gathering victims' perspectives on the handling of domestic violence cases (how the cases are handled when law enforcement gets there). She reported that there were several items where additional training is needed. She noted that the City of Mesa came to the meeting and they presented a development of a Danger Assessment Tool for addressing domestic violence and said she wou ld provide Captain Rodriguez with the informational sheet she was provided. She said that it helps assess the risk of actual fatalities in these incidents to a great degree. She added that they heard from several community partners and heard a lot of good news and successful stories and at the end, the Chair said that going forward they wanted to go about bringing more good ideas forward relative to what the committee is doing. She advised that the Chair and the Vice Chair are going to be scheduling one-on-one meetings with committee members over the next several months and at that point they want to gather information about the overall effectiveness of the Domestic Violence Commission and also what each of the members see going forward. She stated that the presentations always include very good statistics and data and all of that, including the minutes and agendas, are always on the MAG website (http://www.azmag.gov) and anyone can always contact her on her website. Mayor Kavanagh thanked Councilmember Dickey for her report. CALL TO THE PUBLIC None. CONSENT AGENDA AGENDA ITEM #1 - CONSIDERATION OF APPROVING THE TOWN COUNCIL MEETING MINUTES FROM FEBRUARY 6, 2014. AGENDA ITEM #2 - CONSIDERATION OF APPROVING A LIQUOR LICENSE APPLICATION SUBMITTED BY LAURA A. OZEE, OWNER/AGENT OF LAURA'S PLACE LOCATED AT 16758 E. z:\council packets\2014\r140306\140220m.docx Page 4 of 11 GLENBROOK BOULEVARD, FOUNTAIN HILLS, AZ 85268. THIS IS FOR A SERIES 12 LICENSE (RESTAURANT). AGENDA ITEM #3 - CONSIDERATION OF APPROVING A LIQUOR LICENSE APPLICATION SUBMITTED BY LAWRENCE EDWARD ELLIGENT, OWNER/AGENT OF SMOKEY'S BBQ LOCATED AT 12645 N. SAGUARO BOULEVARD, #1, FOUNTAIN HILLS, AZ 85268. THIS IS FOR A SERIES 12 LICENSE (RESTAURANT). AGENDA ITEM #4 - CONSIDERATION OF APPROVING A WINE FESTIVAL/WINE FAIR LICENSE APPLICATION SUBMITTED BY JUSTIN OVE, REPRESENTING ARIZONA STRONGHOLD VINEYARDS IN CONJUNCTION WITH THE THUNDERBIRD ARTISTS FINE ART AND WINE AFFAIRE. THE EVENT IS SCHEDULED FOR FRIDAY-SUNDAY, MARCH 14-16, 2014, FROM 10:00 A.M. - 5:00 P.M. ON THE AVENUE OF THE FOUNTAINS. AGENDA ITEM #5 - CONSIDERATION OF APPROVING A WINE FESTIVAL/WINE FAIR LICENSE APPLICATION SUBMITTED BY KARYL WILHELM, REPRSENTING WILHELM FAMILY VINEYARDS, IN CONJUNCTION WITH THE THUNDERBIRD ARTISTS FINE ART AND WINE AFFAIRE. THE EVENT IS SCHEDULED FOR FRIDAY-SUNDAY, MARCH 14-16, 2014, FROM 10:00 A.M. - 5:00 P.M. ON THE AVENUE OF THE FOUNTAINS. AGENDA ITEM #6 - 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 5TH ANNUAL AMRICAN LEGION RIDERS CHARITY BIKE SHOW IS SCHEDULED FOR SATURDAY, MARCH 22, 2014, FROM 10:00 A.M - 10:00 P.M. AT THE AMERICAN LEGION. AGENDA ITEM #7 - CONSIDERATION OF APPROVING AN APPLICATION FOR EXTENSION OF PREMISES/PATIO PERMIT - TEMPORARY CHANGE SUBMITTED BY MERITA KRAJA, REPRESENTING THE EURO PIZZA CAFE, FOR THE PURPOSE OF A TEMPORARY EXTENSION OF PREMISES AT 12645 N. SAGUARO BLVD #11, IN CONJUNCTION WITH THE DISCRAFT MEMORIAL CHAMPIONSHIP EVENT TO BE HELD ON SATURDAY, MARCH 1, 2014. AGENDA ITEM #8 - CONSIDERATION OF APPROVING AN APPLICATION FOR EXTENSION OF PREMISES/PATIO PERMIT - TEMPORARY CHANGE SUBMITTED BY MERITA KRAJA, REPRESENTING THE EURO PIZZA CAFE, FOR THE PURPOSE OF A TEMPORARY EXTENSION OF PREMISES AT 12645 N. SAGUARO BLVD. #11, IN CONJUNCTION WITH THE BANDIDOS MOUNTAIN TO FOUNTAIN 15K EVENT TO BE HELD ON SUNDAY, MARCH 9, 2014. Councilmember Dickey MOVED to approve the Consent Agenda as listed and Councilmember Elkie SECONDED the motion. A roll call vote was taken with the following results: Mayor Linda Kavanagh Aye Councilmember Ginny Dickey Aye Councilmember Dennis Brown Absent Councilmember Cecil Yates Aye Vice Mayor Cassie Hansen Absent Councilmember Tait Elkie Aye Councilmember Henry Leger Aye The motion CARRIED UNANIMOUSLY by those present (5-0). z:\council packets\2014\r140306\140220m.docx Page 5 of 11 REGULAR AGENDA AGENDA ITEM #9 - CONSIDERATION OF AMENDMENT 6 TO THE PROFESSIONAL SERVICES AGREEMENT WITH HDR ENGINEERING, INC., IN THE AMOUNT OF $135,202, FOR THE SHEA BLVD. IMPROVEMENTS. Town Engineer Randy Harrel addressed the Council relative to this agenda item and briefly highlighted the Staff Report provided to the Council (Report available on line and in the office of the Town Clerk). He noted that the original contract did not include HDR Engineering's involvement during the public bid process or for engineering services during construction which are included in Amendment 6 as follows: * Design $ 82,187 * Bid Phase 8,383 * Post Design 44,632 TOTAL $135,202 Mr. Harrell explained that Town staff requested that HDR make changes to the plans that were outside of their original scope of work resulting in increased design fees (as reflected above) and noted the proposed revisions included in Amendment 6 and various funding sources. He added that staff anticipates completion of the construction documents, easement acquisition and bidding for the project for construction in May of 2014 and said that staff recommends approval of Amendment 6. Mr. Harrel indicated his willingness to respond to questions from the Council. Councilmember Leger MOVED to approve Amendment No. 6 to the professional services agreement with HDR Engineering, Inc., in the amount of $135,202 for the Shea Boulevard improvements and Councilmember Elkie 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 #10 - CONSIDERATION OF RESOLUTION 2014-12, EXPRESSING SUPPORT FOR RESTORATION OF THE ARIZONA HIGHWAY USER REVENUE FUND DISTRIBUTION TO CITIES, TOWNS, COUNTIES AND STATE HIGHWAYS. Town Manager Ken Buchanan addressed the Council relative to this agenda item and briefly highlighted the Staff Report provided to the Council (Report available on line and in the office of the Town Clerk). He stated that this is a request from the League of Cities & Towns for support from the various cities, towns and counties in Arizona to urge the Legislature to re-establish some of the HURF (Highway User Revenue Funds) funds. He provided brief history on the funds and explained how they are generated. He reported that the Town currently receives $1,451,000 and the monies go towards the operation and maintenance of streets and the 390 miles of lane roads in the community. He noted that the consequence of the funding reduction is less resources to fund needed road maintenance projects and stated that the proposed resolution (Resolution 2014-12) urges the Governor and State Legislature to restore full funding of HURF monies to cities, towns counties and State Highway Fund according to the statutory distribution methodology. He added that if successful, it would replenish a little over $100,000 back to the Town's fund. Mr. Buchanan indicated his willingness to respond to questions from the Council. Mayor Kavanagh advised that the bill to restore $119 million for 2015 and 2016 was passed out of Transportation today so they are hoping that that will move ahead and become law and at least for 2015 and 2 016, the Town will have that additional funding. There were no citizens wishing to speak on this agenda item. Councilmember Dickey asked what the League was going to do with the Resolutions -- are they going to present them at some point? z:\council packets\2014\r140306\140220m.docx Page 6 of 11 Mr. Buchanan replied that if the Resolution is adopted, staff will send it to the Governor and all the Senators and Representatives as well as to the League. Mayor Kavanagh noted that the League did present those to the Transportation Committee this morning so she is sure they are going to pass them along to the next Committee. Councilmember Dickey commented on the roads and what staff has been having to do because of the lower funds and said that for a town their size taking $700,000 out of the budget, out of a General Fund, and using it strictly for roads is really directly related to this in a big way so she would be happy to make the motion if everybody is ready for that. Mayor Kavanagh advised that she also wanted to say thank you to Councilmember Dickey for calling in her approval of this as she did because the more names that were on the list for the bill she thinks made a big difference. Councilmember Dickey MOVED to approve Resolution 2014-12 in support for the restoration of Arizona Highway User Revenue Fund distribution to cities, towns, counties and State highways and Councilmember Leger 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 LEAGUE OR ARIZONA CITIES AND TOWNS WEEKLY LEGISLATIVE BULLETIN OR RELATING TO ANY ACTION PROPOSED OR PENDING BEFORE THE STATE LEGISLATURE. Mayor Kavanagh stated that she would look to Mr. Buchanan to speak on this but she too would like to address HB 2587. Mr. Buchanan said that the Council has been provided an overview by the League on some of the bills of note and he would be happy to discuss any that or any other bill that members of the Council might have heard of that have been discussed in any of the Committees. Mayor Kavanagh referred to HB 2587, the Livestock; Animal Cruelty; Violation and stated that this is one that she has been working on with the Humane Society to fight this bill and unfortunately it passed out of Committee with very few amendments that would help. She added that she would like to explain exactly what this bi ll is and how detrimental it will be if it gets passed. She noted that the Prosecutor from Pima County who works with the Animal Cruelty Division and trains law enforcement on how to investigate animal abuse cases so that they are prosecutable when they finally get to court gave testimony. She said that according to this bill, the Direc tor of Livestock will now spearhead all investigations of animal cruelty related to livestock, which includes cows, horses, sheep, goats or any animal considered working on a farm or a ranch, and that could be a dog, commercial or recreational. Mayor Kavanagh told the story of an elderly couple in Pima County who raised 15 -year old sheep that they loved and which was viciously killed (stabbed to death) by a couple of drunken adults. She stated that the current investigation protocols were followed (the couple called 9-1-1, the Pima County Sheriff's Office responded during the middle of the night and collected evidence, including DNA from the weapon used) and as a result, the persons responsible for that horrible act were arrested. She advised that according to the proposed bill, the couple would have had to call the Director of Livestock to investigate and they do not have enough officers for the entire County (they have about ten) and they also do not investigate dead animals so they would not have come out and they do not conduct any investigations at night. She noted that this would have left the couple without any investigation into the death of their sheep and the perpetrators would still be at large to do it again. Mayor Kavanagh added that the bill also reduces animal cruelty charges from the current Class 6 Felony to a Class 1 Misdemeanor. She further stated that if a dog is a working part of a ranch or farm, and the dog is abused or killed, the Director of Livestock's Department has to investigate and even if the perpetrator is found guilty, it is only a Class 1 Misdemeanor and that to her is a license to abuse animals with impunity. She pointed out that it takes away the investigative power of local law enforcement and turns it over to an agency unequipped to handle the cases. She advised that the sponsors of this bill have thrown in a section making hoarding of domestic pets a crime and some other protections for pets but these acts of abuse against pets can already be investigated and prosecuted by local law enforcement so she believes this section is just a "smoke screen" to blind everyone to the other section dealing with z:\council packets\2014\r140306\140220m.docx Page 7 of 11 livestock and what occurs on farms and ranches. She emphasized that this bill would als o strip away a city or a town's right to enact an ordinance related to the treatment of livestock, including horses, that is more prohibitive or stricter than this bill. She noted that many animal abuse cases are reported by individuals, perhaps neighbors witnessing the abuse of horses, which they have seen in the past but this bill would now require the witness to turn over any evidence within five days to the Director of Livestock or he/she faces prosecution. She stated the opinion that this section wil l only serve from deterring witnesses from coming forward in animal abuse cases. The Mayor challenged anyone to tell her that this bill will prevent animal cruelty or strengthen the current law because it won't and she would like to make a motion. Mayor Kavanagh MOVED that the Council oppose HB 2587 and that they send that on to the Legislature and Councilmember Dickey SECONDED the motion. Councilmember Elkie asked what provisions exist in the Town Code regarding livestock in the Town and Town Attorney Andrew McGuire responded that he would have to look into that further but typically they are only related to roaming at large and licensing provisions for domesticated pets. Councilmember Elkie questioned whether a resident of Town could own and house a horse and Mr. McGuire said there are several people who do that in Town. He stated that he doesn't believe the Town has a prohibition against cattle, sheep, chickens, etc., but he would have to research that further. Councilmember Elkie commented that he wants to make sure if they take up a cause that they are doing it because it will have an impact on the Town. He agreed that it is a good cause but added that he wants to make sure they are doing Town business and not putting themselves out there for something else. Mr. McGuire said that he is researching whether the Town prohibits other types of animals and will report his findings. Councilmember Dickey noted that one of the connections that was made has to do with law enforcement's ability to investigate so she thinks if they wanted to make a connection with a city's rights, they would probably look to that. She added that that is her opinion on that. Mayor Kavanagh advised that she thinks they have a responsibility since they have a mutual agreement with all of the other east valley Mayors and cities that they not only look at Fountain Hills but that they have a broader picture of what is out there and they do what's right, whether it's just for their Town or for their County or for the State. She added that she thinks it is right to oppose this bill and said she does not like the idea of tying the hands of law enforcement in enforcing any kind of animal abuse. She further stated that she does not like the idea of telling law enforcement that they can't investigate certain crimes. She said that if they feel that a crime has been committed then they should go ahead and investigate it. She added that if their own MCSO sees a crime then they should investigate it and they shouldn't have to worry that they can't investigate it because it is under the Department of Agriculture. She reiterated that she would like the Council to oppose this and noted that she has already signed on at the Legislature opposing this on her own. Mr. McGuire reported that his research has determined that the Town Code specifically restricts animals being kept in Town unless the zoning provides an exception. He advised that the list of those animals prohibited includes horses, mules, cattle, burros, goats, sheep, pigeons or poultry within the corporate limits of the Town. He added that swine are also included, so no pigs are allowed. He pointed out that there is a broad definition for household pets (cats, dogs, birds in cages) and no more than four household pets can be harbored in Town by a single resident. He said there is also the Live Animal Inducement Program that they put into the Code last year. Councilmember Leger asked what the League's position is on this bill but then said he noticed something on the bottom of one of their reports which states that a number of groups including the League have concerns about this bill as written. He questioned whether the bill is currently in its final stage. Mayor Kavanagh responded that there is more to come -- it passed out of the Agriculture Committee, which was expected because it favors livestock and the livestock industry but she believes next it goes to Rules and then the Committee of the Whole (COW). z:\council packets\2014\r140306\140220m.docx Page 8 of 11 Councilmember Leger stated that his question is whether the bill is in the final stage and said he is reserving his opinion until he knows specifically that the bill is in its final stage. Mr. McGuire informed Councilmember Leger that staff can find out the answer to that question and report back. Councilmember Dickey noted that another example of a bill that wasn't in its final stage was the Library Cap bill and the Town did take a position on that. She reported that it has changed so it is actually now acceptable to the Library Board and the County, which she wanted to report on anyway because she sent that strike all amendment to the Library Board and the Friends of the Fountain Hills Library group and they wrote her back and said that it was acceptable. She stated that she is not really opposed to taking a position be cause those often help shape the changes -- like maybe the fact that they opposed the Library Cap bill could have helped in those negotiations. She referred to this bill, HB 2587, and said that she has received a couple of e-mails from Town residents who are very upset with this bill so in the same spirit as what happened with the Library Cap bill, she would be fine with opposing this bill as it is and if it gets fixed and better then that would be great. Mayor Kavanagh noted that it did not pass unanimously out of the Committee, there were two members who opposed it. Mr. McGuire informed the Council that he does not know whether the ALIS website is up to date but it does not show any action in Rules yet -- it hasn't yet made it out of both Committees it was assigned to in the House and he believes the deadline is this week. Mayor Kavanagh said that it is supposed to be tomorrow. Mr. McGuire stated that tomorrow then is the deadline for it to be heard in Committee in the House of Origins so if it doesn't go out tomorrow it will have to come back to life as a striker somewhere else. Mayor Kavanagh advised that that Sheriff's Office is opposed to it and had someone come out to speak. She added that they said they would be willing to negotiate to make so me changes but as the bill is written right now, she would like to see them oppose this bill. Mayor Kavanagh requested a roll call vote on this and one was taken with the following results: Mayor Linda Kavanagh Aye Councilmember Ginny Dickey Aye Councilmember Dennis Brown Absent Councilmember Cecil Yates Aye Vice Mayor Cassie Hansen Absent Councilmember Tait Elkie Aye Councilmember Henry Leger Aye The motion CARRIED UNANIMOUSLY by those present (5-0). Mayor Kavanagh thanked everyone for their vote. Mr. Buchanan referred to 2379, the Library Cap Bill, and noted that striker was introduced and it basically took the cap away and required that the Truth & Taxation language, which they all live with, be included in that -- the Library District now has to comply with that during their budget process. He said they still need to continue to monitor this bill and find out what is going to happen with it. He stated that he hasn't heard anything new other than the briefing last week. Mayor Kavanagh advised that the only thing she heard was that the Library Board right now was satisfied with the way it is currently written. Councilmember Dickey commented that they agreed to let the Council know if anything changed. z:\council packets\2014\r140306\140220m.docx Page 9 of 11 Councilmember Dickey referred to HB 2378, the Fee bill, and said that the Council previously made a motion to check on what the ramifications were going to be. She noted that it passed out of the Committee 6 -0 with support from the Town's Legislators. She said she would like to know whether Mr. Buchanan was able to find out what the ramifications of that bill would be on Fountain Hills (not being able to charge fees for anything). Mr. Buchanan responded that to date staff has not been able to get that information but will keep trying. He stated that Finance is at a GFOA (Government Finance Officers Association) meeting right now so as soon as they find out any information regarding impacts on the Town the Council will be informed. Councilmember Dickey said that she is not trying to burden anyone but she wants to find out why this seems to be moving -- if they are saying that the cities and towns cannot charge fees for anything that they do as a public service then that is a serious ramification. She added that they don't necessarily need to have their staff work on it but she thinks there are probably a lot of people in other municipalities working on it as well. She reported that it passed unanimously, the Democrats voted yes on it too so she is wondering what the story on this is and why it is going forward and people don't seem to be alarmed by it. Mr. McGuire replied that he is not sure what the story is with this bill because he believes the League is opposing it and yet it is steam rolling along. He added that he knows it is an ATRA bill and the genesis of it is an anti -tax bill but in its current form there is no way to read it other than a prohibition against fees for building permits and all kinds of things that the Town does. He said he is not sure why they have not had a response from their elected folks on this bill to give them some assurance that there is an amendment coming up that will make it as narrow as it was intended or it's moving forward with some other purpose or otherwise. He stated that they have been unable to get the information they would like to have on this. Mr. Buchanan noted that there was at an East Valley Manager's meeting last week and this was brought up. He said that the Executive Director of the League was not concerned about this bill. He stated that the way he described it was that it has to be looked at in its entirety but there were a number of cities that were concerned about it. Councilmember Dickey advised that she would have made a motion but that seems pretty specific but she just wishes she knew why they think it is okay because it doesn't sound okay at all. Councilmember Elkie commented that it sounds like they are at a bit of a disadvantage as far as information since everyone seems to be saying they are not sure why this is moving along and at this time he would rely on legal. He asked how Mr. McGuire would interpret this bill as far as effects on the Town if it is passed. Mr. McGuire replied that he thinks it is pretty clear that if this bill pass ed in its current form it could be interpreted broadly by someone claiming that the Town is not authorized anymore to collect fees for any services it provides. Councilmember Elkie asked for examples of fees in Town that would be impacted and Mr. McGuire said that because the bill is limited to fees charged for the square footage of a home or facility, any fees that are calculated based on square footage like building fees and if they had a storm water fee, that would be based on rooftop area. He added that they have a number of fees within their building codes that would be affected. Councilmember Elkie noted that the Town relies so much on building when that occurs and some is coming up and being at a disadvantage as far as receiving information on this bill, and based on legal's opinion, he would like to make a motion. Councilmember Elkie MOVED to oppose HB 2378 and Councilmember Leger SECONDED the motion, which CARRIED UNANIMOUSLY by those present (5-0). Mayor Kavanagh asked whether they wanted to have any discussion on SB 1413, the Electricity Exemption and how that is going to affect the Town. Mr. Buchanan advised that there is language in the bill that does exempt or prohibit the Town from collecting sales tax on electricity used for manufacturing facilities. He said that that could be interpreted to be working on something in someone's garage all the way to an industry that is producing something and uses electricity. He noted that he has z:\council packets\2014\r140306\140220m.docx Page 10 of 11 asked Finance to look into this and added that it is difficult to determine how much they actually have because it is a little bit ambiguous on that side. He recommended that the Council oppose it until they know mor e about it because as written it is a major concern. He stated that when you start looking at other cities with large manufacturing plants, that it significant. Mayor Kavanagh pointed out that they do get a portion of the State sales tax, even if it is not from Fountain Hills. Councilmember Dickey said she wanted to add one more thing to make it more relevant and reported that the Town's Senator voted yes on this so as these things come forward that actually affect the Town's Legislators then maybe that gets more attention. Councilmember Leger MOVED to oppose SB 1413 and Councilmember Elkie SECONDED the motion, which CARRIED UNANIMOUSLY by those present (5-0). Councilmember Dicker stated that she wanted to talk about two bills that are the same, HB 2153 called Exercise of Religion; State Action and 1062, which is the Senate bill and just like it. She reported that the Senate bill passed and has gone to the Governor. She advised that 2153 was being debated on the floor right before this meeting and it did eventually pass after a very long and heated discussion. She said that the bill will likely go to the Governor on Monday so there will be those five days that the Governor will probably have it. She added that 1062 is probably going to be around the same vote. She noted that originally the League opposed the bill, which according to the League expands the definition for the purpose of expressing religion to include individuals, associations, partnerships, corporations, churches and business organizations. She stated that the measure allows a person to seek relief through a judicial proceeding for the alleged infringement of their religious beliefs, regardless of whether the government is a party to the proceeding. She further stated that the part that the Towns have to do with deal with business and economic development and noted that the bill provides protection to business owners if they refuse a customer because for whatever reason that customer violated the business owner's or the business's religion. She advised that this was in the Tucson paper and she also read something about the economic impact. She said sh e is not assuming that the Council would take a stand on this necessarily but she wanted to point out that as soon as it passed, on line went very active and there were a lot of parallels made like when the Governor took the Martin Luther King holiday away and the effect that had on the State of Arizona, the effect 1070 had on the State of Arizona, a lot of talk about how Arizona is on the verge of a Super Bowl and other things that we are trying to dig ourselves out of and get a better reputation, attract business and do all those things and how this is being viewed as not necessarily assisting that type of goal. Councilmember Dickey advised that it is too late to try and do anything in the Legislature, the only action would be to ask the Governor to veto this in light of the economic damage that is being discussed as a possibility of this bill. She added that she would not even put it on the table because she knows that Representatives Kavanagh and Reagan and everybody already voted yes on this. She stated that she just wanted to express that she thinks it's a damaging thing in a couple of ways but as related to the Town she thinks it is damaging to their reputation and to the State of Arizona's ability to get out of this economic challenge that they are in. Mayor Kavanagh commented that the last update she had said that the League was staying neutral on this and Councilmember Dickey advised that they are now called "neutral with concerns." The Mayor stated that this is one that they will keep on their radar and see what happens. She asked if anyone had any other bills they wanted to bring up and hearing none, the Mayor moved on to the next item. z:\council packets\2014\r140306\140220m.docx Page 11 of 11 AGENDA ITEM #12 - COUNCIL DISCUSSION/DIRECTION TO THE TOWN MANAGER. 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 MAYOR, INDIVIDUAL COUNCILMEMBERS, AND THE TOWN MANAGER. Councilmember Dickey reported that on February 4th they received notification from Cox that they were talking with Channel 3 and Channel 6 to renew their agreement for the right to continue to carry those channels (they were supposed to have a deadline of February 28th to come to an agreement or those channels potentially could be dropped). She stated that she wanted to make sure that the residents knew about that and Cox has stated that residents co uld contact them. Councilmember Leger announced that the Women's Soccer Team in Town won the title of their division so he wanted to put out a big "shout out" to them for doing a great job. AGENDA ITEM #14 - ADJOURNMENT Councilmember Elkie MOVED to adjourn the meeting and Councilmember Dickey SECONDED the motion, which CARRIED UNANIMOUSLY by those present (5-0). The meeting adjourned at 7:57 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 Mayor Kavanagh's State of the Town Address and the Regular Session held by the Town Council of Fountain Hills in the Town Hall Council Chambers on the 20th day of February, 2014. I further certify that the meeting was duly called and that a quorum was present. DATED this 6th day of March, 2014. _____________________________ Bevelyn J. Bender, Town Clerk