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HomeMy WebLinkAbout2014.0807.TCRM.Minutesz:\council packets\2014\r140904\140807m.docx Page 1 of 13 TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL AUGUST 7, 2014 * CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Kavanagh called the meeting to order at 6:32 p.m. in the Town Hall Council Chambers * INVOCATION – Julie Orwin, President, Congregation Beth Hagivot * ROLL CALL Present for roll call were the following members of the Town Council: Mayor Linda Kavanagh, Councilmember Ginny Dickey**, Councilmember Dennis Brown, Vice Mayor Cecil Yates, Councilmember Cassie Hansen, Councilmember Tait Elkie and Councilmember Henry Leger. Town Manager Ken Buchanan, Town Attorney Andrew McGuire and Town Clerk Bevelyn Bender were also present. **Councilmember Dickey participated in a portion of the meeting through the use of teleconferencing equipment (6:32 p.m. until 7:44 p.m.). * MAYOR’S REPORT * SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS (i) The Mayor may review recent events attended relating to economic development. (Mayor Kavanagh said that she hopes everyone is having a great summer and that they have had time to visit with family and friends. She advised that she and her husband John did some traveling this summer but when returning always quote that famous line ... "There's no place like home." She noted that every time they leave Fountain Hills they come back even more appreciative of the beautiful Town and wonderful residents that they have here. She said that at their last meeting she asked everyone to help out the business community in Town by making a big effort this summer to shop Fountain Hills. She stated that the summer is not over yet and asked residents to please keep it up. She pointed out that their businesses in Town depend on the permanent resident s to help out especially during the quieter months and added that she knows that they appreciate each time the residents shop right here in Town. The Mayor further stated that each purchase made in Town adds sales tax money, which becomes revenue for the Town to not only pay the bills but to maintain the amenities they all enjoy so much. She reported that at MAG's (Maricopa Association of Governments) Economic Development Committee meeting they discussed new initiatives from Peoria and Gilbert following the model of Phoenix to develop more efficient ways to service the community by streamlining the permit process. She advised that their ultimate goal is electronic document reviewing, online permitting and over - the counter review of simple permits. She explained that this is all about streamlining government but most importantly improving customer service. She said that they have begun to do a lot of online community business and will look into other ways to better serve the residents. She stated that MAG authorized a study with Thunderbird School of Management whereby the students will conduct a study of older adults to engage their talent to grow the economy and act as mentors. She added that this will analyze the wealth of talent in the aging communit ies and pointed out that in Fountain Hills they don't seem to have a problem with engaging their seniors, who are some of the Town's best volunteers. She further stated that Fountain Hills Unified and Fountain Hills Charter Schools would like to remind everyone that school has started so be extra careful when driving around Town especially in the mornings and late afternoons. CALL TO THE PUBLIC Town Clerk Bevelyn Bender advised that one citizen wished to speak under this agenda item. Charles Vascellaro addressed the Council stated that he was there to ask the Council not to approve the expense for hiring a consultant who designs aquatic centers. He said that he would rather they contract a devil's advocate that z:\council packets\2014\r140904\140807m.docx Page 2 of 13 would report all of the disadvantages, concerns and especially financial problems that could come with owning and operating an aquatic center. He asked whether they have more important and necessary things to spend tax dollars on and stated that the great recession in Arizona is not over. He noted that the Town has cut over one-third of its employees, cut funding of some programs and lowered funds for others. He questioned whether repairing rapidly deteriorating roads was a first priority as well as funding school over -rides and maintaining their A rating. He advised that the #1 reason families look at towns and cities to move to is the cost of housing and then how good the schools are but not if they have a public pool. He added that successful business people know that peop le learn more from their failures than from their successes and stated that he doesn't want to see their small Town take on what he believes will be a financial failure. He reported that Scottsdale has a population of 230,000 and said that is over 55,000 people for each of its four aquatic centers and Mesa has eight centers in and around their city with a population of 452,000 and that too is over 55,000 people for each of its centers. Mr. Vascellaro further stated that Rio Verde has 1,811 full-time residents with no kids and their town and Rio Verde has two private country clubs with pools. He pointed out that no one has done a survey on how many pools they have in homes, condos and apartment complexes in Town. He said that 18 minutes from the Town there is an aquatic center and asked why anyone would want to drive to Fountain Hills to use their aquatic center. He commented on the fact that the Town was rated #3 out of the top 10 best places to live in Arizona and noted that Scottsdale was #9 and Mesa and Mesa and Lake Havasu were not on the list. He advised that he will not attend the meeting on August 12th which he believes will be a motivation talk on having an aquatic center. He stated the opinion that they will not discuss any of the disadvantages, concerns and possible financial problems associated with having this center in their small Town and added the opinion that their Town is too small to own and operate even a small aquatic center. Mayor Kavanagh thanked Mr. Vascellaro for his remarks. CONSENT AGENDA AGENDA ITEM #1 - CONSIDERATION OF APPROVING THE TOWN COUNCIL MEETING MINUTES FROM JUNE 19, 2014. AGENDA ITEM #2 - CONSIDERATION OF APPROVING SEVEN SPECIAL EVENT LIQUOR LICENSE APPLICATIONS SUBMITTED BY JEAN LINZER, REPRESENTING THE FOUNTAIN HILLS AND LOWER VERDE VALLEY MUSEUM AND HISTORICAL SOCIETY FOR THE PURPOSE OF FUNDRAISERS. THE EVENTS ARE SCHEDULED FOR (I) SATURDAY, AUGUST 16, 2014 FROM 3:00 - 10:00 P.M.; (II) WEDNESDAY, SEPTEMBER 17, 2014 FROM 5:00 - 8:00 P.M.; (III) WEDNESDAY, NOVEMBER 19, 2014 FROM 5:00 - 8:00 P.M.; (IV) WEDNESDAY, JANUARY 21, 2015 FROM 5:00 - 8:00 P.M.; (V) WEDNESDAY, MARCH 18, 2015 FROM 5:00 - 10:00 P.M.; (VI) SATURDAY, MARCH 28, 2015 FROM 11:00 A.M. - 5:00 P.M.; AND (VII) WEDNESDAY, MAY 20, 2015 FROM 5:00 - 8:00 P.M., ALL HELD AT THE COMMUNITY CENTER. Councilmember Leger MOVED to approve the Consent Agenda as listed and Vice Mayor Yates 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 Vice Mayor Cecil Yates Aye Councilmember Cassie Hansen Aye Councilmember Tait Elkie Aye Councilmember Henry Leger Aye The motion CARRIED UNANIMOUSLY (7-0). z:\council packets\2014\r140904\140807m.docx Page 3 of 13 REGULAR AGENDA AGENDA ITEM #3 - CONSIDERATION OF APPOINTING FIVE (5) CITIZENS TO SERVE ON THE MCDOWELL MOUNTAIN PRESERVATION COMMISSION FOR A THREE (3) YEAR TERM, BEGINNING AUGUST 11, 2014 AND ENDING DECEMBER 21, 2017. Town Manager Ken Buchanan said that the Commission still wants to work with the trailhead and it will come into the consolidation after that. Mayor Kavanagh stated that she would like to say something about the five candidates, particularly those who have been serving. She advised that Tom Barberic has served on the Parks & Recreation Commission for three years and has been on the MMPC (McDowell Mountain Preservation Commission) since January 2009. She noted that he has been and is associated with a number of work groups and he is currently the Vice Chair of the MMPC. The Mayor advised that Gerard Bisceglia has served on the MMPC since 2011 and noted the work groups he serves on and said he is currently the Chair of the MMPC. She added that the third current member is Klaus Schadle and reported that he has served on the MMPC since 2011 and noted the work groups he served on. She stated that Thomas Aiello was a patrol officer and then a detective with the New York Police Department for over 20 years and purchased his home in Town in 1994 and has lived here full time since 2012. She said he is an avid outdoorsman and a member of the Sunset Kiwanis. The Mayor noted that Ken Thornton has 40 years of experience as a civil enginee r and recently retired. She stated that he and his wife moved to Town two and a half years ago and is an avid hiker/biker and a member of the Trail Builders Group. Mayor Kavanagh MOVED to appoint Tom Barberic, Gerard Bisceglia, Klaus Schadle, Thomas Aiello and Ken Thornton to serve on the McDowell Mountain Preservation Commission for a three -year term beginning August 11, 2014 and ending December 21, 2017 and Councilmember Hansen SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #4 - PRESENTATION BY THE RESIDENTIAL UTILITY CONSUMER OFFICE (RUCO) REGARDING THE ARIZONA CORPORATION COMMISSION'S DECISION ON CHAPARRAL CITY WATER COMPANY'S REQUEST FOR A RATE INCREASE WITH POSSIBLE DIRECTION TO STAFF. Town Manager Ken Buchanan addressed the Council relative to this agenda item and noted that representatives from RUCO (Residential Utility Consumer Office) are present in the audience this evening to further discuss the rate case for the Chaparral City Water Company. He noted that RUCO was established to represent the interests of residential utility consumers in regulatory proceedings of the ACC (Arizona Corporation Commission). He reported that in April of 2013 Chaparral filed a rate application to the ACC for a 34.83% rate increase and the Town applied for and was granted the opportunity to be an intervenor in that rate case. He advised that the Administrative Law Judge recommended a 16.28% increase but the ACC granted a 17.81% increase. He added that the actual hearing commenced in February of 2014 and RUCO consistently recommended the lowest rate increase throughout the process and on July 30th errors were discovered relative to what the rate commission did resulting in a larger increase to 20.29%. He said that on July 10th the Town applied for a re-hearing of the decision by the Corporation Commission. He advised that one Commissioner independently made a motion for reconsideration but it was denied. He stated that the decision is still before them but they expect that it will be denied as well (the Town filed again on July 10th for the reconsideration). He said that the representatives from RUCO will explain what happened during the rate discussions and the resulting decision of the ACC and after that presentation, there is a recommendation to proceed with RUCO to file an appeal if they proceed with that to the Arizona Court of Appeals. Mr. Bob Mease, Chief of Accounting and Rates for RUCO, addressed the Council and advised that RUCO reviews a majority of the rate requests that are filed. He reviewed data relative to the requested rate increase and proposals that have come forward. He highlighted a brief revised PowerPoint presentation that was distributed to the Council (Copy available on line and in the office of the Town Clerk) and reported that over the next five years a System Improvement Benefit (SIB) Charge will come into play and RUCO believes this is unconstitutional and has a case outstanding in the court system on that. He advised that as a result of that charge the people in the Chaparral Water District could experience another $8.50 increase gradually over the next five years (if this happens the rates will be $54.11and that is without another rate case). He added that the rates would go into effect once they file for their recovery. He provided details relative to what happened in the actual courtroom/ACC meeting itself and commented on tank maintenance z:\council packets\2014\r140904\140807m.docx Page 4 of 13 costs. He noted that the Commission allows them to over depreciate their plan and RUCO will continue to argue against that as well. He added that while the rates are increasing by about $7.00 now they could increase another $7.00 over the next five years. He reiterated that a request for a rehearing has been filed by the Town and said that if the rate payers are still unhappy they can file letters to the docket itself and can file petitions with the Commission and if enough people do that it might make a difference because ultimately the Commission will have to act on it. Mayor Kavanagh thanked Mr. Mease for his comments and stated that she believes there will be a lot of residents upset with this and the Council has already started to hear from them. She asked what the next step will be. Mr. Mease replied that the Commission has a certain number of days in which to respond either yes or no -- officially they have 30 days to reply. He reiterated that the Town can begin filing letters and/or writing the Commissioners and stated that if enough people do that the Commission is obligated to do something. Mayor Kavanagh commented that they need to get that information out to the residents. Mr. Mease said that there is not much that RUCO can do at this point if the Commission refuses to rehear the case. Dan Pozefsky addressed the Council and advised that he is the Chief Counsel for RUCO. He thanked the Council for allowing them the opportunity to present the facts this evening. He reiterated that they have filed a motion for reconsideration which is typically what they need to do before they file a Notice of Appeal if that is where they are going. He stated that working with the Town Attorney, Fountain Hills filed with them and they appreciate it. He added that unfortunately they were unable to convince the Commission to see things their way and grant their motion. He said that time is running out and stated that they probably will file a Notice of Appeal and what they will be appealing is the Systems Improvement Benefit Charge. He pointed out that if they are successful they will not eliminate the total increase but rather a portion of the increase. He stated that there are other avenues they can pursue but it is really not his role to provide legal advice to them on t his issue but he would be happy to sit down with the Town Attorney and talk to him about some of the Town's options. He emphasized that communicating their issues directly to the Commissioners is the most direct route to take. In response to a question from Council Brown regarding how many letters need to come from the Town, Mr. Pozefsky advised that there are sections of the law that allow the Commission on its own motion to open it up. He added that typically he has seen that if petitions are filed and communities are upset and contact the Commission, their actions might prompt the Commission to open it up on their own motion. He emphasized that that would be totally up to the Commission. Councilmember Brown thanked RUCO for all of their support. In response to a request for some further explanation on the ALJ, Mr. Mease said that the ALJ is the Administrative Law Judge and they sit as a hearing judge, listen to all the evidence and testimony that is presented and they write what is called a Recommended Order which goes to the Commission for approval. He referred to a written summary of what was discussed this evening and stated that he will pass out copies to the Council (Copy available on-line and in the office of the Town Clerk). Councilmember Dickey asked when the Town became an intervener and Mr. Buchanan responded that soon after the rate increase was filed in April of 2013 the Town became an intervener so it has been well over a year. Councilmember Dickey noted that this past April the Council voted unanimously to approve around the 11% and requested that Mr. Buchanan remind the Council why they felt that the 11% was justified. Mr. Buchanan advised that that was the result of the ACC staff's analysis, which was recommended at that time before they found out what went along with it such as the SIB charge. Councilmember Dickey commented that was recommended due to some knowledge that the rate hadn’t gone up or there was infrastructure needs and things like that. She asked if there was any discussion at the hearing that would help the Council understand why they didn't follow staff's recommendation and allow reconsideration and Mr. Mease z:\council packets\2014\r140904\140807m.docx Page 5 of 13 responded that there was very little discussion once the amendments were introduce d by one of the Commissioners (nothing was said about the reasoning behind their decision to approve it). Councilmember Dickey encouraged the Town's residents/business owners to forward their concerns to the Commission and noted that on the ACC's website there is an email address people can use (email addresses for all of the Commissioners are on that website). Mayor Kavanagh pointed out that there are two gentlemen from the newspapers present at the meeting and requested that they be provided copies of the literature as well. Mr. Buchanan requested the Council's permission for he and the Town Attorney to confer with RUCO on the next course of action. Vice Mayor Yates MOVED to provide direction as requested by the Town Manager and Councilmember Leger SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). There were no speaker cards submitted for this item. Jim McKee, Vice President of Corporate Services for EPCOR Water, addressed the Council and noted that he has appeared before the Council a couple of times to explain the application. He added that they have held a number of open houses (two) in Town to discuss the rate increase and hear/respond to any concerns. He said that they also met with the Rotary prior to the actual application being heard so they have tried to go out into the community and explain the application. He stated that he previously informed the Council that the Town has not had a rate increase in six years and they also indicated in the information provided that they were applying for a SIB, which they considered to be a mechanism that will promote rate gradualism and eliminate rate shock for the customers because when rate increases occur every six years they tend to be quite high. He advised that all they are asking for is a reas onable return on equity and the recovery of their operating costs. He added that their operating philosophy is to provide safe, reliable water to the citizens of Fountain Hills and they took over the utility and have the ability to finance their investment as it is required to make sure that they get that safe and reliable water. He provided details relative to the SIB and provided further justification for the proposed increase. He commented that as they go forward they will submit a SIB application on the projects outlined in the application and noted that there are safeguards in place (i.e. they cannot receive more than a 9.6% return on equity). He further stated that the SIB application is reviewed by the ACC and RUCO so it is not an automatic mechanism. He said that there are other safeguards in place to ensure that the citizens of the Town are not paying for something that they are not getting. He commented on tank replacement and reiterated information provided by him at previous meetings relative to this issue. He indicated his willingness to respond to any questions the Council might have. Mayor Kavanagh thanked Mr. McKee for providing additional information on this matter. AGENDA ITEM #5 - CONSIDERATION OF RESOLUTION 2014-28, CONSOLIDATING THE PARKS & RECREATION COMMISSION, THE COMMUNITY CENTER ADVISORY COMMISSION AND THE SENIOR SERVICES ADVISORY COMMISSION INTO A NEW COMMUNITY SERVICES ADVISORY COMMISSION AND ADOPTING BYLAWS. Mayor Kavanagh advised that there is one staff report for Agenda Items #5 and #6. Town Manager Ken Buchanan addressed the Council relative to this agenda item and stated that at the Council Retreat in January of this year they discussed the possibility of doing some consolidation as far as some of the Commissions. He noted that the Council gave direction to moving forward and doing that with some consideration as far as what needed to be done (do some due diligence with all four Commissions) and assign that to Mark Mayer, the Community Services Director. He said that Mr. Mayer is here tonight to discuss this item and provide a recommendation to the Council. Mr. Mayer addressed the Council and pointed out that at the May meeting staff had requested approval to move forward and adopt a resolution and an ordinance that would change the status of three of the four Commissions -- the one caveat being that the MMPC (McDowell Mountain Preservation Commission) has requested to stay as they are z:\council packets\2014\r140904\140807m.docx Page 6 of 13 until either the trailhead has been completed or until December 31, 2017, whichever comes first. He added that after that time they too would join the Community Services Commission. He reported that the Council granted permission for staff to move forward and the proposal was then brought to each Commission and each voted unanimously to consolidate the Commissions as presented. He stated that staff received direction at the May 1, 2014 Council meeting to prepare the necessary ordinance to combine Commissions and to prepare by-laws, which are being presented this evening. He recommended Council approval. There were no citizens wishing to speak on this agenda item. Vice Mayor Yates requested that Mr. Mayer elaborate further on why they wanted to maintain the separation of the MMPC. Mr. Mayer responded that the MMPC requested that through their Chair and because they are getting closer and approaching construction in Adero Canyon and subsequently the trailhead is imminent, they asked to be able to continue to be involved in that as they have been in the past. He added that they are interested in joining the Commission as noted above. Councilmember Elkie MOVED to approve Resolution 2014-28 creating the Community Services Advisory Commission and adopting the by-laws and Vice Mayor Yates SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). (Agenda Items #5 and #6 were voted on out of order but for purposes of clarity shall remain as listed on the agenda.) AGENDA ITEM #6 - CONSIDERATION OF ORDINANCE 14-04, DELETING ARTICLE 9-2 OF THE FOUNTAIN HILLS TOWN CODE, PARKS AND RECREATION CO MMISSION, RELATING TO THE CONSOLIDATION OF THE PARKS AND RECREATION COMMISSION, THE SENIOR SERVICES ADVISORY COMMISSION AND THE COMMUNITY CENTER ADVISORY COMMISSION INTO A NEW COMMUNITY SERVICES ADVISORY COMMISSION. (For discussion of this item, please see Agenda Item #5 above.) Councilmember Elkie MOVED to approve Ordinance 14-04, deleting Article 9-2, Parks and Recreation Commission and creating the Community Services Advisory Commission and Councilmember Leger SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #7 - CONSIDERATION OF RESOLUTION 2014-36, ADOPTING THE TOWN OF FOUNTAIN HILLS MUNICIPAL SPONSORSHIP AND NAMING RIGHTS POLICY, AMENDED AND RESTATED AUGUST 7, 2014. Community Services Director Mark Mayer addressed the Council relative to this agenda item and advised that the original policy was established last fall 2013. He said that over a period of time staff has had time to obtain input from various Councilmembers and based on that staff is proposing some changes for their co nsideration. He listed the four proposed changes as follows: * Nonprofit Organizations are now defined as tax exempt under IRS 501(c)(3) * The limit for Municipal Sponsorships, Co-Sponsorships, Sole Sponsorships and Marketing Arrangements has been lowered from $30,000 to $10,000 * The Town Manager will review all Municipal Sponsorships, Co-Sponsorships, Sole Sponsorships and Marketing Arrangements and shall submit to the Council for approval those with an aggregate value of more than $10,000, those involving contributions of cash or in-kind over $10,000 and those involving the closure of public access for more than one day or an event lasting longer than one week * If a Nonprofit Organization wishes to have their fees reduced by 50% they must provide a letter from the IRS granting the group tax-exempt status under Section 501(c)(3) Mr. Mayer indicated his willingness to respond to any questions from the Council. z:\council packets\2014\r140904\140807m.docx Page 7 of 13 Councilmember Elkie asked why they are adding in the tax exempt status under 501(c)(3) an d Town Attorney Andrew McGuire explained that the purpose of defining it is to indicate an organization that has received a determination letter from the IRS -- that is the benchmark by which the Town will decide whether they are able to waive the fees for use of Town facilities and other things. Councilmember Elkie questioned what else is required to obtain the tax-exempt status and Mr. McGuire noted that it is actually a fairly involved process and outlined the criteria. Councilmember Elkie noted that there are some organizations in Town that are not 501(c)(3), for example Veteran's organizations fall under 501(c)(19) and asked how they would play into this -- they may not be a tax-exempt organization (if you donate to them you can claim that on your tax able income) but they are for all intents and purposes a Nonprofit Organization and Mr. McGuire concurred with that statement. Mr. McGuire advised that the statute allows for a number of different organizations and the goal from the Town's perspective was to make sure that a determination letter was the key so the 501(c)(3) status is not the key but rather the determination letter that follows it. Councilmember Elkie suggested that the language be changed to reflect different organizations so that no one will be excluded from consideration and Mr. McGuire said that staff can make that adjustment in definition pretty easily. Mayor Kavanagh said that she has a question about the reduction from $30,000 to $10,000 and asked if any of the Town's current events would be affected by any of these. She added that if some of the events are annual would they have to obtain approval every year. Mr. Mayer responded yes and noted that if they reapplied for the event and exceeded $10,000 then it would have to go back to the Council again. He stated that the only activities he can think of off of the top of his head would be the Chinese New Year celebration and he believes even the Ballet Arizona falls under the $10,000. He advised that it really depends a lot on the length of the event, not so much on the size and that becomes the trigger mechanism. Mayor Kavanagh said she has concerns because a lot of the events have to start being planned way ahead of time, they finish one and start planning the next, and if they have to obtain Council approval she is worried that that might be a problem, Mr. Mayer agreed that this could be an issue and stated that he discussed this with representatives of the Chinese New Year event whose application will be looked at by the Special Event Committee later this month . He advised that the person running the event stated that he was reluctant to start marketing the event at a significant cost before knowing whether or not the event would be able to take place. Mr. Mayer added that he cautioned him that the sooner he got the application in the more quickly it could be turned around so that amounted to a bit of a delay. He said that if they proceed with this process people will have to be advised that it will take a little bit longer than it has in the past. Mayor Kavanagh asked whether some guidelines will be set up so that people know how soon they are going to have to start planning for their next event and Mr. Mayer responded that they cannot say how long the process will take but they can certainly give them information on how much notice the Town needs. Mayor Kavanagh commented on the fact that right now the process is set up where there are certain criteria that must be met in order to decide whether an event will take place and staff performs the research and then brings it to Mr. Mayer to reviews it and decides whether the criteria meets the standards. She further stated that Mr. Mayer also takes them to Mr. Buchanan so there seems to be a good staff layer in place to look at an event and decide whether it meets the criteria. She advised that she just doesn't understand the decrease from $30,000 to $10,000 and why that is so important. She said that her biggest concern is that it is going to put some events into the hands of a government body rather than staff. She pointed out that any kind of nonprofit group could decide to do something in the park, for example put on a religious event, meet all the criteria and come before the Council and if for whatever reason the Council says, "No, we don't want to have this" it could be looked at more like a political thing rather than a staff decision and it might put the Town in harms' way legally. She added that she is just concerned about the Council having to make a decision that she thinks really belongs with the staff. z:\council packets\2014\r140904\140807m.docx Page 8 of 13 Councilmember Elkie said that some of the discussion they had about reducing the amount from $30,000 down to $10,000 had to do with the amount and putting that responsibility on staff to essentially be able to give away in -kind contributions up to $30,000. He noted that the Councils always want to make informed decisions and during his tenure on the Council he can't remember a time when they have ever rejected a special event. He stated that he is confident that future Councilmembers will review the applications and make thoughtful decisions. He added that in most cases, the people he talks to would rather have the Council making those decisions. He advised that he doesn't have a problem with the $10,000 and thinks it is appropriate while $30,000 is a lot to put on their Town Manager and staff. Councilmember Hansen pointed out that they had changed the Special Event policy to make it easier to have events and she thinks the idea behind that was for the smaller events, to expedite them. She said she thinks that when they get into the scope of the larger events that have a larger impact on the community she thinks it is beneficial for it to come before the Council just so they can have that dialogue and get public input as well. Mayor Kavanagh clarified that she is sure that this Council or any future Council will make the most informed decisions possible and she is just saying that the perception out there is usually that the staff follows criteria and are more neutral as opposed to a political body (and that adds another layer of government). She further stated that she can understand why this might be necessary and she probably will support this but she will also be looking at it to see how it is handled in the future. She reiterated that her only major concern is how this will be perceived by groups. She said that if a religious group or some group like that that comes in and wants to do an activity in the park and the Council makes a good decision on why they don't want it based on the facts the group could easily turn that around and they are more likely to do that with a political body than with staff. She added that if it is staff they assume it is black and white and staff simply follows the criteria that are in place. Councilmember Dickey expressed the opinion that in some ways $30,000 might seem like a lot and instead of looking at it as a political thing, she looks at it more like a transparent thing and there are some people who wonder how these decisions come down. She noted that they are obviously talking about taxpayer money and she thinks in this way it is a discussion that's been public and on Channel 11 and all that good stuff. She added that she can't imagine making decisions based on the content of what an event would be rather than making sure that the ducks are in a row and they have all the paperwork and that type of thing. She stated that the existing policy says that for a request for co- sponsorship for non-governmental entities one of the criteria is that the event or program be free and open to the public. She pointed out that last August when they discussed some of this they did express the opinion that they didn't want public areas to be inaccessible to the residents when there is an event that charged an admission fee. She asked whether staff is taking care of that. Mr. Mayer clarified that in addition to the Chinese New Year celebration there are a number of other events where if a fee is being charged they typically have closed off sections of the park (most recently the 4th of July ceremony). He added that they also do it for Heritage Fest, Oktoberfest and other activities. He said that when a fee is charged a section of the park is typically closed off. Councilmember Dickey commented that she was not referring to a specific event, she was referring to the fact that it is written down that they will not have co-sponsorships unless the event is free and open to the public. She asked whether they wanted to change that. Town Attorney Andrew McGuire advised that the section Councilmember Dickey is referring to is 7-C-2, one of the criteria used to evaluate a co-sponsorship with a non-governmental entity. He stated that Councilmember Dickey's question is because they have these blended events do they want to change that to match what actually happens. Councilmember Elkie suggested that they just take out the word "free" so it will just be "open to the public" and not a private event. Councilmember Dickey said she is okay with that if someone wants to make a motion. Councilmember Elkie commented that the Mayor brought up some good points about the religious and/or political events and possible issues. He noted that under the current adopted version they have, 4(i), Religious or Political Associations for a Candidate Running for Office, which requires that those situations must come before the Council for approval and staff cannot approve them on their own. z:\council packets\2014\r140904\140807m.docx Page 9 of 13 Mayor Kavanagh said that she was really referring to events like the Pakistani Kite Festival that had some religious booths. She stated that if that were not approved by the Council it could be perceived in the wrong way because there is a certain way people perceive government bodies. Councilmember Elkie MOVED to approve Resolution 2014-36, amending and restating the Town of Fountain Hills Municipal Sponsorship and Naming Rights Policy to include the amendments discussed (501(c)(6), 501 (c)(19) and any others that reflect the discussion that Council had this evening regarding Nonprofits as well as removing the word "free" from Section 7-C-2 and Vice Mayor Yates SECONDED the motion. There were no citizens wishing to speak on this agenda item. The motion CARRIED UNANIMOUSLY (7-0). (Councilmember Dickey discontinued the use of the teleconferencing equipment at this time, 7:44 p.m., and left the meeting.) AGENDA ITEM #8 - CONSIDERATION OF NAMING LEGACY PLAZA IN FOUNTAIN PARK "THE JOE AND MARGE BROWN LEGACY PLAZA" AS PROVIDED FOR UNDER THE TOWN OF FOUNTAIN HILLS MUNICIPAL SPONSORSHIP AND NAMING RIGHTS POLICY. Community Services Director Mark Mayer addressed the Council relative to this agenda item and noted that on June 5, 2014 Mr. Jerry Butler with The Greening Committee approached the Council about a Legacy proj ect that is in back of the Plaza Fountainside, which are the commemorative columns. He referred to a slide displayed in the Chambers and said Mr. Butler also discussed incorporating a number of other upgrades He said that at the time Mr. Butler stated that it was coming from an anonymous donor and that at some future date he would be back and tonight is that future date. He advised that joining him this evening is Mr. Bruce Boland, the Executor and Trustee of the Brown Family Trust, and noted that he will make a short presentation to the Council. He noted that there are several criteria in the recently restated ordinance dealing with naming rights -- one has to do with the fact that the person on behalf of the requesting party needs to have made a significant contribution to the community. He stated that he thinks that clearly applies in this case as the Council saw in the supplemental information that was provided (Copy available on line and in the office of the Town Clerk). He added that another states that if the person is donating more than half of the cost of this project or any particular project, that is grounds for granting the permanent naming of a potential future site. Mr. Boland addressed the Council and said he knows that the Council has copies of his remarks in front of them and advised that there are reasons why he would like to go through pieces of it. He noted that he has been a partner and friend of the Joe and Marge Brown all of his life and he is their executor and their trustee. He advised that they arrived in Town when Fountain Hills had nothing but gravel roads (1970 through 2013). He informed the Council that when Marge died in December of 2013, one of her final wishes was to do a number of things for other people, which is typical of what they did for nearly all of their adult lives. He reported that Joe passed in 1999 and Marge a few months ago and one of Marge's final wishes was to do something to give back or, in their case, give more to the Town after their deaths and that something was left up to him to discover and implement. He advised that she talked a lot about what was going on to make the Fountain better and spoke fondly of the Greening of Fountain Hills. He said that in her last years she would have difficulty walking down to see the leaves that were being sold to support the Greening Project and to look at all the changes with the new plantings -- there wasn't enough seating close by to sit and enjoy the view and reminisce. He stated that he and his wife thought about a new area for seating by the commemorative columns with the "donation leaves." Mr. Boland advised that without going through the entire presentation, he is asking the Council to approve the permanent naming rights to build what he calls a wonderful looking plaza that people can enjoy. He noted that no taxpayer money is involved and they are anxious to move forward with the project. He added that he would also like to have this presentation used by the press in any manner they want because the Town is beautiful. Mayor Kavanagh thanked Mr. Boland for his presentation. Councilmember Hansen asked whether there will be some type of a plaque somewhere in the Plaza that will outline/summarize all of the Brown's activities and Mr. Boland said yes and they are working on the wording. He z:\council packets\2014\r140904\140807m.docx Page 10 of 13 noted that Marge and Joe were very successful in their own home town of Badger, Iowa and they loved Fountain Hills better by far. Mayor Kavanagh stated that the Council had the opportunity to look at the design already and they all agreed that it is a very nice design and a wonderful seating area. She said it is true that a lot of the seniors as they get older can't get down there because of the grass and this is right off the path, which makes it very accessible to everyone to sit and enjoy the Fountain. Councilmember Leger commented that he can feel Mr. Boland's emotion and added that he represented a wonderful family. He advised that they are leaving behind an extraordinary gift for the Town, their family and the residents of Fountain Hills. He noted all of the work the Brown's have done with The Greening Committee and said that they helped to put many projects in Town together. He thanked Mr. Boland for his efforts. There were no citizens wishing to speak on this agenda item. Vice Mayor Yates MOVED to name the Legacy Plaza in Fountain Park the Joe and Marge Brown Legacy Plaza and Councilmember Hansen SECONDED the motion, which CARRIED UNANIMOUSLY by those present (6-0); Councilmember Dickey was absent Mayor Brown thanked the Brown family for this wonderful gift to Fountain Hills and said they, their kids and grandkids will enjoy it for a long, long time. AGENDA ITEM #9 - CONSIDERATION OF A REQUEST TO UPDATE THE FOUNTAIN HILLS MCDOWELL MOUNTAIN PRESERVE MASTER PLAN AND TO DESIGNATE THE TRAIL CONNECTING WITH SCOTTSDALE AS THE ANDREWS-KINSEY TRAIL. Community Services Director Mark Mayer addressed the Council relative to this agenda item and noted that it has been ten years since the original Master Plan for the Preserve was completed. He added that it is no surprise that the person they are going to recognize tonight is Roy Kinsey, who was the author of that document. He said it was adopted back in 2004 and in the ten years since that Master Plan was completed there have been a number of changes to the proposed trail and briefly noted changes that have been made. He referred to the subsequent maps and a map that was displayed now showing the updates (Copy available on line and in the office of the Town Clerk). He advised that the McDowell Mountain Preservation Commission (MMPC) is requesting that the Master Plan for the McDowell Mountain Preserve be updated to reflect the trails that have been added and those planned for the future. He further stated that in addition, the MMPC is recommending that the trail recently connected to Scottsdale be designated as the Andrews-Kinsey Trail to recognize the efforts of two individuals who have had a profound influence on each of the community's Preserves. Mayor Kavanagh commented that it is her understanding that Mr. Andrews is Scottsdale's equivalent of the Town's Roy Kinsey and that is why they decided to name it after both of them. Mr. Mayer agreed that said they are both highly respected for the work they have done on both sides of the Preserve. The Mayor said that they have been trying to name a trail after Mr. Kinsey for a long, long time so this is a breakthrough and Mr. Mayer advised that Mr. Kinsey supports the request. There were no citizens wishing to speak on this agenda item. Councilmember Hansen MOVED to approve the Master Plan for the McDowell Mountain Preserve and to designate the trail connecting with Scottsdale as the Andrews-Kinsey Trail and Councilmember Elkie SECONDED the motion, which CARRIED UNANIMOUSLY by those present (6-0); Councilmember Dickey was absent. AGENDA ITEM #10 - CONSIDERATION OF ACCEPTING THE BID FROM NESBITT CONTRACTING COMPANY, INC., IN THE AMOUNT OF $3,218,591.29, FOR THE CONSTRUCTION OF THE SHEA BOULEVARD WIDENING PROJECT (INVITATION FOR BIDS DS2015-101). z:\council packets\2014\r140904\140807m.docx Page 11 of 13 Town Manager Ken Buchanan addressed the Council and noted that this project has been on the books for quite some time and the Development Services Director, Paul Mood, picked it up, ran with it and got it to this point. He reported that in the CIP (Capital Improvement Plan) staff had the project estimated at $4.3 million and the proposed cost is under that by approximately $600,000. Mr. Mood addressed the Council and advised that the project is identified as one of the transportation capacity improvement projects in the Maricopa Association of Governments (MAG) Life Cycle Program. He said that the Proposition 400 half-cent transportation excise tax was approved by voters in 2004 and funds 70% of the project. He reported that Shea Boulevard has been designated a principle arterial by MAG, is on the National Highway System maps and is also designated as a principle arterial in the Town of Fountain Hills General Plan (principle arterials are three lanes in each direction). He advised that the only widening will be on westbound Shea from Saguaro to Technology and the rest of the road width is wide enough for three lanes but is not striped for three lanes because it drops when you get to the west side of the Saguaro intersection. Mr. Mood briefly highlighted the Staff Report (Copy available on line and in the office of the Town Clerk) and stated that the project will also include mill and overlay. He said that the Town received a grant from the Maricopa County Department of Transportation a few years back so they are going to mill and overlay all the way out to where ADOT recently did some work around the Beeline a few years ago. He added that they will also be doing some drainage improvements, a new signal at Saguaro Boulevard and pavement replacement on Saguaro Boulevard to a location just north of Trevino Drive. He advised that staff bid the project out and got five bidders (for the base bid, which is standard asphalt, owner allowance and a bid alternate to upgrade from regular asphalt to rubberized asphalt on Shea Boulevard). He reported that with the rubberized asphalt the low bid came in at a little over $3.2 million and the high bid was $3,336,000. He said that staff is recommending approval of the Nesbitt bid with the alternate for the rubberized asphalt. He added that the next contracts for construction management and for design are approximately $3.7 million so there is about $600,000 to $650,000 below the estimated budget. He further stated that 70% of the project will be paid for by MAG and 30% by the Town and they first have to back out the County grant because that is really outside of this project's limit. He added that it is early but right now staff is estimating that the Town and MAG would realize about $360,000 under the program's budget. Mr. Mood advised that staff recommends approval of Nesbitt Contracting Company's bid and said that they are looking at issuing a Notice to Proceed to the contractor with an effective date of August 25, 2014 and if that doesn't work for the contractor then right after Labor Day. He indicated his willingness to respond to any questions from the Council. Mayor Kavanagh asked whether there is any sidewalk involved in this project and Mr. Mood replied yes, on portions of Shea Boulevard. Councilmember Brown asked how many months the project will take and Mr. Mood responded nine months, 270 days. He commented on the fact that there is a lot of underground work. He stated that they are looking at doing the milling and paving at night. Councilmember Brown questioned whether Saguaro will start much later and Mr. Mood advised that because of the bond sale question staff is looking at presenting the construction contract to Council at the last meeting in November and they are anticipating that the project will start in early 2015. There were no citizens wishing to speak on this agenda item. Councilmember Brown MOVED to approve Invitation for Bids DS2015-101 with Nesbitt Contracting Company, Inc, in the amount of $3,218,591.29 for the construction of the Shea Boulevard Widening Project and Vice Mayor Yates SECONDED the motion, which CARRIED UNANIMOUSLY by those present (6-0); Councilmember Dickey was absent AGENDA ITEM #11 - CONSIDERATION OF APPROVING THE PROFESSIONAL SERVICES AGREEMENT C2015-109 WITH HDR CONSTRUCTION CONTROL CORPORATION, IN THE AMOUNT OF $411,878.00, FOR CONSTRUCTION MANAGEMENT SERVICES RELATED TO THE SHEA BOULEVARD WIDENING PROJECT. z:\council packets\2014\r140904\140807m.docx Page 12 of 13 Development Services Director Paul Mood addressed the Council relative to this agenda item and sa id that this ties into the Shea Boulevard construction. He reported that HDR Construction Control Corporation will be providing the construction management for the project. He said that they will have a full-time inspector for nine months and a half- time resident engineer for nine months in addition to a little bit of office staff time for their billing, report writing and things like that. He advised that for the nine months the hour rates work out to about $337,000 and staff also included a $25,000 allowance for night-time inspections, which they plan on having for the milling and paving. He stated that staff also included a $40,000 allowance in case the project runs longer for some reason and $10,000 for any quality assurance testing. He informed the Council that this is also eligible under the MAG Arterial Life Cycle Program for the 70-30 sharing and if they expended all of the money MAG's portion would be $288,000 and the Town's portion $125,000. He indicated his willingness to respond to any questions. Councilmember Elkie commented on the fact that there are a lot of projects going on in Town and said he just wanted to commend Mr. Mood, the Town Manager and staff on the fantastic job that they are doing. There were no citizens wishing to speak on this agenda item. Councilmember Elkie MOVED to approve Professional Services Agreement C2015-109 with HDR Construction Control Corporation as presented and Councilmember Leger SECONDED the motion, which CARRIED UNANIMOUSLY by those present (6-0); Councilmember Dickey was absent. AGENDA ITEM #12 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF REGARDING CANCELLATION OF THE AUGUST 21, 2014 COUNCIL MEETING DUE TO THE 2014 ARIZONA LEAGUE OF CITIES AND TOWNS' ANNUAL CONFERENCE BEING HELD THE SAME WEEK. Town Manager Ken Buchanan addressed the Council relative to this agenda item and advised that this item is at the Council's discretion. Mayor Kavanagh said that she knows that a number of Councilmembers will be going to the League Conference and that Thursday is a prime day to meet with service providers and provides her an opportunity to meet with other elected officials including Mayors that she does not normally see. She added that she plans on meeting with groups like Scottsdale's CVB (Convention & Visitors Bureau). She stressed the fact that this is a great opportunity for networking. She advised that she did check with staff first to see if there was anything pressing and they told her no, the calendar was pretty clear and this has been done in the past. Mayor Kavanagh MOVED to cancel the August 21, 2014 Council meeting due to the Arizona League of Cities and Towns' Annual Conference being held the same week and Councilmember Brown SECONDED the motion. There were no citizens wishing to speak on this agenda item. The motion CARRIED UNANIMOUSLY by those present (6-0); Councilmember Dickey was absent AGENDA ITEM #13 - CONSIDERATION OF A LEASE AGREEMENT WITH RURAL METRO CORPORATION FOR AMBULANCE STAGING AT FIRE STATION #1. Town Manager Ken Buchanan addressed the Council relative to this agenda item and said that this is for an agreement with Rural Metro for their ambulance division. He advised that the proposed lease provides a two -year period subject to the term of the Town's Fire Protection Contract with Rural Metro. He explained that the lease allows the use of space for various uses in Station #1. He noted that the lease is for $28,400 per annum with a 2% annual adjustment. He stated that staff recommends approval of the lease as presented and indicated his willingness to respond to any questions. Councilmember Brown MOVED to approve the lease agreement between the Town of Fountain Hills and the Rural Metro Corporation for the housing of its ambulance service in Station #1 and Vice Mayor Yates SECONDED the motion, which CARRIED UNANIMOUSLY by those present (6-0); Councilmember Dickey was absent. z:\council packets\2014\r140904\140807m.docx Page 13 of 13 AGENDA ITEM #14 - SEMI-ANNUAL REPORT BY TOWN MANAGER KEN BUCHANAN ON THE PROGRESS OF IMPLEMENTING THE COUNCIL'S STRATEGIC PLAN GOALS AND OPERATIONAL PRIORITIES FOR FY 2013-14. Town Manager Ken Buchanan addressed the Council relative to this agenda item and advised that he would be happy to answer any questions regarding the report that was provided to the Council (Copy are available on line and in the office of the Town Clerk). He indicated his intention to highlight one area and stated that when he first came on board, the reports regarding the long-range vision for the Town and the eight strategic values were not adequately reflecting the long-term goals (it was showing they were 100% in certain areas and when you are talking about a long -term build out there is no way that that could work). He advised that in the future the Council will see those being changed and the current process will apply to the operational priorities, which are part of the Strategic Plan and the goals and they won't see that type of measurement being used for the long-term vision and values. AGENDA ITEM #15 - 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 #16 – SUMMARY OF COUNCIL REQUESTS AND REPORT ON RECENT ACTIVITIES BY THE MAYOR, INDIVIDUAL COUNCILMEMBERS AND THE TOWN MANAGER. None. AGENDA ITEM #17 - ADJOURNMENT Vice Mayor Yates MOVED to adjourn the meeting and Councilmember Brown SECONDED the motion, which CARRIED UNANIMOUSLY by those present (6-0); Councilmember Dickey was absent. The meeting adjourned at 8:15 p.m. TOWN OF FOUNTAIN HILLS By _______________________________ Linda M. Kavanagh, Mayor ATTEST AND PREPARED BY: ________________________________ Bevelyn 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 7th day of August, 2014. I further certify that the meeting was duly called and that a quorum was present. DATED this 4th day of September, 2014. _________________________________ Bevelyn Bender, Town Clerk