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HomeMy WebLinkAbout2014.1002.TCRM.Minutesz:\council packets\2014\r141016\141002m.docx Page 1 of 11 TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL October 2, 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 – Associate Pastor, Gary Emmons with Christ's Church of Fountain Hills * 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 Tait Elkie and Councilmember Henry Leger. Town Manager Ken Buchanan, Town Attorney Andrew McGuire and Town Clerk Bevelyn Bender were also present. Councilmember Hansen was absent from the meeting. * MAYOR’S REPORT i) The Mayor will read a Proclamation declaring October 5 thru 11, 2014 as Fire Prevention Week in the Town of Fountain Hills. Mayor Kavanagh stated that the Town of Fountain Hills, Arizona, is committed to ensuring the safety and security of all those living in and visiting the Town. She reported that home fires killed more than 2,300 people in the United States in 2012 and added that Fire Departments responded to 365,000 fires in the U.S. She noted that working smoke alarms cut the risk of dying in reported home fires in ha lf and three out of five home fire deaths result from fires in properties without working smoke alarms. She stressed the importance of the residents installing smoke alarms in every sleeping room, outside each separate sleeping area and on every level of the home and said they should also install smoke alarms and alert devices that meet the needs of people who are deaf or hard of hearing. She advised that the 2014 Fire Prevention Week theme is "Working Smoke Alarms Save Lives: Test Yours Every Month" an d stated that that effectively serves to remind everyone that they need working smoke alarms to give them time to get out safely. The Mayor proclaimed October 5 - 11, 2014 as Fire Prevention Week throughout the Town of Fountain Hills and urged all residents to test their smoke alarms at least every month by pushing the test button and to support the many public safety activities and efforts of Fountain Hills' fire and emergency services during Fire Prevention Week 2014. ii) The Mayor will read a Proclamation declaring October 2014 as Domestic Violence Awareness Month in the Town of Fountain Hills. Mayor Kavanagh stated that home should be a place of warmth, unconditional love, tranquility and security and for most people home and family can indeed be counted among our greatest blessings. She said that tragically for many Americans, these are blessings that are tarnished by violence and fear and women, men, young children and the elderly are all counted among the victims of domestic violence. She reported that physical injury and deaths occur and emotional scars are often permanent. She noted that law enforcement officials, shelters, hotline services, health care providers, the clergy and concerned citizens are helping in the effort to end domest ic violence and stressed the importance of recognizing the compassion and dedication of these volunteers and professionals, applaud their efforts and increase public understanding of this important problem. The Mayor advised that the Council approved Resolution 2013-44 on August 15, 2013, expressing support for the "Start by Believing Campaign" through the End Violence Against Women International Organization and proclaimed the month of October as Domestic Violence Awareness Month in the Town. She urged all citizens to observe this month by becoming aware of the tragedy of domestic violence and supporting community efforts in working towards its end. z:\council packets\2014\r141016\141002m.docx Page 2 of 11 iii) The Mayor will read a Proclamation declaring October 6 thru 10, 2014 as Customer Service Week in the Town of Fountain Hills. The Mayor stated that in 1992 the U.S. Congress proclaimed Customer Service Week a nationally recognized event, celebrated annually during the first full week in October. She said that the Town of Fountain Hills is committed to providing the highest and most efficient level of customer service and the Town Council would like to express its sincere thanks and appreciation for the excellent service provided by the citizens of the Town on a daily basis by all employees of the Town. She proclaimed October 6 through October 10, 2014 as Customer Service Week in Fountain Hills and respectfully asked all citizens to express thanks for the outstanding customer service provided by Town staff throughout the year. Mayor Kavanagh read an announcement about the upcoming November 4, 2014 General Election and noted that this will be a mail ballot election for the Town and there will not be any polling sites in the Town on that day. She stated that Monday, October 6th is the last day to register to vote in the General Election and Thursday, October 9th is when the Maricopa County Elections Department will mail out the ballots to Fountain Hills ' voters who were registered to vote by October 6th. She further stated that on Monday, October 13th, Town Hall will open as a Ballot Replacement Location during regular business hours, Monday through Thursday, 7:00 a.m. to 6:00 p.m. for those voters who have lost their ballot, did not receive their ballot in the mail or who spoiled their ballot. She advise d that Town Hall will provide a sealed blue ballot box as an alternative ballot depository for voters who do not wish to return their voted ballots in the signed and sealed affidavit envelope by mail (so if citizens don't want to put their ballots in the mail they can bring them to Town Hall and a secured box will be there for them to put their ballots in). She further stated that Maricopa County Elections will send voters their ballot in a yellow envelope so they should watch the mail for that envelope after October 9th because a lot of yellow envelopes look like the junk mail they get every day. She noted that the ballot received will not be a sample ballot and it should be voted, signed, sealed and returned to Maricopa County Elections prior to 7:00 p.m. on Election Day. She stressed that ballots in envelopes that are not signed will not be counted. She encouraged anyone with questions to contact Town Clerk Bevelyn Bender. * SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS (i) The Mayor may review recent events attended relating to economic development. Mayor Kavanagh announced that she attended the Environmental Excellence Awards in Scottsdale and said that these awards are given each year in building and architecture, wastewater and energy conservation, all sponsored by the non- profits SRP in Arizona Forward. She pointed out that an award's recognition like this shows SRP's commitment to innovation in new fields of environmental conservation. She added that she also attended the first MAG (Maricopa Association of Governments) Economic Development Committee meeting where she was elected to again represent the East Valley. She said that they received updates on a lawsuit filed against the EPA (Environmental Protection Agency) for its approval of their Five Percent Plan, which is where the EPA gave Arizona an air pollution exception due to the heavy dust storms that were experienced. She stated that it is that time of year again for clubs and organizations to start to meet and she noted that she has been giving updates on the Town -- the last few weeks she visited the morning Rotary, the Business Alliance and the Men's Discussion Group. She stated that they also had their first School Coalition meeting this morning and explained that it is an anti-drug and alcohol group made up of school officials, MSCO (Maricopa County Sheriff's Office), Boys & Girls Club, parents, community residents, government representatives of the County and the State, along with Town representatives, the Mayor and Community Services Department all coming together once a month to work to find solutions and take action to stop the flow of drugs to their schools and educate the students as to the dangers of drugs and alcohol. She emphasized that this is a great group of volunteers who are responsible for starting the Safe Homes Network, Text a Tip, The Above That Club for Middle School students and for putting the new drug drop box in the lobby of Town Hall. She noted that now residents can drop off their leftover medication anytime that the Town Hall lobby is open. She reported that October 9th will be Red Ribbon Day at the school and said that this national event is sponsored by the school, MCSO and the Town to bring awareness to the students about the dangers of drug use. She advised that she is quite honored to have been featured in the League of Cities & Towns Newsletter this month and stated that they chose her as their Economic Development Committee Spotlight on the Mayor Column. In closing the Mayor commented that she is excit ed to have been featured but pointed out that the recognition not only puts the spotlight on her but also on the Town of Fountain Hills and that is always good for them. z:\council packets\2014\r141016\141002m.docx Page 3 of 11 CALL TO THE PUBLIC Town Clerk Bevelyn Bender advised that there were no requests to speak under this agenda item. CONSENT AGENDA AGENDA ITEM #1 - CONSIDERATION OF APPROVING THE TOWN COUNCIL MEETING MINUTES FROM SEPTEMBER 4 AND 18, 2014. AGENDA ITEM #2 - CONSIDERATION OF APPROVING AN EXPENDITURE TO TYLER TECHNOLOGIES, INC., IN THE AMOUNT OF $57,906.30, FOR THE TWELVE-MONTH PERIOD SEPTEMBER 25, 2014 THROUGH SEPTEMBER 24, 2015 FOR THE ANNUAL MAINTENANCE AND SUPPORT OF THE TOWN'S MUNICIPAL ENTERPRISE FINANCIAL SOFTWARE. AGENDA ITEM #3 - CONSIDERATION OF APPROVING A SPECIAL EVENT LIQUOR LICENSE APPLICATION SUBMITTED BY ANTHONY MILLER, REPRESENTING THE AMERICAN FOUNDATION OF CARDIOMYOPATHY, FOR THE PURPOSE OF A SPECIAL EVENT ENTITLED THE FOUNTAIN HILLS HOPS AND VINES ART FESTIVAL, SCHEDULED FOR SATURDAY, NOVEMBER 22, 2014, FROM 12:00 PM - 6:00 PM, AT FOUNTAIN PARK. THIS ITEM HAS BEEN PULLED FROM THE AGENDA AT THE REQUEST OF THE APPLICANT. Vice Mayor Yates MOVED to approve the Consent Agenda as amended 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 Aye Vice Mayor Cecil Yates Aye Councilmember Cassie Hansen Absent Councilmember Tait Elkie Aye Councilmember Henry Leger Aye The motion CARRIED UNANIMOUSLY by those present (6-0). REGULAR AGENDA AGENDA ITEM #4 - CONSIDERATION OF A 31-DAY TIME EXTENSION FOR THE AVENUE OF THE FOUNTAINS MEDIAN IMPROVEMENT PROJECT. Development Services Director Paul Mood addressed the Council relative to this agenda item and noted that a construction contract with Low Mountain Construction was approved by the Council at their April 3, 2014 meeting, following a two to four-week bid protest delay that was worked out. He advised that the Notice to Proceed for the project was issued on April 21, 2014 and said that the contract includes a 180-day construction duration, which places completion on October 20, 2014. He noted that failure to meet this deadline will result in liquidated damages of $710 per day according to the contract. He advised that during the course of the project monthly construction meetings have been held with Town staff, the design team and the contractor to discuss various project related issues and schedules. He pointed out that the contractor lost approximately one month in July while waiting for the necessary fountain items to be shipped from the manufacturer so that the fountain concrete could be poured. He pointed out that the fountains are the focal points, which set the finished grades for the entire project. He added that the contractor submitted recovery schedules but informed staff in late September that they could not meet the October 29th completion date . He further stated that on September 26th, the contractor submitted a request for an 18 -day time extension without additional compensation citing manufacturer delays, weather delays and delays with the "hard dig" related to getting SRP power to the site. He stated that that the final completion date would be extended to November 7th. He advised z:\council packets\2014\r141016\141002m.docx Page 4 of 11 that staff does not feel that the manufacturing delays are the Town's responsibility but that legitimate delays did occur due to heavy rains, the "hard dig" and the availability of SRP crews to get power to the site (legitimately the contractor would be due 10 working days total, which would extend the contract to October 31st). He noted that the contractor has requested an extension to November 7th and staff feels that October 31st is appropriate and they can enforce the $710 a day liquidated damages clause. He further stated that staff feels it is in the best interest of the project to delay the planting of the sod until after the Great Fair, include additional soil amendments and grant a 31-day time extension extending the final completion date from October 20th to November 21st. He explained that if the sod is installed in late October or early November, the construction fence will be relocated up onto the gr ass and the irrigation turned off for approximately four days during the Art Fair. He added that the landscaper does not recommend the placement of the fence onto the median and turning off the water to the new grass for four days and will not guarantee t hat the grass will survive. He stated that additional coordination will be required with the Stroll in the Glow event scheduled for December 6th and the Farmer's Markets to keep those events off of the grass to allow for an adequate growing period. He said that staff does not believe that the extension will result in an additional significant delay and will ensure a better overall product. Mr. Mood indicated his willingness to respond to questions from the Council and added that the architect and the contractor are also present in the audience. Mayor Kavanagh asked whether they will still be able to have the holiday decorations on the median and Mr. Mood responded that staff will look into that. He noted that the contract says that the existing trees ha ve to be trimmed so that will be done and the holiday lighting people will come in and trunk light the trees -- the new smaller trees will not get lighting. He added that the intent is to put the ground displays down but they will check into that and the contractor is responsible for 90-day maintenance of the median so they will have to get together with the landscaper and see how they feel about that. He confirmed that turning the water off voids the Town's warranty on the turf, which is one of the main concerns. In response to a question from Vice Mayor Yates, Mr. Mood noted that the contract has always included sod (not grass) only now they are going to have to use over-seeded sod. Vice Mayor Yates advised that his concern is that the company was not the low bidder on this job, they were almost $100,000 more and respectfully they issued a letter with regard to licensure and that took an extra two weeks and now respectfully, the last change order was for $67,000. He advised that he is in this business too and has experienced both rain and supply delays but he always has the crews out there. He added that respectfully during all the times he goes up and down that Avenue he did not see a full crew out there that could have been knocking this out so he has a little bit of an issue with the request for an extension. He pointed out that the Town has been very open to the change orders and the letters and not going with the low bid and now all of a sudden they are behind the eight ball so he's all for discussion but he has real issues with this. Councilmember Elkie asked whether there is a way to adjust the sprinkler system so that they can water it without spraying the Fair attendees and Mr. Mood replied that the booths back up to the median but the way the median is designed it slopes from the center out to the curb so as they water the grass the water builds up and will actually run out onto the curb a little bit. He noted that the booths are designed to go right up to that curb and gutter and if one of the sprinkler heads gets stuck or goes a different way and no one is out there watching it, it could spray the artists booths and all of their art. He said that when the sod is freshly planted, they don't want to turn the water off for the first week to two weeks. Discussion ensued relative to the watering schedule, times and duration; the fact there would be a period of 30 minutes a day that the watering would have to be monitored and staff's willingness to direct the contractor to be present at that time if the Council so desires; Town Manager Ken Buchanan's statement that he would not recommend that because of the thousands of dollars of art work that will be on display and what happened last year and nothing can be guaranteed; the fact that at the start of the project there was a one month delay because of a bid protest; and Mr. Mood's explanation of the two Salt River Project (SRP) delays -- a hard dig and getting power to the site (because of the rain they had to redirect the crews). Councilmember Brown commented that right now every pedestal could be completely wired from the panel to the pedestal and every pump could be wired from the panel to the pump without power. He stated that he is not buying this song and dance at all about SRP delaying this project because the power could be turned on a week before the z:\council packets\2014\r141016\141002m.docx Page 5 of 11 project is done and it would be fine. He added that he is not buying into the hard dig either because he didn't hear one hammer one time or a backhoe any time during this process and he believes that the project has been poorly manned and he has taken more calls about the Avenue of the Fountains than he did on the trash haul. He said he really feels that they need to roll their sleeves up and act like they are trying to get the job done beca use right now they are not. He further stated that the contractor can figure out when to put the sod in so they will have enough time to water it so they can shut it off, if they have to, during the Fair. He added that due to the absolute lack of management or the lack of employees out doing the work nothing is getting done. He stated that he talked with the weather bureau and there were eight days of rain during the course of this project so he won't give them two but he will give them one rain day and that is about it because it is absolutely embarrassing what they have done to the Town. Councilmember Elkie concurred with Councilmember Brown's remarks as well those from Vice Mayor Yates. He advised that he is in no way faulting staff but they have been told repeatedly that they are on schedule, even at the last meeting, and so that is what he has been telling people when they ask whether the project is going to get done. He said that it is quite embarrassing to have this come before them and to hear that "No, they are not on schedule" and he agrees that this project was not manned properly and referred to the minimal number of workers at the site. He stated that he too would agree to give them one rain day and he just wants them to get the job done and make it happen. Councilmember Leger noted that with the most recent rain the contractor was putting sand down and getting ready for the pavers and he asked for more specifics about what damage was done during the last storm. Mr. Mood advised that the rain forced them to lose Saturday as a work day and they had to do re-work on Monday and Tuesday when all of the sand bedding got washed out (water got under the pavers and they had to remove some and redo the underlayment and then the pavers). Councilmember Dickey pointed out that on the 18th Councilmember Elkie did ask how things were going and she believes the answer he got was the end of October. She stated that the Fair starts on the 14th and she has been impatient with people who have been yelling at her because of what is or what is not going on and she too has been telling them that the project is on time so this is very frustrating and she hopes they can get this done quicker than that. Mr. Mood stated that through the course and even up to the last meeting the contractor was submitting recovery schedules and telling staff about the increased manpower for the landscapers (they were told there would probably be about 15 landscapers out there working on the landscaping and pavers). Additional discussion ensued relative to the fact that Evergreen is the sod company; the Mayor's comment that everyone on the Council is embarrassed about telling people and groups that the project is on schedule and they now find out that it is not; the fact that the contractor submitted a letter for the rain days and staff does feel that based on the re-work that they had to do that two rain days would be legitimate; Mr. Mood 's comment that by October 22nd they will probably have the fountains and the pathways done and they will just be waiting for sod; there might be some minor work details that remain to be completed; once the 27th arrives, the contractor would be put on notice that liquidated damages in the amount of $710 a day will be going into effect; and the fact that $40,000 to $50,000 is being withheld from the contractor right now and over the course of the project; at the end of the project staff would calculate how many days they went over, assess those damages and withhold that amount from their last payment. In response to a question from Councilmember Elkie as to whether a motion is needed for the two additional rain days if they proceed in that manner, Town Attorney Andrew McGuire advised that they are talking about a no cost change order and those things are typically handled administratively. He added that the Town Manager has the authority to sign them without Council direction but because it was on an agenda he believes Mr. Mood is asking for direction as to how many days are being authorized. He said he also believes Councilmember Leger was asking what the project was going to look like -- will construction fencing still be up, how long would that be for under any circumstances, etc. Mr. Mood responded that the fence will be up until the first week in December no matter what, that was the original plan. He stated that they will be planting a little over sixty trees and the landscape architect has been to the nursery and tagged all of the trees so they can be planted as soon as the irrigation is in (irrigation is being put in right now). He advised that the pavers on the east half of the median should be done this weekend (in my Monday). z:\council packets\2014\r141016\141002m.docx Page 6 of 11 Councilmember Brown advised that he would like to see some action start up in case they are able to get some sod and to put in the trees so that will already be done and not cause another hold up. Vice Mayor Yates asked whether they had a pre-paid sod contract and Mr. Mood responded that he does not know what arrangement was made. The Vice Mayor said that to Councilmember Brown's point, they could look for another sod company and Mr. Mood said he doesn't know what arrangement their landscape sub has with the current sod farm. Vice Mayor Yates asked for the contractor to come forward and respond to that question. Wayne Hatch, Low Mountain Construction, addressed the Council and stated that there are actually two or three sod farms that have sod and they have talked with them all and they have been impacted because of the rain. He explained that the problem they are having is not that there is no sod, there is plenty, but they over -seed the sod at a certain point and that is usually taking place earlier but because of the storms none of the sod farms have been able to over-seed and they have put everyone off about two weeks. He noted that earlier this week they were told that they would have sod close to the end of October and just last night they called and stated that they cannot over -seed it so now they are saying the first week in November and to him that means the second or third week in November. He said that nothing has been pre-paid and if they can get sod, they will get sod. Vice Mayor Yates asked whether they (the company) could over-seed it themselves and Mr. Hatch responded that all sod farms quit cutting so yes they could have but they can't now because they can't get the sod. Councilmember Brown MOVED to allow a two-day extension to the contract which would move the legal date to October 23, 2014 and Councilmember Elkie SECONDED the motion. There were no citizens wishing to speak on this agenda item. The motion CARRIED UNANIMOUSLY by those present (6-0 with Councilmember Hansen absent). AGENDA ITEM #5 - CONSIDERATION WITH POSSIBLE DIRECTION TO STAFF REGARDING DEVELOPING AND IMPLEMENTING A TOWN-WIDE STORM WATER/ENVIRONMENTAL FEE. Town Manager Ken Buchanan addressed the Council relative to this issue and noted that at the last Council Retreat another discussion took place regarding the possible consideration of an Environmental Fee. He said that information has been included in the Council's packets relative to the 16 or so discussions that have taken place since 2007 to address this unfunded mandate by the EPA (Environmental Protect ion Agency), which prompted this from the adoption of the U.S. Clean Water Act. He stated that the Town of Fountain Hills is required to have a municipal separate storm sewer system, an MS4 Permit to administer a Stormwater Management Plan, and its various required maintenance programs that was adopted back in 2003 and amended in 2006. He noted that this was discussed in depth in 2007. He said that staff wanted to find out if the Council wants staff to further seek this type of program. He indicated his willingness to respond to questions from the Council. (Copy of the staff report is available on line and in the office of the Town Clerk.) Mayor Kavanagh asked how much of a fee is being proposed and Mr. Buchanan responded that based on comparatives it is typically a $3.00 fee ($3.00 fee per month based on the water meter). He added that the surrounding cities also have water and sewer systems. He confirmed that if they had someone else do the collections, there would be an associated fee. Mayor Kavanagh noted that according to the information in the Council packets it would cost over $70,000 to develop software to do this and then they have mailing costs on top of that (monthly, semi-annually or annually). She asked how the Town would go after people who did not pay and Mr. Buchanan stated that they would have to look into utilizing a collections service. The Mayor said for $36.00 a year and Mr. Buchanan agreed that that is the challenge. Vice Mayor Yates asked what the commission on collections is right now and Mr. Buchanan advised that it is usually fifty cents on the dollar. z:\council packets\2014\r141016\141002m.docx Page 7 of 11 Vice Mayor Yates said that he doesn't like the idea at all and just for round numbers if everybody who lives in Town, roughly 22,000 people, spent about $35.00 a month, whether it be going out to dinner or buying a sweater – something, that would pretty much pay for this, the economic development generated could fix this and then they would have the sweater, a nice meal or set of tires -- about $450.00 a year. Councilmember Brown pointed out that in 2007, Councilmembers Leger and Dickey were on the Council and they were the only two that were privileged to the lengthy conversations that took place and he read parts of that . He stated that before he jumps in and possibly makes a strong statement, he would recommend scheduling a Work Study Session on this so that staff can bring everyone up to speed because right now he could not make a good decision if he had to. Mr. Buchanan advised that staff would like some direction on which way the Council wants them to look at this -- do they want staff to go out and seek partners to help with the bill collections or they can look at their own system and refine those numbers. He said that his preference would be for staff to do it themselves. Mayor Kavanagh pointed out that right now the members of the Council are all being inundated by calls from the residents with concerns about the water rate hike and said that they are talking about if everything goes through the way the Corporation Commission has given the money to EPCOR. She added that after five years, it is estimated that the Town's water bills are going to be 43% higher than they are right now. She said that people have only gotten a small increase and there are a lot more coming so if they can't get that changed then this is what people are going to be facing -- a 43% increase. She advised that she personally does not want to add any new fees or taxes on to the people and she agrees with the Vice Mayor's comment that peopl e go out and spend the money on something and the Town gets the tax money and they get goods or services for it. She noted that she is hearing that people can't afford the water and are turning off their drip systems so she cannot support increasing their burden and cannot support this in any form. Mr. Buchanan asked whether the Council would like this placed on the agenda of a future Work Study Session. Councilmember Dickey pointed out that the discussions kept coming before because they were talking about the revenue problems that the Town has had for all of these years so even though it looks like this was brought up 1,000 times, it was always part of a conversation that they have and will continue to have to try and address some of the issues. She said that the spreadsheet that is in their packets is about 2010-2014 and they spent $1.1 million and then what the General Fund has had to endure but the fact of the matter is that -- and this is why she brought that last item up for the $920,000 for the Ashbrook Wash project -- she was always asking whenever one of these projects came up whether it would be covered by an Environmental Fee if they had one in place because of the huge amounts. She added that really this is showing them what they are spending on Capital. In 2013-14 it was only $126,000 but 2014-15 is $1.7 million for Ashbrook and Miscellaneous Drainage (she had asked that that be included in this packet but it isn't) and the other is the projected Capital projects that they had in their budget over the next ten years -- over $8 million worth of projects that would be covered by this kind of a fee. She said that they look at the Fire Station Relocation and the money that they are using to cover these expenses is the money that comes out of roads so if we are spending X amount of money each year on culverts that really aren't that visible, really that is depleting their ability to meet some of the other needs. She further stated that the $2.1 million that they have been putting off for the Fire Station all these years would have easily been taken care of if they had been collecting $450,000 a year or $3.00 a month, however they want to look at it. She added that there are obviously different ways to look at this and in prior years they said "Let's look at a property tax" and of course that didn't work and they have had the conversation on making a decision on the type of Town they want. She commented that that was really illustrated at their Retreat when Mr. Mood showed them all of their roads for the next ten years and all of the needs and Councilmember Elkie basically said "Why are we even looking at that? We will never be able to do that." She noted that that is what they are saying and she is not going to beat herself over the head trying to get this through but this conversation will not change at their next Retreat or at the Retreat after that because these are basic municipal needs and this is a very fair way to do it because the things they need to do with this money are the result of the people who live here and the driveways and all of those things. She added that tax, fee, whatever they call it, is revenue that is needed for infrastructure. Councilmember Dickey stated there is no reason to have a Work Study Session if everyone is resolute on the ideology of it rather than the reality of it…then she would say don't bother having it. z:\council packets\2014\r141016\141002m.docx Page 8 of 11 Councilmember Elkie expressed the opinion that they don't need to hold another Work Study Session because that's like having a meeting to discuss something you already know the answer to. He stated that during the last Work Study Session when this was discussed Councilmember Hansen said something to the effect that "The Town can't keep absorbing these costs without having other revenue sources" like the Road District and the Fire District. He added that with the Town continuing to be required to adhere to unfunded mandates, Federal or State, they have to have ways to pay for them. He commented on the fact that the Fire Department has come forward and talked about the importance of cleaning out the washes because they are a fire hazard. He further stated that as Vice Mayor Yates said, he too would like to see the residents spend an additional $35.00 a month that would generate $10.5 million more revenue and there would be a lot more businesses in Town but the reality is that it is not going to happen. He stated that he is a realist and they don't have the population or the revenue streams for people to spend an additional $35.00 a month and if they do have it, the $3.00 additional each month towards this tax or fee is not going to break the bank. He noted that they are talking about $36.00 a year versus $35.00 a month so if they are really concerned about the water rates going up and people having to compensate for that, he thinks they have to take into consideration if the Feds change the tax rates or the State imposes new rates -- they need to be able to take care of what they have here and he thinks this deserves further discussion. He advised that he would be in favor of directing staff to give the Council some hard numbers and then they have some information they got from the Town Manager and things they talked about before (hard numbers as far as "this is what it is going to cost if we contract with the Sanitary District to be the collector or with Chaparral", whoever it is going to be, if that is even an option. He said that if it isn't an option then they know which direction they would go as far as software and training, if in fact a future Council decides to do this. He urged the Council to "be real" and if they are not going to do it, they are not going to do it but they shouldn't throw out false numbers. Mayor Kavanagh advised that she is satisfied right now with the way the Town is headed -- they decided that they were going to hire an Economic Development Specialist and they put money into that and hired Scott Cooper who is bringing some businesses into Town. She added that she is optimistic that now that he is going strong and the economy is looking good as far as Mr. Cooper is concerned and there are going to be new businesses in Town -- they just approved a large Tractor Supply Company that has an annual income of $4 million and they are going to have jobs for people. She stated that Mr. Cooper is filling office space with a food industry that is going to be coming in so he is starting to make progress and he is only part time and she would rather put the money into Mr. Cooper to go out there and get businesses. She said that they are also seeing Adero Canyon coming in and that will add over 300 units and that will save Copperwynd so they are moving forward because the direction they wanted to go in was economic development and now it is like they just don't want to wait and make this happen. She added that this is a better way to go than just thinking about adding a tax on for people to pay. She advised that she would like to perhaps make Mr. Cooper's position full time and get him out there working because all of the residents are going to benefit by one more store, by the businesses that are here thriving instead of suffering and they are probably going to have a good season, the Snowbirds are already here because of the cold weather. She noted that she would rather go this way than add any more taxes. Councilmember Leger commented on the fact that this was discussed in 2007 and every year after that they have been optimistic and what the Mayor just shared was extremely optimistic but here they are seven years later and they are having the same conversation. He added that the conversation is generated by the fact that they have a revenue shortfall in this Town and once again, if they want to look at reality, a nd he is all for enhancing and supporting businesses, the math is still very interesting and they have talked about this. He stated that this "silver bullet" that the y keep referring to as economic development that is going to be the savior of all of thei r issues in the Town needs to generate $45 million in sales just to generate revenue for the Town in the amount of $900,000. He acknowledged that that is not going to happen overnight and they continue to have to degrade their systems -- one of their priorities as a Council is their core services and one of the priorities is Pavement Management and Pavement Replacement and what are they doing? They are using their HURF (Highway User Revenue Funds) money that should be used for Pavement Replacement and Pavement Management and basically not using those dollars on their roads. He further stated that they know they have lost money from the State by taking away their HURF monies and they have all these unfunded mandates. He noted that the water company is raising their fees and that is unfortunate because the Town does not benefit from that and they continue to take the hit and say that economic development is going to be the savior. He stated the opinion that it is worth taking one last look at this because f rankly he is not interested in discussing this as they move into a new Council. He added that he would like them to take one last look at this in a Work Study Session and crank the numbers -- it doesn't have to be $3.00 a month, it could be $2.00 a month because they either pay now or z:\council packets\2014\r141016\141002m.docx Page 9 of 11 pay later because they are probably going to have to come up with some other scenario to p ay for their roads or do a bond. He pointed out that at the end of the day they have to figure out what kind of a community they want to be and he is all for economic development but it is certainly not the silver bullet, do the math. Councilmember Dickey asked Councilmember Yates whether he said it was $36.00 per person and 22,000 people and he replied yes, in round numbers. He added that $10 million of additional sales in some way, shape or form on average would generate the $260,000 in round numbers, which would pay the $273,000. He said to Councilmember Leger's point, $3.00 or adjusting that up brings them back to how many water meters do they have that they are taxing -- do they have 100,000 meters in Town that they can tax? Councilmember Dickey pointed out that the residents in Fountain Hills have taken the hit for everything -- the businesses collect taxes and then they have to give them to the State and to the Town but again the roads they are trying to fix were paid for with property taxes because people like her had a property tax to build their roads. She added that she appreciates the businesses that are here but the actual "out of their pocket assistance" for public safety (if they catch on fire or get robbed) and for infrastructure for roads to lead to their businesses has been paid for by residents. She stated that to her this is fairer than saying each person who lives here has to spend more money and the businesses continue to exist and get the benefit of being in a beautiful clean and safe c ommunity. She commented that to say their collection of sales tax pays for that may be technically true but it is a pass through s o a fairer situation would be to have the whole community pay for the infrastructure that they all benefit from. Vice Mayor Yates advised that he believes in the market and what the citizens have told them the two times they tried to pass a property tax -- one failed really badly and the second failed miserably -- so the people are saying they don't want a primary property tax and they don't want any additional taxes. He noted that having come here from the midwest, his home was one third of the value and he paid four times the tax and if someone had a business there was inventory tax, etc. He pointed out that the citizens have told them "Give us something concrete like the road bond -- we know what it was, how much it was going to cost" and it passed inc redibly. He advised that the people are saying package it in such a way that they know exactly what it is for and what it will cost. He said maybe it is just a matter of semantics -- maybe his is not the best model and maybe it comes down to perhaps setting up their own thing as Mr. Buchanan mentioned but he is more apt at this point to listen to what the people are telling them. He stated that they do want economic development and he knows it sounds like the "silver bullet" but some neat things are happ ening around the Valley. He added that to the Mayor's point, the one tractor trailer business that averages $4 million equates to $100,000 in the bucket right there. Councilmember Elkie noted that people have come to him and said they don't want to pay for business licenses or dog tag fees and commented that this Town is fickle when it comes to businesses from which the Town collects sales tax revenue. He added that anyone who has been in Town for a year has seen the opening and closing of two or three restaurants and he knows that the Little Caesars and Arby's that they have in Town are two of the most under - performing restaurants in the State. He advised that they had the only donut shop in Town -- Dunkin Donuts -- and it closed because it did not have business. He further stated that Taco Bell also closed and if you go to Target any day of the week you will probably be first in line. He stressed the importance of being able to pay for things and said that he would be in favor of at least giving the Town Manager and staff direction to get some further hard numbers and bring them before the Council in the future. Councilmember Elkie MOVED to direct the Town staff and Town Manager to get some additional information with respect to numbers and collecting mechanisms that were discussed previously and Councilmember Brown SECONDED the motion. Mayor Kavanagh stated that in reference to what Councilmember Elkie said, yes they have had some stores that have closed but they have also had some great stores that have opened. She added that she thinks everyone knows that they have another great restaurant in Town, Arrivederci's, and they have Mojo's -- they have a lot of stores that are opening and just because a store closes doesn't mean it just couldn't make it in Fountai n Hills, maybe the people preferred donuts from Basha's because they were good and cheaper, who knows, but look at how many nail shops they have and they are all doing well. She said that she is also optimistic about the Target center and pointed out that it was just bought by a new company and it is not just a holding company because they got to meet with that representative and they are going to look at filling that center. She noted that they are not going to do what the previous holding company z:\council packets\2014\r141016\141002m.docx Page 10 of 11 did -- they were out-of-state owners who were just interested in collecting rent they raised the rent, which is why they lost their Famous Footwear store. She pointed out that this company is actually looking at filling the stores so she is optimistic and they are already talking about what they might put into the old video and KFC stores. She advised that there are a lot of people in the Town living on fixed incomes and she is not going to tax them anymore. There were no citizens wishing to speak on this agenda item. Councilmember Leger noted that in the packet part of the information talked about 22,000 people in Town but the fee would be per household so they are talking 12,500 people and that changes the math significantly. He said once again at $2.00 -- and he is not advocating for this but he thinks it is worth discussing - you are talking $24 a year and it adds value to the Town. He stated that they have lost their development fees, they are losing HURF money and it goes on and on and on. He added that they are having to do bonds because they are bleeding and their infrastructure is being delayed in terms of road repairs and so forth so he wanted to clarify that it is $12,500 per household. He noted that billing can be an expensive proposition but with such a low billing amount they would not have to bill monthly, they could do it quarterly or twice a year. He advised that he is on the fence with this but thinks it is worth a look at drillin g down on it, getting a lot of their questions answered and then deciding once and for all yes or no. He pointed out that this has never been brought to a vote. A roll call vote was taken with the following results: Mayor Linda Kavanagh Nay Councilmember Ginny Dickey Aye Councilmember Dennis Brown Aye Vice Mayor Cecil Yates Aye Councilmember Cassie Hansen Absent Councilmember Tait Elkie Aye Councilmember Henry Leger Aye The motion CARRIED BY MAJORITY VOTE of those present (5-1) with Mayor Kavanagh voting Nay. AGENDA ITEM #6 - CONSIDERATION OF AUTHORIZING TOWN STAFF AND THE TOWN ATTORNEY TO PROCEED WITH LEGAL ACTION REGARDING COMPLAINTS AGAINST CHAPARRAL CITY WATER COMPANY. Town Attorney Andrew McGuire addressed the Council relative to this agenda item and noted that this is a follow up to their Executive Session from two weeks ago so obviously they are not going to want to have too much of a discussion about what was said in that Session. He said this is moving forward as discussed and the motion that they are looking for this evening is directing the Town Manager, Town Staff and Town Attorney to move forward with legal action regarding the complaints and authorize the Mayor to sign the complaint to be filed. Vice Mayor Yates MOVED to direct the Town Manager, Town Staff, and Town Attorney to move forward with legal action regarding the complaints and authorize the Mayor to sign the complaint to be filed and Councilmember Dickey SECONDED the motion, which CARRIED UNANIMOUSLY (6-0) by those present. AGENDA ITEM #7 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF RELATING TO ANY ITEM INCLUDED IN THE LEAGUE OF ARIZONA CITIES AND TOWNS WEEKLY LEGISLATIVE BULLETIN OR RELATING TO ANY ACTION PROPOSED OR PENDING BEFORE THE STATE LEGISLATURE. Town Manager Ken Buchanan addressed the Council relative to this agenda item and stated that this will be on each agenda. He noted that there has not been any movement other than what the League has already approved and the Council has reviewed that. Mayor Kavanagh announced that the first League meeting will be held in November. z:\council packets\2014\r141016\141002m.docx Page 11 of 11 AGENDA ITEM #8- 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. NONE. AGENDA ITEM #9 – SUMMARY OF COUNCIL REQUESTS AND REPORT ON RECENT ACTIVITIES BY THE MAYOR, INDIVIDUAL COUNCILMEMBERS AND THE TOWN MANAGER. Councilmember Dickey announced that she attended the Arizona Leadership Forum on September 19th and explained that it is basically a leadership organization for Arizonans who take leadership seriously. She noted that they are a non-partisan group of civic and community leaders dedicated to elevating the conversations regarding the issues that are important to the citizens of Arizona. She reported that approximately 800 people were in attendance and provided a brief recap of the forum. AGENDA ITEM #10 - ADJOURNMENT Vice Mayor Yates MOVED to adjourn the meeting and Councilmember Brown SECONDED the motion, which CARRIED UNANIMOUSLY by those present (6-0). The meeting adjourned at 7:54 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 2nd day of October, 2014. I further certify that the meeting was duly called and that a quorum was present. DATED this 16th day of October, 2014. _________________________________ Bevelyn Bender, Town Clerk