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HomeMy WebLinkAbout2015.0129.TCOM.Minutesz:\council packets\2015\r150219\150129rtm.docx Page 1 of 20 TOWN OF FOUNTAIN HILLS MINUTES OF THE TOWN COUNCIL/STAFF RETREAT JANUARY 29, 2015 Mayor Kavanagh convened the meeting at 8:02 a.m., which was held in the Fountain Hills Town Council Chambers. Members Present: Mayor Linda M. Kavanagh, Vice Mayor Cecil A. Yates, Councilmember Nick DePorter, Councilmember Dennis Brown, Councilmember Cassie Hansen, Councilmember Alan Magazine and Councilmember Henry Leger. Staff Present: Town Manager Ken Buchanan, Town Attorney Andrew McGuire, Town Clerk Bevelyn Bender, Finance Director Craig Rudolphy, Development Services Director Paul Mood, Community Services Director Mark Mayer, Presiding Judge Robert Melton, Administrative Services Director Grady Miller, Fire Chief Randy Roberts, Assistant Fire Chief Dave Ott, Executive Assistant to the Mayor and Town Council Shaunna Williams, MCSO Lieutenant John D’Amico, Economic Development Specialist Scott Cooper, Court Administrator Keith Kaplan, Superintendent of Streets Ken Kurth, Supervisor of Recreation Rachael Goodwin, Supervisor of Parks Don Clark, Events and Operations Supervisor Mike Fenzel, Senior Services Supervisor Kelley Fonville, Senior Planner Robert Rodgers, Accountant Beata Bogdan. 1. & 2. Town Manager Ken Buchanan reviewed the information contained in the PowerPoin t (Copies of the entire presentation are available on line and in the office of the Town Clerk) beginning with a brief overview of the items that would be discussed during the retreat:  Review of Council Procedures relating to Work Study Sessions (whether to continue with Work Study Sessions or not)  Five Year Financial Forecast; Fiscal and Financial Policies  Council Operational Priorities  Strategic Planning Goals  Transportation  Economic Development Plan Implementation  Public Safety  Citizen Advisory Commissions  Council Discussion items Mr. Buchanan turned the meeting over to Finance Director Craig Rudolphy at this time. 3. Five-year Financial Forecast; Fiscal and Financial Policies a) Review of fiscal/financial policies b) Review of existing fund balances c) Review of 2014/15 Annual Budget d) Review of proposed 2015/16 Annual Budget Finance Director Craig Rudolphy discussed the information provided in the PowerPoint regarding the Town’s 5-year Financial Forecast (revenues/expenditures); Fiscal and Financial Policies; and FY16 Budget Assumptions. He noted that revenue projections are determined by using some trend analyses as well as estimates of building activity and they are staff’s best guesses for future revenues; no change in distribution of State Shared revenues – the mid-decade census may affect the Town’s proportionate share of distributions (positively or negatively) – impact of Governor Ducey’s Executive Budget on State Shared revenues is unknown at this time; the existing level of service is maintained; building permit activity projected to include permits for Adero Canyon Firerock and Summit at Crestview; Additional priority staffing levels will be considered dependent upon necessity; inflation factor of 0% for FY16, (2.5%) for FY17 & FY18 and 3.5% for FY 19 & FY 20; Public safety contracts anticipated increase of z:\council packets\2015\r150219\150129rtm.docx Page 2 of 20 3%/4.5% through FY20; the fact that the projections do not presume development in the former State Trust land within the next five years and the Highway User Revenue Fund (HURF). Discussion ensued regarding the fact that the Town was operating very lean; that the Finance Director would provide quarterly budget reports to the Council beginning with the quarter ending 12/31/14; the observation that due to less revenue coming in than projected staff would continue to actively manage the budget and limit expenditures as needed; the fact that there was a potential for additional cutbacks; Councilmember Brown's comment that the Council needs to be proactive as far as doing everything possible to generate additional revenue and look at a possible property tax and his opinion that if this Council doesn't shoulder it, the Town will suffer more and more and the citizenry needs to be made aware of that; outstanding bonds and payoff dates; the current budget by Core Services from all funds; the fact that even though revenues are higher than last year, they are still 9.5% under projections and expenditures through December are 13% higher than last year and 3 to 4% over staff's projections; the importance of taking a hard look at what the Town funds and decrease expenditures as much as possible; the fact that the newly implemented Stormwater Fee will go into a restricted fund; and the Mayor's comment regarding the importance of hanging onto the Town's restricted funds for possible future use if needed. 4. Core Services a. Public Safety b. Administration c. Community Services d. Development Services Town Manager Ken Buchanan outlined the various departments/services that fall under each of the above-listed Core Services and noted that Administrative Services Director Grady Miller is preparing an operational review of staffing levels (currently there are 42 full-time employees and 21 part-time employees for a total full-time equivalent of 52.32 employees). He discussed the Town's amended Organizational Chart. He commented on the FY 14-15 Operational Priorities (Pavement Management Program, Economic Development Plan, Fountain Lake IGA, Fire Station #2 and Facilities Replacement Fund) and provided a brief update on each item. He reported that as far as Pavement Management, they are actually saving money right now on a monthly basis in Zone 1 (mill and overlay will occur in October). He stated that the Economic Development Plan and Tourism are ongoing and they still have not addressed Downtown -- they have some concepts and ideas on it but need a strategic approach (it is very comprehensive). He stated that everything will be brought before the Council in an effort to determine what they would like to see done. He noted that Fountain Lake is two projects, water quality (more aeration and mixing is required and a report was received just last night on this matter and staff is reviewing it for future discussion with the Council) and Phase 6 of the Pa rk, which will come before the Council in February for discussion 5. Operational Priorities a. Review of 2014/15 Operational Priorities b. Establishment of 2015/16 Operational Priorities Mr. Buchanan outlined recommended Operational Priorities for FY 15-16 -- Pavement Management Program, Economic Development Plan, Rural Metro Contract Negotiations, Solid Waste Services (Negotiations/RFP), Saguaro Boulevard project; Fire Station #2 and the Environmental Fee. He said that staff is working on the answers to the seven questions posed by the Council regar ding Fire Station #2 and staff is in the process of working the land trade with MCO that was previously suggested. He further stated that a Facilities Replacement Fund has been put into place and monies will be used to replace a needed chiller. Mayor Kavanagh noted that data shows that Rural Metro's response times are getting worse in certain parts of Town and she thinks that Fire Station #2 has been put off for too long and needs to be one of their top priorities to be discussed at a future meeting. z:\council packets\2015\r150219\150129rtm.docx Page 3 of 20 In response to a question from Mr. Buchanan regarding other priorities that the Council would like to discuss at a future meeting, Councilmember Magazine recommended that the Environmental Fee also be placed on an agenda and Mr. Buchanan concurred. Mr. Buchanan commented that the Council might also want to discuss the culverts at Sunridge Canyon and Community Services Director Paul Mood described the problems Mr. Buchanan was referring to. He added that the Sunridge Canyon HOA also has some major maintenance work to do on their channel ($30,000 out of the $50,000 contract that the Town has been used for the pipe cleanup work). He noted other pipes that need to have work done. Mr. Mood advised that he could not say how long it will take to clean out all of t he pipes in Town and pointed out that there is $50,000 in the Streets budget and it depends on revenue. Mr. Buchanan commented that staff will also come back and discuss this issue and staff's recommendations. Mayor Kavanagh referred to Solid Waste Services and advised that there are some bills going around right now in the Legislature and if they pass they could allow condominium and apartment complexes to choose their own trash haulers. She said she doesn't know why that is being proposed but noted tha t the League is opposing it and she is opposed to it -- she questioned why they should they be allowed to pick their trash haulers. 6. Strategic Planning Goals a. Review of 2014/15 Strategic Planning Goals b. Strategic Planning Advisory Commission’s recommended 2015/16 Strategic Planning Goals i. SPAC Strategic Plan Update to be brought back c. Establishment of 2015/16 Strategic Planning Goals d. Discuss Strategic Plan Update now due per Strategic Planning Advisory Commission bylaws Mr. Buchanan referred to a PowerPoint slide that reviewed 2014-15 Strategic Planning Goals and highlighted 2015-16 Strategic Planning Goals. He noted that the Strategic Planning Advisory Commission (SPAC) is responsible for two processes -- right now they are required to put together the annual consideration of the priorities and consideration for a full update because that will occur in five years. He advised that he suggested to the SPAC that once they have some direction on what they think they will be doing that they have a joint meeting with the Council to find out if the Council even wants to go in that direction. He explained that this way they don't do all that work and then bring it to the Council and the Council or the community has a problem with what they have done (want to make s ure they are all on the same page before they walk down that path). He said that staff has been meeting regularly with the SPAC and a lot of good discussion has been taking place. He emphasized that they will be back before the Council to discuss both the update and the priorities. Mayor Kavanagh stated that as the SPAC makes their recommendations, any suggestions that they have as to the best way to carry out those recommendations would be welcome and greatly appreciated. 7. Capital Projects Report a. Projects status b. CIP funding status Mr. Buchanan explained that capital expenditures are made in five different areas, Operational Capital, Vehicle Replacement, Facilities Maintenance, Pavement Management and CIP (Capital Improvement Projects). He noted that the number one project was Pavement Management and referred to copies of the PowerPoint presentation which provided detailed data. He said that they have already done Zone #6 and Zone #7 and now they are looking at Zone #1 -- the next pavement maintenance project consisting of z:\council packets\2015\r150219\150129rtm.docx Page 4 of 20 712,026 square yards of asphalt. He noted that it will be a three -year project beginning in October of 2015 and will cover 50 plus pavement replacement locations. He reported that mill and overlay will occur on Glennbrook, El Pueblo, Grande, Fayette, Pepperwood and Del Cambre. Discussion ensued relative to costs associated with this project, road conditions, the proposed schedule, HURF & Vehicle License Tax funds; the fact that Zone #2 will be a two-year project and then they will work their way around Town (Zone #2 includes the Downtown area). Mr. Buchanan outlined the 2014-15 Major Capital Projects, which included: * Ashbrook Wash Channelization Improvements ($920,000 CIP, $720,000 Grant) - Initiated * Miscellaneous Drainage Projects ($50,000) - Initiated * Downtown Greening Project ($100,000 grant if received) - Not Initiated * Downtown Vision Plan "Avenue/Lakeside Project" ($200,000 Downtown Fund) - Not Initiated * Avenue of the Fountains Median Project ($1,525,000 Downtown Fund) - Completed * Fire Station #2 Relocation Project ($2,510,000) - Initiated * Assistance to Firefighters - Radios ($108,000 Grant, $12,000 General Fund) - Completed * Civic Center Improvements ($100,000 CIP) - Not Initiated * Fountain Park Improvements ($1,394,750 CIP) - Initiated * Fountain Lake Water Quality Improvements ($300,000 CIP) - Initiated * Urban Trail Improvements ($20,000) (Multi-Phase Project, CIP) - Initiated * Unpaved Alley Paving Projects ($325,000) Multi-Phase Project, CIP) - Initiated * Shea/Saguaro Street Project ($4,360,000 total: $927,000 CIP, $2,958,000 MAG/MCDOT, $275,000 Development Fees, $200,000 Developer) - Initiated * Downtown Sidewalk Program ($40,000 Downtown Fund) - Initiated * Saguaro Boulevard Road Bond Program ($40,000 Downtown Fund) - Initiated * Palisades/Saguaro Traffic Signal Upgrades ($41,000 CIP/$255,000 grant) - Not Initiated * Highway Safety Improvement Program ($57,000 Grant) - Not Initiated * Shea Boulevard Eastbound Bike Lane & Overlay Project ($224,000 Grant/$156,000 CIP Matching) - Not Initiated * Contingency ($190,080 CIP) * Available Development Fee Funds ($525,000) - Not included in Total TOTAL - $22,207,830 Mr. Buchanan stressed the importance of prioritizing the 20 -Year Capital Improvement Projects and developing a realistic list (a future Work Study agenda item). Fire Chief Randy Roberts advised that the grant the Town was hoping to receive for the radios was not received and so the funding had to come out of the General Fund. He brief ly highlighted the benefits of the updated technology. Additional discussion ensued relative to reducing the run times for the Fountain in the summer, which will save on electricity costs; the third Urban Trail on Sunridge and the fact that it is difficult to determine how much usage the Trail gets because no one monitors that; the fact that Fountain Hills is an extremely active walking/hiking Town and although that fact is not currently reflect ed in advertisements/promotional materials, the Tourism staff will follow up and make sure that it is from now on; EPA (Environmental Protection Agency) regulations and the Town's air quality/dust abatement efforts; an update by Mr. Mood on the Shea/Saguaro project (on schedule but a Cox box has been located that has to relocated); the fact that the Downtown Sidewalk Project has actually been completed; the Notice to Proceed on Saguaro is Monday and work will take place from Fountain Hills Boulevard south and the southbound lanes will be closed and two-way traffic will be in the northbound lanes; because of utilities, the completion date has been pushed back to October, consultant's fees and the fact that the $10,000 that was included in the budget was used up within five months and another $10,000 has been added to that contract (staff believes it could ultimately cost as much as $30,000). z:\council packets\2015\r150219\150129rtm.docx Page 5 of 20 Mr. Buchanan advised that that sums up what the budget calls for this year. He referred to a slide that depicted the CIP Funding Status for Capital Projects at 12/31/14 (with an available fund balance of $356,906) and stated that it is his recommendation that these items be brought before the Council along with the 20-year list so that discussion can take place and hard decisions can be made regarding what projects should be prioritized and move forward. The Council concurred that this item should be placed on a future agenda for discussion and possible action. (At 9:10 a.m. a brief recess was called and the meeting resumed at 9:23 a.m.) 8. Transportation Focus a. Capital road projects status b. Pavement Management Plan Mr. Buchanan commented on the historical streets revenue and road maintenance and referred to a chart that depicted HURF Revenues, Total Road Maintenance costs and General Fund/CIP Contributions. He also highlighted Town's responsibilities as far as street/road maintenance and reported that $1.8 billion was swept by the State Legislature over the last 15 years and HURF does not fund proper pavement maintenance. He displayed a Pavement Management map and management schedule that shows that the Town is responsible for 390 lane miles, 3,460,000 square yards of asphalt, 68 acres of medians and 7 pavement zones. In response to a question from Mayor Kavanagh, Mr. Mood explained that in addition to HURF funds the Town has subsidized road repair/maintenance costs. Mr. Buchanan went on to discuss Arterial Roadway Reconstruction and noted that the Town bonded for Saguaro Boulevard, which is an arterial roadway and they are looking at the Shea Boulevard project. He pointed out that Shea is a road of regional significance so the Town receives money from MAG (Maricopa Association of Governments) for doing that road. He said they are going to have to talk about Part B of the Pavement Management Program and how they are going to do the asphalt replacement on those areas that are beyond maintenance. He reported that in 2009, Stantec Engineering estimated that the Town would need approximately $3 million annually to provide asphalt mill and overlays to 20% of the Town's streets as well as slurry seal or surface seal treatments to the remaining streets. He stated that the information is valuable but out of date as far as the condition of roads. He noted that they have to look at what the budget can bear in order to respond to this need within the existing funds that they have. He said that they are going to be looking at 40-year old roads and that is when they have to start thinking about asphalt because the product has a shelf life even with proper maintenance. He recommended to the Council that they have to consider in the future asking the voters to approve a bond in order to repair and redo those old arterial and major collector roads in 2020 - 2022 or 2023. He further stated that the other part of this is to re-prioritize the money in the CIP, if there is any, and come up with a line item annually for asphalt replacement (anything would help). He pointed out that in July of 2016 the 2/10ths of a percent sales tax that they are paying for the McDowell Mountain Preserve will be paid off and he recommends that that money be used for asphalt replacement (about $600,000 a year). He said that in 2020 they will have paid off the Community Center and he would recommend that that money as well be re-prioritized and used for asphalt replacement ($300,000 to $400,000 a year). Councilmember Magazine stated that rather than waiting until 2020, if they did a five-year bond next year and told the citizens just what the money would be specifically used for, there is a chance it would pass. Mr. Buchanan pointed out that in the past the voters rejected such a bond and Councilmember Magazine stressed the importance of being specific, listing the streets and the exact work that would be done. He added that they should also talk about debt service and what it would cost to do it that way. Mr. Buchanan advised that the Council can discuss this issue as well at an upcoming meeting but it is going to be a "steep climb." Councilmember Magazine stated that he would like to discuss this issue sooner rather later. z:\council packets\2015\r150219\150129rtm.docx Page 6 of 20 Councilmember Leger stated that it could be discussed sooner rather than later but there has to be an appetite from the public out there and they had a plan for $30 million to take care of all this but the number gave the residents sticker shock. He said perhaps in four years they should start ramping up a campaign to move in this direction. Vice Mayor Yates noted that Mr. Buchanan's plan maintains what is going on and it just reallocates funds as the bonds get paid off, which is good because that way there is no sticker shock and no one gets a new bill in the mail. He added that the funding amount is still short and Mr. Buchanan said that if they also do a bond it won't be short because they are adding money to those arterials, which are the big t ickets. He pointed out that everyone in Town who drives uses collector and arterial streets. Councilmember Magazine advised that he is not sure that the public doesn't haven't an appetite for it -- he has heard from a lot of people that they just weren't sure what the money was going to be used for. He added that the Saguaro bond on the other hand passed overwhelmingly because the residents knew exactly what the money was going to be used for. He said that that is something that the Council needs to take into consideration. Mr. Buchanan commented that he thinks they learned a valuable lesson from that -- show what you are going to do. He further stated that he agrees with Councilmember Leger and reiterated his opinion that a bond would be a "steep climb." Mr. Buchanan informed the Council that staff will bring forward a proposal to establish an annual Maintenance/Asphalt Replacement fund as discussed. 9. Economic Development a. Tourism Initiative b. Business Attraction Initiative c. Downtown Development Initiative Mr. Buchanan moved on to discuss Economic Development and said that the Council asked the SPAC to go back and prioritize the focused areas and staff has done that. He noted that that has pretty much been the game plan that Economic Development Specialist Scott Cooper has been working on. He added that Mr. Cooper will present a quarterly report to the Council in the near future. He asked whether the Council wanted to discuss any changes in direction or priorities and reiterated that staff has just been following the direction that was previously provided by the Council. He pointed out that the only part they have not addressed is the Downtown part of that and stated that they made two part-time positions full-time positions a couple of months ago. He stated that this is the result of that -- they have some excise tax funds designated for the Downtown that they look at every year and budget (used to be 60 -40 and now it is 20-80 Mayor Kavanagh requested that the Council received an itemized listing of everything that is coming out of the Downtown funds and the Economic Development funds and Mr. Buchanan advised staff can do that again, it was in the budget but they will bring it back to the Council Mr. Buchanan referred to a PowerPoint slide that depicted the Economic Development Implementation Plan's three initiatives -- the Downtown Initiative, the Tourism Initiative and the Business Attraction Initiative. He said that Mr. Cooper and Ms. Goodwin have made great strides in the Tourism area and added that Mr. Cooper has also done a great job as far as Business Attraction. He stated that they just have not gotten back to the Downtown Initiative because Tourism and Business Attraction were identified as the top two priorities but in the future they are going to be discussing an Implementation Strategy. He added that there are a bunch of plans/studies out there and he is not sure how the Council wants to move forward with that. He pointed out that they are dealing with existing dollars and have $1 million in the Economic Development Fund and $66,000 will go into that million dollars. z:\council packets\2015\r150219\150129rtm.docx Page 7 of 20 Councilmember Leger asked when Mr. Cooper anticipates that the Tractor Supply Company will begin generating revenues and he responded by this summer. Senior Planner Bob Rodgers advised that staff anticipates that the company will be up and running by June. 10. Public Safety a. Law Enforcement b. Fire/EMS Mr. Buchanan commented that Public Safety is a Core Service and currently law enforcement and fire/emergency medical services are contracted with the Maricopa County Sheriff's Office (MCSO) and Rural/Metro (R/M) Corporation. He reported that the current MCSO contract runs until June 2017 and the current R/M contract runs until June 2016 with a two-year extension provision and he will recommend that the extension be approved. He advised that he and Chief Roberts have been working diligently and negotiating replacing Ambulances with Rescue Units. He noted that the Town used to have Rescue Units and the Town would have four more firefighters on per shift. He stated that this is an item that will be brought before the Council as a Business Item in the future. Chief Roberts addressed the Council and reported that they have eight firefighters on duty each day currently and they have two ambulances that are not part of the contract with four people but they are not firefighters, they are Emergency Medical Technicians (EMTs) or Paramedics. He advised that Rural Metro is looking at replacing those EMTs and Paramedics with cross-trained firefighters and that would provide the Town will four more firefighters, a 50% increase, at no cost to the Town. Mr. Buchanan informed the Council that Rural Metro would put together a separate agreement that would run consistently as far as timeframe with the current contract. Chief Roberts said that R/M is expecting to do this within the next couple of months and there would be a transition period of maybe a year. Mr. Buchanan reiterated that staff will bring this back to the Council for discussion and consideration. Mr. Buchanan asked the Councilmembers whether they had any questions regarding MCSO and noted that Lieutenant John D’Amico is present. Mr. Buchanan reiterated that in June he will recommend to the Council that the two-year extension be approved. Discussion ensued relative to Rural Metro’s bankruptcy reorganization and the fact that that has been resolved and is behind the company at this point; however, there are some questions to be addressed going forward. Mr. Buchanan stated he had met with a Rural Metro representative and Mr. Buchanan advised that staff will watch it and see how it plays out. 11. Citizen Advisory Commissions a. Commission consolidation status b. Discussion regarding the mission of the Public Safety Advisory Commission Community Services Director Mark Mayer provided a brief overview of the status of the Commission consolidation and reported that Community Services has gone from four Commissions down to two with the McDowell Mountain Preserve Commission also joining the other Commission (Community Services Commission) either when the trail is built or by December 31, 2017, whichever comes first. He expressed the opinion that significant progress has been made and noted that a decision was made to let everyone serve and then slowly through attrition allow the number to decrease. He stated that an orientation was conducted and a great amount of staff time has been spent cross training them on the various services that z:\council packets\2015\r150219\150129rtm.docx Page 8 of 20 are offered. He provided additional information relati ve to the efforts that have been expended in this area and the progress that has been made. He said that each of the Commissions are fairly represented. Mayor Kavanagh spoke in support of the consolidation and stated that it has vastly improved the operations and efficiency of the Commissions. She commented that the consolidation has made the new commission a cohesive group and they appeared to enjoy their role. Mr. Buchanan briefly reviewed the history of the Public Safety Advisory Commission (PSAC) and commented that the question is whether it is a viable Commission. He noted that it was formed in 2004 when the Marshall's office was disbanded in order to "observe" the transition to a single law enforcement agency. He added that the transition to contract law enforcement has gone very well and the Council approves public safety contracts and the Town Manager administers the contracts. He further stated that it is logical to sunset the PSAC due to lack of a work plan and pointed out that task forces could be assigned as needed if specific issues arise. He said that currently only two Commission terms are active - - two Commissioners resigned and three terms expired on December 31, 2014. He stated that the Commission has not seen anything productive for them to work on for three years so consideration should be given as to whether this Commission should be retired. He added that that would be his recommendation. Mayor Kavanagh informed the Council that the Chairman of the PSAC came to her a couple of times and told her that he didn't think the Commission was worth continuing. She reported that he stayed on for another year and stated that if they had something to do, if they had an agenda and felt that they were serving a purpose, then he wanted to be there. She said the members don't feel as though they have anything to do so they are not resisting the elimination of the Commission, they are pretty much suggesting it. Mr. Buchanan commented that the question is value judgment of the Council and whether they think it is needed and valuable. Councilmember Hansen advised that when you look at the purpose for its initial formation, there was quite a bit of controversy and consternation going on at that time and the idea behind the formation of the Commission was to ease the transition to contract law enforcement, She pointed out that they did accomplish that and the issue no longer exists. Mr. Buchanan advised that if the Council wants to disband the Commission, he will place the item on a future agenda for Council discussion and consideration. He added that if they want the Commission to continue, then staff will advertise in an effort to fill the vacant positions. Vice Mayor Yates said it appears that Mr. Buchanan is recommending that the Commission be disbanded for valid reasons and Mr. Buchanan concurred and noted that this item will be placed on the agenda of the February 19th Council meeting. Councilmember Leger pointed out that when you look at all of the meaningful work that the Commission has done over the years, he thinks Public Safety Day stands out. He said that it is well attended at Fountain Park and is something he hopes will continue. Mr. Buchanan agreed and stated that staff will make sure that Public Safety Day continues in the Town of Fountain Hills. Councilmember Magazine noted that the SPAC is not on the list of Commissions and said that he and Councilmember DePorter both served on that Commission as Chairs. He advised that other than the 5- Year Updates and putting together the Economic Development Implementation Plan, which now takes care of itself, the question has come up a number of times as to why are they still around -- what is their purpose? He expressed the opinion that the talents of the members are being underutilized and would like the Council to take a look at areas in which the members of the SPAC could be of assistance to them. He z:\council packets\2015\r150219\150129rtm.docx Page 9 of 20 added that he believes the members of the SPAC could be helpful to the Council if they had a meeting of the minds as to what their role is. Mr. Buchanan informed the Council that they are going to have an opportunity to do that when the joint meeting with the Council takes place to discuss whether they want to do a full update, a partial update or no update. He suggested that this item be placed on that agenda as well and talk about it. Vice Mayor Yates said that he agrees with Councilmember Magazine comments and the SPAC should be utilized more. He added that Mr. Cooper is a one-man show and any help he could get would be great. He stated that he has sat in on SPAC meetings and there is some great talent on that Commission so if they want to do more the Council should take advantage of that opportunity and allow them to be more of an active group as opposed to just analyzing issues and bringing forth recommendations. He pointed out that they are talking about a group of people who are acclimated to the direction in which the Council is going and can be very helpful. Councilmember Brown and the Mayor also agreed and Mr. Buchanan stated that this item will be placed on the agenda and they can talk about the purpose of the Commission. Councilmember Leger also agreed and said that they appear to be operating rather aimlessly and deserve some clear direction. He stressed the importance of obtaining the SPAC's ideas. He commented that he thinks the confusion is that they are not in the business of implementing things like staff is -- their ideas were handed off to staff. Mr. Buchanan commented that staff is a lot smaller than it used to be so items were typically passed off to one person and staff is already busy. Councilmember Hansen emphasized the importance of good communication between both groups (Council and the SPAC). Councilmember Leger said that he looks forward to seeing this item on a Work Study Session agenda. (A brief recess took place at 10:10 a.m. and the meeting resumed at 10:30 a.m.) 12. Discussion of items suggested by Councilmembers Mr. Buchanan advised that the following are items that the Mayor and individual members of the Council requested be placed on this agenda for discussion and possible future follow up. a) Councilmember Leger: i. Capital and other major projects such as Saguaro (Agenda Item #7 above) Mr. Buchanan noted that this was talked about earlier and will be coming back before the Council at a future Work Study Session because they do have a CIP list that needs to be addressed and prioritized. b) Vice Mayor Yates: i. Keeping the lights up on the Avenue palm trees year round/lighting up the south side palm trees Vice Mayor Yates stated that during the holiday season the Downtown area with all of its lighting and decorations looks incredible but one side has lights and the other doesn't. He said if the lights on the Avenue palm trees were kept up year round, even when there is nothing going on, it would make the median area so much more inviting and requested that the Council consider doing this and also consider placing lights on the south side palm trees so that the area looks more balanced. He noted that the median z:\council packets\2015\r150219\150129rtm.docx Page 10 of 20 is already much more inviting because of all of the work that has been done and said that it is paying off because the residents are using it so much more. He stated that he doesn't want to spend tons of money on this but maybe they could shift some things around to make this happen. Councilmember Magazine commented that he had sent an email asking about that as well and the lights made a big difference for the Town. He reported, however, that the annual cost would be approximately $26,000 a year plus the cost for the lights and so he is financially opposed to moving in that direction. He added, however, that there may be a solution and said he has been talking to some of the non -profits in Town, the Rotary, Kiwanis, organizations that raise lots of money for worthwhile projects in Town, and perhaps this item could be placed on their list of items to fund. He added that due to the Town's budget issues he cannot support expending that amount of money. Mayor Kavanagh advised that they also have Plat 208 and businesses in Town may be interested in contributing. She further stated that they have a Republic Services grant for $10,000 , perhaps one of those groups would like to add that in as a project for the community as it is one of the conditions of the grant. She stressed the importance of getting that project sent in as soon as possible. Councilmember Hansen said that there is something to be said about something that is available all year round not seeming as special as it is when it is there for just a certain period of time. Discussion ensued relative to the fact that the cost would be in addition to what the Town already spends on Christmas lighting; the Mayor's question as to whether any consideration has been given to just keeping them up during the winter months; the fact that the lights are commercial LEDs and it costs $13,000 a year for just the palm trees and $26,000 for all the trees; the fact that they need to extend electricity down to Saguaro on the south side; Vice Mayor Yates' comment that the way it is being presented makes it appear that it is just a straight line expense of the Town and if they want to put this off until next Fiscal Year, he would like them to take the different funds into consideration; the fact that it may not have to be a line item, the Town does have resources and partners and there just has to be discussion about whether there will be other developers, business owners and non profits that can become involved; Vice Mayor Yates' comment that the concept would help that Avenue but it does not have to be a Town expense and the fact that this is not a priority; the Republic Services Grant and the Town Attorney's intention to talk to the Republic Services’ representatives about this; methods of getting other entities involved in this matter and obtaining input from citizens; and Councilmember Hansen's statement that this is more than a one-time cost. Vice Mayor Yates advised that this is not an item he thinks should be placed on an agenda at this time but he will help Councilmember Magazine take on this project and provide the information to the Council. Councilmember Hansen commented that it would be like an "Adopt a Street" program with donor recognition. Additional discussion ensued relative to contact the Chamber, the Business Alliance, Plat 208 and other organizations/groups; Councilmember Magazine's comment as to whether they should hold off on that until he sees if he can make some headway; the Mayor's statement that now is the time for any of the groups to put in an application to Republic Services because the committee has been formed and they will choose three group that will be placed on Republic Services' website for people to vote on. ii. Changing the fountain run times to a more continuous flow based on electric fees but fees within existing budget Vice Mayor Yates stated that before they started to talk about the IGA (Intergovernmental Agreement) he and Councilmember Brown ran some scenarios with Mark Mayer on what the charges are on running the Fountain every hour on the hour for 15 minutes. He added that obviously in the middle of August at 2 in the afternoon the Fountain going on costs the Town the most but that is also when the least amount of people are out there enjoying it. He noted that he put together a pro-forma/spreadsheet and at a net zero z:\council packets\2015\r150219\150129rtm.docx Page 11 of 20 expense they took the existing budget and figured out based on when people are most likely to be at the Fountain when to run the Fountain and it was contiguous -- they started at 7:30 in the morning in the summer and then stopped at a trigger time so in essence it would three to four hours in the early morning, three to four hours in the evenings Monday through Friday and then all day (12 hours) on the weekends. He noted that the change would not be an additional expense, it would just be a matter of the Fountain's run schedule and it would be more contiguous in the early mornings, especially during the summer months -- then turn off and come back on in the evenings. He indicated his intent ion to provide the Council with copies of his analysis and recommendations. He stressed the fact that this would eliminate the high expense times during the middle of the summer months and reiterated that on Saturdays and Sundays the Fountain would run for 12 hours straight. Mr. Mayer commented on fountain run times, pump equipment, the fact there was a cost for reprogramming and a signage change in the park, and that there had been SRP rate increase that was not reflected in the Vice Mayor’s current calculations. Vice Mayor Yates advised that Mr. Buchanan should place this item on a future Council agenda for additional discussion and consideration. Discussion ensued relative to reprogramming and signage costs; rates and SRP; Councilmember Leger's comment that they have discussed this issue several times and he really doesn't see the benefit of what is being suggested and the confusion it would cause; the Vice Mayor's response that Councilmember Leger should wait until he has a copy of the schedule and sees what he has actually come up with; Councilmember Leger's statement that based on living in Town for 23 years he doesn't see a return on investment to change this and so to him it doesn't make any sense; Mr. Mayer's comment that $168,000 has been budgeted for electricity; Councilmember Leger's statement that he doesn't see the gain and provided justification for his opposition but added that he is willing to have it brought back for another look after reviewing the Vice Mayor's revised compilations; Councilmember Hansen's comment that waiting for the Fountain to come on is part of the attraction and the Mayor and Councilmember Magazine's support for placing this on a future agenda for additional discussion and consideration. Mr. Buchanan requested that Mr. Mayer place this item (Fountain running schedule) on a future agenda. iii. Zoning/Prepping Town-owned 15 acres on Shea for development (Parcel #176-09-492B) Vice Mayor Yates noted that the Town owns 15 acres just west of the Target Center and said that it is currently zoned agricultural and is topographically challenged but does have Shea frontage. He stated that 15 acres is an awesome piece of property especially on Shea and added that as everyone knows, the Shea Corridor's traffic count now exceeds 35,000 cars-per-day. He pointed out that the Tractor Supply Company chose its location not only because of Fountain Hills but also because that area is getting some great exposure. He stated that they talk about investing money and leveraging their resour ces and he is not suggesting that they spend money today, but he is suggesting that they look at what it would cost to prep that site and/or zone it. He said that when he says prep it, typically a developer would pay for the site improvements. He further stated that they need to leverage that and put it out to market to see if there is some interest. He pointed out that any type of big box retailer, such as a Costco, would generate a significant amount of sales tax for the Town. He stressed the importan ce of starting to look at Fountain Hills as a regional draw and noted that this is a unique opportunity because of the location. He recommended that they go to the next step, whether that be an RFP (Request for Proposals) or a RFQ (Request for Qualifications), maybe do an overlay or a PAD -- they could even get estimates from excavators to see what it would cost. He reiterated that he is not suggesting that they spend any money but in light of their revenue shortfall, and with economic development being one of their top priorities to help with shortfalls, it would make sense to leverage this and see what they can come up with. Discussion ensued relative to available commercial space in Fountain Hills and Councilmember Leger's statement about Fry's Shopping Center on Shea and Vice Mayor Yates' response that a REIT Real Estate Investment Trust) used to own that center and they were trying to rent space at 2003 prices, $18.00 a square foot; the Vice Mayor's comment that the quality of the office space that the Town has is terrible, little offices with 500 to 1,000 square feet of space and the quality of retail space in Town is practically z:\council packets\2015\r150219\150129rtm.docx Page 12 of 20 non-existent; activity that is occurring at the Target shopping center (a new Verizon store, a mattress store, etc.); and Vice Mayor Yates' comment that it is worth having a discussion about this item. Councilmember Leger commented on the history of that property and reported that a promise was made to the residents when the center was developed that that parcel of open space land would never be developed. He stated that he is all for being business friendly but he is also all for honoring past commitments. He asked whether anyone knows the value of that piece of open space and Town Attorney Andrew McGuire responded that he did not but if the price is over $500,000, in order to do anything with it a vote of the residents would be required. Discussion ensued relative to the fact that the Assessor's valuation on the property was in the $400,000 range so the property's real val ue has to be over $500,000 and the fact that there is legislation out there that could change the $500,000 limit to $1 million and in that case a vote would not be required. Vice Mayor Yates stated that Fountain Hills needs to look at its resources and no ted that they cannot compete with the quality of retail and office space that the businesses are looking for -- they are not on the list of possible locations for those businesses. Additional discussion ensued relative to the memo contained in the Council's packets regarding this item; the fact that in the 80s and 90s it was commonplace to put in non-vehicular easements to protect open space; the fact that the Sanitary District has a five-acre parcel on the other side; Vice Mayor Hansen said she doesn't think this is a good idea and added the opinion that there would be a lot of "push back" on this; Vice Mayor Yates' statement that this is an opportunity that fits in on Shea and the people who might be concerned that a big box is being proposed right next t o Target are the same folks who do not want a primary property tax; Vice Mayor Yates' willingness to work with Mr. Cooper on this and pointed out that all the other municipalities he interacts with have lots of land and they are leveraging tons of it. Councilmember Leger said that he is a believer in municipal governance and officials honoring commitments and commitments were made but said he would go along with taking a look at it and getting a faux proposal. Vice Mayor Yates commented that at this point it would be a referendum and Councilmember Leger stated he was not ok with it. Councilmember Magazine asked whether it could be divided and said it might be worth taking a look at how it might be divided (that might allow for some retail). Vice Mayor Yates pointed out that the property is not buildable right now and is geographically challenged and Mr. McGuire advised that it is under the faux cell tower. Vice Mayor Yates said he would like to chair this and welcomed anyone else who was interested in joining him and again reiterated that they are not spending any money, they are just going to look into it and the possibilities and then it could be placed on an agenda in the future for further discussion and consideration. He noted that they as a Town do not get a lot of opportunities of this nature. He added that to Councilmember Leger's point about keeping promises, the Council also made a promise to those people to manage the budget. Mayor Kavanagh stated that she is willing to look at it and Mr. Cooper concurred with the Vice Mayor's comments regarding the fact that there is value in looking into it. Additional discussion ensued relative to whether this was a 404 Wash; the fact that Councilmember Leger would not advocate for putting this on an agenda but would advocate for Vice Mayor Yates conducting his independent research and then bringing his findings back; Vice Mayor Yates comment that he will be a team player on this; Councilmember Brown's request for an aerial photograph of the property and Mr . Mood response that he will provide the Council with photographs. z:\council packets\2015\r150219\150129rtm.docx Page 13 of 20 Mr. Buchanan advised that Vice Mayor Yates will do the leg work on this issue and then his findings will be placed on an agenda for the Council to discuss. iv. Elman Property, what can be done to help development….zoning, sale Vice Mayor Yates advised that the Elman Property is in a holding pattern and even if they did a blanket PAD or major rezoning to get some high density he still doesn't think the economics would work. Mr. Buchanan stated that in order to proceed further, Elman would have to give the State Land Department $30 million for another extension. He added that everything is beyond the Town’s control at this point in time and Mayor Kavanagh advised that they will know something in March of 2016. Vice Mayor Yates said that if it does go back to the State then the whole process begins all over again. In response to a question as to what happens if the land goes back to the State, Mr. McGuire commented that they haven't talked to the State Land Department since 2005. v. Wayfinding/trailblazing signs from Shea to Avenue of the Fountains on Saguaro, Fountain Hills Boulevard and Palisades Mr. Buchanan advised that staff had some existing signage slides and so they displayed them in the Council Chambers. He explained that there are four programs that the Town has in Wayfinding Signs. He asked for direction from the Council. Vice Mayor Yates stated that he doesn't want to spend any money and so they should use the existing materials that have already been made up and along the lines of what Councilmember Hansen said about generating revenue, they could sell space (raise them up and paint them a color that people can see). He noted that as soon as anyone turns left on Palisades, Saguaro or Fountain Hills Boulevard and they get about 100 to 200-feet in and hit houses, people think they made a wrong turn --- they can't find Downtown Fountain Hills. He added that he would like to replace them but he knows that there isn't any funding. He suggested that they work with the business community, maybe sell or rent space to offset the costs and maybe get a comprehensive system in place. He pointed out that this is nothing more than a band aid because the signs that they have up and down Shea Boulevard are really the type of signs that they want to have in Town and every municipality has something along these lines. He recommended painting them blue, which is the universal municipality color. Mr. Mood advised that the signs cannot be painted; they would have to purchase new signs. Vice Mayor Yates said that they are not talking about making a decision today, they are talking about how much it is going to cost to do what they are talking about and then they can see if they can sell t hose signs/spots (would Golden Eagle Golf Course pay to have their logo up there?). Mr. McGuire informed the Council that the problem has always been this -- they can do that and with the exception of maybe two businesses, universally these have been generic signs for a purpose. He explained that as soon as you put a business on the signs you can't tell the business you don't like what they have put on their sign and so if the marijuana guys want to stick up a sign out there they can -- once you open up the door there's no closing it and it can lead to challenging problems. Mayor Kavanagh asked what if they used generic signs and just had business sponsors -- they could pay for having language like "Paid for by XYZ Cleaners" on the sign. Mr. Buchanan said that someone would have to monitor that and there would probably be a waiting list and he stated that the issue is who would be responsible for that. Councilmember Leger commented that they need solutions and not more problems. z:\council packets\2015\r150219\150129rtm.docx Page 14 of 20 Discussion ensued relative to sign costs; day and nighttime signs (reflective); the fact that studies have been done on how far people will drive looking for signs to direct them to where they are going; Councilmember DePorter's comment that existing signs would be replaced over time with new signs until finally the old signs are completely phased out; Councilmember Magazine's statement that he would like to see some of the directional signs taken down or changed (Town Center signs only) and the fact that the sign project in the Downtown area has not been completed. Vice Mayor Yates advised that he and Councilmember Brown will do some homework and bring back a plan for the Town Council to consider. Councilmember Leger suggested that they survey the Town, determine how many signs they need and where they need them and what the cost would be and the Vice Mayor stated that that is exactly what he is proposing to do. Mr. Buchanan said that Mr. Cooper and Mr. Mood will provide assistance. (A lunch break was declared at 11:45 a.m. and the meeting reconvened at 12:25 p.m.) c) Councilmember Hansen: i. Circulation, lighting, safety issues of the intersections at Avenue of the Fountains and Saguaro/Verde River/LaMontana Councilmember Hansen commented that increased traffic is resulting in more challenges and outlined a number of her concerns. She said that Mr. Buchanan is reviewing the lighting at Saguaro and will bring a report with the costs back to the Council for their review and consideration. She added that as far as the crosswalks at the intersections, they don't know of any other design they could use that would be safe, especially at Verde River. Councilmember Hansen pointed out that there is a blind spot and the Mayor noted that people stop at Verde River. Mr. Mood addressed the Council and stated that the area was looked at before and it didn't warrant a stop sign but he could take another look at it. He pointed out that if one is not warranted but the Town puts one in and an accident occurs then the Town could be liable. Councilmember Hansen asked whether the fact that the use of the medians make any difference at all as far as adding stop signs because they are making people walk around and step off the curb and there is the blind spot she mentioned before. Mr. Mood said that he would talk to Randy and they would look at it and advised that they would have to have someone come out, sit there and count the cars, the pedestrians and how many people use the crosswalk and Councilmember Hansen stated that she would like to see that happen. Councilmember Leger pointed out that the equipment walls restrict the line of sight and Mr. Mood indicated that he would take a look at that as well. Discussion ensued relative to the fact that there is a lot of confusion in this area; the possibility of utilizing "Yield to Pedestrian" signs but the fact that the real problem is jay walking; the fact that people stop where the Town does not want them to; the fact that there are more people walking now on the median with their dogs; the Mayor's comment that when the new fountain comes in, will there be more lighting and Mr. Mood's response that the engineering firm is taking a look at that (would have to be LED lights, which will be brighter); the fact that the Mayor agreed with Councilmember Hansen's comments regarding the fact that crossing over to the park is a big issue now; Mr. Buchanan's comment that Mr. Mood is looking into getting conduit in and they could use Downtown money and lighting will be z:\council packets\2015\r150219\150129rtm.docx Page 15 of 20 discussed at the Council's second meeting in February; Hawk lights, whether they are a viable option and the fact that they are designed for mid block use and do not seem appropriate here; the fact that in Tucson Hawk lights are used a lot; possible redesigns and the use of light poles; the possibility of additional signage to decrease drivers' confusion; lighting for LaMontana and the need for direction; the fact that a signal costs approximately $400,000; the need for a warrant study; the fact that although the intersection at LaMontana is extremely confusing, there have only been five accidents in the last five years (although even one accident is too many); possible suggestions to improve the situation and the fact that people have said they want to be able to make a left when they come out of the Post Office. Mr. Buchanan advised that an engineering review is going to be done on Verde River (possible stop sign because of changing conditions) and they are going to look at lighting for Saguaro and the Avenue for pedestrians (2nd meeting in February) and there is nothing to be done on LaMontana unless the Council wants to do a circle. ii. Modifying the traffic lights to allow flashing yellow left turns to aid/expedite the flow of traffic Councilmember Hansen stated that they know they cannot do flashing yellow lights but asked what they can do to that will help accomplish something similar to help the flow of traffic. Mr. Buchanan said that would be a fairly extensive process and he is not against them but it will cost some money to put those in. He added that they too have their own problems because there are no perfect solutions out there. Councilmember Hansen commented that when she read the report she thought, okay, let's come up with something we can do. She said that on some signals the timing is all off and questioned why they even need an arrow in some places. She expressed the opinion that some intersections are over engineered. Mr. Mood informed the Council that when the original signals were put in they were approved by the Council serving at that time. In response to a question from Mr. Buchanan as to whether the lights could be modified, Mr. Mood advised that studies could be conducted and changes could be made. Councilmember Hansen noted that in many parts of the Valley it depends on the time of day too and when the traffic is heavier then they have the arrow but when it is not the arrow isn't there. She added that it seems there should be some type of modification they could make other than a study that would be costly to do. Superintendent of Streets Ken Kurth addressed the Council and stated that anytime you change a signal an engineering study is required for liability purposes so taking away the left turn signals for part of the day while a left turn signal is up is something they cannot do. He added that for an engineer to take a protective left turn away and make it permissive would be a tough sell because now we have the safest traffic signal and we are turning it into a less safe one. He further stated that there woul d be less wait time but it would also be less safe. He advised that someone would have to stamp that plan to make that kind of a change. Councilmember Hansen pointed out that other municipalities get by without the arrows and Mr. Kurth explained that the problem is that the Town took the safer path and now to reverse it would be extremely difficult. Mr. Buchanan asked whether all of the control panels would have to be replaced if they made changes to the lights and Mr. Kurth replied no, they could program it in. z:\council packets\2015\r150219\150129rtm.docx Page 16 of 20 Mayor Kavanagh advised that she is interested in the intersection of Fountain Hills Boulevard and El Lago and commented on how long people have to sit at that particular intersection. She pointed out that people get frustrated and start going against the light when that happens and say to themselves that the signal must be broken because the traffic in all of the other intersections is moving right along. She asked why that intersection can't get adjusted so that it works like every other intersection -- whoever is there first goes first and it continues on in sequence. Mr. Kurth stated that the only intersection that works that way is Fountain Hills Boulevard and Palisades and noted that the intersection is a four way through and the first one there goes because the traffic is about the same coming from all directions. He explained that all of the other intersections have a main street. He noted that Fountain Hills Boulevard will always take over from El Lago. Discussion ensued relative to pedestrian buttons that kick into action based on the length of the street, and provide residents approximately 45 seconds on average to cross; the fact that if the Council decides to make changes then they will assume a higher liability for the Town; the fact that a Traffic Engineer would have to come in and conduct a study and they are not inexpensive and the Mayor's comment that she does not want to spend any money on this now. Vice Mayor Yates commented that he is hearing that the Council does no t want a study done at this time and asked where the Town falls as far as accidents per capita. Mr. Mood responded relatively low at the intersections, the numbers for the Town are pretty flat. Mr. Buchanan requested that Mr. Mood look into that and provide the Council with some actual up-to- date numbers from the last five years. Additional discussion ensued relative to the fact that a fatality did occur at Fountain Hills Boulevard and El Lago; the fact that if there was a trend in the amount of accidents at a location then that would certainly trigger a study (Town would look into obtaining some grant funding) but at this point in time it appears that the Town has a good record in that regard; the fact that because the Town is on the side of a mountain there are a lot of site line issues; Councilmember Brown's statement that he really likes the flashing yellow turn signals all over the Valley but he also has to say if people are in such a big hurry that they can't wait 45 seconds for the cycle to change then that is a concern and they need to slow down. Mr. Buchanan advised that they will leave this as is and staff will look at the accident numbers over the last five years and prepare a report for the Council. iii. Parking/traffic calming (truck route) on Saguaro in the downtown area Councilmember Hansen again commented on the increased traffic and expressed the opinion that there is nothing inviting about Saguaro Boulevard the way it is now along the business district. She added that with all of the improvements that are coming, it just seems a shame that they are missing out on opportunities to do something there that would be of benefit to the businesses. She stated that she knows they have to think about the designated truck route and asked if the re was any way to re-route the truck route to get the brunt of it off of Saguaro. She said they have talked about this before and about putting in some parking on Saguaro. Councilmember Magazine said he believes they would have to do some type of survey to determine what percentage of the trucks are for deliveries versus the other trucks and Mr. Buchanan noted that the trucks are taking Saguaro because they don't want to go up and down the hills. Councilmember Hansen commented that the trucks could travel north on Saguaro but then turn left on El Lago up to Fountain Hills Boulevard. Councilmember Magazine noted that there is a lot of residential development in that area. z:\council packets\2015\r150219\150129rtm.docx Page 17 of 20 Mr. Mood confirmed that this was in the original bond (lighting and on-street parking). Mayor Kavanagh asked whether they could stripe it or do something so that people know it is just one lane. Discussion ensued relative to putting in some parallel parking but the area would be very tight; the question of whether it is that big a problem that it needs to be addressed and the fact that if there was a simple solution to the problem they could move in that direction but nothing is easy. d) Mayor Kavanagh: i. Putting a digital sign on Shea to advertise Town events Mayor Kavanagh commented on the fact that a lot of events take place in Fountain Park and other locations in Town and it is very difficult to spend a lot of money on advertising the various events. She said it just seems that if they had a digital sign on Shea Boulevard and us ed it to advertise the events it would be cheaper than placing ads in newspapers. She pointed out the large traffic volume on Shea Boulevard and noted that if they had something up there that said "Oktoberfest in 3 Weeks" or "The Fair is Coming to Fountain Hills," people would see those announcements and be made aware of the events that are/will be occurring in Town. Vice Mayor Yates said aside from costs, he would like to know what the logistics would be to make it happen and Mr. Kurth advised that there is no electrical in the medians. Mayor Kavanagh stated that it would have to be placed on the side -- it wouldn't be in the median, it would be on one of the corners on both sides of the sign. She added that they could put it where the lights are. She noted that the Tribe put the digital board up and they use it for various events and it seems to be working for them. Councilmember Brown, Vice Mayor Yates and Councilmember Magazine advised that this is something that they would like to take a closer look at doing (the consensus of the Council was to follow up on this issue). In response to a question from Councilmember Leger regarding location, Mayor Kavanagh said she and Mr. Buchanan took a drive to look at possible locations and one would require some negotiations with MCO -- right on the corner of where the MCO Realty office is located. Discussion ensued relative to possibly obtaining a grant for a digital sign and Mr. Cooper indicated that he would work with Ms. Goodwin in this regard; the fact that Shea Boulevard averages 33,000 to 35,000 vehicles per day and Saguaro is a close second at a count north of 20,000 so a sign anywhere in that area would be tremendous. ii. Collection of non-resident Transaction Privilege Tax Mayor Kavanagh announced that as of January 1st, the Legislature passed a law that states any non- resident in Arizona, who makes a purchase in Arizona and then ships those purchases out of Arizona must now pay State sales tax (before they were exempt). She clarified that anyone who comes to the Great Fair, who is a non-resident of the State and buys something to ship out of State, will have to pay the sales tax on the purchase. The Mayor advised that when that happened she asked whether those non -residents are paying Fountain Hills tax (did that change?) and Mr. Rudolphy looked into that and said they are required to pay it. She stressed the importance of getting the word out to the business community that the law has changed and the businesses now have to charge non-residents State sales tax in addition to Town sales tax if they are shipping the purchase out of the State. Mr. Rudolphy advised that staff recently sent out emails to current Business License holders (1,700 of them) for whom they had email addresses and notified them of the change and on Monday they started a robo call program to every other Business License holder that the Town did not have an email address for. z:\council packets\2015\r150219\150129rtm.docx Page 18 of 20 He further stated that they also sent the same email to all of the registered and potential vendors for the Fountain Hills' Great Fair. In response to a question from Councilmember Magazine, Mr. Rudolph clarified that the Town's requirement for Business Licenses is that the holder have a valid TPT License so Business Licenses will not be issued unless the applicant has a TPT License. Councilmember Magazine stated that he can almost guarantee that people will not have them and asked if there was any way to check. Mayor Kavanagh commented that Councilmember Magazine's question brings them to the next item. iii. Insuring that anyone doing business here, including all shows and events, must have a business license Mayor Kavanagh advised that local business owners have long complained that it is not fair that vendors that come to Town for the Great Fair and/or any other event and sell items do not have to have Business Licenses while the local vendors do. She reported that she and Mr. Buchanan sat down with Sharon Morgan and Mr. Scott Soldat-Valenzuela, the new CEO of the Chamber of Commerce, and they noted that even each of the Town's Farmer's Market people have to have a Business License. She said that there are a lot of people who participate in the Fair who do have Business Licenses because they also participate in the Farmer's Markets and already have one. She stated that Mr. Soldat-Valenzuela is going to put together a list of all of the people who are registered to participate in the Fair and compare that list to the Town's Business License list and see whether they have the required Business License. She reported that if they do not have a Business License they won't be able to participate unless they obtain one. She added that vendors that show up at the last minute will be allowed to get a Business License after the fact. She also pointed out that the application to participate in the Fair and other events already lists that requirement. Councilmember Magazine asked what will happen when they check the lists and find out that XX number of people do not have Business Licenses. Councilmember Magazine said that he is just wondering whether there is some mechanism that could be put into place to make the vendors pay for the License before the event. Senior Planner Bob Rodgers addressed the Council and noted that the Town used to have three Code Officers and one would be assigned to the Fair and would check for Licenses. Mayor Kavanagh stated that the Chamber said that they are not going to do this but they would be happy to put the notice in the application but after that it would be up to the Town to do the collecting. Vice Mayor Yates commented that if the Chamber provides the Town with a list and contact information that will be a huge help. Mr. Buchanan said let's find out how big the magnitude of the issue is during the next Great Fair. Councilmember Hansen advised that this may be a moot point, but early on one of the provisions for getting a Special Event License was that it made all of the participants exempt from having a Business License. She added that she was just wondering if that got changed along the way and is no longer part of the policy and Mr. McGuire briefly explained changes that have taken place, noted that tax is paid to the State but audits could be conducted to ensure compliance. e) Councilmember Magazine: i. Rezoning commercial property to residential z:\council packets\2015\r150219\150129rtm.docx Page 19 of 20 Councilmember Magazine referred to a list that he put together of all the commercial and residential lots in Town and reported that they have 48 undeveloped commercial lots totaling 32 acres and a lot of it is infill. He stated that it seems to him that these people have owned the properties or sold them to others since the Town was formed. He commented that they have so much commercially zoned property in Town but it is scattered around and it occurred to him that the highest and very best use might very well be residential. He pointed out that the people who own the properties can't get a return on their investment after all these years and there is no commercial infill coming. He said that he wonders whether it would be worthwhile to contact the property owners, indicate what they are trying to accomplish and ask them if they would willingly allow rezoning of their properties to residential. He added that they should be told that the chances of getting a return on their in vestments are probably far greater if the land is zoned residential. He stated that he didn't think it would take a lot of staff time to accomplish this and there wouldn't be any big associated costs -- they could do it by letter. He advised that he isn't aware of any downsides to doing this. He further stated that it may not just be the empty lots -- he referred to the old Goodwill Plaza and said that it is a real mess and he wonders whether the owners would be interested in having that rezoned and putting up condos or apartments at that location (near the Metro line and Downtown). Councilmember Magazine briefly highlighted the various properties that he is talking about. Councilmember DePorter asked whether any thought had been given to rezoning second floors over properties in order to build residential lofts. Discussion ensued relative to the property adjacent to Bashes, which is owned by De Rito Partners, and the high price the property owners have put on it and the property drainage issues. Mr. Buchanan advised that the letters could be sent out as recommended by Councilmember Magazine and they can see whether the owners respond. Mr. Cooper commented that it would be helpful to have a redevelopment lot assembly. Mayor Kavanagh commented that she like Mr. DePorter's idea about putting residential lofts on second floors and said perhaps that could be a suggestion mentioned in the letter as well (C2 zoning would allow apartments on second floors). Additional discussion ensued relative to this recommendation and it was decided that the letters would be sent out to the owners and then they will see what kind of a response they receive and the fact that Mr. Rodgers will help in this process. ii. Establishing Council liaisons to select Fountain Hills organizations Councilmember Magazine addressed the Council relative to the possibility of establishing Council liaisons for select Fountain Hills organizations and emphasized the positive results that could be achieved by conducting more discussions with these entities, including enhanced communication and possible partnerships. He suggested that the Councilmember liaisons report to the entire Council on an as needed or quarterly basis and added that it would be great to have everyone working together on a more organized basis. He listed the organizations as follows: Schools, Sanitary District, Business Alliance, Chamber of Commerce and Fort McDowell. He added that it might open some doors and present new opportunities. Mayor Kavanagh pointed out that Vice Mayor Yates and staff serve on MAG and Mr. Buchanan said that that is Town representation and he believes Councilmember Magazine is talking about liaisons. Mr. McGuire advised that if they are talking about their own Boards and Commissions then Councilmembers can sit in but that is usually discouraged because that might stifle the conversation of the group(s). z:\council packets\2015\r150219\150129rtm.docx Page 20 of 20 Mayor Kavanagh said that she believes Councilmember Magazine is just talking about an audience member who will be able to come back and tell the Council what is going on. Councilmember Magazine added “or interacts with them as necessary” and pointed out that if they have something on the agenda that the liaison can provide input on then conversations could take place. Discussion ensued relative to also keeping in touch with the Tribe liaisons; the fact that Councilmember Magazine has not yet spoken to those groups; a question as to whether this should be an agenda item at a future meeting and Mr. McGuire's comment that he is not sure that th ey want to have a specific Council delegation because it opens up a really weird "Open Meeting Law" process; the fact that if the Council designates a committee or a study group, etc., (one officially appointed by the Council) that group (or person) is subject to the "Open Meeting Law" and it causes havoc for staff in ensuring that all of the laws are complied with and the fact that if this is done informally then there would not be any problem and they avoid the hassle; the fact that the Council liaisons would attend the meetings but not as official designees; concerns about the School and the fact that the Council used to meet with the School Board; and whether a joint meeting with the Fort McDowell Tribal Council had been scheduled to which staff responded that the Town Council’s availability had been provided to Fort McDowell and the “ball was in their court”. Mayor Kavanagh advised that she likes keeping the liaisons attendance at the meetings informal because the idea is to find out what is going on without interfering in what they are doing (individual attendance and this helps keep the Council from being blindsided). Mr. Buchanan stated that that wraps up the meeting and staff will bring back to the Council a summary of what they believe the Council's direction is and from that a Work Plan can be created. The meeting adjourned at 1:47 p.m. TOWN OF FOUNTAIN HILLS By _______________________________ Linda M. Kavanagh, Mayor ATTEST AND PREPARED BY: _________________________ Bevelyn J. Bender, Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Council/Staff Retreat held by the Town Council of Fountain Hills in the Town Hall Council Chambers on the 29th day of January, 2015. I further certify that the meeting was duly called and that a quorum was present. DATED this 19th day of February, 2015. _____________________________ Bevelyn J. Bender, Town Clerk