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2015.0521.TCREM.Minutesz:\council packets\2015\r150618\150521m.docx Page 1 of 20 TOWN OF FOUNTAIN HILLS MINUTES OF THE EXECUTIVE AND REGULAR SESSIONS OF THE FOUNTAIN HILLS TOWN COUNCIL MAY 21, 2015 EXECUTIVE SESSION * CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Kavanagh called the Executive Session to order at 5:03 p.m. in the Fountain Conference Room - 2nd Floor. AGENDA ITEM #1 - ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION: Present for roll call were the following members of the Town Council: Mayor Linda Kavanagh, Vice Mayor Dennis Brown, Councilmember Nick DePorter, Councilmember Cecil Yates, Councilmember Cassie Hansen, Councilmember Alan Magazine and Councilmember Henry Leger. Town Manager Ken Buchanan, Town Attorney Andrew McGuire Acting Town Clerk Janice Baxter, Senior Planner Bob Rodgers and Development Services Director Paul Mood were also present. PURSUANT TO (I) A.R.S. §38-431.03(A)(4), DISCUSSION OR CONSULTATION WITH THE ATTORNEYS OF THE PUBLIC BODY IN ORDER TO CONSIDER ITS POSITION AND INSTRUCT ITS ATTORNEYS REGARDING THE PUBLIC BODY'S POSITION REGARDING CONTRACTS THAT ARE THE SUBJECT OF NEGOTIATIONS, IN PENDING OR CONTEMPLATED LITIGATION OR IN SETTLEMENT DISCUSSIONS CONDUCTED IN ORDER TO AVOID OR RESOLVE LITIGATION (SPECIFICALLY, THE FOUNTAIN HILLS THEATER LEASE); (II) A.R.S. §38-431.03(A)(1), DISCUSSION OR CONSIDERATION OF EMPLOYMENT, ASSIGNMENT, APPOINTMENT, PROMOTION, DEMOTION, DISMISSAL, SALARIES, DISCIPLINING OR RESIGNATION OF A PUBLIC OFFICER, APPOINTEE OR EMPLOYEE OF ANY PUBLIC BODY (SPECIFICALLY, FOR THE PURPOSE OF DISCUSSING THE TOWN MANAGER VACANCY); AND (III) A.R.S. §38-431.03(A)(3), DISCUSSION OR CONSULTATION OR LEGAL ADVICE WITH THE ATTORNEY OR ATTORNEYS OF THE PUBLIC BODY (SPECIFICALLY, REGARDING A PROPOSED GENERAL PLAN AMENDMENT AND ZONING TEXT AMENDMENT). Vice Mayor Brown MOVED to go into Executive Session at 5:03 p.m. and Councilmember Yates SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #2 - ADJOURNMENT. The Executive Session adjourned without objection at 5:55 p.m. REGULAR SESSION * CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Kavanagh called the meeting to order at 6:31 p.m. * INVOCATION - Mayor Kavanagh requested that everyone observe a Moment of Silence and urged them to pause and remember all of those in our armed forces who gave their lives protecting our country. * ROLL CALL - Present for roll call were the following members of the Town Council: Mayor Linda Kavanagh, Vice Mayor Dennis Brown, Councilmember Nick DePorter, Councilmember Cecil Yates, Councilmember Cassie Hansen, Councilmember Alan Magazine and Councilmember Henry Leger. Town Manager Ken Buchanan, Town Attorney Andrew McGuire and Acting Town Clerk Janice Baxter were also present. z:\council packets\2015\r150618\150521m.docx Page 2 of 20 * MAYOR'S REPORT i) None. * SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS i) The Mayor may review recent events attended relating to Economic Development. Mayor Kavanagh advised that due to the lengthy agenda this evening, she will postpone her review until the June 4, 2015 Regular Council Meeting. ii) Presentation by Executive Director Ken Strobeck, the League of Cities and Towns, regarding the 2015 Legislative Session. Ken Strobeck, Executive Director of the Arizona League of Cities and Towns, addressed the Council and highlighted a brief PowerPoint presentation on the 2015 Legislative Session (copies of which are available on line and in the office of the Town Clerk). His presentation included the following: * Session at a Glance - 1,163 bills were introduced, 344 were sent to the Governor, 324 were signed and 20 were vetoed * Legislative Focus * Session Challenges * TPT (Transaction Privilege Tax)/Budget bills passed (SB 1446 and SB 1471 * Preemptions Passed * Future Challenges * TPT Implementation (Bumps in the road and the 1/1/16 deadline) * Public Safety Pension Retirement System (PSPRS) - Huge increases in unfunded liability and escalating costs (yardstick standards) Mr. Strobeck stated that he hopes to see everyone at the League's Annual Conference on August 18-21, 2015 in Tucson. Mayor Kavanagh thanked Mr. Strobeck for his presentation. Councilmember Yates thanked Mr. Strobeck for speaking with him both collectively and in private and said that the Maintenance, Repair, Replacement and Alteration (MMRA) associated with the TPT Tax is going to be a big issue for the Town and asked Mr. Strobeck to discuss the threshold -- at what point does it become a general contractor project, is it monetarily determined or decided by the number of subs? Mr. Strobeck explained that that there are two standards, the residential and the commercial , and on the residential it is a percentage -- if someone has a project that is 25% or less of the property's full cash value as determined b y the County Assessor, then it would be considered MMRA and anything 25% or over is new construction. He added that on the commercial there is a three-part test (has to meet all three of these) -- a contract amount of $750,000 or less, 40% of the existing square footage or an expansion of 10% or less of the existing square footage. Councilmember Magazine referred to PSPRS and the unfunded liability, and asked whether the amount owed is steady, climbing or decreasing and Mr. Strobeck replied that it depends on the nature of the workforce and how many retirees they have but in general he would say that it is going up because as people are retiring they are entitled to benefits and have to be paid. He said that part of the problem with the system as the League sees it is that it is not a system, it is 256 separate systems, each one with their own individual Board and one of the League's recommendations is to end that system and start a brand new system that is one -- one pool of resources, one set of investment policies, etc., and then they can spread that risk out much broader. He pointed out that the Town contracts for Police services and so they don't have Police on that and he believes that MCSO is even calculating part of their retirement plan into the contract that the Town is paying but he doesn't have all the details on that. z:\council packets\2015\r150618\150521m.docx Page 3 of 20 Mayor Kavanagh reiterated her appreciation to Mr. Strobeck for his appearance at the meeting and his input. iii) Recognition of the Town of Fountain Hills' "National Make a Difference Day" Grant Award in the amount of $10,000 from USA Today to the Town's non-profit recipient, the Fountain Hills' Noon Kiwanis Organization. Town Manager Ken Buchanan informed the Council that the Town was one of 14 grant recipients in the country to receive this grant award. Volunteer Coordinator Heather Ware, who went to Washington to receive this award, addressed the Council and highlighted a brief PowerPoint presentation relative to the National Make a Difference Day Grant Award and noted that October 24th of this year will be the seventh time the Town participated in the Make a Difference Day in Fountain Hills (copies of the entire presentation are available on line and in the office of the Town Clerk). The presentation included the following topics: * It is an opportunity to serve Fountain Hills' residents * The Award Event took place on May 5th - 7th * IT Administrator Mike Ciccarone provided valuable assistance and accompanied her to Washington * How the Program in Fountain Hills is carried out She informed the Council that she was proud to represent the Town of Fountain Hills and discussed the Awards Luncheon and the Check Presentation. She noted that there is great voluntarism in Fountain Hills. She advised that the money is being passed on to the Fountain Hills' Noon Kiwanis Organization, which has been greatly involved in the Town's Make A Difference Day. She reported that they are going to be using the money to replace the 20-year old Tot Lot at Golden Eagle Park. Mayor Kavanagh commented that it is a great honor for the Town to receive this award and they all know that Ms. Ware spearheaded this program and commended her for all of her great work and accomplishments and the Council gave Ms. Ware a standing ovation. Ms. Ware invited Mike Sharnow, representing the Fountain Hills' Noon Kiwanis Organization, to come forward and accept a poster board copy of the check and Mr. Sharnow thanked Ms. Ware and the Town of Fountain Hills for all of their support. He and Mr. Ciccarone also posed for photographs at this time. CALL TO THE PUBLIC Acting Town Clerk Janice Baxter 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 MAY 7, 2015. AGENDA ITEM #2 - CONSIDERATION OF APPROVING AMENDMENT NO. 2 TO CONSTRUCTION CONTRACT C2015-104 WITH NESBITT CONTRACTING CO., INC., IN AN AMOUNT NOT TO EXCEED $70,102.21 FOR THE CONSTRUCTION OF THE SHEA BOULEVARD WIDENTING PROJECT. AGENDA ITEM #3 - CONSIDERATION OF APPROVING A SPECIAL EVENT LIQUOR LICENSE APPLICATION BY SONS OF AMVETS SQUADRON 7 (SAMUEL COFFEE), IN CONJUNCTION WITH THE FOURTH AT THE FOUNTAIN EVENT, TO BE HELD AT FOUNTAIN PARK ON SATURDAY, JULY 4, 2015 FROM 5:00 PM TO 11:00 PM, WITH A POSSIBLE RAIN DATE OF SUNDAY, JULY 5, 2015 FROM 5:00 PM TO 11:00 PM. AGENDA ITEM #4 - CONSIDERATION OF APPROVING RESOLUTION 2015-16, APPROVING AN AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT WITH MARICOPA COUNTY FOR ANIMAL CARE AND CONTROL SERVICES. z:\council packets\2015\r150618\150521m.docx Page 4 of 20 Councilmember DePorter MOVED to approve the Consent Agenda as listed and Councilmember Hansen SECONDED the motion. A roll call vote was taken with the following results: Mayor Linda M. Kavanagh Aye Vice Mayor Dennis Brown Aye Councilmember Nick DePorter Aye Councilmember Cecil Yates Aye Councilmember Cassie Hansen Aye Councilmember Alan Magazine Aye Councilmember Henry Leger Aye The motion CARRIED UNANIMOUSLY (7-0). REGULAR AGENDA *Mayor Kavanagh advised that Agenda Item #17 will be moved to the beginning of the Regular Agenda. AGENDA ITEM #17 - CONSIDERATING OF APPROVING AN EMPLOYMENT AGREEMENT WITH GRADY MILLER FOR THE POSITION OF TOWN MANAGER. Town Attorney Andrew McGuire addressed the Council relative to this agenda item and commented that the Town Manager is experiencing the largest case of short timer's disease they have seen in a long time and he has expressed an interest in retiring at the earliest time possible after the budget is concluded. He added that before them tonight is an Employment Agreement with Mr. Grady Miller for the position of Town Manager effective after July 1st. There were no citizens wishing to speak on this agenda item. Councilmember Yates MOVED to approve an Employment Agreement with Grady Miller for the position of Town Manager and Councilmember DePorter SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). Mayor Kavanagh congratulated Mr. Grady on his appointment to the position. Mr. Grady addressed the Council and stated that it will be an honor and privilege to serve the beautiful Town of Fountain Hills and introduced his wife Tammy and daughter Amanda to the Council. He advised that they will be moving to Fountain Hills within the next month or so and are very excited about it. AGENDA ITEM #5 - CONSIDERATION OF THE REQUEST BY THE PUBLIC ART COMMITTEE TO ACCEPT A DONATED BRONZE SCULPTURE TITLED, "SO GOOD TO SEE YOU" FOR PLACEMENT IN THE CENTENNIAL CIRCLE. Community Services Director Mark Mayer addressed the Council relative to this agenda item and advised that the Public Art Committee is requesting that the Town accept the bronze sculpture titled, "So Good to See You," donated by Richard and Doris Dale, for placement in the Centennial Circle. He reported that the sculpture has a value of $6,000 and the artist is Joy Kroeger Beckner. He added that there will be an annual cost of $25.80 to insure the piece and displayed a photograph of the sculpture for everyone to see. He said that he and members of the Public Art Committee present this evening would be happy to respond to any questions. Mayor Kavanagh advised that the Town is very grateful for the Dale's generous contribution and noted that this is the second piece of art that they have donated to the community. She also thanked the members of the Public Art Committee for bringing this forward. The Mayor noted that this makes a total of 141 pieces of art that the Town has received to date. There were no citizens wishing to speak on this agenda item. z:\council packets\2015\r150618\150521m.docx Page 5 of 20 Vice Mayor Brown MOVED to approve the request by the Public Art Committee to accept a donated bronze sculpture titled, "So Good to See You" for placement in the Centennial Circle and Councilmember Magazine SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #6 - CONSIDERATION OF ACCEPTING A RECOMMENDATION FROM THE COMMUNITY SERVICES ADVISORY COMMISSION TO EXTEND THE CURRENT LEASE WITH THE TECHNOLOGY LEARNING CENTER THROUGH SEPTEMBER 28, 2015. Community Services Director Mark Mayer addressed the Council relative to this agenda item and advised that a couple of months ago the Community Services Advisory Commission (CSAC) asked the staff to provide information regarding the existing arrangement with what had formerly been called The Senior Network and now is called the Technology Learning Center (TLC). He said that he shared the information with them and included it in the Council's packets. He reported that for most of the time that the Community Center has been open the Senior Network occupied that particular area and until recently there was no fee involved for the utilization of that space, which has been set aside and not used by anyone else. He noted that under the terms of the lease the TLC is the sole occupant and the terms come out to a little under $2,100 a year. He stated that joining him this evening is Mr. Sherman Abrahamson, the Vice Chair of the CSAC who would like to make a few comments at this time. Mr. Abrahamson addressed the Council and noted that they have been approached recently by staff about use of space in the Center and there is a tremendous need for more space. He pointed out that the TLC has 24/7 use of the space they are currently using. He informed the Council that the CSAC has been portrayed as the bad guys because everyone is saying that they are trying to throw the TLC out and nothing could be further from the truth, all they are trying to do is to make the space available to multipl e users and to have the TLC continue to use the space as required, as needed and as reserved but on the same economic basis as anyone else who might come to the Center and say they need to rent some space. He stated that they have provided them with three different options all of which are functional. He further stated that their Work Study Group has not finished their work on this yet and they anticipate meeting with the officials from the TLC down the road this summer and it is the recommendation of the Commission that the lease be continued through the end of September this year which will give them an opportunity to arrive at an amenable solution. Councilmember Magazine pointed out that fee listed in the Council's packets is $1,800 a year and asked if that was correct and Mr. Mayer advised that that was the request from the TLC (it has been just under $2,100 in the past). Mr. Mayer reported that if they were to pay the going rate for use of space, which is $15.00 an hour, the total would be based on just how much they used the space. Councilmember Magazine commented that they are requesting to use the room for three consecutive weekdays from 8:00 am to 4:00 pm. Discussion ensued relative to the fact that the lease expires the end of June and a desire to see if they could reach some sort of an agreement before that time but it became clear that they had made some progress but they still had a ways to go; when they started meeting with Mr. Craner, who is the Coordinator of the TLC, they asked for more options to have some versatility in the space (currently there are a number of computers in there that are hard wired and office space, which doesn't make it available for any other use; they approached them about going to more portable systems (laptops, i-phones, etc.) and they seem to be on board with that suggestion but more time is needed to work out the details. Mayor Kavanagh thanked Mr. Abrahamson for clearing up some of the misconceptions and said that she attended the Commission's meeting and she knows that shutting the TLC down was never a consideration. She added that she is glad that they are meeting and negotiating and it appears that what they need from the Council is an extension of the lease in order to arrive at a compromise that is acceptable to everyone involved. Acting Town Clerk Janice Baxter advised that seven people submitted cards on this item and two of those individuals do not wish to speak (Mary Ann Grace and Margaret (Peg) Lewis) but are in favor of the TLC program. Ralph Craner, Coordinator of the TLC, addressed the Council and stated that they are the arm of the Town as far as providing computer training. He said what they are really negotiating is how much they have to pay for the privilege of providing that knowledge without any cost to the Town. He noted that at $15.00 an hour, TLC could not exist because that amounts to $18,000 so there has to be a better number somewhere in between. He pointed out that they z:\council packets\2015\r150618\150521m.docx Page 6 of 20 are willing to invest in laptops and pay rent but they can't exist if they have to charge the students more for the classes, people cannot afford it. In response to a question from Councilmember Magazine Mr. Craner advised that there are 300 people on their mailing list who take classes and they all join the Activity Center. He estimated that 200 people come into that room and take a class and never do anything else (classes average out to about $15.00 for every two-hour workshop). Jerry Palmer, a 7-month resident of the Town, expressed the opinion that $18,000 is pretty high rent in his opinion and if the rates for the classes increase he could no longer attend because he could not afford it. He discussed the benefits of the TLC and commended everyone who works there. He asked the Council to grant the extension. Stan Connick, a Town resident, addressed the Council and expressed his appreciation to and for the TLC and asked the Council for their support. Cathay Fischer advised that she and her husband are residents of the Town and she is a volunteer at the TLC and commented that the services they provide to the residents and visitors are invaluable in keeping students up -to-date on technology. She outlined the various classes that they conduct and urged the Council to arrive at a reasonable lease agreement that will keep the TLC a viable resource for all Fountain Hills' residents. Jim Judge, also a resident of Fountain Hills, said that he serves on the CSAC and the Commission considers the TLC to be a very important part of the Center. He advised that the only question out there is one of space and he provided the Council with a list of worthy organizations that they have had to turn away because of lack of space -- they are out of space. He discussed the hours that the TLC actually uses the space that is book ed and said they would like to negotiate that so when the room is not actually being used by the TLC, other worthy organizations can use it. He reported that the actual number of hours used by the TLC last year was 372, 18% usage in actual instruction time. He added that of course the instructors also need time to prepare for the classes. He said that if they drop the hours back to three days a week versus the current five that would be about 30% utilization of the space so he thinks they just have to recognize that there are some issues here. He said that there have been some rumors that they are not wanted in the Community Center and nothing could be further from the truth. He recommended that the Council vote in favor of extending the lease for three additional months and let the Commission, the Work Study Group, Mr. Craner and the TLC Group work together. He expressed the opinion that they can find solutions, they just need a little more time. Mayor Kavanagh thanked the speakers for their comments. Councilmember Yates asked how many square feet the group is using and Mr. Mayer replied about 700 square feet. Councilmember Yates pointed out that they are asking the TLC to go up to $26 a square foot and that is an outrageous amount of money. He advised that there is some great space around Town that the group could probably rent for $5 a square foot and there might be an opportunity for them to move into the private sector and perhaps utilize one of the store fronts. He said this is just another option for consideration added that if they need to be in the Commun ity Center he supports that as well. Mr. Mayer informed the Council that staff has not made a proposal, they have come up with several different options so when the comment is made that it is going to cost them $18,000, cost would depend on the time blocked so they have suggested blocking out the times for the classes and not for all the rest of the time and that wou ld significantly reduce the cost. Councilmember DePorter commented that the TLC is a great asset to the Town and he likes the idea that it is in the Community Center because of the business it could potentially drive. He added that he hopes that three months is enough time and there are a lot of options out there like mobile carts that could be explored. Councilmember Magazine concurred that the TLC is a valuable asset and he said he is wondering whether there is any space that could be donated -- they own the Kiwanis building and he has no idea when they use that building and they have an empty elementary school so it might be worth looking around to see if there is somebody who could donate the space. He stated that he doesn't see tremendous value in being in the Community Center; they could go anywhere, so he urged staff to take a look around and also explore the suggestion brought forward by Councilmember Yates. z:\council packets\2015\r150618\150521m.docx Page 7 of 20 Councilmember Hansen said she thinks it is a very good idea to give this group, which has already put a lot of time and effort into this, additional time to continue their discussion. Councilmember Hansen MOVED accept the recommendation from the Community Services Advisory Commission to extend the current lease with the Technology Learning Center through September 28, 2015 a nd Councilmember Leger SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #7 - PUBLIC HEARING OF ORDINANCE #15-06, APPLICATION BY SIXTH STREET ENTERPRISES INC., DBA NATURE'S AZ MEDICINES, FOR AN AMENDMENT TO SECTION 24.03.B OF THE FOUNTAIN HILLS' ZONING ORDINANCE. IF ADOPTED, THE PROPOSAL WOULD AMEND THE ZONING ORDINANCE BY EXTENDING THE PERMITTED OPERATING HOURS OF A MEDICAL MARIJUANA DISPENSARY TO ALLOW OPERATION BETWEEN THE HOURS OF 8:00 AM - 10:00 PM DAILY. (CASE #Z2015-02) Mayor Kavanagh advised that there is one Staff Report for Agenda Items #7 and #8 an encouraged anyone wishing to speak to submit their request cards during the public hearing portion of the meeting. Mayor Kavanagh declared the public hearing open at 7:56 p.m. Senior Planner Bob Rodgers addressed the Council relative to this agenda item and noted that Mark Steinmetz is the owner of Nature's AZ Medicines, the medical marijuana dispensary located at 16913 E. Enterprise Drive. He noted that the dispensary has been open and operational for two years and the current hours of operation are only permitted by the ordinance to be between 8:00 a.m. and 7:00 p.m. Monday through Friday and 8:00 a.m. to 3:00 p.m. on Saturdays. He advised that the applicant is requesting that Section 24.03B of the Fountain Hills Zoning Ordinance be amended to allow operation between the hours of 8:00 a.m. and 10:00 p.m. daily. He reported that the dispensary is currently in conformance with the Zoning Ordinance and the additional stipul ations for site approval. He said that no incidents at this site have been reported by the Maricopa County Sheriff's Office. He added that the applicant has provided a lengthy narrative containing his reasons for the request and the Council has copies of that in their packets. He pointed out that the primary reasons listed were that the limited hours inhibit the dispensary's ability to compete with dispensaries in other cities and towns, the hours are inconvenient for customers who work, in their opinion limited hours are discriminatory and the dispensary helps reduce illegal drug use in Town. Mr. Rodgers discussed the fact that the hours established in the Zoning Ordinance are well within the guidelines established under State law; there is no requirement that the Ordinance be changed; this is a public policy decision that the Council is being asked to decide upon (whether granting the request is in the best interest of the Town); the fact that the Planning & Zoning Commission held a meeting on April 23rd and voted 6-1 to forward a recommendation to deny the request and since this is a policy decision staff will respectfully withhold a recommendation. He informed the Council that the applicant is present and has indicated a desire to address the Council and also highlight a presentation. Mark Steinmetz, the applicant in this case, addressed the Council and said he is before the Council once again to request extended hours. He stated that they want to be treated much like the Town's other pharmacies and since this is a medical facility they are looking for hours consistent with State law, which are 7:00 a.m. to 10:00 p.m. Monday through Friday and also with operating hours similar to Walgreen's and CVS, which are open primarily 8:00 a.m. to 10:00 p.m. Monday through Friday and he thinks the pharmacy hours are actually 9:00 a.m. to 6:00 p.m. on Saturday and 10:00 a.m. to 6:00 p.m. on Sunday. He reported that a year ago they received Planning & Zoning approval to operate 8:00 a.m. to 9:00 p.m., however they were not granted those hours by the Council. He stated that his attorney A. Melvin McDonald will speak to the Council on why he feels this position is a lose-lose for the patients and the great community of Fountain Hills because it is abundantly clear that there are some people who don't understand the program so they hope to shed some light on what the medical marijuana program is, how it works and how it affects patients and benefits the community. He added that to talk about the medical side he has brought with him Dr. Carol Jamieson, a Naturopathic Physician, who has practiced here in Town for the past 11 years. He expressed the opinion that they are making decisions tonight about this program under a stigma that still surrounds this program today and decisions affect hundreds of Fountain Hills' residents and hundreds more who live in adjacent and neighboring communities. He expressed the opinion that the data that will be presented tonight is critical in order for the Council to render a knowledgeable, reasonable decision. He said that many of the people who oppose medical marijuana do so to protect their children, a goal he also shares, and he will provide data, both local and national, that clearly demonstrate z:\council packets\2015\r150618\150521m.docx Page 8 of 20 how medical marijuana benefits their children by reducing access to kids, lowering their marijuana use. He introduced his attorney, A. Melvin McDonald, a prominent local attorney to the members of the Council and provided extensive background information on Dr. McDonald. (Copies of the presentation are available on line and in the office of the Town Clerk.) Dr. McDonald addressed the Council and expanded on his background, including the fact that he was a United States Attorney, and his knowledge in this area, both personally and professionally. He informed the Council that in 1997 his stepson was hit by a car and suffered debilitating brain injuries and in 2003 part of his brain was removed and he developed epileptic seizures resulting in a dramatic loss of appetite and weight loss. He noted that in 2005-06 he noticed that he was starting to eat meals again -- it was a little secret in their house that a neighbor across the street had started giving him marijuana saying that he felt it would help him -- and it did. His wife said she had to do that to save her son and one of the greatest blessings in their lives occurred in 2010 when the referendum came about. He added that in 2012 the Mayor's husband, Senator John Kavanagh, proposed a vote in the Legislature to abolish the referendum and his wife was devastated and that is when he took up the cause. He reported that none of the medications prescribed to his stepson helped but marijuana did. He stated that his wife had to drive from Peoria to Glendale every time she needed to get his medication. Additional discussion ensued relative to the fact that many medical marijuana patients cannot drive; the importance of making this product available; hours in other municipalities like Mesa that provide much greater access for patients; the dispensary in Town is as safe as a bank if not safer; tax benefits realized from the sale of this product; and the fact that the average age of medical marijuana users is 40. Dr. McDonald urged the Council to grant Mr. Steinmetz the extended hours and give people who come to Fountain Hills the opportunity to get the medicine that best helps them. He noted that Mr. Steinmetz has some unique strains that are very helpful and marijuana is not the same for everybody, they can scientifically create different stra ins. He said that he can tell them from the extensive number of people he has talked to that medical marijuana is a phenomenal answer to many of the serious medical problems that exist. Mr. Steinmetz readdressed the Council and he and Dr. Jamieson, another highly knowledgeable professional in this field, highlighted a PowerPoint presentation that included the following: * Nature's AZ Medicine dispensaries (two of over 90 licensed dispensaries) * History of Cannabis (been in existence for over 4,000 years) * Medical Research Departments * Marijuana Laws in 50 states * MMJ is now legal for use and/or possession * Places where MMJ is currently decriminalized * Proposition 203/AMMA * CDC Youth Risk Behavior surveys * In the U.S., severe and chronic pain is the most common condition for which cannabis is prescribed (70% in Arizona) * Qualifying conditions/possible benefits * MMJ Patient Survey * Science/the Human Body * The human body's Endocannabinoid System * Negative Effects? Proper dosing is key * Research to support qualifying conditions for medical marijuana Councilmember Magazine noted that the agenda item this evening is to extend hours and asked how this information plays into that topic. Dr. Jamieson responded that she was asked to explain the medical side of the marijuana and educate people on how medical marijuana is in fact a medicine that people need access to. * New National Pain Foundation Research * Patient Care Guide z:\council packets\2015\r150618\150521m.docx Page 9 of 20 * Steps to Qualify for ADHS MMJ card * Medical records must confirm an Arizona qualifying condition * Steps necessary to qualify * On line ADHS MMJ Card application process * Access to Medicines - Fountain Hills versus Maricopa County (hours per week open) * MMJ patients cannot "stock up" and require daily access to their medications * Disparity of access = possible undesirable consequences * Disparity of access for ADHS MMJ patient card holders A video was also shown of Dr. Suzanne Sisley, Board Certified in both Internal Medicine and Psychiatry, discussing the benefits of medical marijuana. Mr. Steinmetz outlined the various dispensary hours in cities and towns in Arizona and stated that virtually all of them except one allow weekend hours. Mr. Steinmetz informed the Council that in the interest of reaching a compromise that will be acceptable to everyone involved he would be willing to settle for hours consisting of 9:00 a.m. to 7:00 p.m., seven days a week and asked the Council to consider this proposal. Mayor Kavanagh noted that members of the audience have been wa iting a long time to speak and requested that Ms. Baxter call upon them at this time. The following individuals spoke in favor of extending the dispensary's hours for the reasons listed below their names: Edward Judice (Fountain Hills) Jennifer Harwood (Scottsdale) Jim Dye (Phoenix) Audra Koester-Thomas (Fountain Hills) Linda Bordow (Fountain Hills) State regulations allow for usage and hours to go up to 10 p.m.; the importance of accessibility; there are limits on how much and when patients can purchase the marijuana; financial limitations keep people from stocking up because the medicines are not covered by insurance and so many people put off buying the medication until they absolutely have to have it; it takes time for people working in Phoenix to get to Fountain Hills after work and so the later hours are really needed; weekend hours are also very important for people who utilize this medication because of busy work weeks; personal accounts of people suffering from illnesses who only get relief through the use of the medical marijuana; the people who are getting the cards have been vetted by the State and by physicians and the medicine is not going to the general public; an employee of the dispensary attested to the fact that the service they provide helps many, many people who are in significant pain and they serve many people who come from all over the State specifically to Fountain Hills because of the quality of service provided and a quality product; an insurance agent's written comments read into the record relative to the fact that as an insurer for medical marijuana dispensaries throughout the State there have not been any criminality or malicious mischief claims filed -- the only claim had to do with damage to an air conditioner because of hail; the fact that the agent insures over 70% of the dispensaries in the State; the significant security measures that are required for all dispensaries in the State; Ms. Koester-Thomas' comment that she is present at the request of Dr. Suzanne Sisley, whose video was aired earlier, and she discussed the Doctor's credentials in this area; the importance of allowing the Town's dispensary to compete with dispensaries in other cities and towns and supporting wellness and access to healthcare in Fountain Hills; the fact that government should not get in the way of truncating the success of small businesses and entrepreneurs and government should not get in the way of patient - doctor relationships; Ms. Koester-Thomas' statement that she takes issue with the omission of a Strategic Plan reference to this (wellness and healthcare access falls under the Town's Public Safety Health & Welfare in that Plan). Additional comments in support of the applicant's request include the following: Support for Dr. Jamieson and her credentials; the statement that the speaker never said that the strain was the greatest one in the State, but he was trying to impress upon everyone that there are different strains made specifically for different conditions and not every dispensary carries all of the strains that are out there; the fact that the growers name the different products, not the dispensaries; extending the hours will not allow children to buy medical marijuana from z:\council packets\2015\r150618\150521m.docx Page 10 of 20 card holders; and youths can go out any time and get marijuana whenever they want and they have been able to for a very long time. The following individuals spoke in opposition to extending the dispensary's hours for the reasons listed below their names: Shelly Mawrey (Scottsdale) - Also the Director of the Substance Abuse Coalition in Fountain Hills Douglas Hebert (Fountain Hills) - Retired U.S. Drug enforcement Administration employee and member of the Fountain Hills' Substance Abuse Coalition Julie Duke (Fountain Hills) Maria Perreault (Fountain Hills) John Kavanagh (Fountain Hills) The Arizona Medical Marijuana Program's only requirement on hours of operation is that the dispensary be open for 30 hours and the current hours of operation are well above the 30 hour minimum; the applicant compares his business to other pharmacies in Town that are open an average of 74.5 hours a week and serve 23,000 residents, many of them older adults who take multiple life-saving medications; the applicant is asking to be open a total of 98 hours per week, longer than any pharmacy and 23 hours more than the average Town pharmacy for one substance -- marijuana; in states that have medical marijuana there is huge buyers' remorse and Colorado just this week cracked down on the medical marijuana industry and cities and towns are becoming more restrictive, not granting longer hours or more access; as the Council considers the health, peace and safety of the community they should hear about the unique strands with names like "Bubble Gum" etc., and there are cookies, cakes and brownies that go by names like "Cherry Bombs;" the speaker's question of whether this is medicine for adults or "Joe Camel" for their children and the fact that they can't afford to make the same mistake with marijuana as they did with "Joe Camel" because they know what the end result will be; the CDC study the applicant referred to was not taken by a single Fountain Hills' youth; a survey that was conducted by the Arizona Criminal Justice Commission with more than 600 youths in Fountain Hills participating and the shocking results showed that in 2014, two years after the first dispensary opened, 28% of the Town's youths said that they got the pot they smoked from someone who was a marijuana card holder; the fact that everyone's key concern is their children and a request to approve the 6 to 1 recommendation for denial from the Planning & Zoning Commission; the fact that they are not there this evening to debate the merits of medical marijuana; they are there to vote on the applicant's request for extended hours; the importance of enhancing and not diminishing the quality of life in Town; the comment made at the Planning & Zoning Commission's meeting that the public has the ability to order medical marijuana on line and pick up service is available as advertised on line; the fact that P&Z denied the request by a vote of 6 to 1 and what they took into consideration when casting that vote is the quality of life in Fountain Hills; data showing that one out of four youths in T own obtained their marijuana from a card holder pretty much says it all; the fact that the applicant is marketing his marijuana on his website as "Bubble Gum, Cotton Candy," etc., and it is a proven fact that if they increase the access to drugs among thei r youth, drug use will increase and expanding the dispensary's hours of operation does not increase the quality of life in the community and will produce more drugs and more drug use among their youths; this Wednesday, May 13, 2015, an armed robbery took place at a medical marijuana dispensary's office in Phoenix and shots were fired by the robbers and then by the victims at the robbers into the community as the robbers were leaving in their cars; a request that the Councilmembers familiarize themselves with the applicant's menu items listed on his website; the fact that the products do not have traditional pharmaceutical names and the opinion that such product names are marketed toward retail and recreati onal use consumers who are familiar with the street names; and the fact that one speaker has personally seen a card holder giving medical marijuana to their children to sell or selling the marijuana themselves to youths. Additional comments included the fact that the average age of card holders is 18 to 30 years old; there are over 85 dispensaries servicing Arizona and the qualifying patients in Arizona are well covered and the current hours of operation are sufficient to cover the Town's patients; in 2014 there were 310 medical marijuana card holders registered in Fountain Hills and in March 2015 there were 358, 48 new card holders over the last 12 months and yet the applicant is looking to extend his hours from 56 to 98 hours per week., a 75% increase in hours to accommodate the 15% increase in Town customers; any hours above 30 is totally at the discretion of the town or city the dispensary is located in; there is no mandate for dispensaries to be open from 7:00 a.m. to 10:00 p.m. as stated by the applic ant in his P&Z application; at 56 hours they are virtually at double the amount of hours deemed necessary and responsible; the opinion that anyone in chronic pain would plan ahead to ensure that they would have sufficient medication on hand; the pre - order form on the applicant's website to help customers plan ahead; a speaker's opinion that the applicant is positioning z:\council packets\2015\r150618\150521m.docx Page 11 of 20 himself for what may very well be the transition of the current medical marijuana dispensary into a recreational one and if a ballot initiative to legalize marijuana in 2016 is passed, the applicant will, by State law, automatically be granted a license to sell, manufacture and distribute recreational marijuana; Senator John Kavanagh expressed the opinion that this evening they have argued everything but the facts and the presentation was almost exclusively about the legality of medical marijuana and not the issue of the hours which is what they are here to discuss and decide upon; his statement that he opposes this because it is against Federa l law -- it is legal at the State level because of the voter initiative but at the Federal level this is a criminal activity that should be enforced; his opinion that the only reason they have medical marijuana at the State level is because a campaign convinced the voters by a very thin margin to approve medical marijuana for a long list of conditions which their slide said is ADHS (Arizona Department of Health Services) approved but that is not the case -- they have not approved marijuana for anything, they are just being forced to administer the program because the voters approved it; the only authority that does drug approvals is the U.S. FDA (Federal Drug Administration) and they have not approved medical marijuana for the treatment of any condition; the initiative that the voters passed argues against extending the hours and the dispensaries are supposed to be local; 98 State-wide dispensaries were set up in distributed areas because they wanted them to be local dispensaries; the Senator's opinion that they are violating the will of the voters and the owner of the dispensary, a week before the P&Z hearing, said in the newspaper that he needed the extra hours so that his clients from Yuma and Williams could make his hours; the applicant wants to make the Fountain Hills' dispensary a State-wide distribution hub for medical marijuana; the fact that one of the speakers noted that the applicant's strain of medical marijuana is superior to other strains and that is why there is such a demand to come to Fountain Hills; the fact that an employee of the dispensary advised that people are traveling from all over the place to obtain the applicant's superior strain of marijuana in violation of the law (dispensaries are supposed to be local); what the applicant is tryin g to do is bad for the Town and the application should be denied. The Mayor thanked all of the speakers for their input. Mayor Kavanagh declared the public hearing closed at 9:16 p.m. AGENDA ITEM #8 - CONSIDERATION OF ORDINANCE 15-06, APPLICATION BY SIXTH STREET ENTERPRISES INC., DBA NATURE'S AZ MEDICINES, FOR AN AMENDMENT TO SECTION 24.03.B OF THE FOUNTAIN HILLS' ZONING ORDINANCE. IF ADOPTED, THE PROPOSAL WOULD AMEND THE ZONING ORDINANCE BY EXTENDING THE PERMITTED OPERATING HOURS OF A MEDICAL MARIJUANA DISPENSARY TO ALLOW OPERATION BETWEEN THE HOURS OF 8:00 AM - 10:00 PM DAILY. (CASE #Z2015-02) Councilmember Leger thanked everyone for their comments this evening and commended everyone on the cordial manner in which the public hearing was conducted. He clarified that they are simply here this evening to make a decision as to whether or not to extend the dispensary's hours as requested by the applicant. He noted that the applicant appeared before the Council on a previous occasion and requested that the Council extend the hours to better accommodate the patients and that was approved by the Council. He said that he will be voting strictly on the hours and has no intention of re-litigating the issue of medical marijuana. Vice Mayor Brown commented that a lot of information has been brought forth this evening and as he stated at the least hearing, they sold a business license to a company and he doesn't believe that it is the government's position to regulate or tell a business owner how to run his business. He noted that there has not been one criminal incident or call to the Sheriff's Department in Town regarding the dispensary or one call to him from a concerned citizen or any student -- no one has contacted him with any concerns over the last two years about the medical marijuana dispensary. He reiterated that he is not going to try and run or regulate the applicant's business for him and the man is standing up and saying that he will take 9:00 a.m. to 7:00 p.m. and he has to say that he will give him those hours but don't come back to this Council and ask for the hours to be extended again because he feels that if this Council decides to give the applicant the hours that he is asking for now then the Council has done all that they are going to do and he is certainly tired of the presentations. He stated that he will support extending the hours from 9:00 a.m. to 7:00 p.m. seven days a week. Councilmember Yates noted that a year ago the Council granted the applicant an extension and here it is a year later and they are having the same discussion. He said so no, he is not going to support this -- he didn't vote for it the last time and he is not going to vote for it now. He wished them good luck, said that it is a legal substance and they are z:\council packets\2015\r150618\150521m.docx Page 12 of 20 allowed to do what they are doing but these are the parameters under which they took the license out at t hat location and they have been given one extension already so he is not in support of this. Councilmember DePorter concurred with the Vice Mayor's remarks and pointed out that they are talking about something that has been approved by the voters and for him the overwhelming evidence shows that this works, access is key and of course planning is very important when talking about pain management but sometimes that just doesn't happen. He discussed the fact that he took his parents to the dispensary to see what it is like and the room was full of 70 to 80-year olds and was nothing like he imagined, he thought it would be filled with younger people sneaking by with their "chronic back pain or knee injuries." He advised that the clients there were talking abo ut how traditional medicines have failed them and thanks to medical marijuana they finally have success in managing their conditions. He expressed the opinion that the proposed hours are digestible and more in line with what the hours of operation are for pharmacies. He added that he hopes that this is the last time they have to discuss and consider this particular issue. He said he supports the proposed compromise. Mayor Kavanagh advised that she is opposed to extending the hours and she thinks there is a safety factor as far as the location and she is sure that they have security guards but this is a cash business and as they know robberies have already begun and they certainly don't need that in Town. She further stated that there isn't anything that says that he has to increase his security but still it is a safety factor and she also feels that with 358 card holders the current hours are sufficient. She emphasized that this dispensary is meant for the people of Fountain Hills and it is not like a Walgreen's or a CVS that also dispenses band aids and therefore stays open a lot later. She noted that they are talking about one product and only 358 customers and yet it is troubling because even though you want to think of it as a business when you hear that one out of four students get their marijuana in Fountain Hills from card holders -- that bothers her as a mother and as a grandmother and she has to consider that also when she is thinking about considering these hours and allowing more access. She advised that they are not talking about a Walgreen's or a CVS, they are talking about a marijuana dispensary that sells one drug and has not been approved for any of these conditions by the American Medical Association or anyone else. She noted that there are 98 dispensaries located across the State and the dispensaries were meant to be local distribution centers and they don't need to be inundated by people coming into Town from everywhere else -- it was specifically set up this way to ensure that the various cities and towns are not over burdened. She questioned why they didn't want to over burden the various cities and towns and why they don't worry about people coming to Town to buy things at Walgreen's or Safeway from Yuma or Payson and the answer is because they knew that there would be a lot of other factors involved with a dispensary that they don't get from those other businesses otherwise the dispensaries wouldn't need a security guard. She reiterated that she is opposed to extending the hours and expressed the opinion that the hours, as they are right now, are adequate to cover 358 card holders in Town and those are the people that they have to be concerned with. She added the opinion that they have to be very concerned about the new statistics that show that their Fountain Hills' students are getting marijuana from card holders and she takes that very seriously and her vote is going to be no. Councilmember Magazine stated that he supports the compromise and added that he thinks 70 hours a week is reasonable. He too advised the applicant not to come back before them with another request for an extension of hours and said that if they do his vote will be an automatic no. Councilmember Hansen expressed appreciation for the comments and some of the clarifications that were provided this evening and advised that she agrees with the Vice Mayor that if something negative is goin g to happen because of this, it could also happen during the hours that they already have and she thinks that the compromise would be okay. Councilmember Leger asked Town Attorney Andrew McGuire if an individual that has a medical marijuana card gives away or sells medical marijuana to anyone else, youths or otherwise, whether there would be a legal consequence and Mr. McGuire responded yes. He pointed out that he heard last time and the time before and marijuana getting into youth's hands and he is appealing to anyone out there and asking them if they are taking surveys and there are youths out there giving them this information, that they report that because the people engaging in this illegal activity need to be addressed. He added that he wanted to put that little public message out there. Vice Mayor Brown MOVED to change Ordinance 15-08 to read that the current hours of operation be changed to 9:00 a.m. to 7:00 p.m. seven days a week and Councilmember Magazine SECONDED the motion. z:\council packets\2015\r150618\150521m.docx Page 13 of 20 A roll call vote was taken with the following results: Mayor Linda M. Kavanagh Nay Vice Mayor Dennis Brown Aye Councilmember Nick DePorter Aye Councilmember Cecil Yates Nay Councilmember Cassie Hansen Aye Councilmember Alan Magazine Aye Councilmember Henry Leger Nay The motion CARRIED BY MAJORITY VOTE (4-3) with Mayor Kavanagh and Councilmembers Yates and Leger voting Nay. At 9:34 p.m. the Mayor declared a brief recess and the meeting reconvened at 9:37 p.m. AGENDA ITEM #9 - PUBLIC HEARING TO RECEIVE COMMENTS ON ORDINANCE 15-04, AMENDING THE ZONING ORDINANCE CHAPTER 6, SECTION 6.03, SUBSECTION A.13 IN ORDER TO ELIMINATE THE REQUIREMENT THAT A-FRAME SIGNS RECEIVE A PERMIT. (CASE #Z2015-03) Mayor Kavanagh advised that she has one Staff Report for Agenda Items #9 and #10 and urged the members of the audience to submit any requests to speak at this time. Mayor Kavanagh declared the Public Hearing open at 9:37 p.m. Senior Planner Bob Rodgers addressed the Council relative to this agenda item and highlighted a brief PowerPoint presentation (copies of which are available on line and in the office of the Town Clerk). He noted that the A -Frame sign permit required was adopted by the Council in 2009 and explained that initially a $5.00 permit fee was charged so that when people came in to pay the fee, staff would have the opportunity to advise the businesses on the rules regarding the size and placement of signs. He added that the $5.00 fee in no way covered any of the costs associated with the sign permits. He further stated that last December, due to the high percentage of non-compliance mainly because businesses were not obtaining the permits, Council directed staff to review the A-Frame process and regulations and return with some recommendations for the Council to consider in an effort to reduce the number of non-complying businesses. He said that staff provided the Council with a report that listed a number of options and ultimately recommended that the Town eliminate the Sign Permit requirement, which does not eliminate the businesses' responsibility to follow the regulations or change the "Sunset Clause," it only eliminates the requirement that an annual permit be issued. Mr. Rodgers informed the Council that Council agreed with staff's recommendations and directed staff to proceed with an Ordinance Amendment that would eliminate the required permit and Council also emphasized that a notification process also be attached to the business license process and enforcement needed to be stepped up. He noted that this item is related to the Zoning Ordinance Amendment which will eliminate the permit requirement and pointed out that the other two issues, the enforcement and the flyer that they are attaching to the business licenses have already been addressed. He reported that the Planning & Zoning Commission voted on April 23rd to forward a recommendation to approve this Ordinance and eliminate the requirement for a permit for A-Frame signs and staff also recommends approval. He said that the way they have crafted it, it will take effect at the end of the year to coincide with the expiration of the existing A-Frame permits that the businesses have already gotten. Mr. Rodgers indicated his willingness to respond to questions from the Council. Councilmember Magazine asked how this is being enforced and Mr. Rodgers replied that the Code Enforcement Officer has been making a lot of stops and there haven't been a lot of citations issued but they are getting that initial warning and then they have been behaving themselves thereafter. He confirmed that they still have just one Code Enforcement Officer out there. Councilmember Magazine commented that there is nothing like getting a ticket and paying a fine to get someone's attention and Mr. Rodgers concurred with that statement. Acting Town Clerk Janice Baxter advised that Linda Bordow had submitted a request to speak but she was no longer present at the meeting. The Mayor declared the public hearing closed at 9:40 p.m. z:\council packets\2015\r150618\150521m.docx Page 14 of 20 AGENDA ITEM #10 - CONSIDERATION OF ORDINANCE 15-04, AMENDING THE ZONING ORDINANCE CHAPTER 6, SECTION 6.03, SUBSECTION A.13 IN ORDER TO ELIMINATE THE REQUIREMENT THAT A-FRAME SIGNS RECEIVE A PERMIT. (CASE #Z2015-03) Councilmember Hansen MOVED to approve Ordinance 15-04, amending the Zoning Ordinance, Chapter 6, Section 6.03, Subsection A.13 in order to eliminate the requirement that A-Frame signs receive a permit as presented and Vice Mayor Brown SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #11 - PUBLIC HEARING TO RECEIVE COMMENTS ON ORDINANCE 15-05, AN AMENDMENT TO THE TOWN OF FOUNTAIN HILLS' ZONING ORDINANCE AND ZONING MAP TO CHANGE THE ZONING ON 5.75 ACRES FROM C-1 (NEIGHBORHOOD COMMERCIAL & PROFESSIONAL) TO HEMINGWAY PAD. (CASE #Z2015-01) Mayor Kavanagh advised that there was one Staff Report on the next four Agenda Items and noted that votes will be required on Agenda Items #12, #13 and #14. The Mayor declared the public hearing open at 9:40 p.m. Senior Planner Bob Rodgers addressed the Council relative to this agenda item and advised that The Hemingway is a PAD Zoning proposal to allow an assisted living/independent living facility located at 9700 N. Saguaro Boulevard. He said that the property is located on Trevino Drive and is currently vacant. He discussed the surrounding areas and development and reported that the proposal calls for seven buildings containing sixteen assisted living suites each, two buildings containing eleven independent living suites each and one building containing the office, clubhouse and commercial kitchen facilities. He reported that the total number of suites will be 134 and the property is currently zoned C-1 and is 5.74 acres in size. He informed the Council that the proposal would rezone the property to the "Hemingway PAD," grant a Special Use Permit to allow an assisted living facility, a three-foot fill waiver and abandon a pre-existing development agreement and Hillside Protection Easement (HPE). He referred to a slide of the current Zoning map and reported that the property would still adhere to all of the C-1 Zoning regulations but new PAD regulations would also allow for the three foot fill waiver mentioned above, a building height up to 25 feet as measured from finish floor elevation rather than existing grade (however, the actual building height would be 23'6" from finished grade). He further stated that it will include the Special Use Permit that is required for the assisted living use in a commercial district. He pointed out that the Planning & Zoning Commission reviews and approves all proposals for new construction in commercial, industrial and multi-family developments and said that the proposed 134-suite assisted living's concept plan was approved on April 23rd subject to Council's approval of this PAD rezoning. He highlighted a brief PowerPoint presentation on this item showing the concept plan and a variety of other photographs (copies of which are available on line and in the office of the Town Clerk) and pointed out that all buildings are single story and access is off of Trevino Drive. He informed the Council that 34 parking spaces are required by the Ordinance but there are 90 spaces arranged around the cul -de-sac and additional handicapped spaces are being provided that are well in excess of the ADA (Americans With Disabilities) requirements and pointed out that all of the buildings are handicapped accessible. Mr. Rodgers commented that the primary kitchen facilities will be in the clubhouse building and food will be cooked there and then delivered to each of the residences where there will be warming kitchens only. He added that each Independent Living building will have 11 suites and each Assisted Living building will contain 16 suites and a variety of amenities that the applicant will describe during his presentation. He discussed the existing swale that runs through the property and said that it will be removed and stated that a Traffic Analysis and mitigation efforts have been approved by the Town Engineer and proposed monument signage and site lighting meet the Zoning standards and will be installed according to those regulations. Discussion ensued relative to the large number of seating areas located throughout the project, a small garden area, a tot lot for visiting grandchildren, a putting green, a couple of water features and fountains arranged around the site; tentative floor layouts; landscaping containing a number of low-water usage plants that exceed the Ordinance requirements; and elevations. Mr. Rodgers informed the Council that the Planning & Zoning Commission approved the Concept Plan and has forwarded a recommendation for the Council to approve the PAD rezoning subject to the stipulations in the Staff z:\council packets\2015\r150618\150521m.docx Page 15 of 20 Report with an additional stipulation, #12, that compliance with the Public Art requirement be eliminated as a requirement and replaced by a stipulation that says that "the Public Art requirement should not be required in this instance." He advised that that stipulation is actually in the Staff Report and said that staff recommends that the Council approve the PAD rezoning subject to the Staff Report stipulations 1 - 11 only and that the Council not consider the last stipulation (#12) if approval is granted. He indicated his willingness to respond to any questions. Dan Kauffman, a Fountain Hills' resident and the applicant/developer in this case, addressed the Council and provided background information on both himself and his company's operations. He stated that the project, The Hemingway, is a unique, mixed-use home like setting of independent and assisted living units, reiterated some of the information previously provided by Mr. Rodgers and noted that building interiors will feature 15-foot ceilings, laundries, offices, a beauty parlor, medicine storage, a living room, library, dining area and patios and added that there will also be a warming kitchen in each residential building and the commercial kitchen will be located in the clubhouse buildings. He discussed external amenities including shade ramadas, outdoor seating areas, a putting green, a community garden, a small tot lot for visiting grandchildren and numerous water features and previously mentioned by Mr. Rodgers. He pointed out that 40% of its area will consist of heavily landscaped open space (a complete copy of the PowerPoint presentation is available on line and in the office of the Town Clerk). Discussion ensued relative to lighting; the comprehensive landscape plan; the importance of senior socialization and living in a home-like setting; signage; beneficial impacts for the Town of Fountain Hills as a result of this much - needed development; the fact that the project will be a sustainable community; the fact that Mr. Kauffman met with a number of neighbors prior to the Planning & Zoning Commission's meeting, listened to their concerns, has promised to do everything in his power to address those concerns and believes at this point that the project is supported by those neighbors. Mr. Kauffman indicated his willingness to respond to any questions from the Council. Ms. Baxter advised that two individuals wished to speak on this agenda item. Rose Anouti, a resident of the Town, addressed the Council and advised that she moved to the Town from Michigan because she is disabled and has many illnesses. She said that she knew the property was going to be sold at one point and wondered what was going to happen next. She informed the Council that Mr. Kauffman has met with her and all of the other neighbors who had expressed a desire to meet with him and her concern was view and he addressed that and she believes he has come up with methods to address any and all of the concerns that were brought forward by the neighbors. She stated that she supports the project even though she is located very close to the s ite and expressed the opinion that this would be the best use for that property and much better than apartments or condominiums. She urged the Council to approve the applicant's request and allow this project, consisting of one million dollar homes, to mo ve forward. Art Tolis, also a resident of Fountain Hills, addressed the Council and noted that he was present to speak in favor of this project. He advised that Mr. Kauffman has been in this community for many, many years and has developed numerous projects in this community and each and every one of his development projects has been an asset and built in a very professional manner. He added that he is clearly an experienced developer for this community and he feels that his experience is needed in Town right now to develop a parcel such as this. He noted that the Town is an aging type of community according to recent statistics and said that this type of project is needed. He expressed the opinion that the proposed project is the perfect use for this particular parcel and urged the Council to approve the request. Mayor Kavanagh closed the public hearing at 10:05 p.m. AGENDA ITEM #12 - CONSIDERATION OF ORDINANCE 15-05, AN AMENDMENT TO THE TOWN OF FOUNTAIN HILLS' ZONING ORDINANCE AND ZONING MAP TO CHANGE THE ZONING ON 5.75 ACRES FROM C-1 (NEIGHBORHOOD COMMERCIAL & PROFESSIONAL) TO HEMINGWAY PAD. (CASE #Z2015-01) Councilmember Hansen noted that in the Staff Report and the stipulations that came forth from Planning & Zoning, the last one had to do with the Public Art requirement and they recommended waiving that. She pointed out that staff recommended that that requirement remain in place and asked whether Mr. Kauffman had a problem with it. z:\council packets\2015\r150618\150521m.docx Page 16 of 20 Mr. Kauffman responded that that was thrown at him and he agreed but he could go either way on that (obviously he would like to have it but if he doesn't he is not going to cry). Councilmember Leger commented on the fact that he and Mr. Kauffman talked early on about the project and one of the things that they talked about was the neighborhood and this project's impact on it. He noted that Mr. Kauffman assured the Council that he would do his due diligence and meet with the neighbors to hear and address their concerns and he has done so in an exemplary manner (neighbors are here this evening in support of the project). He thanked him for his efforts to work with the neighbors to ensure that the project is mutually beneficial. Councilmember Magazine stated that he met with Mr. Kauffman as well and he is very i mpressed with this project. He noted that Mr. Kauffman told him that he has spent about 13 years thinking about this development, gathering information and traveling around the country and he expressed the opinion that this particular project could very w ell become a model for this type of facility. He added that he has done an outstanding job and congratulated him. Councilmember Yates advised that he is in a unique position where he gets to speak with other municipalities and pointed out that Mr. Kauffman is well known and widely respected among the various municipalities. He stated that Apache Junction had some very nice things to say about him as far as some of the work he has done out there and he complimented him on utilizing the housing cluster effect, which he believes will enhance the project tremendously. He reported that with over 10,000 people turning 65 every day for the next 30 years, he is just glad that Mr. Kauffman has chosen to develop such a high-quality, much needed project in the Town of Fountain Hills. Mayor Kavanagh stated that everyone pretty much said what she wanted to say and agreed that the project is really great and she loves that Mr. Kauffman talked to the neighbors and they are happy with the project. She noted that the Public Art Committee is not that thrilled that they are not going to get their art but she knows that Mr. Kauffman didn't ask for that stipulation so however the Council wants to go with that is fine with her. She further stated that she saw dogs in the presentation and pointed out that the project will be dog friendly (Mr. Kauffman did not mention that is his presentation). In response to a question from Councilmember Magazine, Mr. Kauffman advised that there is no age requirement for the project and added that it is going to be more assisted living and memory care oriented. He informed the Council that he has heard from and met with people who have challenged/handicapped adult children (25 to 50 years in age) who no longer want to live at home and there is definitely a segment of the community and a need for housing for this niche but he doesn't know whether he is going to go that route yet, he is still investigating whether to dedicate one building for that purpose. Councilmember DePorter MOVED to approve Ordinance #15-05, the "Hemingway PAD" as presented and subject to the stipulations recommended by staff and outlined in the Staff Report and Councilmember Hansen SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #13 - CONSIDERATION OF TERMINATING WHATEVER RIGHT, TITLE OR INTEREST THE TOWN HAS IN A CERTAIN ALTERNATIVE HILLSIDE PROTECTION AGREEMENT AFFECTING PROPERTY LOCATED AT 9700 N. SAGUARO BOULEVARD. Councilmember Hansen MOVED to approve the termination of the Alternative Hillside Preservation Agreement as presented and Councilmember Yates SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #14 - CONSIDERATION OF RESOLUTION 2015-19, ABANDONING WHATEVER RIGHT, TITLE OR INTEREST THE TOWN HAS IN A CERTAIN HILLSIDE PROTECTION EASEMENT ON PROPERTY LOCATED AT 9700 N. SAGUARO BOULEVARD. (CASE #HPE2015-02) Councilmember Yates MOVED to approve Resolution 2015-19, the Abandonment of the Hillside Protection Easements, as presented and Councilmember DePorter SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). Mayor Kavanagh and members of the Council congratulated Mr. Kauffman. z:\council packets\2015\r150618\150521m.docx Page 17 of 20 AGENDA ITEM #15 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF REGARDING ADDING LIGHTING AT THE INTERSECTION OF SAGUARO BOULEVARD AND AVENUE OF THE FOUNTAINS AND AUTHORIZING STAFF TO EXECUTE A CONSTRUCTION CONTRACT AMENDMENT TO BE PAID FROM THE DOWNTOWN STRATEGY FUND, IN AN AMOUNT NOT TO EXCEED $66,750. Development Services Director Paul Mood addressed the Council relative to this agenda item and advised that staff was previously asked to look at lighting at the Avenue of the Fountains and Saguaro Boulevard and the Council previously approved contract amendments not to exceed $100,000 -- it was going to be done with two separate amendments to the contract, the first to do the underground work and that amendment has been executed with the contractor for a little over $33,000. He further stated that Council requested that staff bring back examples of the lights. Mr. Mood highlighted a brief PowerPoint presentation on this item (copies of which are available on line and in the office of the Town Clerk) and noted that existing Avenue Plaza light fixtures will not meet intersection lighting standards. He reported that the Engineer looked at approximately 15 different lighting manufactures and pointed out that they really have to go with LEDs because there is only so much power left to come off of the me dian project. He said that the first light fixture being proposed is the KIM Curvilinear LED Fixture, a round one, and noted that both fixtures that they will be talking about will require six poles and these lights will only need one fixture at each pole. He said that the Engineer's estimate of the approximately cost is about $35,000 for this option, which includes fixtures, poles, foundation and wiring. He informed the Council that the next option is the ELA Kraft LED fixture, and stated that these do not give off quite as much light as the KIM lighting so they will need ten fixtures. He added that th e two poles closer to median will only need one fixture but the two poles in the median and the two poles on the park side would be the double light fixture (examples of the different lights were displayed in the Chambers). He pointed out that these would be slightly more expensive at approximately $55,000. Mr. Mood advised that if the Council decides on either option, staff would still recommend going with the entire not to exceed amount of $66,750 just in case they run into any unforeseen situations because that will give staff the authorization to use the funding if they do run into any problems. Mr. Mood indicated his willingness to respond to questions from the Council. Councilmember Hansen pointed out that in April the Council received a memo from Mr. Mood forwarded by the Town Manager and it had to do with the costs. She stated that at that time it was like a $9,000 difference between the two and questioned what caused the increase since that time. Mr. Mood replied that these are the revised numbers that he received from the Engineer and said that if they went and picked up the Kraft fixture, they would see that it is a lot heavier, so it is the poles, the bases, etc. He further stated that he threw in a little amount of contingency funding as well just to cover any unknowns that might occur. Mayor Kavanagh asked about maintenance on the Kraft fixture and Mr. Mood responded that the Plexiglas could easily be broken if it was hit by a rock and so that could be a concern. He added that they would get dirty and dusty. He further stated that they could also go with shoebox lighting fixtures that just have the standard arms. Councilmember DePorter commented that from an aesthetically pleasing point of view he prefers the Kraft fixture and the cost is certainly something to consider. He said that when they roll up to that, they will just be staring at the LED light bulb and Mr. Mood agreed that it will be bright. Councilmember DePorter said that the KIM fixture points the light down and that is the difference. Mr. Mood clarified that with the Kraft the LEDs are up under the top and not in the glass so it is shielded and they are not just staring at the bulb. Councilmember Yates asked whether they needed the glass and Mr. Mood responded that he didn't know whether there was an option to remove it. Councilmember DePorter reiterated the opinion that the Kraft fixtures are the most attractive and if they are going to do this, they should do it right. Councilmember DePorter MOVED to accept the Kraft LED light fixtures in an amount not to exceed the $66,750 and Councilmember Hansen SECONDED the motion. z:\council packets\2015\r150618\150521m.docx Page 18 of 20 There were no citizens wishing to speak on this agenda item. Vice Mayor Brown asked whether these are the Town's only options and Mr. Mood replied that these are the only somewhat aesthetically pleasing options that the Engineer has come up with. He reiterated that they are constrained because they have to go with LEDs because of the limited available power. In response to a question from the Mayor, Mr. Mood reported that the poles are going to be approximately 25-feet tall. Mr. Mood conformed for Councilmember Magazine that the poles will be approximately 25-feet high and Councilmember Magazine stated that that might solve part of the problem because he has a light fixture at the entryway to his house that is different from what they are looking at but it has glass and three bulbs in it and it always looks filthy. He added, however, that if it is up that high then that might be okay (people will not be looking directly at them) but they do get dirty. Mr. Mood noted that if they do get a little dirty that might tone the lighting down somewhat. Councilmember Yates asked whether Mr. Mood needs some formal direction in the event he finds out that they can ditch the glass or he finds a better option as far as the glass and Mr. Mood answered that they could talk to the manufacturer but he doubts that that will be able to occur. The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #16 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF REGARDING INITIATING A ZONING TEXT AMENDMENT TO REDUCE THE MINIMUM SIZE FOR A PAD ZONING APPLICATION. (THIS ITEM WAS ADDED AT THE REQUEST OF COUNCILMEMBER YATES WITH SUPPORT FROM VICE MAYOR BROWN AND COUNCILMEMBER DEPORTER.) Councilmember Yates advised that PAD Zoning was initiated to give the Town another tool to help develop some land and there are some projects that they are looking at in the Downtown area and in order to help staff navigate through all of the General Plan and TCCD Zoning he is requesting that the Council vote to change the minimum acreage requirement from five (5) acres down to three (3) acres. He explained that it will open up some opportunities to have some further discussions. Councilmember Yates MOVED to initiate a Text Amendment to the appropriate portions of the Town's Zoning Ordinance to reduce the minimum size requirement for PAD Zoning from five (5) acres down to three (3) acres in the Downtown area and Vice Mayor Brown SECONDED the motion. There were no citizens wishing to speak on this agenda item. The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #17 – CONSIDERATION OF APPROVING AN EMPLOYMENT AGREEMENT WITH GRADY MILLER FOR THE POSITION OF TOWN MANAGER. THIS ITEM WAS MOVED TO THE BEGINNING OF THE REGULAR AGENDA ITEMS. AGENDA ITEM #18 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF REGARDING THE LEASE WITH THE FOUNTAIN HILLS' COMMUNITY THEATER. Town Attorney Andrew McGuire addressed the Council relative to this agenda item and pointed out that the lease with the Fountain Hills' Community Theater has expired and there have been discussions about what to do about that and so staff brought this back as a public item in order to get direction from the Council on what to do with the expired lease. He added that he thinks that there are some options available to them. Councilmember Yates advised that as the lease expired, it created an opportunity for the Council to discuss a new lease with the operators of the Fountain Hills' Theater and so they have had those discussions and during those talks, the z:\council packets\2015\r150618\150521m.docx Page 19 of 20 Theater brought up their desire to possibly purchase the Theater from the Town . He stated that they opened some more dialogue but in order to see whether they could do that or make that happen, they are going to need some time to do some research on some of the ramifications and how they can help provide the group with the ability to acquire the property. He said that they probably want to extend the lease at least until the end of the year but he is open to discussion on this. Councilmember Yates MOVED to extend the lease to December 31, 2015 and also direct staff to perform whatever that acquisition due diligence may be in order to make that happen and Councilmember Magazine SECONDED the motion. There were no citizens wishing to speak on this agenda item. The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #19 - COUNCIL DISCUSSION/DIRECTION TO THE TOWN MANAGER KEN BUCHANAN. Items listed below are related only to the propriety of (i) placing such items on a future agenda for action or (ii) directing staff to conduct further research and report back to the Council. A. None. AGENDA ITEM #20 - SUMMARY OF COUNCIL REQUESTS AND REPORT ON RECENT ACTIVITIES BY THE MAYOR, INDIVIDUAL COUNCILMEMBERS AND THE TOWN MANAGER. Mayor Kavanagh advised that due to the late hour she will continue her report to the June 4, 2015 Regular Council Meeting. The Mayor reminded all of the residents in Town that the businesses in Fountain Hills need all of the support they can get during the slow summer months and strongly urged them to eat at local restaurants and patronize local shops. She noted that every dime they spend here helps their Town to provide all of the services and amenities that make it a great place to live. She called on everyone to demonstrate some good old fashioned home -Town spirit this summer and shop their own Town. Mayor Kavanagh also commented on the fact that another school year has come to an end and graduation is upon them and on behalf of the Town Council she congratulated all of the graduates and wished them all the very best in their future endeavors. She added that they are all very proud of them. AGENDA ITEM #21 - ADJOURNMENT Councilmember Magazine MOVED to adjourn the meeting and Councilmember Yates SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). The meeting adjourned at 10:27 p.m. z:\council packets\2015\r150618\150521m.docx Page 20 of 20 TOWN OF FOUNTAIN HILLS By _______________________________ Linda M. Kavanagh, Mayor ATTEST AND PREPARED BY: ______________________________ Janice Baxter, Acting Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Executive Session, held in the Fountain Conference Room - 2nd Floor and Regular Session held by the Town Council of Fountain Hills in the Town Hall Council Chambers on the 21st day of May, 2015. I further certify that the meeting was duly called and that a quorum was present. DATED this 18th day of June, 2015. _____________________________ Janice Baxter, Acting Town Clerk