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HomeMy WebLinkAbout2017.0504.TCRM.MinutesTOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL MAY 4, 2017 * CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Kavanagh called the meeting to order at 6:32 p.m. in the Fountain Hills Town Hall Council Chambers. * INVOCATION Pastor Gary Emmons, Christ Church * ROLL CALL - Present for roll call were the following members of the Town Council: Mayor Linda Kavanagh, Vice Mayor Alan Magazine, Councilmember Nick DePorter (attended by phone), Councilmember Cecil Yates, Councilmember Dennis Brown (attended by phone), Councilmember Art Tolis, and Councilmember Henry Leger. Town Manager Grady Miller, Town Attorney Andrew McGuire and Town Clerk Bevelyn Bender were also present. * MAYOR'S REPORT i) THE MAYOR WILL READ A PROCLAMATION DECLARING MAY 7-13,2017, AS MUNICIPAL CLERKS WEEK IN THE TOWN OF FOUNTAIN HILLS. Mayor Kavanagh read the proclamation recognizing the week of May 7 through May 13, 2017, as Municipal Clerks Week in Fountain Hills. Mayor Kavanagh and Councilmembers extended their appreciation to the Town's Municipal Clerk, Bevelyn J. Bender, and expressed their appreciation for the outstanding job she performs. SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS i) THE MAYOR AND/OR COUNCIL MAY REVIEW RECENT EVENTS ATTENDED RELATING TO ECONOMIC DEVELOPMENT. Councilmember Yates reported that the "Relay for Life" cancer fundraiser and awareness run was held in Fountain Park and gave a brief history on how this event had started with 5,200 communities and 27 countries now participating making this event a global effort. Mayor Kavanagh also expressed her appreciation for this event being held in Fountain Hills and acknowledged that this was the third year Councilmember Yates had been involved. Councilmember Yates added that he also wanted to acknowledge Clayton Cory, a Fountain Hills resident and Assistant Chairman, for the tremendous job he did. Councilmember Leger stated that he and Councilmember Yates along with other members of the community were involved in the C-5 program where fifth grade Fountain Hills students were interviewed and preparing for their future careers by finding out where their interests lie. Councilmember Brown's left the meeting at 6:39 PM (call dropped) and he returned to the meeting at 6:40 PM. Mayor Kavanagh reported that the Maricopa Association of Governments (MAG) Economic Development Committee meeting where the group experienced a great presentation by Brigadier General Art Cameron who was the Site Director for Luke Air Force Base at Lockheed Martin. General Cameron provided a report on the economic impact of aerospace and defense, including the F-35 airplane. Mayor Kavanagh added there were nine partner nations collaborating on the building of the F-35 and eight of those nations had sent pilots to the "Dover Training Center". Mayor Kavanagh stated there were currently 220 — F35 airplanes and by 2020 that would increase to 619 in total. Mayor Kavanagh expressed even though Luke Air Force Base was located in Glendale, Arizona, the economic impact to the region was substantial and estimated at $503,800,000 in addition to providing 6,020 jobs. She stated that Lockheed Martin takes part in assisting in centers like "St. Mary's Food Bank" and "Habitat for Humanity". z:\council packets\2017\r170518\170504m.docx Page 1 of 6 CALL TO THE PUBLIC Mayor Kavanagh asked if there were any requests to speak and Town Clerk Bender answered there were no requests received. CONSENT AGENDA AGENDA ITEM #1 - CONSIDERATION OF APPROVING THE TOWN COUNCIL MEETING MINUTES FROM APRIL 6, 18, AND 20, 2017. AGENDA ITEM #2 - CONSIDERATION OF APPROVING COOPERATIVE PURCHASE AGREEMENT #C2017-109 WITH VINCON ENGINEERING CONSTRUCTION, LLC, FOR RIGHT-OF-WAY IMPROVEMENTS, IN THE AMOUNT OF $50,000 (INITIAL TERM) WITH FOUR RENEWAL TERMS FOR A TOTAL OF $250,000.00. AGENDA ITEM #3 - CONSIDERATION OF APPROVING A SPECIAL EVENT LIQUOR LICENSE APPLICATION FOR THE ARIZONA MUNICIPAL CLERK ASSOCIATION CONFERENCE (PRESIDENT SUSAN STEIN) TO BE HELD AT THE FOUNTAIN HILLS COMMUNITY CENTER, 13001 N. LA MONTANA DRIVE, FOUNTAIN HILLS, AZ, FROM 8:00 AM TO 5:00 PM ON TUESDAY, JULY 25,2017; 8:00 AM TO 5:00 PM ON WEDNESDAY, JULY 26,2017; AND 8:00 AM TO 5:00 PM ON THURSDAY, JULY 27, 2017. AGENDA ITEM #4 - CONSIDERATION OF APPROVING A SPECIAL EVENT LIQUOR LICENSE APPLICATION SUBMITTED BY SUZANNA HENDERSON REPRESENTING THE FOUNTAIN HILLS THEATER LOCATED AT 11445 N. SAGUARO BOULEVARD FOUNTAIN HILLS AZ FOR THE PURPOSE OF A FUNDRAISER, FROM 5:30 PM TO 10:30 PM ON MONDAY, JUNE 5, 2017. AGENDA ITEM #5 - CONSIDERATION OF APPROVING A CUT WAIVER REQUEST BY EPCOR TO PERMIT AN AREA OF 2,613 SQ. FT. TO HAVE UP TO A MAXIMUM 24' DEEP VISIBLE CUT FOR THE CONSTRUCTION AND REPLACEMENT OF A POTABLE WATER BOOSTER PUMP STATION, LOCATED AT 11210 N. FOUNTAIN HILLS BOULEVARD. CASE #CFW2017-01 Councilmember Yates MOVED to approve the Consent Agenda as listed and Vice Mayor Magazine SECONDED the motion. A roll call vote was taken with the following results: Mayor Kavanagh Aye Vice Mayor Magazine Aye Councilmember Leger Aye Councilmember Tolis Aye Councilmember Yates Aye Councilmember Brown Aye Councilmember DePorter Aye The motion CARRIED UNANIMOUSLY (7-0) by those present. REGULAR AGENDA AGENDA ITEM #6 — CONSIDERATION OF RESOLUTION 2017-12, SETTING FORTH THE TENTATIVE BUDGET AND ESTABLISHING THE MAXIMUM BUDGET AMOUNT FOR THE TOWN OF FOUNTAIN HILLS FOR FISCAL YEAR BEGINNING JULY 1, 2017, AND ENDING JUNE 30, 2018. THE COUNCIL MAY ADDRESS ANY OR ALL ITEMS CONTAINED IN THE BUDGET DOCUMENT AND INITIATE ANY CHANGES PRIOR TO THE ADOPTION. Mr. Miller gave opening remarks with a breakdown of the budgeting process acknowledged staff's part in preparing the budget. Mr. Miller called on Finance Director Craig Rudolphy who presented information contained in the PowerPoint presentation regarding the details of the tentative budget, which included updates and adjustments requested made so far. z:\council packets\2017\r170518\170504m.docx Page 2 of 6 Mr. Rudolphy stated that maximum fiscal year 2017-18 tentative budget was $35,333,495 and he stressed Council could reduce or modify line items, but once approved, the maximum amount could not be increased by Council. Mr. Rudolphy pointed out the budget had been increased by $1M since the last presentation due to one request by Council and by one change noted April 24, 2017, that involved third party building inspections where inspectors would now report to the Town; he stated that $950K was added to revenues and the same amount was added to expenditures. Mr. Miller explained the funds would not be spent unless the revenues were received noting that the inspectors worked for the Town and not the Developer. Mr. Rudolphy presented the request from Council that had added a proposed staff position in the Economic Development budget in the amount of $67K. Mr. Miller added that Mr. Cooper had felt strongly about hiring a consulting firm but by adding this position the department would enhanced; he stated this was a Council decision. Vice Mayor Magazine discussed his position on hiring additional Economic Development staff, he indicated that he felt Council's previous suggestion may have been a mistake since this may not be one of the most important priorities needed at this time or for the Town. Vice Mayor Magazine stated that spending $67K plus benefits was just the start noting it would increase each year. He proposed this should be reconsidered due to the Town's financial shortfall and that the position should only be added if absolutely necessary. He expressed his opinion that this was a nice to have position and acknowledged that the Council had a Manager for a reason, which was to provide for the best use of Town funds. He stated that it was a mistake to second guess the Manager regarding personnel issues. Councilmembers discussed the pros and cons for adding the additional staff member and how the Economic Development budget should be spent for the best results for the Town. Councilmember Yates discussed that it was difficult to get things done with one person noting the staffing in other communities that he works with. He stated the timing was perfect to get Mr. Cooper help and that he viewed this proposed staffing as an investment and a need. Councilmember Leger asked Mr. Cooper why he proposed hiring a consulting group versus hiring a staff member and Mr. Cooper answered the consulting group was the most cost effective measure and was the more likely of the two to be approved. Mr. Cooper reiterated his reasoning for hiring a consulting group as discussed during the April 24, 2017, Town Council meeting noting that he felt this was the best value for the Town in terms of network outreach, client follow-up, and data gathering as everything takes time. He noted hiring a person comprised of staff training, which would take time. He pointed out that the contract offered him a jumpstart opportunity to address the Town's needs quicker. He said that having both the contract and the staff position needs could be addressed differently and there would not be duplicity of duties. Councilmember Brown suggested Council approve the tentative budget along with the consulting group and include the funding for one new staff member with the stipulation that this person would not be hired until the consulting group's performance could be evaluated. He added that if the Economic Development staffer funding was not used the funds could then be allocated to help another department. Councilmember Tolis stated he did not believe in marketing agreements and stated his preference for the ability to be able to offer incentives. Mayor Kavanagh pointed out that that Mr. Cooper was working seven days a week and felt an assistant would lessen the burden. Mayor Kavanagh acknowledged that Economic Development was extremely important to the Town's revenues and offered her support for Councilmember Brown's suggestion to place both items in the budget. She also complimented Mr. Cooper on his continued good work. Vice Mayor Magazine asked Mr. Miller if there were other priorities that were not funded in this budget. Mr. Miller answered that additional staffing needs were identified as the Town was lean and there was a lack of back-up coverage. He said it was known that staff in particular areas worked on their days off to meet department deadlines. He noted purchasing was an area of concern and specifically pointed out the Finance Division where the Finance Director was acting as the Procurement Officer. He reiterated that the Town's departments lacked other positions. Vice Mayor Magazine maintained that this funding should not be approved for the additional staffing in Economic Development. z:\council packets\2017\r170518\170504m.docx Page 3 of 6 Vice Mayor Magazine MOVED to approve Resolution 2017-12, with the $67K for the additional Economic Development personnel removed. Mayor Kavanagh asked for a SECOND to the motion, which FAILED due to a lack of a second. Councilmember Tolis expressed he was not in favor of both but was willing to go along as suggest but requested a matrix be provided to the Council following six months of retaining the consulting group so Council could review their progress. Councilmember Brown MOVED to approve the Economic Development budget, retaining the marketing contract as recommended by the Director of Economic Development and the one staff position with a stipulation that the staffer not be hired until useable leads were generated and for the Director of Economic Development to return to Council before the staffer was hired and Councilmember Leger SECONDED the motion. Mayor Kavanagh asked for a roll call vote. Councilmember Tolis Aye Councilmember DePorter Aye Councilmember Yates Aye Councilmember Brown Aye Vice Mayor Magazine Nay Councilmember Leger Aye Mayor Kavanagh Aye The motion CARRIED by those present (6-1); Vice Mayor Magazine cast the nay vote. Mr. Rudolphy continued to review the material in his PowerPoint presentation on the following items: Budget Assumptions Capital Improvement Projects (CIP) Outstanding Bonds Supplemental Budget Requests Budget Summary Summary of proposed changes General Fund Budgets Councilmember Leger referenced slide #12 and pointed out that the revenue total was $26.6M and the Town's expenditures were $35M and noted the Town was spending more than revenues received and the difference was funded from the Town's Reserve Fund. He questioned how long the Town could continue with this kind of shortfall. Mr. Miller informed the Council that the difference in revenues and expenditures also involved dedicated funds such as Development Fees for the Adero Canyon Trailhead and Fire Station #2 in the amount of $6M and that no Rainy Day or General Fund Reserves were used for these projects and the dedicated funds were used for those purposes only. He stated per Council direction that once the Community Center bond was paid off the debt service amount of $500K would be dedicated to pavement management program. Mr. Rudolphy continued with the presentation slides: General Fund Operating Budgets and changes Reserve Funds Organization Chart Personnel increases and Personnel Benefits Mr. Rudolphy explained the next steps in the budget process as the adoption of the final budget on June 1, 2017 followed by the adoption of the Tax Levy on June 15, 2017. z:\council packets\2017\r170518\170504m.docx Page 4 of 6 Councilmember Yates thanked Mr. Rudolphy for all the hard work and asked if there was a way for a more simplified and transparent way to present the budget and Mr. Rudolphy answered unfortunately no due to the schedules required by the Auditor General as noted in the Resolution. Mr. Miller added that the content in the budget was comprehensive and used as staff's guidance throughout the year with the current line item budget, which entails a lot of pages. Mr. Miller pointed out that staff has created a budget in brief and that would be made available to the public and Council. Mr. Miller also proposed that next year the budget book could be reorganized to add an executive summary and he felt that the use of tabs would make it easier for reference purposes; however, he stressed the content would remain the same. Mayor Kavanagh asked if all municipalities used the same type of budget process and software and Mr. Rudolphy answered that all Cities and Towns used the same General Accounting Principles (GAP). Vice Mayor Magazine requested notification of any proposed budget reorganization so as to obtain Council's feedback. Mr. Miller concluded that Council was okay with the overall presentation by staff and mentioned that the Town's process was more streamlined and the best he had ever worked with. Councilmember Leger brought up the $30K funding in the budget for a proposed Visitor's Center and questioned if this expense shouldn't be moved to the 2018-19 budget due to the timing of the available space and the need for Council to review the agreement prior to approving it. Councilmember Leger MOVED to move the $30K Visitor Center funding to the fiscal year 2018-19 budget verses the fiscal year 2017-18 budget and Councilmember Yates SECONDED the motion. Mayor Kavanagh asked for discussion on the motion. Mr. Miller explained staff was in agreement that this possible arrangement would benefit the Town since staff had talked of having a Town Visitor's Center on our own. Mr. Miller added that the Chamber estimated their office relocation to the Park Place Development would take place in November 2017 and they were interested in an agreement with the Town and staff was working out the detail for review and possible approval by Council in June or August 2017. He noted that he had stressed with the Chamber that all businesses would be allowed to participate in the Visitor Center and he requested Council leave the funding in the budget at this time since Council would ultimately make the final decision. Councilmember Leger asked Councilmember Brown if the November 2017 occupancy date was realistic for the Chamber and Councilmember Brown stated he did not see that happening in the 2017-18 budget year. Mayor Kavanagh asked for a roll call vote. Councilmember Brown Aye Councilmember Tolis Nay Councilmember Yates Aye Vice Mayor Magazine Aye Councilmember Leger Aye Councilmember DePorter Aye Mayor Kavanagh Aye The MOTION CARRIED on a vote by those present (6-1); Councilmember Tolis cast the nay vote. Councilmember Yates MOVED to approve the budget with the $30K allocated for the Visitor's Center removed and Councilmember Leger SECONDED the motion, which CARRIED UNANIMOUSLY by those present (7-0). AGENDA ITEM #7 — DISCUSSION WITH POSSIBLE DIRECTION TO STAFF RELATING TO ANY ITEM INCLUDED IN THE LEAGUE OF ARIZONA CITEIS AND TOWNS WEEKLY LEGISLATIVE BULLETING OR RELATING TO ANY ACTION PROPOSED OR PENDING BEFORE THE STATE LEGISLATURE. Mr. Miller reported that the State's budget issues were being worked out and he had nothing else to report. Councilmember Brown left the meeting at 7:50 p.m. z:\council packets\2017\r170518\170504m.docx Page 5 of 6 AGENDA ITEM #8 - COUNCIL DISCUSSION/DIRECTION TO THE TOWN MANAGER None. AGENDA ITEM #9 - SUMMARY OF COUNCIL REQUESTS AND REPORT ON RECENT ACTIVITIES BY THE MAYOR INDIVIDUAL COUNCILMEMBERS AND THE TOWN MANAGER. Mayor Kavanagh reported she spoke about economic development at the annual NPOA meeting and reviewed the Fountain Hills activities to a big crowd. She added that she and Mr. Miller attended the Central Arizona Project (CAP) annual luncheon for Mayors and Managers to bring everyone up to date on what the project was currently engaged in. Mayor Kavanagh expressed it was excellent presentation about current water and power issues and especially related to the future of the Navajo Generating Station. Mayor Kavanagh added there was a ribbon cutting to celebrate the 100 year anniversary of Washington Federal Savings, which had been located here in Town for the past 17 years. AGENDA ITEM #10 - ADJOURNMENT Vice Mayor Magazine MOVED to adjourn the meeting and Councilmember Yates SECONDED the motion, which CARRIED UNANIMOUSLY (6-0) by those present. The Regular Session adjourned at 7:52 p.m. TOWN OF FOUNTAIN HILLS :A ATTEST AND PREPARED BY: Bevelyn J. Bender, Town Clerk CERTIFICATION Linda M. Kavanagh, Mayor I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Session held by the Town Council of Fountain Hills in the Town Hall Council Chambers on the 4th day of May, 2017. I further certify that the meeting was duly called and that a quorum was present. DATED this 18th day of May, 2017. Bevelyn J. Bender, Town Clerk z:\council packets\2017\r170518\170504m.docx Page 6 of 6