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HomeMy WebLinkAbout2017.1121.TCRM.MinutesTOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL NOVEMBER 21, 2017 CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Kavanagh called the meeting to order at 5:31 p.m. in the Fountain Hills Town Hall Council Chambers. INVOCATION — Dr. Bobby Brewer, Pastor, North Chapel. ROLL CALL - Present for roll call were the following members of the Town Council: Mayor Linda Kavanagh, Vice Mayor Alan Magazine (via conference call), Councilmember Nick DePorter, Councilmember Henry Leger, and Councilmember Cecil Yates. Councilmember Dennis Brown and Councilmember Art Tolis were not present at roll call. Town Manager Grady E. Miller, Attorney Mitesh V. Patel of Dickinson Wright, and Acting Town Clerk Nancy Walter were also present. Councilmember Art Tolis entered the meeting via conference call at 5:34 p.m. Iu /NY13 3Y' "913 71 I i) THE MAYOR WILL READ A PROCLAMATION DECLARING NOVEMBER 25, 017 AS SMALL BUSINESS SATURDAY IN THE TOWN OF FOUNTAIN HILLS. Mayor Kavanagh read the proclamation (available on line or in the office of the Town Clerk) declaring November 25, 2017, as Small Business Saturday in the Town of Fountain Hills and urged the residents of our community, and communities across the country, to support small businesses and merchants throughout the year. SCHEDULED PUBLIC APPREARANCES/PRESENTATIONS i) MAYOR KAVANAGH AND/OR COUNCIL MAY REVIIEW RECENT EVENTS ATTENDED RELATING TO ECONOMIC DEVELOPMENT. Mayor Kavanagh stated that during the Maricopa Association of Governments (MAG), Economic Development Meeting (EDC) the group focused on tourism and its impact on Arizona and local municipalities. She added that the Arizona Commerce Authority (ACA) reported that between 2013 and 2017, ACA exceeded their goal in capital investments by moving businesses here from other states and in the five year span, jobs and indirect jobs had a Million economic impact on Arizona. Mayor Kavanagh reported there was a lot of discussion about the Governor's push for the ACA to do more to increase tourism, but they stressed it was important to Arizona and local economies that the ACA assess some of the negative impact that increased tourism had on local residents. Mayor Kavanagh noted that the infrastructure in Arizona did not support the heavy increase in traffic, so rush hour driving was sometimes a nightmare for residents during peak tourism season and she acknowledged that recently the ACA started to discuss this issue after Sedona and other major tourist areas expressed their concerns about the future increase of tourism and the impact on their residents. Mayor Kavanagh believed that no matter how much Arizona wanted and needed tourists, it was important to balance that with the needs of our year -around residents. Mayor Kavanagh reported that the Town Council had a joint meeting with the Fort McDowell Tribal Council and discussed mutual issues related to fire, police, education, tourism, and infrastructure. She declared the meeting was very productive and everyone realized both had much to gain from combined efforts in economic development, tourism, and easily taking care of smaller issues through improved communication. Mayor Kavanagh acknowledged that Town staff was also present and connected with their counterparts at Fort McDowell, which would go a long way to keep doors of communication open in z:Acouncil packets\2017\r171205\171121m.docx Page 1 of 8 ii) the future. Mayor Kavanagh mentioned that she had been working with the Fort McDowell Nation for about 20 years as partners in the "River of Time Museum" and as a member and chairman of the Chamber of Commerce and felt a lot was accomplished during this first meeting and was looking forward to continuing a great friendship with our neighbors. Mayor Kavanagh predicted that the next joint meeting with Fort McDowell would take place in Fountain Hills in about six months and hopefully they would meet a couple of times per year. Councilmember DePorter stated the joint meeting with Fort McDowell was a great opportunity for the Town's department heads to collaborate on initiatives, such as possible shared procurement items and added Fort McDowell was a great neighbor. He supports having regular meetings to keep the communication going. Councilmember Yates said the meeting with Fort McDowell was wonderful to share ideas and finding both communities had a lot in common and mentioned he would be coordinating with Fort McDowell staff on traffic issues with the possibility of creating more connectivity between the two nations. RECOGNITION OF COMMISSIONERS MIKE ARCHAMBAULT AND ROGER OWERS FOR THEIR SERVICE ON THE PLANNING AND ZONING COMMISSION. Mayor Kavanagh stated that Roger Owers was unable to attend the meeting. Mayor Kavanagh acknowledged and thanked Mike Archambault for his contributions while serving on this Commission and presented him with a "Certificate of Appreciation" while explaining the role members played on the Planning and Zoning Commission. Mr. Archambault expressed his appreciation for the opportunity to serve and stated he hopefully had prepared the current commission members to move forward smoothly. PRESENTATION OF THE TOWN OF FOUNTAIN HILLS' COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFFR) FOR THE FISCAL YEAR ENDING JUNE 30, 2017, BY JENNIFER SHIELDS PARTNER WITH HEINFELD MEECH & CO. Mr. Miller introduced Jennifer Shields who gave a brief presentation on the Town's financial audit report findings (available on line or in the office of the Town Clerk). Mr. Miller explained that the report was an Arizona state requirement for all municipalities each year to engage an auditing firm to review the Town's finances and added the auditing firm was ultimately working for their client, the Mayor and Council, who represent the residents of Fountain Hills. Ms. Shields acknowledged that the Audit Manager for the Fountain Hill's project, Josh Jumper, was present and available to answer questions. Ms. Shields explained the contents of the audit and pointed out that Council had received monthly reports and that the financial statement presented in the audit report was more technical. Ms. Shields explained the audit report stated the Town received an unmodified opinion with no errors found or needed corrections. Ms. Shields added that certain audit communications with Council are required noting any adjustments made or not made and she reported none were found and added there were no difficulties performing the audit. The audit included reviewing internal controls with miner weaknesses found but not large enough to report to Council. Ms. Shields encouraged Council to review their checklist periodically to assure adequate internal controls were in place for the sake of their constituents and to prevent any fraud or irregularities. Mayor Kavanagh asked for Council questions. Councilmember Leger thanked Ms. Shields and commented it was nice to hear the Town's staff had no internal errors and also thanked Town staff for their hard work. Ms. Shields also thanked Town staff. z:\council packets\2017\r171205\171121m.docx Page 2 of 8 Councilmember Yates thanked Ms. Shields for the audit and asked how Fountain Hills compared to other municipalities. Ms. Shields replied that that was not part of the audit. Mayor Kavanagh thanked Ms. Shields and her staff. CALL TO THE PUBLIC Mayor Kavanagh asked if there were any speaker cards and Acting Town Clerk Walter answered none had been received. CONSENT AGENDA AGENDA ITEM #1 - CONSIDERATION OF APPROVING THE TOWN COUNCIL MEETING MINUTES FROM OCTOBER 3 AND 10, 2017. AGENDA ITEM #2 - CONSIDERATION OF APPROVING A LIQUOR LICENSE APPLICATION FOR AGENT CHANGE, ACQUISITION OF CONTROL -RESTRUCTURE, SUBMITTED BY MICHAEL JOSEPH BASRA AGENT OF BASHAS' INC. DBA BASHAS #47 LOCATED AT 16605 E PALISADES BLVD FOUNTAIN HILLS, AZ. THIS IS FOR A SERIES 9 LICENSE (LIQUOR STORE). AGENDA ITEM #3 - CONSIDERATION OF APPROVING THE THIRD AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT C2017-002 WITH POWER TECH CONTRACTING IN THE AMOUNT OF $7,825.00, FOR ON-CALL AND CALL -OUT TRAFFIC SIGNAL SERVICES. AGENDA ITEM #4 - CONSIDERATION OF APPROVING RESOLUTION 2017-49, AN ABANDONMENT OF A PORTION OF THE 10' PUBLIC UTILITY AND DRAINAGE EASEMENT LOCATED AT THE NORTHERLY (REAR) AND EASTERLY (SIDE) PROPERTY LINES OF PLAT 605C, BLOCK 3, LOT 24 (11013 N. BUFFALO DRIVE), AS RECORDED IN BOOK 164, PAGE 14, RECORDS OF MARICOPA COUNTY, ARIZONA, WITH STIPULATION.(EA 2017-09) AGENDA ITEM #5 - CONSIDERATION OF APPROVING NAMING THE TRAIL AT THE NORTH ENTRY AT MCDOWELL MOUNTAIN REGIONAL PARK AS THE SONORAN TRAIL AND THE NEWLY CONSTRUCTED LOOPS TO THE SONORAN TRAIL AS THE LOWER SONORAN TRAIL. AGENDA ITEM #6 - CONSIDERATION OF APPROVING RESOLUTION 2017-41, CONTINUING THE MCDOWELL MOUNTAIN PRESERVE COMMISSION, A COMMISSION APPOINTED BY THE TOWN COUNCIL, AND ADOPTING AMENDED BYLAWS FOR ITS GOVERNANCE. AGENDA ITEM #7 - CONSIDERATION OF AUTHORIZING THE USE OF CAPITAL IMPROVEMENT PROJECT CONTINGENCY FUNDS, IN THE AMOUNT OF $10,240.00, TO COMPLETE CAPITAL IMPROVEMENT PROJECT (F4032), THE TOWN -WIDE LIGHTING UPGRADES. Councilmember Yates MOVED to approve the consent agenda as listed and Councilmember DePorter SECONDED the motion, which CARRIED UNANIMOUSLY (6-0). REGULAR AGENDA AGENDA ITEM #8 — CONSIDERATION OF THE FIRST AMENDMENT TO COOPERATIVE PURCHASING AGREEMENT C2017-045 BETWEEN M. R. TANNER DEVELOPMENT AND CONSTRUCTION, INC. AND THE TOWN OF FOUNTAIN HILLS, FOR ASPHALT REPLACEMENT AND MISCELLANEOUS WORK, IN AN AMOUNT NOT TO EXCEED $2,500,000.00. Mr. Miller said this item was "Tabled" in September due to several Councilmembers' questions related to the contract and the approach to pavement replacement. Mr. Miller stated that Council held a Special Session last week to discuss Pavement Management and the Town's approach and stressed that due to the item being "Tabled" the program was stopped, setting work back by several months. Mr. Miller explained this was the reason for asking Council's consideration on this contract during this meeting allowing staff to perform $2.5M of contracted work. Mr. Miller introduced Public Works Director Justin Weldy who gave additional information regarding Pavement Management. Mr. Weldy Siad that during Council's Special Session questions were answered and that further information would be presented after the contracted firm's assessment of Town roads. Mr. Weldy explained that there would be a slight z:\council packets\2017\r171205\171121m.docx Page 3 of 8 delay due in work due to the cool weather and work would resume in February, 2018, when days were longer and the weather was warmer. Mayor Kavanagh asked if Council had any questions. Councilmember Leger asked if Mr. Weldy was talking about Zone 1 to which Mr. Weldy replied that was correct. Mr. Miller noted that Council had discussed dropping the "Zone" approach and address the worst case scenarios first. Mr. Miller pointed out it takes approximately nine months for the utility companies to engineer their projects before the mill and overlay could take place and this would create a delay, placing the Town further behind. Mr. Miller stated that staff recommends approval of this contract. Mayor Kavanagh asked if there were any speaker cards and Ms. Walter stated none had been received. Mayor Kavanagh asked for further discussion and if not requested a motion. Councilmember Leger MOVED to approve the First Amendment to the Cooperative Purchase Agreement C2017-045 between M.R. Tanner Development and Construction, Inc. and the Town of Fountain Hills for asphalt replacement and miscellaneous work, in an amount not to exceed $2,500,000.00, Councilmember Yates SECONDED the motion, which CARRIED UNANIMOUSLY (6-0). Vice Mayor Magazine requested Mayor Kavanagh allow him to asked Jennifer Shields two questions related to agenda item #8, due to a bad phone connection that dropped his communication during her presentation. Vice Mayor Magazine asked Ms. Shields if she found any potential problems with the Town's bond rating and what conditions could affect the Town's bond rating in the future. Ms. Shield explained that his questions would be best addressed by the Town's Financial Underwriters and Advisors. She said that in the past she found that the focus is mainly on a town's available fund balance and the ability to generate a property tax in order to pay debt. Vice Mayor Magazine thanked Ms. Shields. Mayor Kavanagh introduced Attorney Mitesh V. Patel, representing Dickinson Wright during this meeting. AGENDA ITEM #9 - CONSIDERATION OF RESOLUTION 2017-47, ORDERING AND CALLING A SPECIAL ELECTION TO BE HELD ON MAY 15, 2018, FOR THE PURPOSE OF SUBMITTING TO THE QUALIFIED ELECTORS OF THE TOWN OF FOUNTAIN HILLS THE QUESTION OF LEVYING A PRIMARY PROPERTY TAX, IN AN AMOUNT NOT TO EXCEED $7,000,000.00. Town Manager Miller reviewed information in the staff report and stated that the Town was currently at the level in State Shared Revenue found prior to the down -turn in the 2008 economy and with an approximate sales tax increase of $300K. Mr. Miller pointed out that a major staff reduction had been made during the down -turn and many core services were contracted out that initially provided a savings but, over time with rising costs, the savings seen have been greatly reduced. Mr. Miller noted the public safety contracts come to more than 50% of the General Fund Budget and increase at a higher rate than the General Fund. Mr. Miller stated that after evaluating other options, Council decided to propose a Primary Property Tax to the Fountain Hills voters. Mr. Miller reminded Council that the Environmental Fee would be eliminated if the property tax is approved by the voters and explained that the tax would fund road maintenance, public safety, and avoid a revenue shortfall in the future. Mr. Miller introduced Finance Director Craig Rudolphy who continued the presentation. Mr. Rudolphy reviewed the PowerPoint slides, which include: (available on line or in the office of the Town Clerk). Major Expenses Drivers The 10 -year Financial Projection The 10 -year Chart of Financial Projection including operating expenses and staff requested operating needs and funding options Recap of the 10 -year Financial Projection of $6.4M A previously presented 2007 Long Term Financial Picture projecting the current revenue shortfall A list of addressed revenue shortfall issues that was considered during previous Council discussions and meetings z:Acouncil packets\2017\r171205\171121m.docx Page 4 of 8 Conclusion of the unanimously supported best option to address the revenue shortfall through a voter approved Primary Property Tax of $7M and a list of reasons for their decision List of Primary Property Tax proposal requirements by Arizona State Statue the Town could only increase the tax by 2% Mr. Rudolphy explained that property would be assessed at 80% value by the County Assessor's Office and not sale price. Mr. Rudolphy explained that property owners could review their property valuation through the County Assessor's website and find their property value for current and prior valuations. The last slide lists the next steps in the process announcing the future Primary Property Tax educational opportunities and information staff would provide to property owners. Mayor Kavanagh mentioned that there were property owners that had expressed concern of the possibility that they paid more than what their property was worth before the down -turn and wondered how their property would be valued at this time. Mayor Kavanagh stated it was important for this information to be placed on the Town's website. Mr. Rudolphy added that informational meetings would take place at various days, times, and locations to assist property owners. Mr. Miller mentioned if a property owner had issues paying an additional tax due to their fixed income, they could contact the Arizona State Treasury Office for information on various assistance programs. Mayor Kavanagh requested this information added to the Town's website. Councilmember DePorter asked when the public information would begin, Mr. Rudolphy stated the planning process would begin shortly after Council approves the resolution. Mr. Rudolphy informed Council they would receive an outline of scheduled informational meetings that should begin sometime in January or February, 2018. Mr. Miller reported that a quarterly community newsletter will be mailed to residents next week. He noted the Primary Property Tax information would be included in the January, 2018 issue. A postcard will be mailed to property owners listing dates of meetings on the Primary Property Tax. Councilmember DePorter suggested using the town's public services such as Cox Communications, Republic Services, and others, not to promote the tax, but to direct property owners to factual information. Councilmember DePorter also suggested a webinar, video conferences, and social media. Councilmember Yates presented a break -down of the Primary Property Tax; the average yearly increase to property owners would be approximately $400.00 per year or just over $1.00 per day. Councilmember Tolis reviewed some of the options Council considered and expressed his opinion that the public had spoken and requested the Town maintain its current lifestyle. Councilmember Tolis acknowledged all the hard work staff had contributed and then requested Mr. Miller address why Council decided not to move forward on some of the other revenue options. Mr. Miller explained that a "Public Safety Fee" option was considered extensively and found that one of the downsides is that under state law, you can only have a fixed fee and everyone would pay the same amount which would be an inequality. He mentioned that the "Environmental Fee" is difficult to collect and currently there is an 85-90% collection rate due to some that refuse to pay; all levels of income pay the same fee. Mr. Miller noted that the Council looked at the "Special District" option and explained that the Town once had a Fire District and there was quite a bit of divisiveness in the community. Councilmembers also considered a "Facilities District" but decided it may be challenged by tax watch -dogs. Councilmember Yates explained that he researched the Facilities District option extensively and found that a Facilities District was more for master plan communities and the legal aspects on this option would be extremely costly. Mr. Miller said that the option to increase local sales tax was looked at but the tax would have to be raised too high to generate the $7,000,000.00 and it would hurt the local businesses. Mayor Kavanagh explained that Fountain Hills cannot do the same things a "Charter City" can do. Mr. Miller noted the Town is a General Law Town and has less discretion due to not having a charter and that Fountain Hills is considered more like a "Political Subdivision" of the state. Councilmember Tolis thanked Mr. Miller for the information and pointed out the Primary Property Tax would be the long-term solution. Mayor Kavanagh thanked staff for their hard work during this process. z:\council packets\2017\r171205\171121m.docx Page 5 of 8 Mayor Kavanagh asked for speaker cards and Ms. Walter stated a Fountain Hills resident wished not to speak but wanted it known that she is in support of the Primary Property Tax. Mayor Kavanagh asked the name of the resident, to which Ms. Walter responded the resident's name is Kimberly Bartman. Jim Judge, a Fountain Hills resident, spoke in support of the Primary Property Tax and added the tax would be a good investment for property owners to help maintain its lifestyle for residents. Mr. Judge gave an overall accounting of the revenue shortfall and the prior steps the Town had taken to meet residents' needs and to lower costs. Amberleigh Dabrowski, a resident of Fountain Hills, spoke in support of the Primary Property Tax and stated she enjoyed living in Fountain Hills and spoke of the Town's financial situation. Ms. Dabrowski stressed the importance for property owners' education on the need for this additional revenue. She hopes that staff and Council would explain what the tax means for the residents and assist those on fixed incomes, along with total transparency to achieve property owners' support. Mayor Kavanagh reiterated the importance of informing residents of available services for those on fixed incomes and avoiding undo harm to their living situation and wanted staff to find those in need through organizations such as the Extended Hands Food Bank so they could give direction on available help. Mr. Miller added that staff would reach out to those identified. Mayor Kavanagh asked for further discussion and if none requested a motion. Councilmember Yates MOVED to approve Resolution 2017-47 ordering and calling a special election to be held on May 15, 2018, for the purpose of submitting to the qualified electors of the Town of Fountain Hills the question of levying a primary property tax, in an amount not to exceed $7,000,000.00 and Councilmember DePorter SECONDED the motion, which CARRIED UNANIMOUSLY (6-0). AGENDA ITEM #10 —COUNCIL DISCUSSION/DIRECTOR TO THE TOWN MANAGER. None. AGENDA ITEM #11 — SUMMARY OF COUNCIL REQUESTS AND REPORT ON RECENT ACTIVITES BY THE MAYOR, INDIVIDUAL COUNCILMEMBERS, AND THE TOWN MANAGER. Vice Mayor Magazine left the meeting via telephone conference. Mayor Kavanagh asked Councilmember Yates to give his updates. Councilmember Yates said that November 10, 1775, was the birth of the U.S. Marines and is 242 years old. Councilmember Yates reported that on November 11th he attended the "Veterans Day Memorial Celebration" held at the Veterans Memorial located in Fountain Park and hosted by the VFW, American Legion Post 58, Am Vets Post 7, along with the Marine Corp League Detachment 1439. He acknowledged a donation from the "Fountain Hills Senior Services" for the shade covering. Councilmember Yates congratulated the second graduating class of the FHCCA Leadership Academy that teaches aspects on how Fountain Hills operates and then he acknowledged the members in this graduation class: Scott Sommer Don Varvel Cynthia Magazine, Vice Mayor Magazine's spouse Amy Arnold Kim Robertson Lisa Murray Kim Kamins Brent Cruikshank Tom Lindsey Mark Derksen Anita Glenister Bonnie Hollabaugh z:\council packets\2017\r171205\171121m.docx Page 6 of 8 Natalie Hogebroom Kim Widner Councilmember Yates announced the next class was ready to register new students and that information was available on the website https://www.fbcultural-civic.org/leadership-academy. Mayor Kavanagh reported that she represented Fountain Hills and Fountain Hills Sister Cities at the Polish Heritage Ball and reminded everyone that the Town has a Sister City in Poland and exchange students visited from Zamosc and Fountain Hills students traveled to Poland. Mayor Kavanagh expressed she had a great time speaking to a wonderful, attentive, and very animated audience from the 3rd grade classes at McDowell Mountain Elementary School. She spoke to them about the Town and how it operated and she explained to them what it was like to be the Town's Mayor. Mayor Kavanagh added the students asked a lot of questions and then she presented each student with the Town's "Experience Fountain Hills" bracelets, pens, and stickers and stressed that Fountain Hills had awesome students, teachers, and staff. Mayor Kavanagh acknowledged the school's Principal and Superintendent who made a visit during her time with the students. Mayor Kavanagh noted what a great experience it was for her. Mayor Kavanagh continued that she attended the "Chamber Breakfast" where the business community heard an update on the CopperWynd Resort expansion project presented by Bill Hinz, the owner of the resort, and found there was a lot of interest from the business community about this project. Mayor Kavanagh reminded everyone that "Turkey Trot" is early Thursday morning with the Thanksgiving Day parade kicking off at 9:00 a.m. Mayor Kavanagh also encouraged everyone to stop by the Community Center and see the wonderful Christmas trees created by Town groups and organizations and mentioned the lobby looked beautiful. Mayor Kavanagh thanked all the awesome volunteers who worked on a Saturday morning to complete the project. She also pointed out that the Town had a new "Town Christmas Tree" located at the end of the Avenue of the Fountains median, near the clock. The tree is beautifully decorated and all lit -up at night and is a great place to take photographs. Mayor Kavanagh reported that the giant "Menorah" will be going up on Tuesday, December 12th at 5:00 p.m. to begin the celebration of "Chanukah". Mayor Kavanagh wanted to remind everyone about "Breakfast with Santa" and the Community Center holiday activities held on Saturday, December 2"d. The Chamber of Commerce's annual "Stroll in the Glow" will be held on the Avenue starting at 5:00 p.m. with Santa arriving on the fire truck and visiting with kids. Mayor Kavanagh encouraged followers to check out the Town's calendar for details on these and all upcoming activities. Mayor Kavanagh, on behalf of the Town Council, wished everyone a wonderful, safe, and blessed Thanksgiving. AGENDA ITEM #12 — ADJOURNMENT Councilmember Yates MOVED to adjourn the meeting and Councilmember DePorter SECONDED the motion, which CARRIED UNANIMOUSLY (6-0), by those present. The Regular Session adjourned at 6:39 p.m. z:Acouncil packets\2017\r171205\171121m.docx Page 7 of 8 TOWN OF FOUNTAIN HILLS :S ATTEST AND PREPARED BY: Nancy Walter, Acting 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 21" day of November, 2017. 1 further certify that the meeting was duly called and that a quorum was present. DATED this 5t' day of December, 2017. Nancy Walter, Acting Town Clerk z:\council packets\2017\r171205\171121m.docx Page 8 of 8