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HomeMy WebLinkAbout2011.0120.TCRM.Minutesz:\council packets\2011\r2-3-11\110120m.docx Page 1 of 16 TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL JANUARY 20, 2011 * CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Schlum called the meeting to order at 6:30 p.m. in the Fountain Hills Town Hall Council Chambers. * INVOCATION – Mr. Terry Stevens, Church of Jesus Christ of Latter Day Saints * ROLL CALL Present for roll call were the following members of the Town Council: Mayor Schlum, Councilmember Dickey, Councilmember Hansen, Vice Mayor Brown. Councilmember Elkie, Councilmember Contino and Councilmember Leger*. Town Manager Rick Davis, Town Attorney Andrew McGuire and Town Clerk Bev Bender were also present. *Councilmember Leger participated in the entire meeting through the use of video conferencing equipment. * MAYOR’S REPORT i) Mayor Schlum acknowledged and wished Councilmembers Dickey and Hansen a happy birthday. * SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS i) None. CALL TO THE PUBLIC None. CONSENT AGENDA Mayor Schlum stated that at the request of Councilmember Elkie, Agenda Item #3 will be removed from the Consent Agenda and placed on the Regular Agenda. AGENDA ITEM #1 – CONSIDERATION OF APPROVING THE TOWN COUNCIL MEETING MINUTES FROM NOVEMBER 9, 2010 and JANUARY 6, 2011. AGENDA ITEM #2 – CONSIDERATION OF APPOINTING SUB-COMMITTEES TO CONDUCT INTERVIEWS TO FILL VACANCIES ON THE TOWN BOARDS AND COMMISSIONS AS FOLLOWS: VICE MAYOR BROWN AND COUNCILMEMBERS DICKEY AND ELKIE FOR MCDOWELL MOUNTAIN PRESERVATION COMMISSION, PUBLIC SAFETY ADVISORY COMMISSION AND BOARD OF ADJUSTMENT; AND COUNCILMEMBERS CONTINO, HANSEN AND LEGER FOR PARKS AND RECREATION COMMISSION, SENIOR SERVICES ADVISORY COMMISSION, COMMUNITY CENTER ADVISORY COMMISSION AND THE STRATEGIC PLANNING ADVISORY COMMISSION. AGENDA ITEM #3 –CONSIDERATION OF ACCEPTING A BRONZE SCULPTURE TITLED "RETURN TO PUYE" AND APPROVING THE PLACEMENT LOCATION. NOTE: THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AT THE REQUEST OF COUNCILMEMBER ELKIE AND PLACED ON THE REGULAR AGENDA Councilmember Hansen MOVED to approve the Consent Agenda as amended (Items #1 and #2 only) and Vice Mayor Brown SECONDED the motion. z:\council packets\2011\r2-3-11\110120m.docx Page 2 of 16 A roll call vote was taken with the following results: Councilmember Dickey Aye Mayor Schlum Aye Councilmember Leger Aye Councilmember Hansen Aye Councilmember Contino Aye Vice Mayor Brown Aye Councilmember Elkie Aye The motion CARRIED UNANIMOUSLY (7-0). REGULAR AGENDA AGENDA ITEM #3 –CONSIDERATION OF ACCEPTING A BRONZE SCULPTURE TITLED "RETURN TO PUYE" AND APPROVING THE PLACEMENT LOCATION. Community Services Director Mark Mayer addressed the Council relative to this agenda item and explained that the Public Art Committee is recommending the acceptance and placement of a donated piece of public art for display. (He displayed a picture of the sculpture (Copy of the presentation is available in the office of the Town Clerk). He advised that placement would be in Fountain Park at a site shown on the Revised Public Art Master Plan map and said that the piece was done by Native American Sculptor, Doug Hyde, and has a listed value of $15,000. He noted that because the piece is being donated, the cost of the piece, the plaque and the installation cost will be borne by the donor and the Town will not be responsible for any of the costs other than annual insurance costs. He stated that also included in the Council's packet is a letter from Public Art Committee Chair Sandi Thompson, who also has a few words to say. Ms. Thompson addressed the Council and said that the reason the Council was asked to remove this item from the Consent Agenda is because "Return to Puye" has been donated by a wonderful family in Town, Roland and Jean Lorenz, and she publicly wanted to thank them for donating this great piece by artist Doug Hy de. She noted that this is the third work that the Lorenz family has donated to the Town. She advised that the Heard Museum exhibits sculptures in their permanent collection by this renowned artist as well. She thanked Jean and Roland Lorenz for their c ontinuing generosity and contributions to enhance the overall art aesthetics in the community and thanked the Council for accept ing this work of art. Mayor Schlum thanked the Civic and Cultural Association for working so hard to build such a great collect ion of art work in Fountain Hills. He noted that over 90% of the art work in Town has been donated and thanked Mr. & Mrs. Lorenz and all of the other generous donors for their contributions to the Town. Councilmember Hansen MOVED to accept the bronze sculpture titled "Return to Puye" and the placement location and Councilmember Dickey SECONDED the motion. There were no citizens wishing to speak on this agenda item. Councilmember Elkie stated that he greatly appreciates the donation made by Jean and Roland Lorenz. The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #4 - CONSIDERATION OF RESOLUTION 2011-07, RELATING TO THE FOUNTAIN HILLS CENTENNIAL CIRCLE PROJECT. Mark Mayer addressed the Council and stated that several weeks ago Mr. Miles was here and brought a concept forward for the potential development of the courtyard area (the area between the Community Center and the Library) as a possible State Centennial Project. He advised that the resolution before them this evening basically endorses that idea and also emphasizes that the necessary steps to take to accomplish that task would include the final approval of the design, raising the necessary funds and seeing the project through to completion. He added that a number of groups have been z:\council packets\2011\r2-3-11\110120m.docx Page 3 of 16 contacted and believes, from staff's perspective, that it is important to include a representative from the Community Center Advisory Commission (CCAC) -- perhaps the Chair or his/her designee. He indicated his willingness to respond to questions from the Council and noted that Mr. Miles is also present should the Council have any questions they would like to direct to him. Mayor Schlum thanked Mr. Mayer for his presentation. Councilmember Dickey MOVED to approve Resolution 2011-07 relating to the Fountain Hills Centennial Project and Vice Mayor Brown SECONDED the motion. There were no citizens wishing to speak on this agenda item. Councilmember Dickey stated that she hopes the Council can support this project as they move forward and noted that they have a year's worth of activities that will take place and this will be a great addition. The Mayor said that the groups behind this project are certainly looking for the Council's support and he thanked everyone involved for their past and future efforts to ensure that the Town's Centennial Circle Project is a success. Councilmember Hansen commented that another positive thing that has come out as a result of all the discussio n that has taken place about the Centennial Circle and its location is the dialogue and Council vote in 1996 to name what was referred to then as the Community Center Courtyard as Cutillo Plaza. She stated that she believes this is a positive thing and knows that Mr. Miles has come up with an idea to maybe look at the entire area between the buildings as the Cutillo "whatever" and the circle would be a component of that. She added that she hopes in the future they can look at moving that forward as well. The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #5 – CONSIDERATION OF ORDINANCE 11-07, AMENDING THE TOWN OF FOUNTAIN HILLS TOWN CODE, CHAPTER 2, ARTICLES 2-3 AND 2-6, BY ADDING PROVISIONS RELATED TO MAIL BALLOT ELECTIONS. Town Clerk Bev Bender addressed the Council and stated that at the Council's September 14, 2010 Work Study Session, staff informed the Council that the Maricopa County Board of Supervisors had approved an increase in the fees charged jurisdictions for the County's election services effective July 2, 2010. (Ms. Bender highlighted a PowerPoint presentation that is available in the office of the Town Clerk.) She said that the Council indicated an interest in having the "all mail ballot election" option brought back at a subsequent meeting for their consideration as a way of defraying some of the increased cost for election services provided by the County. Ms. Bender noted that the Maricopa County Election Division indicated that they had not had an increase in fees for ten years and that by calculating the cost of the various services that they provide their analysis had shown that they had been subsidizing local elections, which resulted in the Board of Supervisors increasing election services fees as follows: * The per Active Registered Voter cost increased from $.73 to $1.37 (88% increase). * The per Early Mail Ballot cost increased from $1.72 to $2.12 (23% increase). * The cost of being included on the County-wide ballot increased from $.31 to $.50 per Active Registered Voter (61% increase). * The cost of a Consolidated Ballot Election between jurisdictions would continue to be split among the specific entities (i.e. the Fountain Hills Unified School District, the Town and the Fountain Hills Sanitary District) if measures were placed on the same ballot. Ms. Bender further stated that County elections are held during the fall election cycle and the Sanitary District holds their elections during the fall of odd years and the School District holds their elections in the fall of even years. She added th at bond elections are held in November (fall cycle) and property tax elections are held in the spring elections in May. She advised that if Maricopa County had a ballot proposition, the Town could not hold an all mail ballot election and would have to be on the consolidated ballot. z:\council packets\2011\r2-3-11\110120m.docx Page 4 of 16 Ms. Bender referred to a slide that depicted 2010 Town Services Costs (approximately $23,000 for the Primary Election and $4,800 for the May Special Election). She called attention to a Projected Cost Comparison and noted that the projected estimates takes into account the registered voter data that was available as of January 11th. She reported that an estimated Stand Alone (ground) Election would cost approximately $39,500 and an All Mail Ballot Election would cost about $34,200 (projected savings associated with connecting an All Mail Ballot Election: $5,330.40). She added that included in the staff report are all of the pros and cons and the direct impacts. Ms. Bender discussed voter turnout and reported that the average Fountain Hills voter turnout right now is approximately 32% and referred to a slide providing information submitted by municipalities that conduct All Mail Ballot Elections that shows voter turnout statistics both before and after conducting such an election (slight increases). Ms. Bender advised that the All Mail Ballot process is the same process as Early Voting with the major difference being that voters do not have to initiate a request to have their ballot mailed to them. She said that the active voter registration roll for a parti cular election is rolled into the system and a ballot and affidavit envelop packet is generated and mailed to each qualified registered voter. She stated that this enables all eligible voters to receive a ballot and participate in the election proce ss. She noted that the jurisdiction regulates the date ballots are mailed to all active registered voters (between 26 and 15 days prior to the date of the election). She also explained that for Stand Alone Elections ballots are available at early voting sites beginning 26 days prior to the election. She advised that staff's recommendation would be that the earliest possible period be used (26 days) in order to provide qualified electors with the most flexibility in terms of time in which to receive and vote their ballots). Ms. Bender informed the Council that Town Hall would serve as the Replacement Ballot Station as part of the All Mail Ballot Election process and would be available to voters so that they may vote in person if the ballot mailed to them was lost or if the voter spoiled his/her ballot. She added that they would also utilize the three current Maricopa County Recorders offices (located in Mesa and downtown Phoenix). She stated that a secure ballot drop box would also be utilized and located in a secure area inside Town Hall for those voters who wish to drop off their voted mail ballot and affidavit envelope as an alternative to mailing it back to the County. Ms. Bender outlined the process that would be followed for an All Mail Ballot Election and expl ained that since there would be no provisional or conditional ballots to be counted results would be received faster. She said that unofficial election results would be released at 8:00 p.m. on Election Day and as soon as all of the ballots that the Town had in their possession were transferred down to the County and counted they would obtain the official results. Ms. Bender indicated her willingness to respond to questions from the Council. Mayor Schlum thanked Ms. Bender for her presentation. Ms. Bender advised that three speaker cards have been submitted. Shawn Dow addressed the Council and expressed the opinion that an All Mail Ballot Election would disenfranchise a large portion of the voters in Town. He said that the Republican party is about to close their party so Independents will no longer be allowed to vote in the Primaries so when mail ballots are sent, the Town will be blocking out all of those Independents who haven't registered to vote by mail as well as in the Primaries -- they won't be able to vote in this type of Special Election when you hold All Mail Ballot Elections. He added that the Town would also be blocking out all of the Independents who are now going to be shut out of the Republican party Primaries. He stated that they shoul d never eliminate voters' ability to vote and if they do this, it will look like a reactionary measure to prevent certain people from voting. Ms. Bender noted that the Town does not have Partisan elections so the Independent issue would not be a factor. Peter Bardow addressed the Council and said he thinks limiting voters methodology to cast their ballots and mandating an All Mail Ballot Election will limit voters' options. He noted that the vote is the last great freedom that they have -- or the best great freedom -- and the way citizens can participate and "own" the government. He said that such action would restrict citizens' right to a representative government. He added that he understands that there may be some cost savings but said that they had a cost savings opportunity by including the issue of the single-trash hauler on the ballot of the Regular Election. He stated that the Town is not without means and expressed the opinion that the minimal savings they will realize does not justify the results of such action. z:\council packets\2011\r2-3-11\110120m.docx Page 5 of 16 Linda Bardow addressed the Council and said that when they were reviewing the savings that would be realized, what was unknown on the chart for the Regular General Election was how many people actually turn in their ballot. She advised that it is very easy to sign up for a mail-in ballot and forms are available all over Town. She said that she has made a lot of calls to people with early ballots and many residents in Fountain Hills are using that process. She suggested that they take a look at the electorate for the last election and said that in Town they have approximately 25,000 citizens and approximately 8,000 are registered to vote and about 4,000 of them voted in the last election. She said it would be fairly simple to do the numbers and see what happened with the 4,000 ballots -- how many people actually mailed in their ballots. She stated that this would give them a better idea of what is actually going on. She too expressed the opinion that the Town should not be limiting peoples' rights and their manner of voting. She advised that she personally would never use a mail-in ballot because she likes going to the polls to cast her vote and getting her "I Voted" sticker. Mayor Schlum thanked all of the speakers for their input. Councilmember Elkie requested that Ms. Bender respond to Ms. Bardow's comments and provide some statistics regarding the 2010 election. Ms. Bender reported that in 2010, for the March Election, the Town had 16,075 registered voters and the total ballots cast were 4,540 and of that, 857 were cast at the polls and 3,683 were cast using early mail ballots. She added that for the May General Election they had 15,511 registered voters and of that, 7,686 ballots were cast and 2,259 were cast at the polls and 5,427 were cast using early mail ballots. Councilmember Dickey MOVED to approve Ordinance 11-07 and Vice Mayor Brown SECONDED the motion. Councilmember Hansen asked Ms. Bender to speak to the issue of Restriction and the fact that some people would be disenfranchised and not receive ballots. Ms. Bender stated that she doesn't understand that point because all voters have a deadline that they have to register by to vote in an election and in an All Mail Ballot Election, everyone who is registered to vote by that deadline would receive a ballot. She added that it would be up to the voters whether or not to vote that ballot and return it. Councilmember Hansen said that if their registration was 14,000 plus, then each one of those people, regardless of their party affiliation, would receive a ballot. Ms. Bender clarified that that would be true for a Town election and explained that if the Town's issues were placed on a consolidated ballot with the State, then they would have to have a poll election because the State does not have the authority to hold All Mail Ballot elections. She noted that early ballots would also be made available for consolidated elections. Councilmember Hansen reiterated that in a Town Election that every voter would receive a ballot and Ms. Bender concurred that was correct. Councilmember Dickey commented on voter turnout and said that when Litchfield Park went to All Mail Ballot elections, their voter turnout went from 5.5% to 49% and that in some communities turnout was more modest; however, in Globe when they went to All Mail Ballot elections, their turnout went from 9% to 59% and both those municipalities hold spring, even year elections just like Fountain Hills. Councilmember Dickey provided additional statistics listed on the chart and said that she does not believe All Mail Ballot Elections disenfranchise voters -- they actually get more people involved in the process. In response to a comment relative to the proposed action being "reactionary," she stated that discussions have been ongoing relative to this issue (mentioning the September 2010 Work-Study) and they have had dialogue relative to lowering the costs of elections and making them easier for the citizens to participate in; this was just part of that conversation Councilmember Elkie asked in the upcoming May Special Election, if the Council decided this evening to go to an All Mail Ballot Election, how (if at all) would that affect currently registered voters as far as their ability to cast their vote in that election. z:\council packets\2011\r2-3-11\110120m.docx Page 6 of 16 Ms. Bender responded that everyone who is registered to vote by the registration deadline for that election will receive a ballot. Councilmember Elkie commented on the indirect impacts and asked if there was any special registration that would have to take place for mail ballot voters and Ms. Bender replied no, it would not be any different than registering to vote for any election (timely registration by the cutoff date). Councilmember Elkie asked how this would affect future candidates running for office, as far as the number of signatures required to have his/her name placed on a ballot. Ms. Bender advised that when there is greater voter turnout, the number of required signatures on petitions also increases. Mayor Schlum noted that if a citizen was a registered voter they will receive a mail ballot and this decision would not affect voters who participate in partisan elections. Ms. Bender concurred and said that if the Town were on the State’s ballot, polling sites would be required. In response to a questions by the Mayor Ms. Bender noted that the Town has been seeing an increase in the number of early ballots since the Permanent Early Voting List (PEVL) was implemented in 2008 (more people are voting that way and fewer people are going to the polls). She stated that they can get the ballots into the voters' hands and then they hope that the citizens will return them; noting that voters can mail them or bring them in. Councilmember Hansen requested that Ms. Bender address security precautions and said that some voters have the fear that an All Mail Ballot Election is wrought with the possibility of some type of fraud. Ms. Bender responded that if voters are familiar with the Affidavit envelope that they receive along with their ballot, the voter is required to sign the Affidavit on that envelope and once that is returned, the County actually compares that signature with their database of voter information (compares each and every signature) so if there is no match they follow up with that voter. Councilmember Dickey commented she also used to worry about that and noted that you can check on- line to verify they got your ballot. Ms. Bender added that there is even a web cast now at the County and anyone who wishes can watch as they count the ballots 24/7. Councilmember Elkie asked if there was any measure in place if he wanted to drop off his mail -in ballot and Ms. Bender stated that the Town offers one of the secured blue ballot boxes to drop ballots in and noted that the County makes a weekly pickup of those ballots. She added that there is a chain of command -- once they pick them up, they go into an envelope that is sealed and signed and County personnel transports it down to the County and then they take care of processing it there. She confirmed that if anyone was worried about the ballot being lost in the mail they could still drop it off at Town Hall. Councilmember Hansen commented on past experiences during elections (panic on Election Day) and stated that you can't always plan ahead and if something happens on Election Day, an emergency or illness, citizens can still be assured that their vote will be counted if they participate in an All Mail in Ballot Election. She expressed the opinion that this was a positive. Mayor Schlum said that he doesn't know what the number will be -- there could be another 1,000 voters casting ballots because of the process being proposed. He noted that early voting by mail has been steadily increasing and this would place the ballots in everyone's hands and he believes that the turnout would significantly grow based on the large number of registered voters and people who participated in early voting at the last election, which had been on a consolidated ballot with the State. Ms. Bender advised that in that instance people have the ability to request an Early Mail Ballot 26 days out and stressed that for consolidated elections voters would need to request a mail ballot as they would not automatically be dropped in the mail as they would with an All Mail Ballot Election. The motion CARRIED UNANIMOUSLY (7-0). z:\council packets\2011\r2-3-11\110120m.docx Page 7 of 16 AGENDA ITEM #6 – CONSIDERATION OF RESOLUTION 2011-05, ORDERING AND CALLING A SPECIAL BOND ELECTION IN AND FOR THE TOWN OF FOUNTAIN HILLS, ARIZONA, ON NOVEMBER 8, 2011, TO SUBMIT TO THE QUALIFIED ELECTORS THEREOF, THE QUESTION OF AUTHORIZING THE ISSUANCE AND SALE OF TWENTY-NINE MILLION SIX HUNDRED AND THIRTY-FIVE THOUSAND DOLLARS ($29,635,000) PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS, PROJECT OF 2012. Town Manager, Rick Davis, provided the Council with a brief introduction relative to this agenda item and stated that this presentation is being provided as a combination of efforts to bring to the Council a fiscal plan to address the Town’s long term and short term pavement management and is in keeping with one of the initiatives brought forth by the Initiative Planning Process and in fulfillment of one of the goals that the Council has designated for this fiscal year. He stated that if the Council approves moving forward on this item it will probably serve as the basis and template for future presentations that will be given containing factual information about the initiative to the public. Mayor Schlum thanked Mr. Davis for his comments. Development Services Director Paul Mood addressed the Council relative to this agenda item and highlighted a brief PowerPoint presentation on this item (Copy is available in the office of the Town Clerk). He stated that maintaining Fountain Hills' infrastructure is a strategic initiative identified by residents during the strategic planning process as well as a prominent Council goal for FY 10-11. He added that since incorporation the Town has held one bond election for road improvements -- in 1991, voters approved General Obligation and Revenue Bonds in the amount of $4.7 million to pave the remainder of roads in the community that were in the undeveloped areas. Once the roads were improved, development in the improved areas took off. Sound pavement management requires planning and a significant amount of capital that exceeds the Town's capacity for funding without issuing bonds. The 1991 bonds have now been paid off and many of the Town's roads are approaching 40 years in age and in deteriorating condition. Mr. Mood further stated that the proposed Resolution 2011 -05 will authorize the Town to ask the voters for approval to issue bonds in the total amount of $29,635,000 over a ten-year period to address those roads that are most critical to restore and maintain. If the voters approve the bonds, the Town would have the resources to star t the initial program to bring the roads into the proper maintenance cycle and avoid more costly reconstruction. He reported that the bonds would be sold in four phases as follows: 1. February 2012 $13.5M Saguaro Boulevard, Zones 6, 7 and 1 2. July 2014 $ 6.1M Zones 2 (Downtown), 3 and 4 3. July 20l7 $ 6.0M Zones 5, 6 and 7 4. July 2020 $ 4.0 M Zone 1 Mr. Mood emphasized that each phase will require Town Council review of the pavement management program and approval before the bonds can be sold. He discussed the risk analysis and stated that the current economic environment provides the Town with the opportunity to borrow money at the lowest cost in nearly 40 years and obtain very competitive bids. He added that the current road maintenance program maintaining pavement saves the Town the annual maintenance costs and extends the life of the roads. He noted that the Town can pay now to get started bringing the roads into a proper maintenance cycle or pay a lot more later on for reconstruction. Mr. Mood said that staff is proposing voter authorization for the full $29,635,000 at one time for the following reasons: 1. To save taxpayers the cost of three subsequent elections (approximately $50,000 each for a total of $150,000. 2. Staff can do long-range planning for bringing the roads up to standard and into a proper maintenance cycle. 3. Continuing the current slurry/surface seal program is inadequate and will cost $4.2 million in the next five years and $9.2 million in the next ten years, which will deplete the Capital Improvement Fund. He provided information relative to the work that is being proposed, the reasons behind it and the goals that will be accomplished. He advised that the debt schedule for the bonds can be structured so that the annual tax levy on property owners remains fairly consistent (otherwise, each bond issue is treated separately and the debt repayment would compound). He discussed z:\council packets\2011\r2-3-11\110120m.docx Page 8 of 16 fiscal impact and reported that there would be a $1.7 million annual debt service payment beginning FY 2012-13 and outlined the proposed impact on property owners. Mr. Mood stated that staff recommends that the Council approve Resolution 2011-05, ordering and calling a Special Bond Election in November 2011 and indicated his willingness to respond to questions from the Council. Mayor Schlum thanked Mr. Mood for his presentation. Deputy Town Manager/Finance Director Julie Ghetti addressed the Council and said that the question is "why now?" and as Mr. Mood said, this is a prominent goal of the Council for fiscal year 10 -11 and is also a Strategic Initiative identified by the citizens during the planning process a couple of years ago. She added that this also helps them to focus on the Downtown Plan and reported that this is the lowest cost borrowing in over 40 years. Ms. Ghetti stated that this will allow the Town to piggyback on some of the larger municipalities' bids as opposed to waiting a couple of years when the economy has picked back up and it will cost more. She said that they can pay now or they can pay later is the bottom line and noted that they have been waiting on and delaying major road projects as long as she has been there (20 years) and they will never have enough funds to do what they need to do with the roads. She advised that the cost of maintaining approximately 390 lane miles is more than what the Town receives for road maintenance each year, including grants. HURF, or street funds, cannot support the annual debt service or the cost of pavement management. The current road maintenance plan is the most expensive way to management the pavement and what they ar e doing now is just putting band aids on it and delaying the inevitable. She noted that they can save money in the long run by bringing the roads up to standards and then following the annual maintenance plan and maintaining those roads for up to 30 years . She commented on the fact that not many people actually look at the roads, but their condition does add to the quality of life for the residents and adds value for businesses and property owners. She added that maintaining smoother and longer - lasting roads is a long-term investment that requires capital expenditures. She stated that annual maintenance has been limited to the bare minimum due to the evaporation of State road funds and without reconstruction the projected minimum maintenance costs for the next five years, coming out of the CIP Fund, would be $3.7 million dollars or $8.2 million over the next ten years, which would pretty much deplete the Capital Projects Funds. She reported that deteriorating roads may also impact property values. Ms. Ghetti referred to a chart that depicted where property tax dollars go (Copy available in the office of the Town Clerk) and noted that 46% of what is paid in property taxes goes to the School District , 39% goes to the County and only 3% goes to the Town of Fountain Hills and that is the voter approved bonds for the mountains, museum and open space. Ms. Ghetti discussed Town revenue sources; justification for the $29.6 million bond proposal, including the fact that it allows for long-term planning (good pavement management cannot be piecemealed), bond issues will be broken up to keep the cost to the taxpayers level, by authorizing the full amount now it saves election costs (each election costs approximately $50,000), the first phase is for Saguaro Boulevard, Zones 6, 7 and 1 and any further Council action will be required before any more bonds can be sold; current funding for roads; the reasons behind proposing bonds for streets; General Obligation (GO) bonds; the projected tax rate impact on property and tax impact to residents; and a proposed timetable for the election and bond sale including second and third bond sales if authorized. Ms. Ghetti indicated her and Mr. Mood's willingness to respond to questions from the Council. Mayor Schlum thanked Mr. Mood and Ms. Ghetti for their presentations. In response to a question from the Mayor, Ms. Ghetti advised that it is $.57 cents per $100 of assessed valuation (the amount Fountain Hills’ residents pay to the Town for bonds that were issued -- mountain, library and museum -- the General Obligation bonds). She clarified that in 2001, the cost was approximately $.57 per $100 and it is now $.16 (on the property tax bill). Mayor Schlum asked if Ms. Ghetti knows what they are paying overall property tax wise and she responded that including the schools and all that it is approximately $9.00 or $10.00 and the Mayor said that this is $.57 of that $10 and Ms. Ghetti concurred. Ms. Bender advised that Mr. Shawn Dow wished to address the Council on this agenda item. z:\council packets\2011\r2-3-11\110120m.docx Page 9 of 16 Mr. Dow addressed the Council and said that he had some questions regarding this item and that he had conducted some of his own research. He stated that he found out what a bond is, namely a line of credit that has to be paid back with interest. He added that they don't want to raise a tax with this; they want to raise a tax with interest to the tune of $30 million. He said that he called all the other cities and towns to find out how much they paid back for their bonds and noted that very few municipalities have bonds this size. He reported that they wind up paying back at least double so they are not talking about a $30 million bond, they are talking about a $60 million bond and already the Council is planning on renewing it. He noted that there is one community that so far has had to pay back seven times the amount because of all the renewals. He advised that he appreciates the Council allowing the citizens to have their say on this matter but said he is curious about the back-up plan. He stated that the Town has a great Streets Department that has been managing the roads for 40 years and they haven't had too many problems with them. He asked the Council what their back -up plan is if the voters turn down this proposal. Mayor Schlum thanked Mr. Dow for his comments. Councilmember Contino said that staff talked about the crossroads and he appreciates what they are doing on the two streets but said the one he is worried about that he hasn't seen in there from the beginning is Parkview/Saguaro and said there is no crosswalk. He asked Mr. Mood if they had thought about that location and whether there is a way to work that in. Mr. Mood replied that what staff is showing right now is just a concept and they plan to have the engineering firm that would eventually be hired look at Saguaro and come up with a plan for which crosswalks they would propose. He said that they would go over their proposal with him, the Town Engineer and the Streets Superintendent and that would most likely come back to the Council at a Work Study Session. He stressed that nothing is set right now. Councilmember Contino asked if staff had any idea of what the engineering costs will be and Mr. Mood advised that the cost of this size project is in the $7 million range, and if it was a new road, new reconstruction, it would probably be in the five to six percent range. He explained that mill and overlay results in a lot less design work and the major design work on Saguaro will be whatever is decided they will do at the interse ction of Avenue of the Fountains. There will be some significant design work at Palisades for the drainage improvements and the crosswalks/sidewalks. They will have to go out and survey all the manholes, the valve covers, etc. to make sure they don't get covered up. He added that they will want to work with the Sanitary District and the Water Company on their future projects before they get in there. He stated that if he had to guess he would put in about 10% to cover any engineering costs and construction management costs. He noted that they will probably want to look at hiring an outside construction management firm because right now they only have one engineering inspector and this one project would take up all of his time and not allow him to do any thing else. He added that for budgetary purposes he has about 10% in the $7.5 million number and the money would come from bonds. In response to a request for clarification from the Mayor, Mr. Mood stated that the engineer that they have ready for a study will be paid out of money that has already been programmed out of the Downtown Improvement Fund in the Capital Improvement Program to specifically look at Saguaro and Avenue of the Fountains. The budget right now has $30,000 for the study and he has talked with the engineer who he has worked with before and the proposal they presented is under $20,000 (study only) and they will come out and look at traffic counts, turning movements, how many large trucks use that intersection, future traffic volumes 20 to 30 years out as well as do a study that focuses on if they do nothing and leave it as it currently is and if they want to do a three-way stop and shrink the intersection because one of the major problems with that intersection is how wide it is. He added that they will look at a traffic signal and what that would look like and what it would do to the traffic patterns and different options for a traffic circle and resulting traffic patterns as well. He reiterated that any proposals would be brought back to the Council at a Work Study Session to obtain their input and find out how they want to proceed with a full engineering design, which would be separate. Councilmember Contino referred to the traffic counts that would be done and how many trucks would be traveling there, etc. and said that there are times during the week when he is on the road 5:00 to 6:00 a.m. and he sees a lot of semis and questioned how they will know what the traffic counts will be if they don't get up before dawn to conduct the stu dies. Mr. Mood replied that the plan is to get them out there very early and they will probably be out there a few days during the week and a few days during weekends in order to pick up the different traffic patterns. z:\council packets\2011\r2-3-11\110120m.docx Page 10 of 16 Mayor Schlum asked Mr. Mood to respond to comments made by the speaker relative to what other cities/towns do, back- up plans, etc. Mr. Mood stated that coming from the Town of Gilbert, he can report that in 2006 they conducted a road bond election of approximately $60 million and then in 2007 they did another for approximately $170 million. He said that Gilbert is still working through that plan and it will take them ten years to get through it all. He added that if the item is placed on a ballot and is not approved by the voters they would have to keep doing what they are doing now and that would start to deplete the Capital Projects Fund, which would inhibit their ability to do all of the infrastructure projects. He stated tha t the HURF funds that they receive are only enough to cover the Streets Department's general maintenance on traffic signals, street sweeping, etc. He noted that right now they pay for the annual maintenance program 100% out of the Capital Improvement (CIP) Fund. Mayor Schlum said that he heard that the issue is t he fact that this is a loan, borrowing money, and as Ms. Ghetti pointed out the rates are extremely low but they still have to pay back interest. Mayor Schlum commented on the fact that if they wait longer the cost will be higher not only because prices w ill go up but also because the roads will be in worse shape than they are now. Mr. Mood advised that if they keep going down the same path and just d o minor surface treatments and no mill and overlay they would be at the same point ten years from now. The roads would continue to degrade and instead of doing 20% a year of mill and overlay they might have to do 25% or 30% because instead of the roads being 50 to 60 years old at the end they will be 60 to 70 years old. Councilmember Dickey said that when they talk about property assessment, they talk about it for the whole Town. She stated that if more houses were built and property values increased would that alter the rate for each house (less if there are more houses?). Ms. Ghetti replied yes and said that as more properties are added or there is more property valuation, the tax rate does go down because you take your annual debt services, which they are trying to keep level across 15 or 20 years ; however, the more valuation you have to divide that same number into the rate does go down. She noted that for the purposes of this staff just assumed no increases in valuation so this is a worst case scenario. She said that realistically they hope that the rate would go down. Councilmember Dickey commented that she brought that up because a lot of people think that when their property's value goes up it might automatically mean that their tax would go up but at the same time if it is happening to the whole Town and more homes are being built the amount could actually go lower. She added that Ms. Ghetti stated that this is a good time as far as interest rates but if for some reason they got a lot better, she would like to know if they would be able to refinance. Ms. Ghetti responded that they could depending upon the terms of the bonds (some of them are not callable) and the longer the period when you are not able to call them back in to refinance, the better the interest rate. She added that if they wanted to have a shorter period then they are going to pay a little bit higher interest. Councilmember Dickey noted that if the costs come in lower, just having an authorization for $29 million does not mean they have to do that and asked if that had a time limit to it. Ms. Ghetti concurred and stated that there is a time limit and according to the Town's financial advisor School Districts have a ten-year time limit in which to use up their authorization and cities/towns, depending upon which firm you talk to, may have 20 years (based on information from one of the more conservative law firms). Town Attorney Andrew McGuire addressed the Council and stated that the time limit can go out as much as 40 years but the Town's financial policies are 20 years. He added that 15 years is the target and 20 years is the outside maximum and without knowing what kind of delay they are talking about, how long out, staff would prefer to leave that detailed question up to Bond Counsel to answer. Councilmember Dickey said the reason she asked that is if they don't move as quickly or the cost is a lot lower than they expect they wouldn't have to use all of it and maybe to put another concern to rest, even if they did they could not spend z:\council packets\2011\r2-3-11\110120m.docx Page 11 of 16 the money on anything else and if they didn't have a street/road need, it is not like they could just call the bond and use it for something else. Mr. McGuire concurred and noted that the only things they would be allowed to use it for are in the actual ballot question that is attached to the resolution. He added that if they find themselves with borrowed money that is in excess of what is needed for the projects, there are a number of options including what Mr. Mood mentioned as far as the percentage that is done in each zone. He said they might be able to get ahead of the program or closer to the ideal maintenance schedule. He reported that this is a backed off, conservative, trying not to borrow too much version. He noted that if they get more "bang for their buck," which they have seen lately, they might get more of the program done but they are still stuck in that program and the funds can't be used anywhere else. Vice Mayor Brown asked whether staff has allowed for inflationary pricing increases over the years and Mr. Mood advised that his projections include a 3% inflation factor each year. The Vice Mayor stated that he has studied the plan carefully and the long-term plan is not as aggressive as he would like to see it but it is certainly a plan that he thinks is doable. He added that it is important for the Town to have a plan and believes that this is the first time that the Town has actually had a long-term plan and said that it looks good to him. He commented that as far as the "pay now, pay later," he thinks they are already paying "later" and if they don't pay "later" now, "later, later" is going to be extremely expensive. He noted that as far as the HURF fund, they are currently at $1.3 million and asked what the chances are of that going away and will the Town continue to use it strictly for maintenance (signage, street sweeping, etc.)? Mr. Mood advised that he cannot speak to it going away and concurred that the monies are only used for street maintenance. He stated that unfortunately right now it is not enough to cover the annual maintenance program; it is only enough to cover the day-to-day operations of the Streets Department (salaries, street sweeping, minor repairs that they do). Councilmember Hansen said as Ms. Ghetti mentioned, it has been a tradition in Town through the 90's that street maintenance was always put on the chopping block and deferred to other departments a nd other priorities so that is how they got to this point. She added that they do look at that number and it is a really big chunk to swallow and she wonders if there are any guarantees they can give the voters that it is in fact broken down into those four areas. She said it is important that they know the plan. They are voting for $29 million but we have to guarantee that for this time period so much will be spent and for the next so much so they know what they are getting. Mr. Mood responded that that is ultimately up to the Council because when they go out for the actual sale of the bonds it needs to come before Council for approval. He added that they need to get voter approval for the full $29 million but they need to come back before Council to get a vote to sell the $13 million the first time and then four years later they will come back and request Council approval to sell the next $6 million, the next $6 million and then the $4 million. Councilmember Hansen asked if any consideration was given in 2012 for Zone 6, Saguaro Boulevard for that first big project to go forward concentrating more on the commercial area on the streets that are traveled a lot more heavily on a daily basis (like Palisades and Saguaro). Mr. Mood replied that staff did look at that but unfortunately they want to keep it in the same cycle so if they skipped Zone 6 and use the money for other areas, then they are really getting out of whack and not getting into a good cycle. He noted that they might not get back to Zone 6 for a while and instead of that going 7 years it could be going 8, 9 or 10 years. He added that they are concentrating the program in each zone on the arterials and collector streets (the more heavily traveled streets). Councilmember Hansen stated that she is just wondering if they could help the voters, the ones who drive on Palisades every day, and added that if that particular segment was bumped up in the first initial phase it might help. In response to a question from Councilmember Elkie, Mr. Mood confirmed that the monies (the HURF funding) the Town receives is used for the Streets Department's annual budget. Mr. Mood said he thinks that the budget has been approximately the same as the monies that are received. He added that when they have a project going on like the Sanitary District project, when somebody cuts through their pavement they have to pay in lieu fees to let the Town go back and resurface the road, so they add that back into their funds as well. z:\council packets\2011\r2-3-11\110120m.docx Page 12 of 16 Councilmember Elkie asked if any additional road maintenance that needs to be done has to come from the Capital Improvement Fund and Mr. Mood confirmed that fact. Councilmember Elkie requested that Mr. Mood explain where the monies come from that go into the CIP fund. Ms. Ghetti responded that monies that go into the CIP fund are sales tax monies received from construction, which has dropped off considerably. She reported that the balance is currently about $10 million from several years ago when construction was really going strong, in addition to any surplus General Fund revenues. She added that staff does not anticipate any construction sales tax monies or surplus General Fund revenues for at least the next four or five years. Councilmember Elkie stated that it looks like in the foreseeable future that CIP funds will dwindle and will be very small as far as new construction and they really don't expect any surplus General Fund revenues and Ms. Ghetti concurred. Councilmember Elkie said that that being the case the monies will come out of the General Fund (and HURF) if there are no CIP funds (monies would have to come from somewhere else) and Ms. Ghetti again concurred. Councilmember Elkie stated that for the sake of argument, let's say that all the Town's streets are new, what would the annual budgeted cost be to maintain them in an appropriate cycle? Mr. Mood advised that it would cost anywhere from three quarters of a million dollars to one million dollars a year depending on the zone (different sizes) to maintain new streets in an appropriate manner. Councilmember Elkie stated that presuming the voters approve this particular bond, once the roads are back in condition can they expect a stable, annual amount (including inflation). Mr. Mood replied that they are only mill and overlaying 20% of each zone each year so it will take five times in each zone to get all the roads milled and overlaid (once every seven years means it will take 35 years before all of the roads have been redone). He noted that it is a cycle and then they have to plan for a long-term maintenance program to keep the roads in good condition. Councilmember Elkie asked if the Town borrows $29.6 million could Ms. Ghetti project what that payment is going to be with interest. He added that he knows they are not going to borrow it all at one time and $13 million would be the first phase. He said that Mr. Dow commented that if they borrow $29.6, they will be repaying double that amount (and another municipality paid triple that). Ms. Ghetti stated that Mr. Dow is correct and there is an interest charge. If they borrow $29 million it will cost them more than $29 million but what she doesn't have in front of her is because they are going to borrow it in separate sections, the $13 million, depending upon what the interest rate is, what is it going to cost them over 15 or 20 years depend ing on their repayment schedule but definitely there is an interest charge and it will cost more than $29 million but that is the nature of bonds. She apologized and said that she did not bring the debt schedule with her this evening but she can provide t hat information on Monday. Councilmember Dickey asked whether HURF funds can be used for landscaping and blocking the views of the roads if it is a safety issue and Ms. Ghetti advised that the funds can be used for anything that is considered street or ro ad maintenance, which includes right-of-way and line-of-sight issues. Mayor Schlum thanked Ms. Ghetti and Mr. Mood for a good presentation and commented on the fact that the Streets Department does a good job but they need the tools to make sure the roads do not fall into worse decline on many parts of Saguaro Boulevard, which they have been putting off. He said that Councilmember Hansen brought up a good point about Saguaro and Palisades and asked when those would be addressed (Saguaro in particular and Palisades). Mr. Mood advised that staff would look at doing Saguaro right away and they would do Zone 6 in the first year and try to do Saguaro in the first year as well. He noted that Zone 7 is the major arterials and they only budgeted enough to do 20% of Zone 7 so that 20% is Palisades from Saguaro to Fountain Hills Boulevard and then Fountain Hills Boulevard from Palisades to Saguaro. He said that is the 20% that will get the mill and overlay and the other arterials in Zone 7, the rest of Palisades and Fountain Hills Boulevard and Shea, will either get a slurry seal or a treatment. z:\council packets\2011\r2-3-11\110120m.docx Page 13 of 16 Mayor Schlum stated that all of Saguaro, Palisades to Fountain Hills Boulevard, will be done in the second year. Mr. Mood said that in speaking with the Sanitary District, whenever the Ellman property develops they need to put a sewer line in from the wastewater treatment plant on Saguaro and Pepperwood up to their property. He added that they probably don't want to do Saguaro from the plant to Fountain Hills Boulevard ri ght away because the last thing they want to do is build a new road and have somebody come in a year or two later and cut it. Mayor Schlum noted that from Fountain Hills Boulevard on Saguaro, it is a quarter mile back to Pepperwood. Mr. Mood advised that they would have to coordinate and look at timing. He added that the Water Company has indicated that a new water line would need to go in with the Ellman project down Fountain Hills Boulevard from Palisades to the north so staff may not look at doing that. If that doesn't go, staff would probably look at taking the money and mill and overlay the small section of Fountain Hills Boulevard and probably do Shea from Palisades to the Scottsdale border. Mayor Schlum commented that at a Work Study Session they learned more as a result of the great report that Mr. Mood put together. He said that the Council welcomes his talents to the community. He also thanked him for delivering the more or less bad news. Councilmember Hansen asked whether Mr. Mood and Ms. Ghetti had a plan to "take their show on the road" and Ms. Ghetti responded absolutely. She stated that once the Council approves putting this issue before the voters their plan is to get out and inform the voters and make the public aware of this important issue. She added that hopefully they can give the citizens some comfort that this is a good plan and they are trying to do the best they can. Councilmember Dickey MOVED to approve Resolution 2011-05, ordering and calling a Special Bond Election to be held and for the Town of Fountain Hills, Arizona on November 8, 2011 to submit to the qualified electors thereof the question of authorizing the issuance and sale of $29,635,000 principal amount of General Obligation Bonds, Project of 2012 and Councilmember Elkie SECONDED the motion. There was no further discussion on this item. The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #7 – CONSIDERATION OF RESOLUTION 2011-06, APPROVING AN INTERGOVERNMENTAL AGREEMENT WITH THE FOUNTAIN HILLS SANITARY DISTRICT RELATING TO G.I.S. MAPPING AND C.A.D. SERVICES. Mr. Davis addressed the Council relative to this agenda item and explained that the Intergovernmental Agreement between the Town of Fountain Hills and the Fountain Hills Sanitary District would establish the opportunity for the Sanitary District to utilize the Town's GIS and CAD services under the conditions stipulated in the IGA. He noted that services would primarily be utilized by the Sanitary District to update their sewer atlas. He advised that this will save taxpayer money and will make more efficient use of the Town's personnel. Mr. Davis indicated his willingness to respond to questions from the Council. Mr. McGuire pointed out that on the IGA, the initial term in the Council's packets is through June 30, 2011 and that should be changed to 2012. There were no citizens wishing to speak on this agenda item. Vice Mayor Brown MOVED to approve Resolution 2011-06, approving an Intergovernmental Agreement with the Fountain Hills Sanitary District relating to GIS and CAD services, as corrected (initial term) and Councilmember Elkie SECONDED the motion. Mayor Schlum commented that this represents good leveraging of resources and a collaborative approach. He commended staff for coming up with this. Councilmember Hansen asked if the District has acted on this yet and Mr. McGuire advised that they acted on a version somewhat similar to this a while back. He added that he talked with th eir legal counsel about the version before the z:\council packets\2011\r2-3-11\110120m.docx Page 14 of 16 Council this evening and he is comfortable with the proposal. He said that the resolution can be adopted as is because they can make the administrative change to the term of the agreement. The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #8 – DISUCSSION WITH POSSIBLE DIRECTION TO STAFF RELATING TO THE APPOINTMENT OF TOWN STAFF TO A WORK GROUP IN COOPERATION WITH THE FOUNTAIN HILLS SANITARY DISTRICT TO DEVELOP FOUNTAIN LAKE QUALITY INITIATIVES. Mr. Davis addressed the Council relative to this agenda item and said that in December the Sanitary District was kind enough to share with the Town a report on the water quality in the Fountain (in Fountain Lake) and acting upon that, staff is here to propose that the Town Manager appoint three individuals from staff to work with the District’s staff to formulate some initiatives, which the Council could ultimately act upon. He noted that the Mayor had responded to an inquiry from the Sanitary Board relative to what this governing body planned to do and the only initiative they have considered thus far is the appointment of this group. He added that the Council would then define a scope for them of what to look at and what type of initiatives the Council would expect to be brought back to them. He advised that the individuals he proposes are Julie Ghetti (guidance relative to finances), Mark Mayer (Community Services Director) and Paul Mood (Development Services Director). He requested any guidance and advice that the Council would like to offer at this time. Mayor Schlum thanked Mr. Davis for his comments. There were no citizens wishing to speak on this agenda item. In response to a question from the Mayor as to whether or not a motion is needed to provide staff direction, Mr. McGuire advised that the Council could confirm the direction by a simple motion and voice vote. Councilmember Hansen stated that it is her understanding that the District has appointed a couple of Directors to this as a way to show their commitment to this undertaking and asked whether a Councilmember or two should serve as well. The Mayor asked Mr. Davis for some input on the question raised by Councilmember Hansen. Mr. Davis said that staff is flexible on the composition of the group and added that staff's thoughts were that this group would delve into some of the technical possibilities associated with this and then bring back both governing boards ’ initiatives that could then be acted upon. He added that he has no informa tion relative to the composition of the District's delegation. He stated that if their group is made up totally of staff perhaps the Town's group should remain technical but emphasized that staff is flexible and will take direction from the Council. Councilmember Hansen said that she is just looking for conformity. Mayor Schlum asked Mr. McGuire about the makeup of that work group and asked if there were any restrictions and/or concerns they needed to be mindful of and Mr. McGuire replied that any time t he Town designates an official committee or sub working group of this body, which they would by a motion and vote, if it contains Councilmembers they always have to consider the Open Meeting Law and upholding that. He noted that it doesn't take a quorum o f the Council on that body in order to make it a body that has to follow all of the regulations associated with the Open Meeting Law. He said that it can be a sub-committee without doing that and without talking to Bill Sullivan (legal counsel for the District) about this he does not know whether they analyzed this issue. He stated that if it is not a sub-committee, he would certainly like to talk with them about it. He reiterated that anytime there are Councilmembers appointed to an official sub -committee, there are always concerns. Mayor Schlum asked even if they are not making decisions and Mr. McGuire replied that sub -committees and advisory committees don't typically make decisions, they make recommendations and the statute is very broad in terms of sub- committees and advisory groups and encompasses everyone that the Council designates. He noted that if it is a staff only group, there is a lot less concern regarding Open Meeting issues. z:\council packets\2011\r2-3-11\110120m.docx Page 15 of 16 Councilmember Hansen said that since this is considered a st udy group maybe it would be more like their Centennial Committee that both she and Councilmember Dickey serve on and said she can see it more in that light but they have not had that problem. Mayor Schlum stated perhaps they should leave that up to the Town Manager after they have some more discussion on it. Mr. McGuire advised that if the Council's motion this evening was to direct the Town Manager to go forth and put together a study group of people he thinks will work well on and taking into considerat ion the discussion they have had here this evening he thinks they would be fine. He added that if they form a committee that is when they will actually get into the Open Meeting Law issue. Mayor Schlum stated that they would probably move towards that after a little more discussion about the scope and timeline (and coverage for the work group to make sure they have adequate direction and the process is a success). Councilmember Elkie asked if the Council could just have discussion and provide direction without doing a motion and forming a committee and Mr. McGuire said yes, the Town Manager would just listen to the discussion and draw his conclusions from what he has heard. He added that if the Manager has heard from a majority of the Council that they a re in favor of a certain proposition then the Manager would understand which way to go. Mayor Schlum commented that the Open Meeting Law is important and a serious topic in Arizona. Councilmember Hansen stated that perhaps Mr. Davis and his counterpart Ron Huber could get together and come up with a good, balanced blend. Mayor Schlum said he would like to share with everyone the contents of the letter, which he didn't share previously because of the Open Meeting Law and advised that it talked about the direction and was primarily based off of the presentation they had at the joint meeting with the Sanitary District. He stated that they are thankful for the expense they went through to get the consultant to look at some items. He added that what he thought would be good is to help in making sure their expectations are being met or there is some guidance and said he would like to know how the Council feels about looking first at a relatively shorter term with some reports back to Council or to staff and th en coming before the Council for some expenditures or additional agreements (some of the things the consultant mentioned such as colorization and water movement but maybe not all the capital projects under the initial discussion). He stated that those were his thoughts -- to give some scope to the group short term and longer term and hopefully see some good results and how many of the big dollar items they will actually have to do. He noted that some of the short -term items seemed fairly promising but he knows they received a very preliminary report. Councilmember Elkie said that generally speaking he thinks that it would be helpful for the Council, the Sanitary District and the residents to have some discussion between the two organizations about essentially improving the quality of water in the Fountain and saving some costs. He added that that is pretty much everyone's goal. Mr. Davis advised that he would be interested in hearing from members of the Council if they have an interest in serving in that capacity. He stated that he has had discussions with Mr. Huber about the composition of this group and if he is going to have a mix of certain individuals on his side, including governing board members, then it might be appropriate for the Town to have the same thing because he believes it would function better that way. He added that he was under the impression the first time that he talked with Mr. Huber that he was going to keep it on the staff level and that is why he proposed what he did but in light of Councilmember Hansen's comments if they need to reconsider that and it would be helpful to him to know who was interested and available to participate. Mayor Schlum asked the members of the Council who are interested to get together with Mr. Davis by the end of next week. He said that it is the consensus of the Council that the Town Manager move in the direction as discussed. The Mayor thanked Mr. Davis and the Sanitary District for their efforts in this regard. AGENDA ITEM #9 – QUARTERLY UPDATE BY THE TOWN MANAGER ON PROGRESS OF IMPLEMENTING THE COUNCIL'S GOALS FOR FY 2010-11. z:\council packets\2011\r2-3-11\110120m.docx Page 16 of 16 Mr. Davis advised that way back on January 14, 2010, he designated eight primary goals with 39 initiatives that staff continues to pursue and complete in this fiscal year. He reported that he was pleased during a meeting with the Department heads today to discuss every one of those initiatives and was happy to report to the C ouncil that the second quarter of this year saw the greatest progress towards the completion and realization of those goals. (Copy of the presentation available in the office of the Town Clerk.) He indicated his willingness to respond to any questions th e Council may have regarding the quarterly report. Mayor Schlum thanked Mr. Davis for his comments and said that they are making progress. AGENDA ITEM #10 – COUNCIL DISCUSSION/DIRECTION TO THE TOWN MANAGER. Items listed below are related only to the propriety of (i) placing such items on a future agenda for action or (ii) directing staff to conduct further research and report back to the Council. A. Follow up by Town Manager on discussion under Agenda Item #8. AGENDA ITEM #11 – SUMMARY OF COUNCIL REQUESTS AND REPORT ON RECENT ACTIVITIES BY THE TOWN MANAGER. None. AGENDA ITEM #12 - ADJOURNMENT Councilmember Contino MOVED to adjourn the meeting and Vice Mayor Brown SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). The meeting adjourned at 8:22 p.m. TOWN OF FOUNTAIN HILLS By __________________________ Jay T. Schlum, Mayor ATTEST AND PREPARED BY: _________________________ Bevelyn J. Bender, Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Session held by the Town Council of Fountain Hills in the Council Chambers on the 20th day of January, 2011. I further certify that the meeting was duly called and that a quorum was present. DATED this 3rd day of February, 2011. _____________________________ Bevelyn J. Bender, Town Clerk