HomeMy WebLinkAbout2011.0602.TCRM.Minutesz:\council packets\2011\r8-4-11\110602m.docx Page 1 of 12
TOWN OF FOUNTAIN HILLS
MINUTES OF THE REGULAR SESSION OF THE
FOUNTAIN HILLS TOWN COUNCIL
JUNE 2, 2011
* CALL TO ORDER AND PLEDGE OF ALLEGIANCE
Mayor Schlum called the meeting to order at 6:30 p.m. in the Town Hall Council Chambers.
* INVOCATION – The invocation was provided by Mayor Schlum.
* ROLL CALL
Present for roll call were the following members of the City Council: Mayor Schlum, Vice Mayor Contino,
Councilmember Brown, Councilmember Leger, Councilmember Elkie, Councilmember Hansen and
Councilmember Dickey. Deputy Town Manager/Finance Director Julie Ghetti, Town Attorney Andrew
McGuire and Town Clerk Bev Bender were also present.
* MAYOR’S REPORT
None.
* SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS
(i) Presentation by Mayor’s Youth Councilmember Kalyn Behnke on her end-of-the-year project: “Top
Three Risk Behaviors Threatening Teens in Fountain Hills.”
The Mayor welcomed Ms. Behnke to the meeting, congratulated her on her recent graduation and thanked her for
presenting the results of her end-of-the-year project this evening (PowerPoint on file in the office of the Town Clerk).
Ms. Behnke discussed the constituents of risky behavior and advised that numerous students were interviewed at Fountain
Hills High School and asked to provide their opinion. A majority of the students were willing to informally provide
information for the study and as a result of the interviews, three forms of risky behavior that was most common were
identified: (1) Illegal alcohol consumption; (2) Illega l drug use, mostly medication or marijuana; and (3) Breaking
curfew (for parties and other teen gatherings).
Ms. Behnke reviewed information collected regarding all three high -risk behaviors identified above and reported that the
major reasons the youths indulged included:
* A belief in a lack of parental and Town surveillance on their activities;
* Extreme confidence in that their behavior will not have deep repercussions; and
* That there are not enough activities to do in Town to occupy their time
Ms. Behnke expanded on the reasons for indulgence and provided the following suggestions for improvement:
* Establish a stronger connection between authority figures (especially police) and students;
* Take more opportunities for communication of the punishments of indulging in risky behavior;
* Emphasize that although students live a sheltered life in Fountain Hills, they are not immune to consequences;
* Add more activities at various times for teenagers to participate in;
* Use forms of media (school announcements, massive amounts of flyers) to advertise events that are a healthy output
for students
Ms. Behnke thanked the Council for the opportunity to address them this evening and indicated her willingness to respond
to any questions.
Mayor Schlum thanked Ms. Behnke for her excellent presentation.
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Councilmember Leger asked how many students were involved in the survey process and Ms. Behnke replied 75, mostly
seniors and freshmen, sophomores and some juniors as well.
Ms. Behnke responded to additional questions from the Council and was commended for the hard work that she put into
this project that ultimately will benefit the Town and its youths.
Mayor Schlum commented on the importance of the awareness factor and commented on the large number of scholarships
that students from the High School were awarded this year. He said that there is a lot to be proud of about the Town's
youths and reiterated his appreciation to Ms. Behnke.
CALL TO THE PUBLIC
Town Clerk Bev Bender advised that two citizens wished to address the Council this evening.
John Ewald, addressed the Council and discussed his extensive experience in the construction industry. Mr. Ewald
commented on the Allied Waste contract and said he believes that the Council should review the contract and ask more
questions. He stated that Allied has promised to do a lot of things and stressed that the contractor should not dictate what
is going to happen in the Town, the Town is in charge. He stressed that people do not want one day between pickups and
they should provide the service that the citizens want -- two days between pickups. He requested that the Council fix the
problem with the contractor. He thanked the Council for allowing him to address them.
Lina Bellinar addressed the Council and referred to a list of nine questions that one of her fellow residents and friend has
attempted to get answered by the Council via e-mail. She stated that this individual has sought answers to the questions
on more than one occasion. She outlined some of the questions that were posed and brief answers listed in response to the
questions. She said that she finds their evasiveness in answering particularly disturbing. She noted the dire economic
times that everyone is facing and said that every single penny distributed is money provided by taxes from hard-working
Americans who are continually bringing home less through taxation without representation. She added that transparency
in government has become increasingly important and taxpayers have every right to know where and how their money is
spent and distributed. She further stated that cagey, one word, ambiguous responses are not acceptable and said never
does N/A apply within the confines of government. She urged the Mayor and Council to make this right and answer the
individual's questions this evening.
Mayor Schlum thanked the speakers for their comments and advised that the agenda does not allow the Council to
respond at this time but they may be able to speak to some of the items when they discuss the budget.
CONSENT AGENDA
AGENDA ITEM #1 – CONSIDERATION OF APPROVING THE CANCELLATION OF THE TOWN OF
FOUNTAIN HILLS JULY COUNCIL MEETINGS (JULY 7, 12 & 21, 2011).
AGENDA ITEM #2 – CONSIDERATION OF RESOLUTION 2011-22, GRANTING AN 8’ WIDE POWER
DISTRIBUTION EASEMENT TO SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND
POWER DISTRICT (SRP) ON THE TOWN CENTER SITE.
AGENDA ITEM #3 - CONSIDERATION OF A CONSTRUCTION SERVICES AGREEMENT TO CPG
CONSTRUCTION, LLC FOR $12,600, TO CONSTRUCT A SIDEWALK ON THE SOUTH SIDE OF AVENUE
OF THE FOUNTAINS (TOWN HALL TO VERDE RIVER DRIVE) AND ON THE SOUTH SIDE OF
PALISADES BOULEVARD (WESTBY DRIVE TO BASHA’S SHOPPING CENTER).
AGENDA ITEM #4 – CONSIDERATION OF A SPECIAL EVENT LIQUOR LICENSE APPLICATION FOR
THE VFW.
Councilmember Dickey MOVED to approve the Consent Agenda as listed and Councilmember Brown SECONDED the
motion.
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A roll call vote was taken as follows:
Councilmember Dickey Aye
Mayor Schlum Aye
Councilmember Leger Aye
Councilmember Hansen Aye
Vice Mayor Contino Aye
Councilmember Brown Aye
Councilmember Elkie Abstain
(Councilmember Elkie submitted the application for Agenda Item #4 on behalf of the VFW and therefore abstained.)
The motion CARRIED UNANIMOUSLY by those voting (6-0).
REGULAR AGENDA
AGENDA ITEM #5 – CONSIDERATION OF APPOINTING FIVE (5) CITIZENS TO FILL VACANCIES ON
THE STRATEGIC PLANNING ADVISORY COMMISSION (SPAC), EACH FOR A TWO-YEAR TERM
BEGINNING ON JULY 1, 2011 AND EXPIRING ON JUNE 30, 2013.
Mayor Schlum MOVED to appoint Nick Deporter, Mike Dooley, Curt Dunham, Alan Magazine and Richard Schultz to
fill vacancies on the Strategic Planning Advisory Commission (SPAV) each for a two -year term beginning July 1, 2011
and expiring on June 30, 2013 and Councilmember Dickey SECONDED the motion.
There were no citizens wishing to speak on this agenda item.
The motion CARRIED UNANIMOUSLY (7-0).
Mayor Schlum acknowledged the presence of a number of the appointees in the audience and thanked them for their
willingness to serve the Town.
AGENDA ITEM #6 – CONSIDERATION OF THE THIRD AMENDMENT TO THE PROFESSIONAL
SERVICES AGREEMENT TO HDR ENGINEERING’S DESIGN CONTRACT FOR THE SHEA
BOULEVARD/SAGUARO BOULEVARD INTERSECTION IMPROVEMENT PROJECT. THE PSA
AMENDMENT #3 INCREASES THE PROJECT DESIGN COST BY $80,989 AND EXTENDS THE
CONTRACT TIME TO 12-31-11.
Town Engineer Randy Harrel addressed the Council relative to this agenda item and advised that HDR Engineering is
currently under contract with the Town to design improvements on Shea Boulevard at/near its intersection with Saguaro
Boulevard. HDR's design has progressed to the 60% design stage. He discussed the six pieces of the contract amendment
and provided justification for the approval of the proposed third amendment.
Mr. Harrel noted that although the Town is managing this project and the full change order amount will pass through the
Town's accounting books, the Town will actually only be funding a small portion of this design change order. He provided
the following breakdown of the Third Amendment Funding Summary: MCDOT: $12,583; MAG RTP (at 70%):
$47,884; and the Town (at 30%): $20,522 for a total of $80,989. He noted that funds are available in the Capital
Improvement Fund and in this year's budget for this project (this Amendment).
Mr. Harrel added that staff recommends approval of Amendment #3 to HDR's design contract for the Shea -Saguaro
Intersection Improvement project.
There were no citizens wishing to speak on this agenda item.
The Mayor thanked Mr. Harrel for his presentation.
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Mr. Harrel responded to a number of questions from the Council and provided various clarifications. He noted that
westbound will all be rubberized and he anticipates that the two inside lanes on t he east will be rubberized and less
expensive treatments may be used in areas that do not need to be rubberized. He said that rubberized treatment is
considered to be longer lasting. Mr. Harrel stated the opinion that the work on the intersection will probably occur about a
year from now.
Deputy Town Manager/Finance Director Julie Ghetti confirmed that the Town's share will come out of the Capital
Projects Fund.
Councilmember Leger MOVED to approve Amendment #3 with HDR Engineering, Inc. in the amount of $80.989 for the
Shea-Saguaro Intersection Improvements project and Councilmember Elkie SECONDED the motion, which CARRIED
UNANIMOUSLY (7-0).
AGENDA ITEM #7 - DISCUSSION AND POSSIBLE DIRECTION TO STAFF REGARDING THE PROPOSED
FISCAL YEAR 2011-12 BUDGET, INCLUDING ALL REVENUES AND EXPENDITURES FOR ALL TOWN
FUNDS.
Mayor Schlum advised that there will not be another formal presentation on this item but said they will open it up to
citizen comments and additional discussion.
Ms. Bender advised that there were citizens wishing to address the Council.
Linda Kavanagh, Chairman of the Board of the Chamber of Commerce, addressed the Council and emphasized that
tourism is a major economic engine for the Town. She noted that tourists use Fountain Hills as a lowe r-priced base of
operations for seeing other attractions is Scottsdale, Phoenix and surrounding areas. She said that many tourists do not
know about Fountain Hills and only learn about the Town and stay here because they read the tourist promotions that are
disseminated with the help of the Chamber of Commerce, the Town and its Fort McDowell neighbors. She stated that the
joint operations pay great dividends to the Town and expanded upon the benefits the Town receives as a result of tourism.
She reported that a study of the economic impact of tourism on government and revenue found that for each dollar spent
by the Arizona Office of Tourism there is between $2.65 and $8.08 of State tax revenue generated. She added that there is
no reason to believe that the return would be less for the Town. She said that tourism also drives economic development
and retail businesses, movie theaters and the businesses that service the m need customers. She stated that spending
money to promote tourism is clearly an investment rather than an expense and it yields returns that are and can be
astronomical. She expressed the opinion that the Town would be penny wise and pound foolish to reduce its commitment
to promote tourism in Fountain Hills. She strongly advised the Council to invest wisely in the Town's economic well
being and future by adequately funding tourist promotion. Ms. Kavanagh thanked the Council for the opportunity to
address them.
Roxanne Boryczki addressed the Council and provided brief background information including the fact that she and her
husband have owned and operated a travel business and retail business in Fountain Hills for 15 years. She discussed her
involvement in the Chamber of Commerce and noted that she was a founder of the Fountain Hills/Fort McDowell Visitors
Bureau. She commented on the challenges that her businesses have survived and said she has expertise in the area of
budgeting and making tough decisions. Ms. Boryczki stated that she is here this evening to ask the Council to make a
smart decision and not to cut any of the funding for the Fountain Hills/Fort McDowell Visitors Bureau. She stressed that
they are not a special interest group that should be lumped in with others who are in that charitable organization category.
She stressed that they are an arm of economic development and one of the sustainable entities that the Town can invest in
and maintain for its future. She said that economic development's goal is to att ract businesses and it is the Visitors
Bureau's job to bring people into Town to patronize and support those businesses. She referred to reports that were
provided to the Council that show the return on investment the Bureau provides and urged the Council to fund tourism
efforts and not make any cuts in this critical revenue-generating area. She thanked the Council for allowing her to present
her remarks.
Gary Luve addressed the Council and spoke in opposition to cutting any funding to the Visitors Bureau. He reported that
since the purchase of the Fountain Hills' Holiday Inn in 2009, they have seen a steady increase in group business, golf
business, wedding business -- and much of that is due to the efforts of the Chamber of Commerce and the Visitors Bureau.
He discussed increase occupancy rates and traffic into Town and noted that the Town has been able to generate an
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additional $1.2 million in Town sales taxes (just from non -resident visitors). He added that the overall tourist impact on
the Town is $49 million -- $49 million more to be spent on hotels, restaurants, hair salons, stores and other businesses. He
noted the money that is generated from the two Fairs the Town hosts and advised that his hotel alone paid over $100,000
in property taxes last year and the hotel business is still far from perfect. He said that the Town is one of the most
beautiful places in the State but is also one of the most unknown and unexposed places. He added that instead of cutting
budgets set aside for tourism the Town should be investing much more into this critical area because out-of-town visitors
will fuel the economy and increase exposure regarding Fountain Hills. He stated that if they increase the budget for
tourism they will increase economic stability. He pointed out that tourism is one of the Town's most valuable assets and
urged the Council to fund tourism and recognize its importance. He thanked the Council for allowing him to present his
comments.
Rand Hubbell, Chairman of the Advisory Committee on Tourism, (a subcommittee of the Chamber of Commerce),
addressed the Council and said that an agreement was made between the Town and the Chamber in 2008 setting the
funding for the following three years (2008 - $100,000; 2009 - $125,000; 2010 - $150,000). He report that for this year
the funding was cut to $129,000 and he understands that the funding for next year is being considered to be cut to
$103,000. He stated that the bottom line on tourism is that tourists spend money and support the Town's businesses . In
some instances they keep businesses in business and they create sales tax revenue for the Town. He discussed the
economic impact of tourism on the local economy and reported that in 2006 the number of unique hits on their website
totaled 6,112 and last year it was 59,051 -- an increase of almost 900%. He advised that they are not asking for an
increase to their highest funding level, they are asking for more because they believe there is another revenue stream, the
Community Center, that is not being marketed with the exception of weddings and that is in tandem with the Chamber of
Commerce. He advised that there is much to be done there and they have an expert, who is a resident of the Town, who is
under contract with the Chamber of Commerce and has experience with municipalities that opened convention centers.
He stated that they want to do more, work with the Community Center and boost the economy and urged the Council to
provide sufficient funding to do that. He said that everything he has talked about tonight is intended to generate sales tax
and thanked the Council for the opportunity to address them this evening.
Mayor Schlum thanked all of the speakers for their input.
The Mayor suggested that they have some dialogue on the comments presented this evening by the speakers as well as the
e-mails they have all received from citizens.
Ms. Ghetti advised that tonight is an opportunity for the citizens and the Council to ask questions regarding the budget and
added that there will be a Special Session held on Tuesday, June 14th to provide an additional opportunity for
questions/input. She further stated that on Thursday, June 16th, additional questions may be posed and discussion will
take place prior to the final adoption that evening. She said that the public is encouraged to attend and provide comment
at both meetings and noted that the meetings will be televised.
Councilmember Dickey referred to an e-mail received from Mr. Scarpetti that contained comments similar to those of Ms.
Bellenir regarding the Chamber/tourism being lumped into the charitable organizations group. She discussed her response
to Mr. Scarpetti’s communication (and his questions) and the fact that she told him that she didn't think the Council was
going to talk about the contracts in detail at the May 25th meeting. She added that at the meeting on Monday she asked
about them because she wanted to see the scope of work that they were supposed to achieve last year and whether it was
completed. She also wanted to know what the performance measures will be if they move forward with the contracts next
year. She advised that they had not gotten that far with the budget talks so she told him that tonight (it was the 25th) they
would likely approve the total amount of the budget with at least two more meetings for further information before they
vote on the budget, which will probably take place on 6/16. She told him that she thinks there might be a chance that the
contracts won't be completed even then but the amounts, which have decreased again, could be approved even if they
don't renew the contracts or desire those services (and then they wouldn't necessarily spend it). She stated that that
answered a lot of those questions that were in his e-mail. She advised that they are not charities except for perhaps the
Food Bank but they are similar to outsourcing like the Mayor stated in his response. She said she also said that’s a service
that might be more economical than having the Town do it in-house. She added that maybe that has changed but she is
not sure yet and the entities have been the recipient of many Councils and she cannot participate in anything having to do
with the theater.
Councilmember Dickey stated that to address the questions, she thinks it was a little disingenuous (unfair) to say that they
weren't answered because the list only used the part that the Mayor answered today (this afternoon) and did not include
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the answers that were provided previously. She said that she thought she and the Mayor answered the questions quite well
and quite civilly.
The Mayor noted that there was a part that said N/A (not applicable) on one of his responses and advised that it wasn't
applicable because the question was, "If not, how do we know what they are using it for." He advised that as he stated
before they are actually a scope of service and included in the contracts. He added that the contracts, when available, are
distributed for everyone to look at (scope of service, dollar amounts, etc.) and there are no secrets or conspiracies
involved. He said that he tried to answer pretty succinctly because they were pretty simple questions -- like "why do we
give monies to charities and not to others." He said he did answer that initially and stated that is because they have
contracts for services that were originally put together under an RFP (Request for Proposal). He explained they went to
an RFP process in order to clarify and try to get the scope of service organi zed for each organization (each year those are
up for reconsideration). He noted that some escalated in costs over the years and were further adjusted, as was discussed.
He pointed out that it is an on-going process for each of the services as they consi der what they can afford. He said that
they could certainly talk more about the value of tourism as raised by the speakers earlier this evening. He encouraged
discussion on this issue and all of the community contracts and said that as they get their arms around how much they are
going to budget they can talk about what services they think are most important to deliver with those potentially reduced
service level amounts.
Councilmember Hansen referred to Page 11 of the Strategic Plan, which is part of the budget document (Maintain and
Improve Community Infrastructure) and Page 12, Directive 1-8 that says, "To periodically meet with other community
service providers to do joint planning and ensure that service providers can accommodate new customers, etc." She said
that she believes this is referring to the Town's community service contracts. She stated that last year during the budget
process they had a committee made up of Council and staff to review the community service contracts and come up with
some alternative funding mechanisms for them because she thought the contracts were for three years so they would have
expired last year. The idea was to just to continue with them for an additional year and then during the past year go back
and get into the whole program and re-examine it because the economy has changed and the budget has changed. She
only recalls meeting with the community service providers during that process, to find out what their funding level needs
were. She asked if anything was done during this year to re-evaluate the program at all (or are they in the same place they
were last year?).
Mayor Schlum said he believes they are very similar to where they were last year with potentially a little less money.
Councilmember Hansen commented that perhaps they need to schedule a Work Study Session to discuss this, review
everything that the Town is paying for, the return on those expenditures and the number of citizens served and reassess it
and start over.
Mayor Schlum noted that during the Executive Budget Committee sessions they did address that a little bit more and they
have some more ideas to bring forward and share tonight.
Councilmember Leger stated that Ms. Boryczki mentioned that tourism has been bundled with other community services
and said that in this year's budget it has been un-bundled and is housed in the budget document on Page 116. He noted
that the budget document is on line and they can se e that there is a Community Service Contracts line item for $200,000
(the three community service contracts that are being evaluated in this budget cycle) and then there is a separate line item,
Tourism, for $103,200. He stressed that that has been evaluated and Tourism is a separate line item.
Discussion ensued relative to the fact that the Boys & Girls Club is not a charity but rather a service to the community;
tourism exists not only to keep the businesses here but also it is about families, teachers and schools (everyone should be
served); Councilmember Dickey's reference to an e-mail received today from Ms. Boryczki today ending in a reminder
that this is a election year, which appeared to her to be a veiled threat (if $50,000 is not included in the funding);
Councilmember Dickey’s comment that the Council was looking to reduce funding across the board and her point that
when they have meetings like this it could be intimidating due to the hostile atmosphere, however, the e-mail had taken
the fear out of it for her because they had said tax payer money was needed for the Chamber, and although she agreed that
economic development was important, things could be done in-house since the Town had an economic development
person on staff or the Council could decide to out-source; Councilmember Dickey's disappointment in the behavior that
has been displayed in view of the important critical decisions that the Council has to make th at impact the entire Town;
the fact that a Work Study will be scheduled to talk in more detail about what the Executive Budget Committee discussed;
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Deputy Town Manager Ghetti's update on items that were discussed by the Executive Budget Committee and the f act that
they are a little late in the game as far as having discussions with the groups that the Town wants to get services from; the
fact that today was the Committee's first opportunity to have any discussion specifically related to the contracts or ser vices
but dialogue has begun; the need to determine how much money they are going to be able to afford for all of the groups
and what sort of performance measures should be set in place; the fact that at the next Special Session it is the intent to
talk about each of the individual contracts and the services they would like to ask for out of those contracts; the Mayor's
comment that even at reduced amounts, the contracts are probably higher than where they were at four years ago and if
amounts are reduced that is not because the Council wants to, it is just a tough time that they are facing; the fact that some
of the agreements have been amended one or two times and the fact that they need to do a better job of explaining exactly
what the scope of services are.
Mayor Schlum called on Councilmember Brown to present his comments and announced that it is his birthday today.
Councilmember Brown concurred with Councilmember Dickey's comments and said that if Fountain Hills is still
unknown he would like to know who's fault that is -- who do they pay money to to make the Town be known? He stated
that funding for tourism should certainly be left in the budget but he is not ready to automatically hand over the money to
the Chamber. Before he would support giving the Chamber the money he believes they need to take a real deep look and
ask for an itemized budget. Every quarter they should see the expenditures represented by the budget and/or secondly, he
would strongly recommend that maybe they put in on the street or take it in in-house (take it away from the Chamber and
use the money to do the tourism deal themselves). He stated that he would support that.
Councilmember Elkie commented on the large amount of time the Executive Budget Committee spent on the budget and
stated the opinion that they have done a good job as far as what is being presented. He said that one of the biggest
challenges is the community services contracts and he views the Chamber and what tourism does differently than what
they get from the Boys & Girls Club, the theater and the Food Bank. There is an investment in tourism and it pays
dividends to the Town in the form of sales tax and people who move here. He discussed difficulties with determining the
measurables and what they are getting for their money. His opinion (and this was discussed by the Executive Budget
Committee today) that if the Council approves money for the different community service contracts that they should know
what the money is going to be used for. He stressed the importance of transparency and accountability. He stated that
one way of doing it might be for the Town to keep the money, the organizations bring an agenda item forward and make a
presentation and the Council allocates the money, if deemed appropriate. He said this is a good item at least for
discussion purposes.
Councilmember Hansen commented that since tourism is going to be treated differently she would like to point out that
the Chamber does provide very detailed quarterly reports outlining where funds are going and what media is being
covered. Recently she saw the Phoenix Relocation Guide and the Town has two very nice pages in that guide. In going
through the budget and the economic development budget, it is pretty clear that over the last two ye ars they have seen
some pretty healthy increases in four of the line items where most of the funds are (dues for subscriptions and
publications, meetings and conferences, professional fees and advertising and signage). From 2011 to the proposed 2012
budget, these four items are increasing by $41,433 and the previous year they increased by $82,902 so over the past two
years the four line items increased by $124,335. She doesn't know what kind of a return the Town is realizing from that
because it is difficult to measure. Economic development and tourism complement each other so she would propose
trying to balance these two out and let them partner in an even more positive way (by reducing the Economic
Development budget at the very least by the proposed increase of $41,433 and committing those funds to the tourism
component of their economic development efforts; the comment that the economic development budget would still be
funded at the 2011 level, which was increased from the previous year by more than 150% in those four line items.
Councilmember Leger said that regarding the economic development budget they have invested more money each year
into that area because it is important for the Town but it has been extremely difficult to measure results. They are
experiencing one of the worst economic downtowns he has seen. The Council recognizes the value of tourism and
economic development and, therefore, there have been incremental increases in the economic development budget. He
requested that Lori Gary come forward and address the budget in terms of contract services (define what they are and
explain why and how they have received increases and the rationale behind those increases).
Economic Development Director Lori Gary addressed the Council and provided a detailed explanation in response to the
question posed to her by Councilmember Leger. Some of the points covered included:
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* The contractual services portion of the line item takes into account four items as previ ously mentioned, including the
holiday lighting for the downtown;
* In this budget the holiday lighting for the downtown increased from $20,000 to $40,000 in response to requests from
citizens and downtown businesses and feedback from the Mayor and Town Ma nager; holiday lighting used to be
funded at $40,000 and then was reduced once to $30,000 and again to $20,000;
* The importance of obtaining baseline data in order to talk to businesses and the associated professional services costs
associated with that;
* When the Downtown Vision Plan was adopted one of the items that the Council wanted staff to look at was the
downtown parking and additional money has been included in the budget to cover the cost of doing this;
* Based on Council's goals, including creating a vibrant Avenue of the Fountains, additional money was added to the
budget for advertising/printing expenses to assist when attending trade shows (informational pieces);
Ms. Gary advised that although the line items were increased to accomplish Council goals, the Council has the ultimate
say and the numbers can be adjusted according to their desires, goals and objectives.
Councilmember Hansen commented that she provided a combined total for the four line items on Page 133 and added in
the items on Page 201 as well. She said that she did not include the holiday lighting in her figures. She added that as far
as the parking study, she wonders if during this economy what their potential is to actually need that this year.
Ms. Gary advised that she budgeted $15,000 for the parking study.
The Mayor said that would be a proactive action and asked if parking studies are often done when developers come
forward (a requirement for them to conduct them and asked the benefits of doing that on their own before the
development happens).
Ms. Gary replied that when staff goes out and talks to developers, the question about parking always comes up and
whether the developers will have to include parking. She said it is important to be able to tell developers that staff has
already looked at that and knows how many spaces there are. She discussed the importance of being proactive and having
that information readily available before the question is even asked. She added that that might be included in a
developer's package and they would still have to do their own parking studies. She said that the study could be postponed
if that is the desire of the Council.
Councilmember Hansen stated that during the Swaback study it was pointed out that the Town has a lot of potential for
on-street parking. She said if they get back to the truck route on Saguaro and changing their bike routes there is
tremendous potential just on Saguaro in the downtown area for parking.
Ms. Bender advised that additional speaker cards were submitted.
Frank Ferrara, representing the Chamber of Commerce, addressed the Council and said he cannot allow Councilmember
Brown's comments to go unheeded. He provided an overview of the history of the contracts and advised that when Tim
Pickering was Town Manager, he instituted/included a tourism piece because he asked if they could bid on the contract
for tourism, which they did. He included tourism and then said instead of just having a tourism contract maybe we'll have
all of the community benefit programs included and that is how the contracts started. He stressed that every dollar that
they get in tourism goes into a special tourism account, it doesn't even go in the same bank as the Chamber of Commerce -
- they do not spend even $1.00 nor is any money included in the Chamber's General Fund that goes through tourism
activities. This was done to ensure that if ever an audit was performed everything would be intact and they could show
where every dollar goes. They have presented a budget every single year and he insisted when t hey signed the contract
that the Chamber would provide a monthly report to the Town Manager and Council to show how the money was spent.
They were told monthly was not needed and quarterly reports would suffice and that is what they have been doing since
2006. He stressed again that the Chamber does not spend even one cent on anything other than tourism. He said he takes
umbrage with Councilmember Brown's comments and wanted to clear the record.
Lina Bellinar addressed the Council and, in particular Councilmember Dickey, and said that what she finds disingenuous
is the continuous, circular answers to specific questions. She added that Mr. Scarpetti's questions were not answered and
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have still not been answered and she is offended by Councilmembers Dickey and Brown's comments. She said that
election years do produce strange behavior among candidates and individuals who are seeking re-election but she votes
and she votes her conscience. She made reference to Ms. Gary and asked how many economic developmen t people are
needed in the community and the Mayor requested that Ms. Bellinar keep her comments respectful. She said that they
keep paying high salaries to get the same answers over and over again. She stated that the success of her business was the
result of the Chamber's efforts and to attack what it does is unfortunate and sad. She added that another study would be a
waste of time and money.
Roxanne Boryczki addressed the Council and stated the opinion that no one came to the meeting tonight with the intention
of being antagonistic or with the intent of attacking the Council (at least that was not her intent). She simply wanted the
Council to hear what she had to say as a resident, a taxpayer and a business owner. She thanked Councilmember Leger
for pointing out the distinction in the budget as far as the line item. She added that she has no knowledge of the e -mail
alluded to by Councilmember Dickey and said she did not send it to her but believes it was sent by her husband who has
his own opinions. She added that she thinks Councilmember Dickey perceived it in the wrong way and it has never been
his intention to threaten anyone. She asked Councilmember Brown to take a step back and consider the comments that he
made. She said that asking the economic development person to take on the role of tourism for the Town would be ill
advised because tourism requires specific expertise in that field. She discussed the importance of taking advantage of
volunteers in the community in all areas. She urged ever yone to step back and take a look at the big picture and said
perhaps some of the economic development funds that they have been discussing could possibly be re -allocated to help
fund tourism so they can continue to do what they do. She stated that Fountain Hills is not an unknown entity, but it
needs to be a better known entity.
Mayor Schlum thanked the speakers for their comments.
Councilmember Leger stated that he respects anyone who comes before them with a cool head as well as those who are
passionate and emotional. He reported that the economic development administrator's salary is $75,754 and not six
figures. He added that Ms. Gary came to the Town at a salary below market value and she is continually trying to build a
good solid economic development program for the Town. He agreed that they need a healthy collaboration between the
Town and the Chamber, which consists of the Tourism Bureau. He understands the importance of return on investment
and funding to the Chamber for tourism has been cyclical and has mirrored the economy and the budget. He discussed
decreases in the Town's General Fund and staffing levels as well as significant challenges that the Town faces on a daily
basis due to the economy. He noted that they have looked at tourism a nd made adjustments commensurate with the ups
and downs in the economy and the Town's revenue sources. They are discussing these contracts late in the game because
they are losing funding left and right. The Executive Budget Committee, Councilmember Elkie , the Mayor and staff have
worked on this and will continue to work on this with respect to community services. The Council values tourism and
understands that it provides an important return on investment and they want all contracts to have accountabilit y measures
in them. He noted that in the past they didn't have contracts and people said there was no accountability so that is why
they got into the contracts and they have come to term and are being evaluated. It is extremely difficult to measure return
on investment as far as tourism.
Additional discussion ensued relative to the fact that since 2006-07, the Town has allocated $725,000 for tourism; the
Town's revenues have decreased to $12 million and half of that is for public safety leaving only $6 million to work with
and run the Town's operations and that is why they have cut staff, the budget and expenses ; the importance of looking at
all programs and the resulting 20% proposed decrease; Councilmember Dickey's comment that when the
telecommunications tax was brought forth there was a lot of opposition and then the liquor licensing that was in last year's
budget but people became aware of it now and the Chamber and others were very much against that; storm water utilities
and other things that have happened this year that took dollars and tools away from cities and towns; the importance of
having the revenue to run the Town and the fact that public safety is not just police and fire -- it's not having holes in the
roads and other hazards (a lot of things having to do with public safety are being delayed right now); opposition that
occurs whenever a proposal is brought forth to deal with shortfalls (more money is wanted but no one wants to take a cut
or pay additional monies); the importance of being partners and the fact that the stormwater utility would have made a lot
of sense ($308,000 would have been generated this year); Councilmember Hansen's comment that bringing people to
Town helps the Town coffers and this is one opportunity that has the potential to do that; the Mayor's statement that if the
funding for tourism is reduced it will still be higher than it was when the contracts started; the fact that the Council is
trying to do things in an intelligent and respectful manner; the proposed 20% reduction in the budget for each of the
community service contracts, which totals approximately $286,000; the Mayor's request that they look at that amount and
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securing that amount; the fact that they can talk about what they are going to do with those dollars, what type of reporting
they are going to have, etc. at future meetings.
The Mayor asked if anyone was comfortable bringing back a motion related to that (Professional Services Agreements --
just the dollar amounts and then having more discussion on the items they talked about tonight).
Ms. Ghetti advised that the revised number, based on the proposed reductions, is $286,000 and what is i n the budget is
$303,000. Staff, unintentionally, did not decrease the theater contract by 20%.
In response to a question from the Mayor, Town Attorney Andrew McGuire stated that at this point in time, he believes
that Council direction is all that is needed. He added that they will get the final, complete budget on the 16th and those
numbers will include the direction given to staff tonight.
Ms. Ghetti provided clarification on what some of the revised numbers will be.
Councilmember Elkie said that the next meeting will be a Special Session and during the Executive Budget Committee
meetings they talked about measurables that they will be looking for. He stated that it may be appropriate to wait on the
exact amounts until they determine those measurables because there may be some changes.
Councilmember Leger and the Mayor agreed.
Mayor Schlum advised that he received an e-mail about liquor licenses and said that when he made the motion it was not
his intention to raise the liquor license fee for anybody and that is what may have happened due to the motion he made
and the vote. He raised some special event licenses from zero dollars to $25.00 and although that is a small item, they
want to encourage those small special events (anything that was zero in the p ast will remain zero and not be charged
$25.00). He asked Mr. McGuire if they needed to make a motion to clean up that item.
Mr. McGuire stated that they can handle that as part of the final budget documents since staff is clear on the direction.
The Mayor apologized for the error.
Councilmember Dickey referred to the resolutions from the League that the Mayor provided the members of the Council
to review and said that #15 was a resolution that the League supported and it says that it urges the Legislatu re to modify
State liquor laws to enhance the ability of municipalities to address community related problems associated with liquor
establishments, such as requiring the Department of Liquor Licenses, which has control over the State Liquor Board, to
give consideration to any city recommendations on proposed liquor licenses. She said she also looked through the State's
laws because they have the annual renewal fees and things like that. She stated that to touch on some of the things that
Councilmember Hansen said, that there is an understanding -- monies from surcharges that the State charges are used by
the Department exclusively to cover the cost of an enforcement program to investigate licensees who are subject to
multiple complaints. The enforcement program shall respond to complaints against the licensees, neighborhood
associations, etc. She said that she brings this up because there was some question as to whether there are some
community considerations when you have liquor licenses. In light of the discussion regarding medical marijuana where a
lot of people have said there is fear about what that might do to the community, she just wanted to bring up liquor and
stated that it is not harmless and they should consider the fact that it does have consequences on communities.
Councilmember Leger discussed transparency and advised that the community contracts are part of the Council's packets
and on line so the citizens can view them. He recommended that the existing community contracts be put out on the
website. He stated the opinion that if citizens review them many of their questions may be able to be answered in terms of
scope of work, accountability, etc.
Mayor Schlum agreed with Councilmember Leger's suggestion.
In response to a question from the Mayor, Ms. Ghetti advised that a letter has been sent to the Library Association
requesting that they provide an amount they want from the Town for the carpet replacement so that staff knows what to
include in the budget.
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Councilmember Hansen referred to Pages 9 and 15 and said there are Strategic directions that have to do with utilizing the
talents of Town citizens to address community needs and foster a culture of public service and volunteerism and utilizing
citizens to address community needs that the Town can no longer afford. She reported that Phoenix just hired a full-time
Volunteer Coordinator because they recognize the very same thing and they have a very broad spectrum of volunteer
opportunities. She asked if any discussion had taken place on how this pr ogram would be enhanced (the volunteer
coordinator is still part of the HR budget and there was an increase in the salary so she wondered if there was any
discussion about expanding more staff time in this direction).
Ms. Ghetti advised that discussion took place during the Budget Committee meetings with the volunteer coordinator and
HR. She explained that the reason for the higher wages in the HR budget is because the volunteer coordinator has
previously been paid for out of the special revenue fund because she was doing the Transportation program (all wages
have come over to the General Fund because the Transportation program is going away). Staff met with the volunteer
coordinator and offered to hire a part-time person to assist her but she indicated that she wouldn't need it primarily since
she will have more time to devote to that area now that the Transportation program is going away. Ms. Ghetti said that
they will explore how to expand the program.
Ms. Ghetti advised that the next meeting will be the Special Session to be held on Tuesday, June 14th and said it will be
an open meeting and provide another opportunity for citizens to speak.
The Mayor thanked everyone for the dialogue that took place today regarding the very important issues facing th e Town.
He said he believes they made good progress and reminded everyone that the next meeting on 6/14 would be a special
session and was an opportunity for people to speak on the budget.
AGENDA ITEM #8 - 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) directin g
staff to conduct further research and report back to the Council.
A. None.
AGENDA ITEM #9 – SUMMARY OF COUNCIL REQUESTS AND REPORT ON RECENT ACTIVITIES BY
THE TOWN MANAGER.
None.
AGENDA ITEM #10 - ADJOURNMENT
Councilmember Leger MOVED to adjourn the meeting and Councilmember Elkie SECONDED the motion, which
CARRIED UNANIMOUSLY (7-0). The meeting adjourned at 8:36 p.m.
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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 Town Hall Council Chambers on the 2nd day of June, 2011. I further certify that
the meeting was duly called and that a quorum was present.
DATED this 4th day of August, 2011.
_____________________________
Bevelyn J. Bender, Town Clerk