HomeMy WebLinkAbout2011.0614.TCSM.Minutesz:\council packets\2011\r8-4-11\110614m.docx Page 1 of 11
TOWN OF FOUNTAIN HILLS
MINUTES OF THE SPECIAL SESSION OF THE
FOUNTAIN HILLS TOWN COUNCIL
JUNE 14, 2011
* CALL TO ORDER AND ROLL CALL
Mayor Schlum called the meeting to order at 5:31 p.m. in the Town Hall Council Chambers.
* 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. Town Manager Rick Davis, Town Attorney Andrew McGuire and Town Clerk Bev
Bender were also present.
AGENDA ITEM #1 – DISCUSSION WITH POSSIBLE DIRECTION TO STAFF REGARDING THE TOWN OF
FOUNTAIN HILLS’ PROPOSED FISCAL YEAR 2011-12 BUDGET, INCLUDING ALL REVENUES AND
EXPENDITURES FOR ALL TOWN FUNDS.
Deputy Town Manager/Finance Director Julie Ghetti addressed the Council relative to this agenda item and said that she
HAD provided the Council with a new revised draft budget for Fiscal Year 2011-12 and said she would review some of
the changes included therein. She noted the extensive amount of meetings that have been held to discuss the budget,
including two open houses, and said that there will be another meeting on Thursday, June 16th. She advised that they do
have a balanced budget with the use of reserves to pay down the debt. She discussed the minor adjustments that have
been made to the budget before them and briefly outlined the changes as follows: Staff broke out the salaries between
full-time and part-time employees and took out some residual expenditures that were in the economic development budget
in both the General Fund and the Downtown for the two staff members who had been in there (they had removed the staff
members but there were some residual memberships and publications) that resulted in a $6,000 decrease in the General
Fund and a $23,000 decrease in the Excise Tax Fund. Staff also eliminated a vacant part -time Planner position and a
vacant part-time Streets position and reduced revenue by eliminating the telecommuni cations tax ($750,000) but added in
the revenue from the savings that will be realized when Town Hall is paid off (about $350,000). The budget also contains
a $100,000 designation for the Vehicle Replacement Fund and currently there are no vehicles identified for that (they have
a schedule but plan to go back to the Budget Committee to review the schedule and the program. There likely will be a
vehicle replacement in the next year but it is not specified right now). Staff updated the authorized positions (they are
currently at 59) and is looking forward to the adoption of the budget with the intention that the Executive Budget
Committee will meet with the Town's external service contracts to start laying the groundwork regarding performance and
desired scope of service based on the funding.
Ms. Ghetti stated that she wanted to take this opportunity acknowledge several members of staff who have really helped
them through this challenging budget year and thanked those individuals, including members of the E xecutive Budget
Committee and the Department Directors. She indicated her willingness to respond to any questions from the Council.
Mayor Schlum thanked Ms. Ghetti for her update and encouraged any citizens who wished to speak to fill out a card and
submit it to the Town Clerk.
Town Clerk Bev Bender advised that two citizens wished to speak.
Jim Judge addressed the Council and discussed the need for both public and private support for the volunteers of the
Fountain Hills Sheriff's Posse. He noted that the Posse works without pay and in 2010, the 23 regular and 11 honorary
members volunteered 145,000 hours of their time to the community (the equivalent of eight full -time sheriff's deputies,
resulting in a savings of thousands of dollars). The members last year drove 150,000 miles while on patrol and carrying
out a variety of responsibilities. He noted that they provide a vacation watch service for residents and check on the safety
of over 300 businesses in Town. Mr. Judge provided additional beneficial impacts of the Sheriff's Posse, discussed the
fact that the Posse is in great need of financial assistance, noted the personal monies that they themselves spend in order to
carry out their work and requested that the Council consider authorizing funding for this extremely beneficial service.
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Mr. Judge stated that a number of citizens are forming a group to look for ways to support these dedicated people and
asked that the Council look into helping this group, either financially or with other support, to keep this group functioning
as a viable part of the community.
Val Stasik addressed the Council and said she wanted to clarify some misconceptions that have been verbalized over the
last few weeks regarding the Fountain Hills Theater. She said that the term special interest can be applied to any
organization that is involved in a community enhancement. She noted that they are not a charity but rather a non -profit
business providing a service to all residents of all ages. As far as return on investment, measurability, etc., she believes
they too are an important arm of economic development and tourism (they created the first Holiday Avenue on the
Fountains decorations and the first Halloween Haunted House 25 years ago), so they have always been active in the
community. She expounded on the Theater's reputation and ability to draw people into Town and noted that they have
been recognized in publications as "an award winning performing arts theater." She stated that she is sure that the
Visitor's Bureau is responsible for the wonderful coverage they have received and added that the Theater is an obvious
attraction for visitors as well as residents. She discussed the return on benefits, including those received by the Town's
youths, and said that some concerns have been expressed regarding their accountability and advised that they are prepared
at any time to explain their budget and demonstrate their fiscal health. She said that their contract with the Town is not at
all vague and their quarterly reports are clear and very specific as to their expenditures. She commented on the draw that
their performances have and provided data. She added that they are grateful for the support the Town has given them over
the last three years (with funding unchanged) and said that last year they were asked to make a sacrifice during the crisis
and they generously readjusted as requested. A further reduction will also jeopardize the operation of the theater but they
recognize the need to be flexible and face the reality of the current economic times. She thanked the Council for the
opportunity to address them.
Mayor Schlum thanked the speakers for their comments.
Councilmember Dickey said there are no page numbers but she believes on Page 1 of the schedule on the bottom
(expenditure limitation comparison) it looks like it has the same dates in both columns.
Ms. Ghetti advised that Councilmember Dickey was correct and it should say 2010-11 in the left hand column and 2011-
12 in the right hand column.
Mayor Schlum stated that they hope to conclude their budget discussions on Thursday so if there is anything they need to
discuss further or clarify now is the time.
Councilmember Hansen commented that regarding the budget process, on Page 86 under Mission of the Budget Proc ess,
it states that communication and involvement with citizens and other stakeholders is stressed. It also states that the budget
process is designed to meet citizens' needs for information and input, decision makers ’ needs for information and advice
from citizens on their desired blends of services. She suggested that do to the low number of citizens that attended the
Open House prior to the budget document being released, that perhaps it would be good to consider some alternative
methods of engagement. She did not see any involvement on the part of the Strategic Planning Advisory Commission in
the process and that surprised her since last year the Chairman served on the Budget Committee. While they put many
hours into the budget preparation, she feels the Executive Budget Committee pretty much did the whole thing -- obtaining
and analyzing information that never made it to the Council or citizens by way of public discussion at the Council level.
It seems that some decisions were made and items included in the budget document with little or no discussion, such as
budgeting $450,000 for medians and right-of-way improvements. They heard at one of the budget meetings that
conceptual drawings were being done even before the budget was approved. Any discussion on Downtown should
include the safety issue of infill sidewalks where pedestrians are forced to walk out into the street between parked cars.
The Downtown Improvement Program ranking criteria states that the Town will give the greatest weight to those projects
that protect the health, welfare and safety of its citizens. She supports making improvements in the downtown area but
she thinks there should be a collective discussion on what those improvements should be and how they should be
prioritized. Following the Summit of Communities last January, she suggested that they have a Fountain Hills Summit -- a
very inclusionary brainstorming type meeting with the whole Council and representative stakeholders throughout the
community. It would provide an opportunity to get issues out on the table and look for community solutions through
cooperation instead of competition. It would also provide a venue for give and take discussion on budgetary issues facing
the Town and funding priorities. It is difficult for citizens to provide input with three minute speaking limitations and
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they have had budget meetings but aside from dealing with the annual liquor license renewal fee it feels as though they
have been discussing pretty much an approved budget. She indicated her intention to discuss possible changes.
Councilmember Hansen said that in the fee schedule, a couple of clarifications that have been discussed previously, on
Page 4, Special Event Permits for businesses and non-profits, they reduced the application fee but are making up the
reduction through the day fees so if the intention is to promote events, she would move that they increase the application
fee and delete the proposed per-day fee for both business and non-profit special event permits. She added that she would
also like to delete the proposed increases to the Special Event Permits, like extra fees for barricades, fire review and util ity
fees for local businesses and non-profits (they could remain in place for out-of-Town commercial events).
The Mayor asked who should address the suggestions raised by Councilmember Hansen and Bryan Hughes came forward
to address those points.
Supervisor of Recreation Bryan Hughes advised that the goal, which is open for debate, was to reduce the fee for the non -
profits from $100 to $50 and then have a $50 per-day fee. He said events that ran multiple days and require additional
staff time/work would pay the per-day fee in order to recoup more of the associated costs. He added that this decision is
up to the Council. Mr. Hughes confirmed that the fee for non-profits has been $100 and for businesses $500 and that is
being reduced to $100 with the per-day fee on top of that.
Mr. Hughes confirmed that there is a "not to exceed fee" also in place ($200 per special event non-profits).
Councilmember Hansen clarified that she is proposing that they decrease the application fee and delete the proposed per -
day fee for the businesses and non-profits.
Discussion ensued relative to Councilmember Dickey's comment that when they looked at these last year they were
looking at cost recovery; the fact that a majority of the events that staff processes are non -profits and fall within the $50
range; there are only a few examples of multiple-day events - most are only for one day; Art on the Avenue requires a
temporary use permit; the net would be $100, which is what they are charging for the application fee; they are not
changing the overall costs, merely the process (multiple-day events cost more because of staff time); Councilmember
Dickey's comment regarding the importance of encouraging events and her question as to whether they want to do that at
a net cost to the Town; the Mayor's comment that right now the cost for special event permits for businesses is $500 (for
one time) and what is being proposed is a $100 one-time fee and $100 a day so that could represent a significant savings
since the old fee is $500 for a special event permit application fee (for a commercial venture) so they would be paying
$200 versus $500 for the one-day events; the non-profits are currently being charged $100 and it is being proposed that
they go to $50 with a $50 per-day fee, which would be a wash for most of them; Councilmember Hansen's comment that
there are two fees involved (the application and permit) so for a business it is actually $200 and $100 every day;
Councilmember Hansen's suggestion that they reduce the permit fee -- the application fee would remain $100 with a 50
per day charge and the permit fee would be reduced to $50 and $25 (to apply for a business special event, it would be
$150 instead of $200 and then $50 per day and for the non-profits it would be $75 and then $25 per day); the fact that the
Town's fees are in line with those charged in other communities but they can be revisited on an annual basis;
Councilmember Dickey's opinion that they need to look at cost recovery and should not reduce the fees again (they were
already reduced last year).
Councilmember Hansen MOVED to amend the fees for the permit fees for businesses from $100 to $50 and for non -
profits from $50 to $25.
Councilmember Hansen advised that the application fee will remain the same ; it is the only the permit fees for businesses
that her motion will reduce.
Councilmember Elkie SECONDED the motion.
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A roll call voting was taken with the following results:
Vice Mayor Contino Aye
Councilmember Brown Aye
Councilmember Dickey Nay
Councilmember Hansen Aye
Councilmember Elkie Aye
Councilmember Leger Nay
Mayor Schlum Aye
The motion CARRIED by majority vote (5-2) with Councilmembers Dickey and Leger voting nay.
Councilmember Hansen referred to Page 13, Tent Permit Fee under Fire Safety Fees, and noted that the tent f ees are
proposed to increase from zero to $100. She asked what type of tents they are talking about.
Fire Chief Scott LaGreca addressed the Council and explained that the fee would not be charged for the smaller tents; the
fee would kick into place for larger tents that house fireworks and events where cooking takes place (30' by 40' or so). He
explained that they used to have an issue with the tents used at Country Clubs for weddings, etc., and there is a 180 -day
period where the tent can remain up before it is considered to be a permanent structure and required to install sprinklers
and fire protection devices. Three of the Country Clubs wound up going with hard shell special event structures versus
tents. He said that larger square footage and events such as tents where the sale of fireworks that hold a lot of people
occur would kick the fee into place.
Councilmember Hansen recommended that language be added to this section to clarify the fee section on tents.
Councilmember Hansen also referred to Page 15, Community Center Rentals, which are projected to decrease by 5.1% in
the coming year. She added that on Page 73 it lists the historical trend of the fees and asked if there is any way to assess
and account for what happened between 07-08 and 08-09 when the fees declined by 25% and in 08-09 to 09-10 when they
declined 39%. It states that the major influences are population and the internal policy on rates. She questioned whether
they should review the internal policies and possibly consider trying to discount rates through an incentive program, just
for the coming year, to see if they can give the rental line item a shot in the arm. This year they seem to be looking at an
all time low. She suggested an 8 to 10% decrease incentive program for the resident and non-profit Tier 2 category as
listed on Page 15 of the proposed fee schedule (for one year for the resident, non-profit Tier 2).
Director of Community Services Mark Mayer addressed the Council and advised that some downward adjustments have
been made in that area. They went from an 8-hour rental to a 4-hour rental to help accommodate some of the groups and
typically that has proven to be very popular although on the other side it has also cost the Town some revenues. The other
big decline they are anticipating this year as indicated in the weekly report to the Council is that their largest client, Cisco
Foods, because of their economic situation, has pulled out of the Community Center for the upcoming fiscal year. They
were very happy with the facility but internally they could not justify the cost any longer. If the economy improves they
may be back but that represents a $20,000 hit. Staff is trying to replace that with another company. The other thing that
has affected the rentals has been weddings (at one time they were at a high point in the upper thirties (a few years ago)
and this year they had six and the weddings also seem to be smaller. This is a reflection of the economy - people tend to
put off things like weddings when the economy is bad and they also tend to make them smaller. They just had a Bridal
Show this past weekend and what makes the Center attractive now is the fact that their rates are a half to a third of what
other facilities are charging but people are sometimes hesitant to travel the extra distance and the facility tries to drive
home the fact that the Town is right next to Scottsdale. He stated the opinion that the current fees are providing a pretty
good incentive for people but for some people it is just not practical for them to come to Fountain Hills but they are
attracting people who live closer because the Community Center is less expensive.
Mr. Mayer advised that this year staff is also proposing in the fee schedule that they reduce the equipment costs (for some
groups like the Rotary and Kiwanis, costs would be cut in half).
Councilmember Dickey asked if the Community Center Advisory Committee had input into the fees when they were
changed last year.
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Mr. Mayer replied that because he was not responsible for the Community Center at that time he does not know the
answer to that question. He said he would assume that they did provide input.
Town Manager Rick Davis stated that prior to Mr. Mayer assuming his duties stakeholder meetings occurred on a regular
basis and feedback regarding fees and other services were reviewed by the stakeholder group and recommendations were
brought forth. Some of those changes made their way into the last budget.
Discussion ensued relative to staff resources that come into play when organizations reserve space at the Center to carry
on events; the fact that since the Town reduced the Center's fees last year they have not seen an increase in activity;
Councilmember Leger's opinion that all of the fees are more than reasonable and the root cause of the inactivity is simply
the economy; discounts that are provided to frequent users in addition to discounts already in place; incentives and the fact
that staff believes they already have a significant incentive program in place; and Councilmember Brown's opinion that
the fees should be left alone this year.
Councilmember Hansen referred to Page 17 and thanked staff for coming up with the reductions (equipment rental rates)
and said that makes a difference for a lot of the groups. She stated that at the last Special Session she brought up two
strategic directions under Civic Responsibility as they appear on Page 9, Discover, recognize and utilize the talents of our
citizens and use these assets to address community needs and foster a culture of public service and volunteerism. On
Pages 14 and 15 the budget states “new priorities for Fiscal Year 2012 developed by the Town Council during their
annual Retreat, including expanding volunteer programs for citizens to address community needs that the Town can no
longer afford.” At that time they were told that funds in the amount of approximately $4,000 were being added for an
enhanced Make a Difference Day and while this is a great program, it is only a one -day event and she believes the intent
of the three stated goals was to explore new ways for citizens to aid, enrich and improve the community on a daily basis,
not just one day a year. She quoted a publication that emphasized the importance of volunteerism and achieving a high
level organized volunteer effort. She said that the coordinator of volunteer efforts should be a full -time endeavor and
suggested that appropriate budget adjustments be made to commit to a full-time volunteer program.
Mayor Schlum asked what that would equate to budget wise and Councilmember Hansen said that would have to be
determined. Mayor Schlum advised that he does not disagree with anything Councilmember Hansen said but asked how
she would suggest they identify the funding needed to carry out her suggestion.
Councilmember Hansen stated that she would like to have some dialogue on this and added that she doesn't know what
the dollar amount would be to commit to a full-time volunteer program.
Councilmember Leger said he too agrees with Councilmember Hansen's comments. He noted that in the past he has
suggested that they increase the current volunteer coordinator's position. He asked whether that is what she mean t
(program dollars or salary dollars).
Councilmember Hansen advised that she is trying to discuss this is a way that will not get into personnel issues. She
added that she is talking personnel hours.
Councilmember Leger said that he would like the Town's Human Resources Director to weigh in on this proposal.
Human Resources Administrator Joan McIntosh addressed the Council and said that discussions regarding making the
volunteer coordinator a full-time position have taken place throughout the year. Staff's opinion is that a full -time position
is not needed because there are enough available man hours to assist the volunteer coordinator in anything she needs to
do. The Special Transportation Program is being eliminated and that will free up a lot of the coordinator's time and she
too has time to assist the coordinator. She said she believes it would be more cost effective to utilize the staff that they
have now to support the volunteer program because they all agree how important it is. It would cost quite a bit more to
make the position full time because hours would be increased and ben efits would have to be added. She recommended
that if the Council wants to add staff that they do that with another part -time person because it would be more cost
effective.
Mayor Schlum noted that Councilmember Hansen is also talking about implementing programs that recognize the
volunteers and asked if there are any other programs they might want to consider that they could find some money for to
carry out.
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Ms. McIntosh advised that Heather has worked with the Sheriff's Posse to recruit Ambassadors and said it's not that they
don't have the money to do it; it's just that they have not had the volunteers step up to do it. There are a lot of programs
that staff would like to do but they need to find the volunteers who are willing to participate.
Councilmember Hansen asked what was required of the Special Transportation Program work time wise and Ms.
McIntosh replied that there were lots of calls for changes in schedules and this was labor intensive. She added that there
was hand holding and talking to the ride source people and coordinating with them. There were nine people total in the
program and six went with the Stars Program.
Councilmember Elkie said he would like to obtain an update from the volunteer coordinator if she is available to speak
(she had stepped out of the Chambers).
Ms. McIntosh advised that Make a Difference Day will be held in October and they added the Take Pride Day that will
take place in the Spring so there will be two events next year. She explained what the $4,000 is used for as far as carrying
out the events and materials needed. She reported that approximately 120 people took part in the Make a Difference Day
event last year.
Discussion ensued regarding the volunteer coordinator's current hours worked (35 hours a week); Councilmember Leger's
request to obtain information prior to the next meeting regarding the costs associated with making the volunteer
coordinator a full-time position as well as the costs associated with budgeting for a quarter-time person; his opinion that if
the monies were allocated and during the year something c ame up that the Council deemed worthy, they could make an
adjustment on the fly; the importance of having that flexibility (they don't have to "come out of the shoot" and fill the
position; the possibility of asking the Executive Budget Committee to have a discussion on this prior to the next meeting;
Ms. McIntosh's intention to e-mail the Council the information that has been requested; Councilmember Dickey's
comment that right now the Council is hearing that the workload does not warrant that request and Ms. McIntosh's
concurrence; and the Mayor's statement that he would like to be positioned if something comes up that could bolster
volunteers and their efforts in the community and his request to hear about any programs that might accomplish that goal.
Mayor Schlum thanked Ms. McIntosh for her input.
Councilmember Hansen further stated that at the last meeting she pointed out that over the last two years the economic
development budget has increased by over $124,000 and suggested that four of the line items with the largest increases
remain at the current funding level, creating a savings of $41,433 that could be used to enhance the tourism component of
the Town's economic development program. She proposed the following alternative regarding three proposed
expenditures under Professional Fees (Page 131): At the last meeting they discussed that $15,000 was being proposed for
a downtown study that could be delayed to a future budget study without deterring any potential developers. Another
item under Professional Fees is Downtown and Miscellaneous Expenses and Studies, such as the Gap Analysis in the
amount of $25,000 and a Retail Market Analysis Update for $15,000. She said that in the current economy she believes
they need to re-think how they are spending dollars in this upcoming fiscal year. She doesn't think that the studies and
updates for something they have already done is the way to go right now so she suggested re -prioritizing those monies
($55,000) to market the Town and the Community Center in a manner to be determined following sufficient review and
discussion (Pages 133 and 201).
Mayor Schlum asked Ms. Gary to speak to the increases in the economic development budget.
Ms. Gary advised that at the beginning of this presentation Ms. Ghetti mentioned that they took a look at the budget and
eliminated some residual expenses related to some of the previously proposed staffing that was eliminated. The overall
budget for economic development has been readjusted (taking a look at the supplies and services portion of this current
fiscal year's budget and last year's fiscal budget, the difference is approximately $19,600). She discussed the fact that
Contractual Services takes into account professional fees, printing expenses, advertising, holiday lighting and after the
meeting a couple of weeks ago, she went back and took a look at the holiday lighting and said she would like to share
some corrected information. The holiday lighting is proposed to be $40,000 in the budget and what they expended this
fiscal year was $20,000 but in this fiscal year's budget, holiday lighting was budgeted at $25,000 and they only spent
$20,000. She further discussed the difference in the current fiscal year's budget versus last year’s budget, $19,600, and
noted that $15,000 of that is in the holiday lighting increase being proposed in the current budget, so the increase in the
Supplies & Services area of economic development is $4,600 (combined General Fund and Downtown Fund).
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Discussion ensued relative to the fact that the last Retail Market Analysis was conducted in 2009; the fact that the
Analysis has been used extensively in marketing the community to national retailers; the importance of having ac curate,
consistent information to use as a marketing tool; the proposed Analysis would not consist of a full study like the one that
was done in 2009 (just an update to the study conducted in 2009); the Gap Analysis and the fact that the Council has been
very involved in the Downtown Vision Plan; ULI's recommendation that a Gap Analysis be conducted (the retail demand
in square footage, what there is a demand for and what they currently have -- very valuable to developers and will move
the Downtown Vision Plan forward); the fact that the process will be labor intensive because the Town does not have all
of that data in-house; Ms. Gary's comment that should the Council determine that the Gap Analysis and/or the Retail
Market Analysis should be delayed, staff will adjust accordingly; Councilmember Hansen's explanation that $7,500 would
come out of the General Fund, $7,500 would come out of the Excise Tax Fund, the Downtown Parking Study also comes
out of the Excise Tax Fund and Downtown Miscellaneous & Studies for the Gap Analysis is also out of Excise Fund
dollars (only $7,500 comes out of the General fund and the rest comes out of the Downtown fund; the Retail Market
Analysis conducted in 2009 was based on 2008 data; Councilmember Elkie's desire, should they have another Analysis
done, that it be based on 2011 and not 2010 data; to Ms. Gary's knowledge there has never been a Gap Analysis done in
Fountain Hills; benefits of conducting a Gap Analysis and having the resulting data and the difference between that and
the Retail Market Analysis; Councilmember Leger's comment that information is power and his question as to whether
these tools become part of a comprehensive economic development plan; Ms. Gary's response in the affirmative and her
comment that the studies help staff accomplish the goals that the Council has set; the importance of economic vitality
particularly in today's economy; Pages 132 and 200 that contain productivity measures and Councilmember Leger's
request that the Council, if they have not already done so but he is confident that they have, review those numbers; his
comment that productivity measures are driven by the Town's Strategic Plan that has been significantly influenced by the
work of the Strategic Planning Advisory Commission (SPAC); Councilmember Leger's statement that although Ms. Gary
has been charged with coming up with a comprehensive economic development plan she has not been provided the tools
to carry out this direction and his opinion that the studies can be extremely helpful; Councilmember Leger's opinion that a
Parking Study is a very important component of the overall goals for the Downtown area and his opinion that the Council
should put the dollars where people have asked them to and move forward with the proposed studies.
Councilmember Brown advised that he attended a meeting with the leasing agents, developers and Ms. Gary and the
amount of information that was shared was astounding even though it was already a year ago. The information she
provided was well presented and well received and after the event, the major center owners were at the meeting for at least
another hour having a one-on-one discussion regarding the information provided. He said that as far as the Parking Study,
he believes they need to be prepared for developers that may come to Town so they can lay the information out in front of
them before anyone else can. He stated that he supports leaving the money in the budget for the studies.
Councilmember Dickey expressed the opinion that this issue aligns very well with the Council's goals that have already
been stated and so she too agrees. She stressed the importance of providing accura te, up-to-date information and said that
the economic development budget should remain unchanged.
Councilmember Elkie asked how long the studies are good for (all three of them) and when they would need to have
another one done.
Ms. Gary advised that typically Retail Market Analyses and Gap Analyses are updated every other year and they provide
strong, critical data but added that they could be updated every year if the Council would like but at least every other year.
She said she was not certain on the Parking Study (in terms of marketing that to developers) as to how fresh the data
should be but said it should be fresh until development in the Downtown area takes place.
In response to a question from Councilmember Elkie, Ms. Gary stated that if the studies are approved she will try to
ensure that they are based on 2011 data but she doesn't know when the 2011 data will be released so that is a timing issue
and she will research that.
Councilmember Hansen commented that she appreciates the dialogue that has taken place on this issue. She stated that
her main reason for bringing this up was the current economy and the fact that the Town has realized a decrease in
population and timing wise, she just doesn't see a lot of businesses flooding into Fountain Hills right now, but it will be
whatever the Council decides.
Councilmember Brown said that there are a number of organizations in Town who are out promoting Fountain Hills and
trying to attract development and asked if Ms. Gary shares this information with them.
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Ms. Gary advised that she places the information on their website and shares everything that is received for optimum
impact. She added that she wants to make sure that the information is out there so that the shopping center owners, the
leasing agents and developers can utilize it and promote their site, their buildings and the Town. She said that members of
the BVAC were very interested in that information and it was shared with the members.
In response to a question from Councilmember Dickey, Ms. Ghetti stated that the 2010 Census population data decreased
if they compare it to the 2005 Census, which is not a true Census where they go door to door -- it is an estimate. The
Town is now challenging that with the Census Bureau to see if they had some issues and have found a couple of things
that perhaps led to the 2005 Census data being a little higher than it should have been based on the boundaries of the
Town (the 2010 data was accurate as was the 2000 data).
Additional discussion ensued relative to the importance of bringing daytime population and jobs into Town; the fact that
there are 123,000 workers within a 29-minute one-way commute and within the 123,000 available workers, 70% of them
are white collar workers; staff's efforts on to develop a program with some of the office owners and leasing agents to help
fill spaces; the importance of building up the Town's economic footprint with local workers and a daytime population to
support businesses throughout the year; tools that are needed to accomplish this goal including marketing dollars that have
been included in the proposed budget; the fact that Ms. Gary has asked the Town Manager to place her on the agenda of a
Council meeting in August to share with the Council an overall comprehensive look at what steps are being taken to
accomplish the various goals; growing the small businesses that are already here and also attracting others; Ms. Gary's
concurrence that a daytime population strategy is needed and that will help the businesses be succ essful; monies that are
budgeted for infrastructure in the Downtown area ($450,000) and Director of Development Services Paul Mood's
comment that this year they had some money in Professional Services that they used to get some landscape concepts done
and next year $450,000 was budgeted per year over a four-year period ($250,000 from the Downtown Fund and $200,000
from each year from the Capital Improvement Fund); the fact that staff would like to bring the concept drawings to
Council at a Work Study Session this Fall to obtain input; the goal to start a design and get it bid out next Spring after the
Fair in February; one of the main things they need to do is work underground since a lot of the infrastructure is extremely
old and there is a 4 inch irrigation line that runs underground and repairs are constantly being done to it; there is an old
electrical service that needs to be upgraded so the underground work must be completed first; staff's intention to bid that
project out in the Spring and the following fiscal year they would do the improvements above ground; the fact that the
trees are large and provide a lot of shade but they also do a lot of damage (root problems); the main focus for the first two
years will be the East Median, from Verde River down to the Avenue and then depending on the Bond Election for street
improvements on Saguaro -- they haven't really touched on by the fountain right at the intersection; maintaining the
fountains as much as possible but they are very old and some have leaks that cannot be identified; they would do the East
Avenue the first two years and then move onto the Western part during the final two years; the fact that the plans are
conceptual (no hard engineering) and in Phase 2, if the Street Bond passes, part of the Downtown Vision Plan is to
increase the width of the sidewalks (during the fourth year) and mill and overlay the Avenue; and hopefully within the
next two weeks they will be doing the slurry seal in the Downtown area.
Mayor Schlum thanked Ms. Gary and Mr. Mood for their input on the issues raised this evening.
In response to a question from the Mayor, Ms. Ghetti stated that she would be happy to talk about the budget changes that
have occurred as a result of the audit at the Thursday meeting. She added that she provided the Council with a memo as
to what the responses were and staff has accomplished everything that they had been asked to do. She said that she would
re-send the memo to refresh memories and discuss it Thursday as well.
The Mayor commented that transparency is a big issue (the need to use technology to make things as accessible as
possible) and if there are things they need to do to make everything even more transparent and easier for the public he
would like information on that as well on the 16th. He added that a citizen brought up the Posse this evening and asked if
the Council had previously set aside dollars for this (Town funds). He said he knows that they receive donations and
asked what her thoughts were on that.
Ms. Ghetti responded that the Sheriff's Posse is funded through Proposition 202 (the Yavapai -Fort McDowell Nation) and
go through the Town and then they disburse the funds to the Posse. She stated that she does not recall providing any
Town funding for that purpose but if they did it was a long time ago. She advised that they were awarded 202 funding
two years ago but have not received it lately. She reminded the Council that the $20,000 contingency fund is all the
flexibility they have in the General Fund and they are very close to zero. She added that they are not sure how the
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economy is going to be next year and she has already assumed about a 3% increase and if they are talking about the
economy slipping back down again, they might have to watch those funds.
Mayor Schlum commented that there may not be any extra dollars unless they take the money from somewhere else and
Ms. Ghetti concurred.
Ms. Ghetti stated that staff is constantly trying to provide more transparency and update the website on a frequent basis.
She said that they have placed contracts on the website and as they move forward every contract that the Town enters into
will be on the site. She added that they are moving towards the point where they will put all the expenditures on the
website as well.
Mayor Schlum noted the extensive work that the Sheriff's Posse carries out, including vacation watches, and said they
would provide a great presence in Town if they could have all of their cars out on the streets. They have the volunteers
but they don't have the ability to maintain the cars (lack of maintenance funding). The Mayor said that he would hope that
the citizenry appreciates the work that they do and supports them as much as possible because to have their presence
would be tremendous for the Town. He asked if there was a way to place something on the Town's website to draw
people over to the Posse and encourage them to consider donating to this worthy group. He advised that the Posse
provides a direct benefit to the community and commended them for all they do. He said that if there was anything the
Town could do to increase their exposure and let their needs be known he would like that to happen.
Councilmember Elkie stated that the Food Bank funding is an item that should be discussed.
Mr. Davis said that several months ago an endeavor occurred that involved serving fish and chips and the organization
was very successful at that and decided that they would install a kitchen at the Food Bank and begin more of an enterprise.
This did not come to the Town's attention until after three quarters of the kitchen had been under construction. To date,
no fees related to plan review permits have been paid but staff has made contact with the individuals involved in
constructing that facility and they have been told some of the things they need to do in order to comply with the law. The
Fire Department is also aware of the situation and no inspections have taken place so far with regard to fire walls, hood,
etc. The project has been red tagged by the Town.
Councilmember Elkie commented that the Food Bank provides a good service for the community but said it is important
to discuss these things out in the open and if the Food Bank has not gotten the appropriate permits, obtained the required
inspections and done what they are supposed to that needs to be followed up on. He added that operating a business out
of there that the Town supports makes it important that they discuss what the funding is going to be used for (cannot use
Town dollars to support a business venture). He added that if they decide to allocate the funds, before a check is cut he
would like to have the appropriate personnel from the Food Bank appear before the Council and discuss this issue and
what the funds will be specifically used for.
Councilmember Dickey asked whether someone was going to meet individually with the current contractors or whether
the Council was going to decide on this. She said she thinks it is important moving forward to know what the funding
would be used for if the Council decides to provide funding.
Discussion ensued relative to the fact that by Thursday they may not be able to nail down specifically what is going to
happen; the Executive Budget Committee discussed allocating the funds for the identified groups; Councilmember Elkie's
comment that he has suggested that the funding for the Chambe r be viewed differently and that they have a contract with
them; his suggestion that the groups come forward and explain what the funding will be used for and this way it can be
discussed and the public will be in on the discussion; funding can be distributed in allocated amounts for whatever is
being requested (a suggestion, they can enter into contracts if the Council so desires); the fact that the money is not
necessarily tied to those four organizations; how funding is going to be allocated and the measurements that they are
going to be looking at as a Council in August and before that (July) they need to do some work to determine how the
partners feel that would best work (measurements are something that the Council is focused on); Mr. Davis' comment th at
they are talking about a customer/provider relationship where the Town would be asked to make a purchasing decision as
to what services the Town wants to purchase during the next fiscal year; Councilmember Dickey's remark that this is a big
shift because since they had three-year contracts, these things were built into the organizations' budgets and so it is
important that they are made aware of this; and the fact that the Council will have to make some decisions in August and
do their homework in July on some of the items.
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AGENDA ITEM #2 – DISCUSSION WITH POSSIBLE DIRECTION TO STAFF REGARDING THE TOWN’S
NAMING POLICY (RESOLUTION 2006-08).
Mr. Davis advised that several weeks ago they discussed what changes are possibly appropriate for the Town's nami ng
policy. He noted that there had been requests and suggestions made in the past as to how they could memorialize
individuals in Town and certainly everyone is eager to do that but in a uniform way that makes sense. He said that staff
looked at the previous policy and there were two ambiguities or at least one and another that the Council wanted to look
at. They asked the legal department to adjust the language and make some suggestions for the Council's review but they
are not ready to bring this before the Council right now but are willing to respond to some questions. He noted that the
author is sitting in the audience and he had two specific changes/additions/clarifications -- one pertaining to what the
definition of a public facility is and another -- how long does a person need to be deceased before they feel comfortable in
naming a facility after them. He added that there was some cleanup work done and some specificity added to the
language but if the Council will focus on those two elements they pretty much capture the questions that staff perceived
he Council had at the last meeting. He further stated that staff wants to make sure that the Council feels comfortable
reviewing these changes in August and possibly adopting the changes to the policy so they can move forward. Mr. Davis
said that there are some initiatives coming forward and it would be timely to consider those at that time.
Mayor Schlum asked if Mr. Davis was referring to the red lined document contained in the Council's packet -- he said
there are a lot of red lines in that document and he is happy to see that many of them have been crossed out (efforts to
simplify and clarify). The Mayor noted that this will not affect Cutillo Plaza and things they have talked about before. He
added that this is moving forward and trying to clarify so they move in the direction that the Council desires. He said that
a naming policy is a good thing to have in place.
Mr. McGuire explained that the document in front of the Council has a lot of color in it and clarified for the Council what
it all stood for.
Mr. Davis advised that staff is looking forward to Thursday and he appreciates the Council's patience and diligence in
working through the budget process. He reminded the Council that the budget process will begin again in August.
Mayor Schlum commented that there were a lot of Flag Day posts on Facebook today and there are a lot of flags out in
Town. He said that he has talked with Honorable Councilmember Melendez and the youths and chaperones are doing
great down in El Salvador and will return early on Friday. He hopes that they will provide an update on their trip that will
be played on Channel 11 and urged everyone to follow them and their adventure on Facebook.
AGENDA ITEM #3 - ADJOURNMENT
Councilmember Dickey MOVED to adjourn the meeting and Councilmember Brown SECONDED the motion, which
CARRIED UNANIMOUSLY (7-0). The meeting adjourned at 7:47 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 Special Session held by the
Town Council of Fountain Hills in the Town Hall Council Chambers on the 14th 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