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HomeMy WebLinkAbout2011.0915.TCREM.Minutesz:\council packets\2011\r10-6-11\110915m.docx Page 1 of 16 TOWN OF FOUNTAIN HILLS MINUTES OF THE EXECUTIVE AND REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL SEPTEMBER 15, 2011 EXECUTIVE SESSION AGENDA CALL TO ORDER Mayor Schlum called the Executive Session to order at 5:15 p.m. Mayor Schlum called the Executive Session to order at 5:15 p.m., which was held by the Town Council of Fountain Hills in the Town Hall Fountain Conference Room. AGENDA ITEM #1 – ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION: PURSUANT TO A.R.S. §38-431.03(A)(4), DISCUSSION OR CONSULTATION WITH THE ATTORNEYS OF THE PUBLIC BODY IN ORDER TO CONSIDER ITS POSITION AND INSTRUCT ITS ATTORNEYS REGARDING THE PUBLIC BODY'S POSITION REGARDING CONTRACTS THAT ARE THE SUBJECT OF NEGOTIATIONS, IN PENDING OR CONTEMPLATED LITIGATION OR IN SETTLEMENT DISCUSSIONS CONDUCTED IN ORDER TO AVOID OR RESOLVE LITIGATION (SPECIFICALLY, RELATED A PROPOSED AMENDMENT TO THE FINAL SETTLEMENT AGREEMENT WITH MCO PROPERTIES; AND RELATED TO PURE MEDICAL MARIJUANA & WELLNESS CENTER II, INC. V. TOWN OF FOUNTAIN HILLS). ROLL CALL: Present for roll call were the following members of the Fountain Hills Town Council: Mayor Schlum, Vice Mayor Contino, Councilmember Brown, Councilmember Leger and Councilmember Elkie. Interim Town Manager Julie Ghetti, Development Services Director Paul Mood, Senior Planner Bob Rodgers, Town Attorney Andrew McGuire and Town Clerk Bev Bender were also present. Councilmember Hansen declared a conflict on the Development Agreement discussion and did not attend the Executive Session while this discussion took place. Councilmember Dickey was absent from the meeting. Mayor Schlum MOVED to enter into the Executive Session at 5:15 p.m. and Vice Mayor Contino SECONDED the motion, which CARRIED UNANIMOUSLY by those present (5-0). Without objection, the Mayor adjourned the Executive Session at 5:37 p.m. in order to wait for Councilmember Hansen to arrive and participate in the remainder of the meeting. Councilmember Elkie MOVED to reconvene the Executive Session at 5:40 p.m. upon the arrival of Councilmember Hansen. Councilmember Brown SECONDED the motion, which CARRIED UNANIMOUSLY by those present (6-0). AGENDA ITEM #2 – ADJOURN TO THE REGULAR SESSION Without objection, the Mayor adjourned the Executive Session adjourned at 6:00 p.m. REGULAR SESSION AGENDA * CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Schlum called the meeting to order at 6:32 p.m. in the Town Hall Council Chambers * INVOCATION – Michele Hansley, First Baptist Church. * ROLL CALL z:\council packets\2011\r10-6-11\110915m.docx Page 2 of 16 Present for roll call were the following members of the City Council: Mayor Schlum, Vice Mayor Contino, Councilmember Brown, Councilmember Leger, Councilmember Elkie, and Councilmember Hansen. Interim Town Manager Julie Ghetti, Town Attorney Andrew McGuire and Town Clerk Bev Bender were also present. Councilmember Dickey was not present at the meeting. * MAYOR’S REPORT None. Mayor Schlum wished Councilmember Elkie a belated happy birthday. * SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS (i) PRESENTATION by Rey Valenzuela, Assistant Director of Elections with the Maricopa County, relating to an overview of jurisdictional "ALL MAIL" ELECTIONS AND HOW BALLOTS ARE PROCESSED. Town Clerk Bev Bender introduced Assistant Director of Elections for M aricopa County Rey Valenzuela and Kristi Passarelli, the County's Campaign Finance Manager and Jurisdictional Manager and thanked them for their attendance and participation in the meeting. Mr. Valenzuela addressed the Council and provided an overview of "All Mail" Elections and how ballots are processed. Mr. Valenzuela discussed the security of the process, how the mail ballots are processed to ensure confidentiality; how it affects Proposition 200 and the voters; the fact that there are no lines to st and in on election Day; how candidates are affected and an alternative for those who want to vote in person; dates for the upcoming November election; what happens if a voter spoils the ballot; mail ballot election cost savings; voter registration totals as of July 26, 2011 and Permanent Early Voting List totals as of August 3, 2011; on the ground (polling place) election costs; and the fact that the results will be provided faster. Mr. Valenzuela indicated his willingness to respond to questions from the Council. Mayor Schlum thanked Mr. Valenzuela for his presentation. In response to a question from Vice Mayor Contino, Mr. Valenzuela explained that when a municipality opts to conduct an all mail ballot election, early voting does not exist -- all mail is one and the same as early ballots. Citizens do not have to initiate a request for a ballot -- everyone gets one. Mr. Valenzuela, in response to a request from Councilmember Leger, provided statistics on the results of all mail ballot elections for the City of Surprise, which showed a significant increase in voter turnout as a result of utilizing this process. He noted that an increase also took place in the Town of Carefree when they went to all mail ballot elections. (ii) The Mayor will read a PROCLAMATION declaring September 17, 2011, as "Constitution Commemoration Day." Mayor Schlum stated that the Constitution of the United States was signed 224 years ago on September 17, 1787, to "form a more perfect Union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare and secure the blessings of liberty to ourselves and our posterity" and noted that this cherished document, born of spirited contention and gracious compromise, provides a natural gate way to that study of our past, which may enlighten the charting of our future. The Mayor said that we all share the blessings granted by the Constitution and the responsibility of ensuring that those blessings fall upon all our people. Mayor Schlum said that it is his honor to proclaim September 17, 2011 as "Constitution Commemoration Day" and heartily encouraged the citizens of Fountain Hills to study the duties of citizenship and renew their dedication to the principles of the Constitution. (iii) The Mayor will read a PROCLAMATION declaring September 26, 2011, Family Day. z:\council packets\2011\r10-6-11\110915m.docx Page 3 of 16 Mayor Schlum stated that the use of illegal and prescription drugs and the abuse of alcohol and nicotine constitute the greatest threats to the well-being of America's children and parents who are engaged in their children's lives are less likely to have children who abuse substances. He added that family dinners have long constituted a substantial pillar of family life in America and said that frequent family dining is associated wi th lower rates of teen smoking, drinking, and illegal drug use and prescription drug abuse. The Mayor proclaimed Monday, September 26, 2011 as "Family Day - A Day to eat dinner with your children" and urged all citizens to recognize and participate in its observance. CALL TO THE PUBLIC None. CONSENT AGENDA AGENDA ITEM #1 – CONSIDERATION OF APPROVING THE TOWN COUNCIL MEETING MINUTES FROM AUGUST 4, 9 AND 18, 2011. AGENDA ITEM #2 – CONSIDERATION OF APPROVING A LIQUOR LICENSE APPLICATION SUBMITTED BY JING LU, OWNER/AGENT OF K & C EVERGREEN LLC DBA HA HA CHINA, LOCATED AT 11849 N. SAGUARO BOULEVARD, FOUNTAIN HILLS, AZ. THIS IS FOR A SERIES 12 LICENSE (RESTAURANT). AGENDA ITEM #3 - CONSIDERATION OF APPROVING A LIQUOR LICENSE APPLICATION SUBMITTED BY SARAH LYNN MEREDITY, OWNER/AGENT OF S & C MEREDITY, LC DBA ALAMO SALOON LOCATED AT 11807 N. SAGUARO BOULEVARD, FOUNTAIN HILLS, AZ. THIS IS FOR A SERIES 06 LICENSE (BAR). AGENDA ITEM #4 - CONSIDERATION OF APPROVING THE ACQUISITION OF CONTROL LIQUOR LICENSE APPLICATION SUBMITTED BY H.J. LEWKOWITZ, AGENT, FOR THE SUN TECH DEVELOPMENT, LLC DBA CLUB AT COPPERWYND, LOCATED AT 13225 N. EAGLE RIDGE DRIVE, FOUNTAIN HILLS, AZ. THIS IS FOR A SERIES 11 LICENSE (HOTEL/MOTEL). AGENDA ITEM #5 - CONSIDERATION OF SPECIAL EVENTS BEING COORDINATED BY THE TOWN OF FOUNTAIN HILS COMMUNITY SERVICES DEPARTMENT: THE MOVIE IN THE PARK (SEPTEMBER 17, 2011); BALLET UNDER THE STARS (SEPTEMBER 25, 2011); THE HOMECOMING PARADE (OCTOBER 5, 2011); AND THE HOMECOMING TAILGATE PARTY (OCTOBER 7, 2011). SAGUARO BOULEVARD WILL BE CLOSED FROM AVENUE OF THE FOUNTAIN TO PALISADES BOULEVARD FOR THE MOVIE IN THE PARK AND THE BALLET UNDER THE STARS EVENTS. SECTIONS OF AVENUE OF THE FOUNTAINS AND PAUL NORDIN PARKWAY WILL BE CLOSED FOR THE HOMECOMING PARADE. AGENDA ITEM #6 - CONSIDERATION OF A SPECIAL EVENT APPLICATION FOR THE OKTOBERFEST PRESENTED BY THE TOWN OF FOUNTAIN HILLS, SOUTHWEST GERMAN SOCIETY, SONS OF AMVETS AND FOUNTAIN HILLS ELKS LODGE #2846 TO BE HELD IN FOUNTAIN PARK ON SEPTEMBER 30 - OCTOBER 1,2011. AGENDA ITEM #7 - CONSIDERATION OF A SPECIAL EVENT APPLICATION SUBMITTED BY RACE PLACE EVENTS FOR THE TOUR DE SCOTTSDALE BICYCLE RACE SCHEDULED FOR SUNDAY, OCTOBER 2, 2011, FROM 8 - 10 P.M. WITH CYCLISTS TRAVELING THROUGH FOUNTAIN HILLS SOUTHBOUND ALONG FOUNTAIN HILLS BOULVARD AND SAGUARO BOULEVARD AND WESTBOUND ALONG SHEA BOULEVARD. z:\council packets\2011\r10-6-11\110915m.docx Page 4 of 16 AGENDA ITEM #8 - CONSIDERATION OF ACCEPTING THE THIRD AMENDMENT TO THE HIKING LICENSE AGREEMENT BETWEEN THE TOWN AND MCO PROPERTIES FOR ACCESS TO THE MCDOWELL MOUNTAIN PRESERVE FOR GUIDED HIKES. Councilmember Leger MOVED to approve the Consent Agenda as listed and Councilmember Elkie SECONDED the motion. A roll call vote was taken as follows: Councilmember Dickey Absent Mayor Schlum Aye Councilmember Leger Aye Councilmember Hansen Aye Vice Mayor Contino Aye Councilmember Brown Aye Councilmember Elkie Aye The motion CARRIED UNANIMOUSLY by those present (6-0). REGULAR AGENDA AGENDA ITEM #9 - CONSIDERATION OF APPOINTING THREE (3) APPLICANTS TO THE PLANNING AND ZONING COMMISSION, FOR A TWO-YEAR TERM BEGINNING OCTOBER 1, 2011 AND ENDING SEPTEMBER 30, 2013. Mayor Schlum MOVED to appoint Cecil Yates Lloyd Pew and Mike Archambault to the Planning and Zoning Commission, for a two-year term beginning October 1, 2011 and ending September 30, 2013 and Councilmember Brown SECONDED the motion, which CARRIED UNANIMOUSLY by those present (6-0). Mayor Schlum thanked the newly appointed members of the Commission present in the audience for their willingness to serve. AGENDA ITEM #10 - CONSIDERATION OF APPOINTING ONE YOUTH TO FILL THE YOUTH COMMISSIONER VACANCY ON THE STRATEGIC PLANNING ADVISORY COMMISSION (SPAC) FOR A TERM EXPIRING ON JUNE 30, 2013. Mayor Schlum MOVED to appoint Sarah Taylor to fill the Youth Commissioner vacancy on the Strategic Planning Advisory Commission (SPAC) for a term expiring on June 30, 2013 and Councilmember Brown SECONDED the motion, which CARRIED UNANIMOUSLY by those present (6-0). AGENDA ITEM #11 - CONSIDERATION OF ACCEPTING A BRONZE SCULPTURE ENTITLED "SHIMA II" ON LOAN WHILE A FUNDRAISING CAMPAIGN IS CONDUCTED AND TO PLACE THE ITEM ON PUBLIC DISPLAY WITHIN THE CENTENNIAL CIRCLE. Director of Community Services Mark Mayer addressed the Council relative to this agenda item and advised that this bronze sculpture was created by Martha Pettigrew and depicts a rabbit in a whimsical pose. He noted that the piece is approximately four feet tall and has a value of $19,500. He said that the piece will be on loan for up to a year beginning this November while a fundraising campaign is conducted. He discussed the minimal insurance costs associated with this piece and added that placement would be in the Centennial Circle. He advised that Public Art Committee Chair Sandi Thompson is in attendance and willing to respond to any questions from the Council. Mayor Schlum thanked Mr. Mayer for his presentation. Vice Mayor Contino MOVED to accept on loan the bronze sculpture titled "Shima II" for public display in the Centennial Circle and Councilmember Hansen SECONDED the motion. z:\council packets\2011\r10-6-11\110915m.docx Page 5 of 16 There were no citizens wishing to speak on this agenda item. Vice Mayor Contino expressed his personal opinion that the piece detracts from what is already there. Mr. Mayer stated that the idea is to enhance the "Power of Thought" sculpture that is already in the Centennial Circle and discussed placement and heights. The motion CARRIED UNANIMOUSLY by those present (6-0). AGENDA ITEM #12 - UPDATE BY JERRY BUTLER, CHAIR OF THE GREENING OF THE DOWNTOWN COMMITTEE, REGARDING THE NEXT PLANNED PHASE OF PLANTINGS IN FOUNTAIN PARK, THE STATUS OF DEVELOPING VACANT DOWNTOWN LANDSCAPED LOTS AND CONSIDERATION OF A REQUEST TO RECEIVE A REFUND OF $420 FOR MONIES PREVIOUSLY PAID FOR A LANDSCAPE PLAN REVIEW. Mr. Mayer advised that the Greening Committee has been active over the last several years and have been very successful in raising funds and are working towards doing a fourth column. He said that Chair Jerry Butler will share with the Council the plans they have for this fall -- not only the development of Fountain Park but also some potential development for downtown lots that are part of the greening pr oject as well. He added that Mr. Butler will also discuss the refund for monies previously paid for a landscape plan review for the downtown lots. Jerry Butler, Chair of the Greening of the Downtown Committee, addressed the Council relative to this agend a item and said tonight's presentation is two prong -- to bring the Council up to date on what the Committee has done to date on the greening of downtown and to request the acceptance of a refund on a deposit that the Committee paid for a downtown component. Mr. Butler highlighted a presentation on the Greening of Downtown (Copy available in the office of the Town Clerk) and discussed accomplished to date, including three commemorative columns; planned improvements (Fall 2011) both in Fountain Park and in the downtown corridor; monies that have already been invested and are planned to be invested; other improvements that are in the planning state (Fountain Park, the Downtown Corridor, the Urban Demonstration Garden and Learning Center) and major contributors to the Greening of Downtown Vision Plan. He discussed the progress made towards creating landscaping for downtown vacant lots. Mr. Butler also advised Council that he is seeking approval to receive a refund of $420 for monies previously paid for a landscape plan review for downtown lots. He explained that the Committee paid that money in order to comply with the Town's policy but said that the policy probably was not set up with the idea that landscaping might be donated and it might only be temporary until the lots become developed for commercial activities. He added that the refund is requested because the project is being paid for with donations to a 501(c)3 organization, not by a commercial business entity or developer. He stated that if the fee could be waived and returned back to the Committee that money represents about three trees and respectfully requested that the Town consider refunding that money. He indicated his willingness to respond to questions from the Council. Mayor Schlum thanked Mr. Butler for his presentation and commented on the great work that the Committee has done to date and continues to do. He also thanked all of the contributors and volunteers who are helping to make this important project become a reality. Councilmember Hansen stated that it is commendable that Chaparral Water has agreed to provide the water free of charge and that the owners of Plat 208 are willing to provide the maintenance for the vacant lots. Councilmember Hansen MOVED to refund the permit fees previously paid in the amount of $420 by the Greening of Downtown Committee for a landscaping plan review for downtown vacant lots and Councilmember Elkie SECONDED the motion. There were no citizens wishing to speak on this agenda item. z:\council packets\2011\r10-6-11\110915m.docx Page 6 of 16 Mayor Schlum said that it is so exciting to see what all of the volunteers are doing and this is just one example. He added that this is a tremendous project that will truly benefit the Town and all of its citizens. The Mayor thanked all the donors and Mr. Butler. The motion CARRIED UNANIMOUSLY by those present (6-0). AGENDA ITEM #13 - PRESENTATION BY THE FOUNTAIN HILLS CHAMBER OF COMMERCE WITH DISCUSSION AND POSSIBLE DIRECTION TO STAFF REGARDING THE FY 2011/12 FUNDING FOR TOURISM. Interim Town Manager Julie Ghetti addressed the Council relative to this agenda item and said that during Fiscal Year 2011-12 budget, funds were appropriated to continue contracts the Town has had for the last four years with the Chamber of Commerce Tourism Division. She said that with the decrease in available revenues in the General Fund, the agencies were reduced by 20% (four contracts). Ms. Ghetti stated that Shawn White, Chairman of the Chamber's Board of Directors and Francesca Carozza will highlight a presentation on tourism and the Fountain Hills Visitors Bureau (funding and programs). Mayor Schlum thanked Ms. Ghetti for her comments. Mr. White addressed the Council and thanked the Council and the Town for appropriating funds this year to the Fountain Hills and Fort McDowell Visitors Bureau for continued tourism programs. He said that he is very excited about the upcoming year and the programs that will be put in place and thanked the Council for their continued enthusiasm and support. Ms. Carozza addressed the Council and highlighted a brief presentation (Copy is on file in the office of the Town Clerk). Ms. Carozza advised that the Fountain Hills & Fort McDowell Visitors Bureau (a division of the Fountain Hills Chamber of Commerce) is a destination marketing organization serving Fountain Hills, Fort McDowell and The Verdes. She discussed the value and impact of visitors; the Visitor Bureau's objectives; the organization's 2011/12 strategy and tactics; digital marketing and their new website; advertising print; material (Visitors' Guide 2012 distribution); affiliations; budget overview; and principle deliverables. Ms. Carozza thanked the Council for the opportunity to appear before them this evening and indicated her willingness t o respond to any questions. Mayor Schlum thanked both Mr. White and Ms. Carozza for their comments. Town Clerk Bev Bender advised that two citizens wished to address the Council relative to this agenda item. Alan Magazine addressed the Council and stated that he is not speaking as a member of SPAC, he is speaking as an individual. He agreed that tourism is a component of economic development and said that a lot of the recommendations that the Chamber is making make a lot of sense but he doesn't believe they will brand the Town. He noted that branding differentiates the Town from all of the other cities and towns in Arizona -- every city and town in Arizona wants tourism. He clarified that he is not saying that they shouldn't do that, it is very worthwhile and will have positive results but he doesn't believe that it will begin to solve the Town's problems. He added that they are in a downward spiral as far as finances and there is no indication that that is going to change anytime soon. He said that tourism and increased retail sales would help but right now they are in a downward spiral as far as retail. He noted that four restaurants in Town have closed over the last three weeks and stated that that is not a healthy sign. He reported that there are hundreds of "economic clusters" in existence (Napa Valley, for example, has wine and there is a tremendous combined effort to market this and generate tourism). He stated the opinion that the Town has to look at what kind of an innovative industry should be identified to create jobs and bring about the kind of positive change the Town needs. He noted that there is a lot of art in the Town and a lot of the benefits of good healthcare -- they live in a clean environment, are not located in the z:\council packets\2011\r10-6-11\110915m.docx Page 7 of 16 center of a city, they have trails, etc. He said what if the Town became known as the Healthcare capital of the Valley -- and to him that is branding. He added that he is not suggesting that that is what it should be; it will take some research and analysis to reach such a conclusion on the appropriate economic cluster. He advised that this would generate tourism and the kind of economic cluster that he is talking about would not be up and down depending on economic times if it is done right (attract a hospital, bring in physicians and healthcare specialists, medical suppliers, high-tech facilities, etc.). Mayor Schlum thanked Mr. Magazine for his input. Phyliss Kern decided not to address the Council at this time. Councilmember Hansen noted that a few months ago the Council had quite a discussion on the branding issue and concluded that the Town does not have to have just one single brand. The important thing is that whatever brands they come up with that they complement each other and are coordinated. She said that the fact that tourism is working on a brand does not preclude discussion regarding other brands. Mayor Schlum agreed with Councilmember Hansen's comments and requested that Ms. Ghetti provide additional information regarding the next steps and the timing before they wrap up this discussion. Councilmember Leger thanked the Chamber representatives for their presentation and Mr. Magazine for his input. He said that as far as the deliverables and the Town's goals for this fiscal year, which are driven by the community-based Strategic Plan, the Council has talked specifically about branding and an enhanced website to complement branding and tourism since they all work together. He added that they also discussed using a variety of media and he believes that the presentation this evening "nailed that." He stated that Mr. Magazine made some excellent points about clustering and branding. He noted that the Chamber has been collaborating with the Business Vital ity Advisory Commission and branding experts who have shared their expertise. He said that the charge that the Visitor's Bureau would be pursuing is a branding of Fountain Hills -- the website is really marketing Fountain Hills under the guise of tourism. He noted that the Town's Economic Development Administrator is in concurrence as far as a number of the recommendations and has been pursuing them (in the healthcare area and other segments that were mentioned). He added that what he heard tonight lines up very nicely with the Town Council's goals and asked if Mr. White or Ms. Carozza could provide additional input regarding the branding focus. Mr. White advised that the branding effort is very "organic" -- not something that has been created but rather something that has come into Town by way of outsiders who visited some of the establishments here and taken advantage of some of the amenities and provided them with a branding platform. They have put a lot of effort into finding out what Fountain Hills is all about from an outsider's perspective. Ms. Carozza said that they really believe that the branding company that they have been working with did come up with a type of "clustering" idea. The company looks at the whole picture and not just people co ming and visiting the Town. Their goal is to really raise the bar and give Fountain Hills a sense of place. She indicated the organizations' willingness to work with Mr. Magazine. Councilmember Elkie stated that he is looking forward to hearing more about this at the Work Study Session and thanked everyone for their input. Councilmember Hansen also expressed appreciation for the presentation and said that it is important to let the community know what they are really doing and they have come a long way in a little less than two years. Councilmember Hansen MOVED to direct staff to prepare a contract for the Fountain Hills Chamber of Commerce Tourism and disbursement of funds and Councilmember Elkie SECONDED the motion. Mayor Schlum advised that he likes what he heard this evening and stated that economic development is a multi -prong process. He added that the Town needs more daytime population and Fountain Hills is definitely a desirable destination z:\council packets\2011\r10-6-11\110915m.docx Page 8 of 16 spot. He noted that he has seen a lot more engagement with the hotels and Fort McDowell and is very excited about the energy that is being generated. Councilmember Brown also thanked Mr. White and Ms. Carozza for the presentation. He noted that the Town is possibly going to fund $103,200, the Tribal grant is $45,000 and the Chamber funds $50,000. He said that if this is such an important item for the Town, he would like to see the Chamber step up and perhaps match the funds that the Town is going to be providing (he would like to see a little more aggressive help from the Chamber). Councilmember Hansen stated that as far as contributions, they will want to look at some of the in-kind contributions the Chamber makes as far as facilities, staff, etc. Councilmember Elkie encouraged the Chamber and staff to work together to provide the Council and citizens as well updates on how things are going and what they are doing. Mayor Schlum stressed the importance of utilizing resources where they will be the most effective. The motion CARRIED UNANIMOUSLY by those present (6-0). AGENDA ITEM #14 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF RELATING TO THE ANNUAL $25 PER UNIT COMMERCIAL FIRE INSPECTION FEE AS ADOPTED IN THE FY10-11 FEE SCHEDULE. Assistant Fire Chief Randy Roberts addressed the Council relative to this agenda item and said that at a previous Council meeting the Council provided direction to staff to return with some options regarding the annual Fire Inspection Fee (possibly come up with something a little more equitable). He stated that in working wit h the Finance Department, staff has come up with three different options and highlighted them as follows: 1) Leave as is with a $25 per unit fee - Pros: Nominal charge for partial cost recovery and easier to administer. Cons: Larger buildings pay the same as smaller buildings; 2) Charge a fee per unit based on square footage. Less than 10,000 square feet - $25; 10,001 to 25,000 square feet - $50; More than 25,001 square feet - $100. Pros: Fee is based on square footage rather than a flat fee; each non-vacant unit is billed. More equitable; Cons: Each u nit needs to be measured. Fee has to be selected to be put on the invoice. 3) Charge a fee per building based on square footage. Less than 10,000 square feet - $100; 10,001 square feet to 25,000 square feet - $250; More than 25,001 square feet - $450. Pros: Equity for service delivered. Cons: Each building needs to be measured. Hard to administer. Inspections conducted and recorded by unit. Could be multiple owners in one building. Fee has to be selected to be put on the invoice. Mr. Roberts reported that four firefighters conduct the inspections as a group and provided a recap of the average time spent on the inspections. Chief Roberts advised that staff from his department as well as the Finance Department recommend approval of Option 2 - fee per unit based on square footage. He reiterated the importance and benefits of the Annual Safety Survey Inspections. Chief Roberts indicated his willingness to respond to questions from the Council. Mayor Schlum thanked Chief Roberts for his presentation. Ms. Bender advised that one citizen wished to speak on this agenda item. Gordon Pittsenbarger addressed the Council relative to this agenda item and asked for clarification. He said that the square foot charge, as he understood it, is per unit and if that is the case and they are going to charge $25 per unit under 10,000 square feet, then there would be no change to the building that he and his partner own because all their units are z:\council packets\2011\r10-6-11\110915m.docx Page 9 of 16 small (up to 500 square feet). He added that the bowling alley across the street from his building would probably be paying less. The Mayor asked Chief Roberts to respond to Mr. Pittsenbarger's comments. Chief Roberts confirmed that Option 2 is a fee per unit based on the square footage of the unit. He noted that a majority of the units in Town will be under 25,000 square feet. He added that a larger building would incur a larger fee because it takes longer to inspect. Discussion ensued relative to examples of fees charged in other municipalities; the importance of checking each unit since different people will have different items in their units; Councilmember Brown's comment that he is struggling with the fact that if a building has five units it will cost $125 to check all five of them (based on $25 per unit) but noted that the inspections will ensure that the adjoining buildings are safe as well so he is fine with the $25 per unit fee; the fact that the department current inspects a minimal number of buildings that are more than 10,000 square feet in size; the fact that the fee will remain the same for a vast majority of the building owners; Councilmember Hansen's suggestion that they break down the 25,000 square feet a little more (2500 square feet to 5000 square feet, etc. and start at $10 per unit); Chief Robert's reply that staff tried to keep it simple without having to measure exact square footage; the Mayor's comment that he likes the idea of keeping it simple and his statement that annual commercial fire inspections have been going on for some time but no charges were assessed until July 2010; and the fact that the inspections are required under the International Fire Code and the Town Code. In response to a request from Mayor Schlum for an explanation of why the Town started to charge a fee for the inspections, Ms. Ghetti advised that the methodology behind charging a fire inspection fee or any fee for service is the idea that only the people who receive the service and benefit should pay for it. She noted that otherwise all of the residents in the Town would be paying the fee and many of the citizens would not receive the service -- it is a benefit for business owners. She added that the fee recovers some of the costs of providing that service but not all of the costs. She stated that previously, all of the residents have been paying for this service and now the business owners who are receiving the service pay for it. Councilmember Elkie commented that residents who patronize restaurants and other businesses benefit from the inspections as well (less chance of danger and a shared benefit). Councilmember Brown MOVED to direct staff to leave the fee as is ($25 per unit) regardless of size and the motion FAILED for lack of a second. Councilmember Hansen stated the opinion that some of the labor intensive part of this will be up front and the dollar amount for every unit would be established during the first year. Councilmember Hansen MOVED to go forward with Option #2 but add additional square footage fees. 2,500 square feet and lower would be $10; 5,000 square feet and lower would be $15 and 7,500 square feet would be $20 and the other fees would remain in effect and Vice Mayor Contino SECONDED the motion. Vice Mayor Contino said that he would like to tell the citizens that insurance rates are going up every year so there are increased rates and some people do not realize just how much they go up. He added that they also have fire inspectors or insurance inspectors come out and inspect buildings -- over and above the fire inspections -- but they also have to take a look at the economy the way it is and businesses going down and the Town does not have the revenue it had before. The Vice Mayor added that a lot of people in Town don't pay for anything and the Town is absorbing costs and they are getting a free ride. He expressed the opinion that they are "nickeling and diming" every time they turn around and asked how a business can stay in business when this is happening. He stated that yet the freeloaders who own property in the Town don't pay a dime for fire protection and asked where they draw the line. z:\council packets\2011\r10-6-11\110915m.docx Page 10 of 16 Mayor Schlum noted that fire services in Fountain Hills are paid through the General Fund -- funded through sales taxes which come from the businesses. He indicated support for Councilmember Hansen's motion and said that there are many businesses under 2,500 square feet in size. Councilmember Elkie stated that if a vast majority of the businesses are going to fall below the 10,000 square foot mark -- and probably below 5,000 square feet -- ultimately the amount that the Town is recouping is going to go down dramatically. He commented on the cost of providing the inspection service and added that over time they are going to see increases in the fees and he doesn't believe that the amount that the Town will be recouping will not be very cost effective and does not reflect the amount of staff time and effort that goes into this. In response to a question from the Mayor regarding overhead costs, Chief Roberts reported that last year approximately $10,600 was put into the General Fund as a result of the fees. He added that it takes four firefighters an average of thirty minutes each to carry out the inspections. Councilmember Hansen said that she believes there are ways to determine square footage -- every tenant has a lease that lists the square footage so the numbers already exist. Ms. Ghetti addressed the issue of billing and stated that currently the way the system works using a flat fee per unit, they have every piece of property, every unit, in the system so the billing for that is easy. She added that if it is the desire of the Council to reduce the fee, the challenge that staff will have is the fact that they don't capture all of the squ are footages and the system doesn't keep them so they will have to enter all of the square footages for every bill. She said that next year they would re-bill at the same rate unless there were changes in the building and staff wouldn't know that so the f ire inspectors would have to determine whether any changes to the building had been made. She added that if the Council wants to reduce the fee, she would suggest that they reduce the fee for everything under a certain square footage so they can keep it at a per unit cost at one rate rather than having the firefighters have to measure or count on information received from the County or a lease. She reiterated that the problem is that the system does keep the information -- staff doesn't have any way to keep it. Councilmember Leger commented that there are two issues -- one is cost especially if someone owns a building with ten units and the other has to do with being equitable. He said that he believes the square footage is equitable when talking about the entire building but then when they break it down by unit that goes out the window. He stated that simplifying things is important and it costs a lot of staff time to do all of the work involved. Councilmember Leger MOVED to amend the motion to approve Option #1 and reduce the cost to $15 per unit. In response to a question from the Mayor, Town Attorney Andrew McGuire advised that the cleaner way to address this would be to vote the motion on the amendment up or down or the sponsor and the seconder could remove the motion from the floor -- either one would work. He said that what Councilmember Leger brought forward is a substitute motion rather than an amendment. Mayor Schlum asked for a vote on the motion brought forward by Councilmember Hansen (listed previously). A roll call vote was taken with the following results: Councilmember Hansen Aye Councilmember Brown Nay Councilmember Elkie Nay Vice Mayor Contino Aye Councilmember Leger Nay Mayor Schlum Aye Councilmember Dickey Absent The motion FAILED due to a tied vote of those present (3-3). z:\council packets\2011\r10-6-11\110915m.docx Page 11 of 16 Councilmember Leger MOVED to approve Option #1 revising the rate per unit to $15 and Councilmember Elkie SECONDED the motion. A roll call vote was taken with the following results: Councilmember Brown Aye Mayor Schlum Aye Vice Mayor Contino Nay Councilmember Leger Aye Councilmember Hansen Nay Councilmember Elkie Aye Councilmember Dickey Absent The motion CARRIED by majority vote of those present (4-2). AGENDA ITEM #15 - CONSIDERATION OF A CONTRACT WITH CHRISTMAS LIGHT DECORATORS, IN THE AMOUNT OF $34,917.76, FOR DOWNTOWN HOLIDAY LIGHTS. Economic Development Administrator Lori Gary addressed the Council relative to this agenda item and briefly outlined the staff report (Copy is available in the office of the Town Clerk). Ms. Gary stated that this evening staff is bringing forth a contract with Christmas Light Decorators in the amount of $34,917.76 for downtown holiday lights. She noted that it has been a long-standing tradition to decorate the Avenue of the Fountains for the holiday season. The past holiday lighting has included illumination of various trees in the Avenue medians, illuminated and non-illuminated ground displays in the medians, illumination of the top perimeter of Town- owned buildings (Town Hall, Community Center and Library), decorating the outside of Town Hall with festive holiday items, and illumination of the palm trees on the north side of the Avenue. Ms. Gary advised that Christmas Light Decorators, under a Professional Services Agreement, has provided the decorating services, maintenance (repair and preservation) of Town owned holiday displays, upkeep and repair of all the lighting during the holiday display season and storage of Town owned displays during the off season. The Company has provided commercial illumination and decorating services since 1996 and also provides similar services to the cities of Tempe, Glendale, Scottsdale, Chandler, Surprise and Prescott. She noted that staff has been very satisfied with the performance of Christmas Light Decorators. Ms. Gary reported that additional funds were added to the FY2012 budget to supplement the holiday display for the 2011 season at the request of citizens and Town merchants. The budget item was increased from $25,000 in FY2011 to $40,000 in FY2012. She said that the Council adopted the FY2012 budget in which the funding was included. Ms. Gary discussed the fact that the proposed contract also includes three additions and proposed leased decorations. She stated that Mr. Doug Topham, President of Christmas Light Decorators, is present in the audience to respond to any questions. Ms. Gary requested Council approval of the proposed contract. Mayor Schlum thanked Ms. Gary for her presentation. There were no citizens wishing to speak on this agenda item. Vice Mayor Contino commented that last year he noticed that quite a few of the lights were out a lot of the time and asked if this can be rectified in view of the cost of the proposal. Ms. Gary noted that last year the Town experienced some rain during the holiday season and it seeped into the electrical parts and resulting in the loss of some of the lights (tripped the circuit breaker and did what it was supposed to do for safety reasons). She advised that part of the contract with the company includes their response to any problems that the Town experiences and stated that they have a 24-hour response time to look into the problem and solve it. She said that they did this last year and added that some of the Town's electrical systems are old and so they have to utilize timers, z:\council packets\2011\r10-6-11\110915m.docx Page 12 of 16 which are outdoors in the wind and rain (exposed to the elements) so sometimes that also trips the lights. She advised that the company will respond to those types of issues as they have in the past. Director of Development Services Paul Mood confirmed that the Town has not yet addressed the electrical issues along the Avenue due to the current economic times so the same issues exist, particularly in inclement weather. Discussion ensued regarding the three additions, the fact that 54 palm trees will be illuminated and the rented displays to enhance the effect of the decorations. Mr. Mood advised that adverse weather conditions affect the GFI and if it happens during the evening hours, no one will be at Town Hall and the company has 24 hours to respond so some of the lights may be off during that period as they were last year. He added that each timer will have to be checked and reset so that the same thing do esn't happen the next evening. He assured the Council that staff will check them before leaving for home and said that one of the median improvements that staff wants to do is try and fix that problem. Councilmember Elkie MOVED to approve a contract with Christmas Light Decorators in the amount of $34,917.76 for downtown holiday lights and Councilmember Brown SECONDED the motion. Councilmember Leger commented that last year the lights were down on the weekend and staff who obse rved that called it in. He said it would be good to have someone on call so that if this happens again, it can be called in right away and hopefully the lights will be restored as soon as possible. He said he would like to know who to contact in case he sees that there are problems. Ms. Gary stated that staff will figure that out internally and make sure that there is someone on call and provide a name and number to contact in the event lights go out. Councilmember Hansen noted that volunteers used to participate in this and make sure that the lights were on and suggested that they can get a group of volunteers to keep an eye on the lights and report any outages. Mayor Schlum thanked Councilmember Hansen for the great idea. The motion CARRIED UNANIMOUSLY by those present (6-0). AGENDA ITEM #16 - CONSIDERATION OF AN EXPENDITURE WITH PRECISION ELECTRIC COMPANY, IN THE AMOUNT OF $41,394.48, FOR THE REPAIR OF A MOTOR AND PUMP AT FOUNTAIN LAKE. Director of Community Services Mark Mayer addressed the Council relative to this agenda item. He advised that last year one of the three pumps at Fountain Lake went down. Staff had emergency repairs done but it was clear that the amount of deterioration was also occurring on the remaining two pumps so staff requested and the Council approved a budget for this particular line item (pulling and taking a look at the two remaining pumps). He said that they did the second pump earlier this summer and the numbers before the Council show the cost of repairing/replacing pieces of the pump. Mr. Mayer reported that the quote to pull the motor and make repairs, replace the pump bowl with a new one and reinstall the motor is $41,394.48. He advised that the work would be done by Precision Electric who made the repairs to the motor last year. He added that a total of $105,000 has been budgeted this year in the Capital Projects budget to repair both of the two remaining motors and pumps. He said that staff's intention is to complete the repairs on pump #2 and then move on to pump #3 -- that will give the Town decades of no problems as far as the pumps. Mr. Mayer requested that the Council approve the proposed expenditure and indicated his willingness to respond to any questions. There were no citizens wishing to speak on this agenda item. z:\council packets\2011\r10-6-11\110915m.docx Page 13 of 16 Mayor Schlum thanked Mr. Mayer for his presentation. Vice Mayor Contino MOVED to approve an expenditure in the amount of $41,394.48 to Precision Electric Company for the repair of a motor and pump at Fountain lake and Councilmember Hansen SECONDED the motion. Councilmember Elkie asked if Mr. Mayer had any idea what the third pump would cost to repair and Mr. M ayer said that at this point in time he does not. He would expect the cost to be somewhere in that same range bu t until the pump is pulled and inspected he cannot say for sure. Councilmember Elkie noted that it looks as though they have about $64,000 left in what was budgeted this year in the CIP fund so hopefully they should be okay. The motion CARRIED UNANIMOUSLY by those present (6-0). AGENDA ITEM #17 - CONSIDERATION OF AN EXPENDITURE WITH BERGE FORD UNDER THE PIMA COUNTY CONTRACT, IN THE AMOUNT OF $37,950.95, FOR A CHASSIS. Mayor Schlum advised that Agenda Items 17, 18 and 19 will all be addressed at the same time. Assistant Fire Chief Randy Roberts addressed the Council relative to these agenda items and said that Squad 822, which works out of Station No. 1, is due to have its fleet replaced as part of the Town's vehicle replacement policy. He out lined the staff report relative to these agenda items (Copy available in the office of the Town Clerk) and discussed the costs associated with the equipment that is being proposed to be replaced. He said that they will save a lot of money since they are going to do this in three components and explained the details of the proposal as outlined in the reports. Chief Roberts indicated his willingness to respond to questions from the Council. Mayor Schlum thanked Chief Roberts for his presentation. There were no citizens wishing to speak on these agenda items. Councilmember Hansen MOVED to approve an expenditure with Berge Ford under the Pima County contract in the amount of $37,950.95 for a chassis and Councilmember Elkie SECONDED the motion. In response to a question from Councilmember Hansen, Chief Roberts explained that all of the components would be new and all of the labor is covered under the contract with Rural Metro (just the small parts are not covered). There would be new components with all new warranties. The motion CARRIED UNANIMOUSLY by those present (6-0). AGENDA ITEM #18 - CONSIDERATION OF AN EXPENDITURE WITH WESTERN TRUCK EQUIPMENT, IN THE AMOUNT OF $14,837.36, FOR A UTILITY BODY. For discussion of this item, see Agenda Item #17 above. Councilmember Hansen MOVED to approve an expenditure with Western Truck Equipment in the amount of $14,837.36 for a utility body and Councilmember Elkie SECONDED the motion, which CARRIED UNANIMOUSLY by those present (6-0). AGENDA ITEM #19 - CONSIDERATION OF AN EXPENDITURE WITH WATEROUS ARIZONA, IN THE AMOUNT OF $33,072.15, FOR A DIESEL POWERED COMPRESSED AIR FOAM (CAF) PUMP ASSEMBLY AND TANK. For discussion of this item, see Agenda Item #17 above. z:\council packets\2011\r10-6-11\110915m.docx Page 14 of 16 Councilmember Hansen MOVED to approve an expenditure with Waterous Arizona in the amount of $33,072.15 for a diesel powered Compressed Air Foam (CAF) pump assembly and tank and Councilmember Elkie SECONDED the motion. Councilmember Elkie asked if the Town still had the old pump and if they are getting any use out of it or is it completely out of commission. Chief Roberts responded that the pump is still functional and it would be up to the Town to decide what to do with the parts (move them to another spot, send it to auction, etc.). He said that the pump is too small for the mission that the truck has. Vice Mayor Contino asked if the pump could be used for parades and Chief Roberts said absolutely. The motion CARRIED UNANIMOUSLY by those present (6-0). AGENDA ITEM #20 - CONSIDERATION OF RESOLUTION 2011-33, DECLARING AS A PUBLIC RECORD THAT CERTAIN DOCUMENT FILED WITH THE TOWN CLERK AND ENTITLED "THE 2010-11 AMENDMENTS TO THE TAX CODE OF THE TOWN OF FOUNTAIN HILLS." Ms. Ghetti addressed the Council relative to this agenda item and stated that all cities and towns in Arizona that impose a local sales tax have adopted the Arizona Model City Tax Code (MCTC), which provides uniformity for businesses, particularly for multi-jurisdictional taxpayers who pay not only to the State but also to two or more cities a nd towns throughout the State. The Municipal Tax Code Commission was created by the State Legislature to act as a forum for discussion of all changes to the MCTC and is composed of nine city/town elected officials appointed by the Governor and Legislative leadership. The Unified Audit Committee is composed of city sales tax officials and representatives of the Department of Revenue. All proposed changes to the Code are reviewed by the Unified Audit Committee and approved by the Municipal Tax Code Commission. Changes approved by the Commission must be adopted by each city/town Council. Ms. Ghetti introduced the Town’s Sales Tax Auditor Al Holler of Albert Holler & Associates and stated that he is willing to respond to any questions from the Council. Mayor Schlum thanked Ms. Ghetti for her presentation and noted that the presentation covers Agenda Items 20 and 21. Councilmember Hansen MOVED to approve Resolution 2011-33, declaring the 2010-11 amendments to the Tax Code of the Town of Fountain Hills as a public record and Councilmember Brown SECONDED the motion. Mayor Schlum asked Mr. Holler if there are any changes that he wanted to go over and Mr. Holl er replied that the only one that represents a significant revenue source is the first one on medical marijuana should the Town have a dispensary. He noted that California claims that a lot of sales tax is generated from this area. He stated that the oth er items really do not affect the Town. There were no citizens wishing to speak on these agenda items. The motion CARRIED UNANIMOUSLY by those present (6-0). AGENDA ITEM #21 - CONSIDERATION OF ORDINANCE 2011-12, ADOPTING "THE 2010-11 AMENDMENTS TO THE TAX CODE OF THE TOWN OF FOUNTAIN HILLS" BY REFERENCE; ESTABLISHING AN EFFECTIVE DATE; PROVIDING FOR SEVERABILITY AND PROVIDING PENALTIES FOR VIOLATIONS. For discussion, see Agenda Item #20 above. z:\council packets\2011\r10-6-11\110915m.docx Page 15 of 16 Councilmember Hansen MOVED to approve Ordinance 2011-12, adopting the "2010-11 amendments to the Tax Code of the Town of Fountain Hills" and Councilmember Leger SECONDED the motion, which CARRIED UNANIMOUSLY by those present (6-0). AGENDA ITEM #22 - CONSIDERATION OF RESOLUTION 2011-17, APPROVING THE TRANSFER OF INVESTMENT FUNDS, IN THE AMOUNT OF $15M, FROM THE ARIZONA STATE TREASURERS LOCAL GOVERNMENT INVESTMENT POOL (LGIP) TO PFM ASSET MANAGEMENT FOR THE PURPOSE OF INVESTING ACCORDING TO THE TOWN'S ADOPTED INVESTMENT POLICY. Ms. Ghetti addressed the Council relative to this agenda item and stated that the Town has historically maintained an investment account with the State Treasurers Local Government Investment Pool (LPIP) for all deposits exceeding $1 million (the amount of collateral provided by the bank). She added that to enhance earnings on investments, staff proposed an amendment to the investment policy to allow for alternative investment options other than the LGIP, which Council approved on December 2, 1010. She noted that on May 19, 2011, Council app roved a contract with PFM Asset Management for investment services and, if approved, the Town is now ready to transfer $15 million from the LGIP to PFM. She said that the amount represents cash reserves that are not programmed for expenditure during the next year. Ms. Ghetti advised that Mr. Craig Clifford, the Senior Managing Consultant from PFM Asset Management , is present to answer any questions that the Council may have. There were no citizens wishing to speak on this agenda item. In response to a question from Mayor Schlum, Ms. Ghetti explained the reasons why staff is recommending that the Council approve this proposal and noted that everything will follow Town policies and the investments will still be with government securities. Councilmember Leger asked a question about return on investment and Mr. Clifford advised that right now the LGIP is earning five tenths of one percent -- the rate is low -- and stated that although he cannot promise returns, he believes that the Town can probably expect to see four to six times greater return. In response to a question from Councilmember Leger, Ms. Ghetti said that the funds staff is proposing be moved are really the fund balance (Rainy Day Fund, General Fund Balance and some capital funds that were not needed for the next couple of years). She noted that the Town has a total of $22 million so approximately $7 million will be left in the pool and will be available for operations if needed. Councilmember Elkie MOVED to approve Resolution 2011-17, authorizing the transfer of $15 million from the Arizona State Treasurers Local Government Investment Pool (LGIP) for investment with PFM Asset Management and Councilmember Leger SECONDED the motion, which CARRIED UNANIMOUSLY by those present (6-0). AGENDA ITEM #23 - COUNCIL DISCUSSION/DIRECTION TO THE INTERIM TOWN MANAGER/FINANCE DIRECTOR JULIE GHETTI. 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 #24 – SUMMARY OF COUNCIL REQUESTS AND REPORT ON RECENT ACTIVITIES BY THE INTERIM TOWN MANAGER/FINANCE DIRECTOR JULIE GHETTI. Ms. Ghetti advised that staff will prepare a tourism contract with Fountain Hills Chamber - Tourism. Staff will also move forward with a Fire Inspection Fee in the amount of $15 with the next fee schedule to be effective on July 1, 2012. In addition, staff will work towards providing some contact information regarding holiday lighting should the lights go off after hours or on weekends. z:\council packets\2011\r10-6-11\110915m.docx Page 16 of 16 Ms. Ghetti reported on the Town's first Citizen Town Hall and said that the sessions will continue each month through December (to be held the second Wednesday of each month through December 2011, 5:00 p.m. to 7:00 p.m.). She noted that five residents attended the first session. Mayor Schlum thanked Ms. Ghetti for the great job she is doing as Interim Town Manager. AGENDA ITEM #25 - ADJOURNMENT Vice Mayor Contino MOVED to adjourn the meeting and Councilmember Elkie SECONDED the motion, which CARRIED UNANIMOUSLY by those present (6-0). The meeting adjourned at 9:20 p.m. TOWN OF FOUNTAIN HILLS By __________________________ Jay T. Schlum, Mayor ATTEST AND PREPARED BY: _________________________ Bevelyn J. Bender, Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Executive and Regular Sessions held by the Town Council of Fountain Hills in the Fountain Conference Room and Town Hall Council Chambers on the 15th day of September 2011. I further certify that the meeting was duly called and that a quorum was present. DATED this 6th day of October 2011. _____________________________ Bevelyn J. Bender, Town Clerk