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HomeMy WebLinkAbout1991.0416.TCWSM.Minutes L TOWN OF FOUNTAIN HILLS MINUTES OF THE WORK STUDY SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL APRIL 16, 1991 A public work study session of the Fountain Hills Town Council was convened and called to order by Mayor John Cutillo at 6:30 p.m., Tuesday, April 16, 1991, in the conference room of the Town Hall Offices located at 16836 E. Palisades, Building C, Fountain Hills, Arizona. ROLL CALL - Present for the meeting were the following members of the Fountain Hills Town Council: Mayor John Cutillo, Vice Mayor Frank Clark and Councilmembers Peg Tibbetts, Mike Minarsich, Charlie Fox, Wally Hudson and Bill O'Brien. Also present were Town Manager Paul Nordin, Director of Community Development Gary Jeppson, Town Attorney Bill Farrell, Mr. Nick Dotterman and Town Clerk Cassie Hansen. AGENDA ITEM #2 - TOWN MANAGER'S REPORT A. Project Update 1. Update on the Beeline Highway Mr. Nordin said that he was concentrating his efforts on ADOT and was trying to sort through the important issues. He stated that he had been faxed a copy of a memo written by Mr. Roger Herzog of ADOT written July 15, 1985 at the MAG Council meeting. The subject matter of the memo was an update of ADOT's fiscal year 1986-1990 5- year construction program stating that the Beeline Highway was listed as part of this plan. He stated that he was researching a rumor that ADOT had contracted an engineering firm to begin construction on the Beeline. He commented that a representative from District 29 was in support of this project and said that she was important because she was the chairman of the House Transportation Committee. Mr. Nordin reported that the Beeline Highway Committee was working on generating public interest for attendance at the upcoming April 26th ADOT meeting. He mentioned that he was attempting to rent a bus for transporting people from Fountain Hills who wanted to attend the meeting and explained the legalities linked with the rental of public transportation for such purposes. He stated that the Town could not legally rent the busses, however, the Chamber of Commerce was willing to act as a conduit, receiving in turn from the town a donation for economic development. Councilman Minarsich stated that he had spoken with Sergeant Bob Mitchell who was in charge of the Beeline Highway and that Sgt. Mitchell would be speaking at the next meeting. Councilman Minarsich explained that the highway was Minutes of the Town Council of Fountain Hills 4/16/91 Page 1 of 7 currently undermanned due to officer unavailability. Councilman Fox suggested that the Town should issue a letter to the Governor expressing the desire to have a meeting between the Mayor and the Governor. 2. Program of work update Mr. Nordin stated that this agenda item was very closely related to agenda item #4 and that he would elaborate when the Council reached that item. 3. Presentation/discussion on community facility districts/improvement districts Mr. Nordin explained that a special assessment district was identical to an improvement district. As an example he mentioned that residents living on Spotted Horse Way had expressed interest in the improvement district method of financing and that they had given this some consideration. He explained that this method of financing allowed the people living on Spotted Hose Way to pay for their own road paving and that the Council had the ability to order the improvement. He stated that next the Council would pass a Resolution of Intention giving the public notification of the proposed improvements. This would allow those residents living on Spotted Horse Way to protest the issue. He pointed out that a resolution of intention did not finalize the decision to make the improvement district. He stated that if after the public notification, no protest was received, the Council would pass a Resolution of Intent to sell bonds and create the improvement district. Mr. Farrell stated that the second resolution allowed the plans and specifications to be sent out for public bids and that the lowest bidder would be chosen. He said that next an assessment would be prepared by the bidder for each property based on the traditional methods and a notice would be sent to each property- owner within the improvement district stating the exact amount being charged to each for the improvements. He said that another protest period was allowed concerning the amount and the method of apportionment and that after that period had passed the notice to the contractor to proceed was sent by the Town Council for work to begin. He said that the property owner had the choice to either elect to pay the entire assessment in cash or elect not to make the payment, thus determining the amount for which the bonds would be sold. He stated that this amount was retired on semi-annual payments traditionally and in January and June of each year a bill would go out to the property owners showing their semi-annual payment over a certain period of time. He stated that a financial institution was appointed as a collection agent. Then a trustee would send a bill to the Town for reimbursement until all bonds were paid in full. He Minutes of the Town Council of Fountain Hills 4/16/91 Page 2 of 7 L stated that, generally, an improvement district lien was superior to the traditional mortgage liens on property. He further stated that if a federal agency were able to legally renounce the lien from the property then the Town would have contingent liability for the rest of the semi-annual payments owed. He explained that the improvement district being discussed that evening would initially begin with two parcels. He stated that the Town could contribute a certain percentage of the funds for the improvement but clarified that the Town could not run its own financing mechanism. Mr. Nordin explained that improvement districts relating to the Felker parcel would be almost identical in their relation to the rest of the Town. He stated that the likelihood of Mr. Felker or the Los Altos Hills group to object to improvement districts was not likely. He said that it was staff's intent to recommend the Council to utilize improvement districts and that the staff planned to prepare a more detailed justification outlining the number of steps as it related to the idea of contention and liability between the time of the Resolution of Intention and the final Resolution. He said that he would request the Council to consider passing the Resolution of Intention within the next two weeks. Councilman O'Brien clarified that the group of affected residents would have the ability to protest the improvement district and asked if people who were not residing within the improvement district would have the ability to protest. Mr. Nordin replied that an outside group would not have the legal ability to stop the process, however, he said that it would have the political ability to stop the process. Mr. Farrell said that after the second protest period if the engineering estimates made were low and the bids too high the residents would have the ability to stop the process. Mr. Farrell explained that early in 1987 Arizona Legislature passed a comprehensive bill which allowed for the creation of community facilities districts. He stated that the community facilities district was an attempt to aid large master developers in financing certain basic infrastructure within the corporate limits of existing cities or towns. He said that they created a separate political subdivision within the city or town. He said that a limited amount of power was given to that specific subdivision which could be composed of either the mayor and council of the town or a board of directors appointed by the mayor and council. He said that the powers which they had were those of condemnation and the power to enter into debt through the sale of bonds or through fixing a tax on real property. He said that in the four years since its inception there had been several districts formed but no bond money had been realized from community facilities districts. He stated that the lbw prospect of ever realizing money from community facilities districts Minutes of the Town Council of Fountain Hills 4/16/91 Page 3 of 7 under the laws as presently written was very slim. He said that he did not recommend the formulation of community facilities districts. Mr. Bob Casillas of Peackock, Hislop, Staley & Given gave a general description of improvement district financing and formulation and briefly described the types of projects they were used for. He said that the amount of assessment could be paid over a ten to fifteen year period of time. He explained that when each parcel was sold the lien would become the new owner's responsibility and said that bond proceeds were available for investment purposes during the construction period. Mr. Nordin stated that step #1 had not yet been completed for the Felker parcel. Mr. Casillas explained that the next step, adoption of the Resolution of Intention would provide a description of improvements included within the district and would make a reference to- the plans and specifications kept at the Town offices. He said that they would discuss principal and interest rates in terms of the proposed structure of the bond issue. He said that, typically, the Town made provisions for what they believed would be the largest bond issue and the highest interest rate because if, when the bidding process was higher than anticipated, the process may need to be started over again. He discussed the types of projects which may be funded by improvement districts and stated that administrative 101) costs should be included. He explained that once the notice of resolution was published the Town would call a hearing for any protests or objections. He said that protests must be filed within fifteen days after publishing the notice. He stated that after that the Town had thirty days to hear the protest and if more than 50Z of the residents involved voiced protests then the improvement district process would be halted. He said that if the improvement district was accepted the town would adopt, post and publish a resolution ordering the improvements and inviting construction bids. He said that after the bids and receipt of the contract another protest period ensued. He stated that if no protests were made the contract would be executed and the town would adopt the resolution. Then, after thirty days, the property owners could either pay cash or choose to utilize the bond process. He said then a list of the unpaid assessments would be filed with the town clerk and bonds would be issued. Mr. Casillas explained the benefits to a town when adopting improvement districts and discussed the importance of considering the degree of benefit for each as well as possible problems. Mr. Nordin said that he wanted the Council to feel comfortable and knowledgeable when the request to issue the notice of intention issue came up again. Minutes of the Town Council of Fountain Hills 4/16/91 Page 4 of 7 4. Discuss formulating a 5 year plan including a prioritization of the following projects: a. Police Department b. Community Center Complex (15 acre site) c. Parks and Recreation - Land and Capital Acquisition Projects d. Assimilation of the Sanitary and Fire Districts and the Water Company into the Town Government e. Planning and Zoning Department Expansion Mr. Nordin said that he recommended the Council approve a directive which would authorize the Town to prepare a five-year plan. He stated that the framework to be proposed to the Council would begin with a basic budget for 1991-1992 and would be projected through a five year period. He commented that the budget would include only the level of service being maintained currently. Then, he said, he would prepare budgets including the projects outlined above. Vice Mayor Clark stated that he felt formulation of a priority list of projects was premature because he believed studies needed to be finalized first and that more data was needed. Mr. Nordin stated that he desired creating a document describing all projects which the Town wished to pursue along with all financial data. He further stated that the document he was proposing was not a finalized five- year plan and would be subject to the Council 's input. Councilman Fox mentioned that revenues would change and stated that the plan needed to be flexible. The Council discussed specific changes they desired be made to Mr. Nordin's document and made recommendations concerning prioritizing various issues. B. Discuss: 1. Special event request by the Sunset Kiwanis for an Adult & Youth Biathlon 2. Liquor license application for the Alamo Saloon 3. Liquor license application for Safeway Police coverage concerning each issue as well as the types of vehicles allowed for transporting supplies was discussed. No other questions were raised by the Councilmembers on these subjects. (1111,0 Minutes of the Town Council of Fountain Hills 4/16/91 Page 5 of 7 j AGENDA ITEM #3 - DISCUSS RESOLUTION 1991-16 ADOPTING A CONSTRUCTION FEE SCHEDULE FOR CONSTRUCTION PLAN REVIEWS Mr. Jeppson described the necessity of having the Town Engineering Department develop a fee schedule. He stated that the fees were to pay for the cost which the Engineering Department incurred when plan checking and making inspections in order to insure all new construction complied with the zoning and aesthetic codes of Fountain Hills. He commented that the schedule was recommended by Mr. Bill O'Dell who was under contract with the Town to perform the engineering functions and described various ways in which other Towns developed their engineering fee schedules and compared them with the schedule being proposed. Mr. Jeppson stated that as more property was being developed on steeper grades the Town engineer was becoming more involved in the development procedure. He further stated that as Fountain Hills grew, more engineering expertise would be needed. He explained that the fee schedule would need to be revised and refined as the Town became more experienced with new development. AGENDA ITEM #4 - DISCUSS RESOLUTION 1991-17. PETITIONING THE ARIZONA STATE LAND COMMISSIONER AND THE STATE LAND SELECTIONS BOARD. PURSUANT TO A.R.S. SECTION 9- 471. SUBSECTION (A)(1). TO AUTHORIZE THE ANNEXATION OF CERTAIN STATE TRUST LANDS LYING CONTIGUOUS TO THE TOWN OF FOUNTAIN HILLS Mr. Nordin explained that this item began the annexation of two sections of land which lay north of Fountain Hills and stated that they were both state trust land. He mentioned that this would be a lengthy process and, if the Council approved the resolution, several months would pass before any action would happen. AGENDA ITEM #5 - DISCUSS RESOLUTION 1991-18. AMENDING RESOLUTION 1991-14 WHICH ORDERED THE SALE OF TOWN OF FOUNTAIN HILLS. ARIZONA GENERAL OBLIGATION BONDS. SERIES 1991. IN THE TOTAL AGGREGATE PRINCIPAL AMOUNT OF $3.500.000. FIXING THE DATE AND HOUR OF SALE. AND DIRECTING THE PUBLICATION OF NOTICE INVITING PROPOSALS FOR PURCHASE OF BONDS AGENDA ITEM #6 - DISCUSS RESOLUTION 1991-19. AMENDING RESOLUTION 1991-15 WHICH ORDERED THE SALE OF TOWN OF FOUNTAIN HILLS. ARIZONA STREET AND HIGHWAY USER REVENUE BONDS. SERIES 1991. IN THE TOTAL AGGREGATE PRINCIPAL AMOUNT OF S1.200.000. FIXING THE DATE AND HOUR OF SALE AND DIRECTING THE PUBLICATION OF NOTICE INVITING PROPOSALS FOR PURCHASE OF BONDS Mr. Nordin explained that both Agenda Items #5 and #6 would save the Town money. He stated that to publish both the GO and the HURF orders to sell in the Arizona Republic would cost $31,000 and, due to this fact, said he would like to have the Town Council designate the Fountain Hills Times as the publishing entity for this document. He pointed out, however, that the HURF bond council would not allow the Town to use the Fountain Hills Times for publishing but said that Resolution Minutes of the Town Council of Fountain Hills 4/16/91 Page 6 of 7 L. 1991-19 would shorten the required amount of publication thus saving the Town money. He stated that he recommended that the Council approve both Resolution 1991-18 and 1991-19 and consider utilizing the emergency clause. He explained that the HURF notice must be published in a newspaper of general circulation in the county in which the bonds were to be sold and said that the Fountain Hills Times did not satisfy this requirement. AGENDA ITEM #7 - ADJOURNMENT The Town Council adjourned the Work/Study session at approximately 9:55 p.m. TOWN OF F AI ILLS - By: / 'John M Cu illo, Mayor ATTEST: C1a ,L,15 Cassie B. Hansen, Town Clerk CERTIFICATION 41, I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Work/Study Session held by the Town Council of Fountain Hills on the 16th day of April, 1991. I further certify that the meeting was duly called and that a quorum was present. DATED this day of May, 1991. Ciu34.6._ 15. I Cassie B. Hansen, Town Clerk L Minutes of the Town Council of Fountain Hills 4/16/91 Page 7 of 7 .� .� J