HomeMy WebLinkAbout1991.0514.TCWSM.Minutes L
TOWN OF FOUNTAIN HILLS
MINUTES OF THE WORK/STUDY SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL
MAY 14, 1991
A public meeting of the Fountain Hills Town Council was convened and called to
order by Mayor John Cutillo at 6:30 p.m. , Tuesday, May 14, 1991, in the
Conference Room of the Town Hall Offices located at 16836 E. Palisades Blvd. ,
Building C, Fountain Hills, Arizona.
Present for roll call 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, Judge Shoob, Town Attornies Bill Farrell and Nick Dottermann and Town
Clerk Cassie Hansen.
ADGENDA ITEM #2 - TOWN MAGISTRATE'S REPORT
Judge Shoob gave his monthly report. Councilman Fox asked if the reservists were
helping to recapture some of the outstanding warrants and funds from the court
and Judge Shoob reported that they were as far as the Fountain Hills people. The
majority of outstanding warrants were from Phoenix and Scottsdale and the
reservists would not be sent out on those. He said that they were sending lots
of letters. Judge Shoob was asked what would happen if someone was picked up and
it was found that they owed the Town money. Judge Shoob stated that it would
depend on what the offense was and the dollar amount outstanding. If the offense
was other than traffic and there was a warrant out and the individual was picked
up, he would be put in Maricopa jail and a bond would be set. He reported that
in civil traffic cases, the only thing that can be done is to suspend the
license. If someone is picked up on a suspended license, they can also be
booked. He said that almost 50% of the monies shown as outstanding accounts are
on payment plan right now. The Magistrate said that Maricopa County Sheriff's
Office will be having a warrant hot sheet that they will distribute to other
police departments. He said that they would work with the reserve units on
weekends when people are home and that would be starting May 15, 1991.
AGENDA ITEM #2 - TOWN MANAGER'S REPORT
A.1. Mr. Nordin reported on the Beeline Highway and called attention to
Resolution 1991-31 on the adgenda. Mr. Nordin requested that the Council give
favorable consideration to this resolution, stating that the reason for this
Resolution was that ADOT had made no change in their five year plan. Mr. Nordin
stated that one hundred fifty to two hundred Fountain Hills residents had gone
to Phoenix to request that the construction schedule be moved up. Mayor Cutillo
stated that he had received a phone call from Mr. Chavez of the transportation
board and that they would like to form an informal meeting between members of the
board, i.e. someone from the Governor's office, Representative Schweikert,
Minutes of the Work/Study Session of the Town Council 5/14/91
Page 1 of 8
Representative Steffy and the Mayor. The first meeting would be held on 5-23-91.
The Mayor stated that this "committee" was to meet on an ongoing basis and that
the purpose was to stay current on what was happening with the Beeline problems
so they could be addressed as they came up. Councilman Fox stated that this
would be good to do and that a monthly meeting would help everyone stay current
and that the request was a reasonable one. Councilwoman Tibbetts asked if there
would be people from various parts of the valley with other concerns at these
particular meetings. Mayor Cutillo stated that it was his understanding that the
meetings would be concerned with the Beeline Highway issue. Councilman Clark
stated that Harry Reed had said that this section of Beeline had been thrown in
with other projects, some of which had earlier schedule dates. Councilman
O'Brien stated that he wondered how they could say they were not behind schedule.
He further suggested that, in the meetings, the committee should find out how the
Arizona Department of Transportation could have a change in their scheduling yet
not explain why the change was made. Mayor Cutillo stated that he felt the ball
had been dropped and that the negotiating had been rather slow with the Indian
Tribe. Councilman Fox stated that the delays were why we needed to get ADOT to
commit to something other than just pushing the schedule out to the end. Mayor
Cutillo stated that he was glad that there was going to be someone present from
the Governor's office as well.
B.2. Mr. Nordin addressed the liquor license application for Walgreens and
stated that Ms. Hansen would be able to address any questions regarding this.
Mr. Nordin stated that the second topic of discussion would be the Chamber with
regard to the July 4th festivities. Councilman Hudson addressed the fourth of
July event and asked what the admission would be. Linda Fry from the Chamber of
Commerce stated that admission would be $5.00 for adults, $3.00 for children
under 12, with 5 and under being admitted for free. Ms. Fry stated that they
would have 2000 linear feet of fencing for containing the crowd at the concert
and that the admission price was to help pay for the function. She stated that
security would be provided by the Maricopa County Sheriff's Office, the Posse,
Valley Security, the Fountain Hills Marshal's Reserves and Rural Metro Fire
Department. Ms. Fry further stated that they were expecting no problem with
people who do not want to pay the admission fee, as they can stand outside the
fence. Councilwoman Tibbetts asked what neighboring communities charged for this
type of event and Ms. Fry answered that Westworld was charging $4.00 for
everyone. Mayor Cutillo said he had no problem with any of this, and that his
only concern was getting formal approval from the Sheriff and Fire Departments.
Mr. Nordin stated that he had received approval from Fire Chief Knapp and the
Sheriff's office and that everything had been approved. Councilman Hudson asked
if they were going to allow coolers. Ms. Fry stated that anything carried in
would be searched and that Valley Security had been instructed to do so. She
also stated that this fact would be included in the advertising. Ms. Fry said
that the advanced ticket sales would be at Dillards. Someone suggested that the
information about no coolers be put on the tickets as well as signs posted well
in advance of the gates. Councilwoman Tibbetts asked if insurance certificates
had been turned into the Town and MCO and Ms. Fry replied that they had been.
Minutes of the Work/Study Session of the Town Council 5/14/91
Page 2 of 8
L
AGENDA ITEM #4 — RESOLUTION 1991-30. ARIZONA CORPORATION COMMISSION. THE
RESIDENTIAL UTILITY CONSUMER OFFICE AND THE REQUEST BY CHAPARRAL WATER COMPANY
FOR A WATER RATE INCREASE
Councilwoman Tibbetts expressed, for the record, her conflict of interest and
abstained from participation in this agenda item. Councilman Hudson presented
the Resolution which he had originated and stated that there were really two
Resolutions and that the one he was requesting to be considered was the one which
showed the docket number on the top. Councilman Minarsich had a question on the
fourth "whereas", RE: CAP costs. Councilman Hudson stated that the evidence was
not presented at the meeting, but that it came from a 400+ page transcript and
also from the letter. Mayor Cutillo asked Councilman Hudson what evidence and
Councilman Hudson stated the evidence they had given at the public hearing as to
the apportionment. Councilman O'Brien asked if it was really evidence or just
opinion to which Councilman Hudson replied that it was probably both. Mayor
Cutillo said that he and several others had attended a meeting with RUCO and that
it was his opinion that it was RUCO's opinion and not evidence. The Mayor said
that at that meeting, RUCO had said they were used to being beat up by the
Corporation Commission and that they had lost many cases. He also said that he
questioned whether he wanted them to represent us, because they could lose and
the Corporation Commission could come back with a higher rate. The Mayor also
stated that he was concerned with RUCO because they had changed their position
four times. Mr. Nordin was asked if it was RUCO's intention to intervene in this
case and Mr. Nordin replied that he did not believe it was and that he had a
conversation with Mr. Doug Brooks. Mr. Nordin stated that he had asked Mr.
Brooks if it was their intention to attempt to intervene at this time and that
Mr. Brooks had responded that it was not. He did say, however, that if they were
asked to intervene, they would. Councilman O'Brien recommended minimal revisions
to the letter. Councilman Clark stated that didn't feel the intent of the
Resolution was to represent the Town Council, but rather the citizens and rate
payers of Fountain Hills. Councilman Fox disagreed pointing out that the third
paragraph stated, "well qualified to represent the Town Council and rate payers."
Councilman Minarsich stated that past performances by RUCO did not make him
condident with their representation. The Mayor stated that he felt the system
had worked in the past and that his only concern was to make sure all areas had
been covered. The Mayor said he would be in favor of sending a letter stating
that if the case were reopened, the Council would support RUCO's intervention.
He stated that he would not support reopening the case. The Mayor stated that
with the above referenced Resolution, we would be asking them to reopen the case
and he did not want to. Councilman Fox said that he did not like the report
which used 600 starts per year as a basis. Mayor Cutillo suggested that if this
item were kept on the agenda for Thursday night, he would prefer to see a letter
rather than a Resolution be presented. Mr. Nordin made a comment to the Council
that he had drafted a letter and he recommended approval of the letter regardless
of the Council's decision on the Resolution. Mr. Nordin stated that a copy of
the letter had been distributed to all council members with the exception of
Councilwoman Tibbetts. He also stated that the letter would be a press release
and would go to the Arizona Corporation Commission. Councilman Clark stated he
had attended a four hour session at the ACC hearings and had read the transcript,
the staff report and the hearing officer's proposal and agreed that the ACC and
Minutes of the Work/Study Session of the Town Council 5/14/91
Page 3 of 8
the hearing officer had bent over backwards to insure that all questions had been
dealt with. But, he also stated that if RUCO felt that they had any chance to
go in and correct any errors in the handling of the rate case, they ought to be
given that opportunity. He stated that he still felt that way, even after all
of the discussions. He stated that he was willing to let the ball drop where it
may, and that if Chaparral City Water Company could prove they should have a
higher rate, then it should be raised. Councilman Minarsich stated that the
letter indicates just that. Councilman Fox stated that the letter put the burden
where it belonged and that if RUCO's job was to intervene in our behalf, then
they should do it. Councilman Minarsich asked if they were prevented from
intervening. Mr. Farrell stated that there was no provision currently under the
law for any party to intervene in that particular case. He stated that protocol
dictates that if the ACC were to reject the hearing officer's proposed form of
order, they could either a.) come up with their own proposed form of order or,
b.) return the case for further hearings and open the period of intervention for
another short time period. Councilman Clark added that RUCO had stated that they
intended to be present on the 21st and that they believed they would be asked to
comment. Mr. Farrell stated that all parties had ten days to submit their
comments. Councilman Minarsich said he felt the letter was a good compromise to
the disagreement as to what our role should be in this case and that he supported
the letter, not the Resolution. Mayor Cutillo concurred. Mayor Cutillo asked
the staff to include the option of a letter on the agenda for Thursday. Hal
Porter stated that the Fountain Hills Home Owners Association would like to have
the help of the Council and would like to see justice done.
AGENDA ITEM #5 - ACCEPTING THE REVISED AGREEMENT WITH THE ARIZONA MUNICIPAL RISK
RETENTION POOL INCLUDING THE ARTICLES OF INCORPORATION AND BYLAW CHANGES.
Councilman Hudson stated that the Department of Administration had indicated that
because of the successful management of the risk pool, they no longer felt it was
necessary to directly administer the pool and therefore they had turned the
control over to the Board of Directors which was an elected body of five officers
selected from pool members. The firm representing them on corporate matters had
redrafted a set of bylaws and articles of incorporation. They had sent a copy
of the redrafts to all members for review and possible adoption and added that
he believed all was in order. Councilwoman Tibbetts requested clarification as
to the Sanitary District's right to be a non-voting member. Councilman Hudson
stated that the revised bylaws permit other governmental entities to become part
of the pool. He further stated that even though the rules hadn't totally been
established, that they would probably be members on a non-voting basis. He
stated that each applicant is examined by the Board and approved by the Board
before they are allowed membership. He added that at the next annual meeting in
Yuma, each town will have the chance to vote on whether or not other districts
should be brought into the pool . The consensus of the Board and managers had
been to allow certain districts in if they could qualify, and upon inspection,
were found to have records of good loss ratios. Councilman Hudson said he felt
the Town was safe staying with the Pool. He stated that with the Town's limits
of $5 million, the Town would have to pay anything over $300k, and this would be
fully re-insured by someone outside the pool. He stated that the pool was only
liable for the first $300k. He further stated that another good item was the set
Minutes of the Work/Study Session of the Town Council 5/14/91
Page 4 of 8
L
up in the rules regarding safety. He indicated that if a town was not willing
to set up safety committees and follow recommended procedures and that there were
procedures by which they could be given a year's notice and then would be removed
from the Pool. He stated that towns with good committees and enforcement seemed
to have less claims. Councilman Clark stated that he had one correction on page
9, item 17, changing the underscored word 'term' to 'team' .
Mr. Nordin requested to go back to the previous item, asking that if the Council
decided to approve either or both of the documents, that he be directed to
present same to the Corporation Commission in the appropriate setting. He stated
that telling the Arizona Corporation Commission that the Council believed RUCO
had the right to speak would be consistent with what the letter said.
AGENDA ITEM #6 - RESOLUTION 1991-16. ADOPTING A CONSTRUCTION FEE SCHEDULE FOR
CONSTRUCTION PLAN REVIEWS
Mr. Jeppson said he had contacted the Licensed Contractor's Association as well
as MCO and had spoken to Ray Baldwin who had no objection to the above referenced
topic. Mr. Jeppson said he had taken out the water and sewer rates and had tried
to get feedback from the Licensed Contractor's Association and their concern was
with the driveway cut. Mayor Cutillo said he would like to see the $3/acre plus
4111, $50 increase on new single family residence construction eliminated. Councilman
Fox suggested the fee could be taken out and that it was covered under the code
in Chapter 7 of the U.B.C. Mr. Jeppson stated that was correct.
Councilman Minarsich requested interrupting the agenda, and stated that there was
an incorrect item on the liquor license application for Walgreens. He said that
Shepard of the Hills Church was shown as the closest school and McDowell Mountain
was shown as the closest church and that he wanted this transposition noted, for
the record.
AGENDA ITEM #7 - RESOLUTION 1991-25. APPROVING THE APPLICATION FOR LAND AND WATER
CONSERVATION FUNDS FOR GOLDEN EAGLE PARK
Mayor Cutillo called for the introduction of the Town's new Parks & Recreation
Director, Robin Goodman, by Mr. Nordin. Mayor Cutillo welcomed Ms. Goodman
aboard.
Ms. Goodman displayed a plan for Golden Eagle Park. She stated that she had met
with Larson & Associates and that they had made some changes to the plan since
the Council's last viewing. They had tried to add amenities that would influence
the Town's receiving the grant funds. She stated that they looked at things that
would not change the character but enhance the project. She further stated that
they were applying for approximately $1 million and that this meant the Town's
half would be $500k. Ms. Goodman stated that the Heritage Fund would pick up
half and then the combination of MCO, the Town and the schools would pool for the
46,
other 50%. Mr. Norton stated that a major portion of that match would be the
value of the land which was approximately $250-300k. Councilman Fox asked how
Minutes of the Work/Study Session of the Town Council 5/14/91
Page 5 of 8
many tennis courts were figured into the plan. Councilman O'Brien stated the
philosophy was to meet the school half way. He stated that the school said they
would need a minimum of six and a preference of eight, so we had met them half
way with three. He said that according to Walt Dunn, the school would put three
in right across the line. Mr. Nordin stated that by Thursday, the dollar amounts
need to be filled in. Councilman O'Brien asked why the 10% was called a non-
project surcharge? Ms. Goodman stated that it was administrative, and it helped
the managing agency with administrative costs. For instance, if we were granted
$300k, we would immediately have to give back $30k to the State Parks Department.
Ms. Goodman stated that the likelihood of the Town getting the Grant was good.
She explained that a priority rating system was used to rate the projects and
that another plus for the Town was that it was our first appliction. She said
that grant requests were due June third with notification sometime between August
and October and funding anywhere from January to June, 1992. Mayor Cutillo asked
Ms. Goodman to speculate on anything that they might not like about our
submittal. Ms. Goodman stated they probably would not approve the the softball
lights. She explained that they had to spread limited funds to all communities
and that the Town would be able to either find another funding source or go back
to them for the lights another year. Councilwoman Tibbetts clarified that they
would not modify the plan, just the funding. Ms. Goodman stated that changes
could be made to the plan. She said it was not a case of them not approving a
part of the project, rather a case of not funding a part of the plan. Councilman
Fox stated that a point to bring up was that the larger towns had already
submitted their grant requests and they should be very favorable towards new
towns and their first projects. Ms. Goodman stated that if a letter of intent
was submitted by the June 3, 1991 deadline, we would be able to present the grant
request later.
AGENDA ITEM #8 - RESOLUTION 1991-26. APPROVING THE PLANS. SPECIFICATIONS AND
ESTIMATES AND DECLARING ITS INTENTION TO ORDER THE IMPROVEMENT OF A PORTION OF
THE TOWN OF FOUNTAIN HILLS KNOWN AS THE LOS ALTOS HILLS IMPROVEMENT DISTRICT BY
THE CONSTRICTION OF CERTAIN IMPROVEMENTS INCLUDING THE CONSTRUCTION. PAVING AND
LANDSCAPING OF CERTAIN ROADS AND DRAINAGE FACILITIES: ALL AS SHOWN ON THE PLANS;
DESIGNATING SUCH IMPROVEMENT AS THE LOS ALTOS HILLS IMPROVEMENT DISTRICT;
DETERMINING THAT IMPROVEMENT BONDS WILL BE ISSUED TO FINANCE THE COSTS AND
EXPENSES THEREOF AND DECLARING THE WORK OR IMPROVEMENT WILL BE ASSESSED UPON THE
LOS ALTOS HILLS IMPROVEMENT DISTRICT; AND PROVIDING THAT THE PROPOSED WORK OR
IMPROVEMENT WILL BE PERFORMED UNDER THE PROVISIONS OF 48-571 THROUGH 48-621
INCLUSIVE. ARIZONA REVISED STATUTES. AND ALL AMENDMENTS THERETO
Mayor Cutillo turned the floor over to Mr. Jeppson who stated that the plans and
cost estimates would be ready by tomorrow. Mr. Farrell and his associates were
working on the legal aspects of the project and expected to make a presentation
to the Council on Thursday night. Councilman Fox asked if we had gotten an
estimate. Mr. Jeppson stated we had and that it would be finalized by Thursday.
The only element that would change was with the MCO Properties if they chose not
to participate their costs would be pulled for the roadway and landscape
improvements. Councilman Clark stated that when the Town was preparing to enter
an into agreement with Dimension CATV, the committee had gone to great lengths
Minutes of the Work/Study Session of the Town Council 5/14/91
Page 6 of 8
to investigate and determine who the responsible parties were. He stated that
currently they were in the process of determining if the land which remained was
of sufficient value to carry the cost of the improvements. He stated that there
would be a meeting with the Felker representatives to discuss a number of issues
and review documents on Thursday at 1:00 p.m. Mr. Nordin stated that if, the
Council acted favorably to the resolution, he anticipated the staff would prepare
a public presentation for the June 20th meeting. Mr. Clark questioned an item
on the bottom of page 2, the paragraph starting with 'interest is deferred' . He
asked if this scenario was usual and customary and that with a construction
period of over a year would the Town be able to defer the interest. Mr. Farrell
answered yes adding that on some of the Road Bond issues, the interest was
carried as much as two years. Councilman Clark asked, on page 4, section 6, what
"improvement district subject to assessment. . .therefore not to exceed twenty five
annual principle installments" meant. Mr. Farrell stated that this was the hold
over from the statutes, if assessment was 25 or more, then you would go to bond,
however, you couldn't be obligated for any more than 25 years. Councilman Clark
then asked what the last part meant, "remaining unpaid". Mr. Farrell stated each
of the bonds had a series as to when they would mature.
AGENDA ITEM #9 - RESOLUTION 1991-92. ABANDONING WHATEVER RIGHT TITLE OR INTEREST
IT HAS IN THAT CERTAIN PUBLIC UTILITY EASEMENT AND DRAINAGE EASEMENT AFFECTING
ALONG REAR OF LOT 6 IN BLOCK 9. OF PLAT 111. A SUBDIVISION OF A PART OF SECTIONS
10. 11 AND 15. TOWNSHIP 3 NORTH. RANGE 6 EAST OF THE GILA AND SALT RIVER BASE AND
MERIDIAN. IN FOUNTAIN HILLS. MARICOPA COUNTY. ARIZONA.
Mr. Jeppson addressed the Council, explaining that the property owner whose
property abutts Ashbrook wash, wanted his easement to be abandoned in order to
construct a swimming pool. He stated that although his staff had not had time
to notify the adjacent property owners the utilities and been notified. His
office had received responses from all but U.S. West sbut since they were not
in that easement it would not be essential that the Council wait for their
response. Mayor Cutillo said he had no problem with proceeding as long as there
was no legal problem.
AGENDA ITEM #10 - ORDINANCE 91-08. AMENDING THE OFFICIAL ZONING ORDINANCE OF THE
TOWN OF FOUNTAIN HILLS AS AUTHORIZED IN ARTICLE XXXI SECTION 31.1 OF THE ZONING
ORDINANCE FOR THE TOWN OF FOUNTAIN HILLS. AMENDING ARTICLE XVIII. SECTION 18.2.
PERTAINING TO THE PURPOSE OF THE C-1. NEIGHBORHOOD COMMERCIAL ZONING DISTRICT AND
SECTION 18.2. PERTAINING TO PERMITTED USES IN THE C-1. NEIGHBORHOOD COMMERCIAL
ZONING DISTRICT.
Mr. Jeppson stated that the Planning and Zoning Commission had conducted a public
hearing to amend the text for C-1 zone to allow mortuaries in C-1 zone and that
they had received no opposition to this proposal . Commissioner Bob Thomas
requested that the Council change some of the language in the preamble. Mr.
Jeppson stated that had been done and he was passing this along to the Council
to allow them to consider whether or not to amend the text to allow this. He
stated that this had come largely at the request of Messinger Mortuary, to build
a mortuary south of the Community Center. he said another option was to re-zone
this proprety to C-2. Mr. Jeppson stated he felt it would be more appropriate
Minutes of the Work/Study Session of the Town Council 5/14/91
Page 7 of 8
*44010
to add this type of facility to C-1 . Councilmembers Tibbetts and Clark stated
that they felt it was a good solution.
AGENDA ITEM #11 - CONSIDER CASE NUMBER Z91-002. PLAT 302. BLOCK 5. LOTS 4 AND 5.
REZONE FROM "C-1 TO C-2".
Mayor Cutillo stated that this item had already been covered in agenda item #10.
AGENDA ITEM #12 - RESOLUTION 1991-31, RELATING TO THE BEELINE HIGHWAY'S (ROUTE
87) PLACEMENT ON THE ARIZONA DEPARTMENT OF TRANSPORTATION'S 5-YEAR CONSTRUCTION
PROGRAM.
nyor Cutillo stated that this item had already been covered in Town Manager's
report.
AGENDA ITEM #13 - ADJOURNMENT
The Council adjourned at approximately 8:30 p.m.
TOWN F FO AIN HILL
By:
Jo M. Cutillo, Mayor
ATTEST: ( 4.dQ.c.L- 15. 016."4.-Lk..,)
Cassie B. Hansen, Town Clerk
CERTIFICATION
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 14th day of May, 1991 . I further certify that the meeting was duly called
and that a quorum was present.
DATED this q' day of July, 1991.
aVI/dAl(- 46
Cassie B. Hansen, Town Clerk
Minutes of the Work/Study Session of the Town Council 5/14/91
Page 8 of 8