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HomeMy WebLinkAbout1991.0710.TCSWSM.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE SPECIAL AND WORK/STUDY SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL JULY 10, 1991 A public special session and possible work/study session of the Fountain Hills Town Council was convened and called to order by Mayor John Cutillo at 6:30 p.m. , Wednesday, July 10, 1991, at the Founatin Hills Unified School District Administration Building located at 14605 N. Del Cambre Ave. , Fountain Hills, Arizona. ROLL CALL — Following the pledge to the flag, roll call was taken. Present for roll call were the following members of the Fountain Hills Town Council: Mayor John Cutillo and Councilmembers Mike Minarsich, Wally Hudson, Bill O'Brien and Peg Tibbetts. Absent was Vice Mayor Frank Clark. Councilman Fox joined them at 6:36 p.m. Also present were Town Manager Paul Nordin, Town Planner Gary Jeppson, Town Attorney Nick Dotterman and Town Clerk Cassie Hansen. AGENDA ITEM #2 — HOLD A PUBLIC HEARING UPON THE SUFFICIENCY OF ANY PROTEST FILED PERTAINING TO THE RESOLUTION OF INTENTION TO ORDER CERTAIN IMPROVEMENTS ADOPTED BY THE TOWN COUNCIL ON MAY 16TH. 1991. UPON THE PROPOSED PLANS AND SPECIFICATIONS OR TOTAL ESTIMATED COST OR ON ANY OTHER MATTERS WHICH LAWFULLY COME BEFORE THE TOWN COUNCIL PERTAINING TO THE IMPROVEMENT DISTRICTS. Mayor Cutillo called a recess to the Special Session and at 6:31 p.m. declared 416, the public hearing open. Mayor Cutillo asked if anyone present wanted to speak in opposition to the Resolution. Mr. Songer asked which issue was being discussed, the Resolution or taking action on the Improvement District and Mayor Cutillo responded that they were taking action on the Improvement District. Mr. John Gliege stated that the purpose of the public hearing was to give the public the opportunity to protest the inclusion of their property in an improvement district, to object to the extent of the improvements or for the Council to take any other public input that they would desire. Mr. Gliege continued by saying that prior to the conclusion of the hearing, the Council had the option of adopting further resolutions to continue the process. Mr. Richard Songer stated that he wanted to file an objection and stated that before the Town was buried in debt he wanted to look at how other towns across the nation dealt with developers in that situation. Mr. Songer said that road and sewer improvement districts were not usually for new areas but were used in existing areas and that developers usually paid for the utilities and roads in their new subdivisions. Mr. Songer refered to MCO in 1988, when they started the Summit East. He said the Sanitary District sold approximately $5 or $6 million in bonds to construct a new treatment facility south of Shea Boulevard and then said one may not be needed. Mr. Songer stated that the bond money had already been spent to upgrade the existing plants and to install larger capacity pipes for the new major construction sites. Mr. Songer asked if the reason the Town incorporated was to use the Town's money to finance developers. Mr. Songer stated that if the Council used an improvement district to finance developers they would be setting Minutes of the Special and Work/Study Session of the Town Council 7/10/91 Page 1 of 5 a tremendous precedent. Mr. Songer also said that he understood that the developer of the project had filed bankruptcy in Scottsdale on a project and the three insurance companies that were the money behind the project were so small that they were not listed in the major publications. Mr. Songer stated that he had spent the past couple of weeks preparing an estimate using a site plan that he had and had come up with an estimate of around $3.5 million for all of the work. He stated that $3 million could be used toward the construction of the golf course. Mayor Cutillo stated that he wanted to clarify that the bond money did not go to the developer, it would go to the Town of Fountain Hills and was paid out in bid process for work done and if the project only cost $3 million then that would be all that they would get. Councilman Fox said that the golf course was not part of the project and that the Council had not ever contemplated using any bond money to construct a golf course. Mr. Songer stated that he was glad to hear that, however, he seemed to remember hearing a figure of $7 million and wondered where the other $3 million was going. Mr. Songer said that the normal procedure was to take bids first and then sell bonds for what was needed. Mayor Cutillo said that was the procedure the Council would be going through. Mr. Bruce Hansen stated that he was one of the directors of the sanitary department and Mr. Songer's allegations regarding how the money was used to finance the sewer to the school and the- Safeway mall were completely false. Mr. John Evancho asked if the three insurance companies were going to purchase the bonds from the Town and Mayor Cutillo stated that they would not. Mr. Evancho questioned why the Town was getting involved. Mr. Peter Putterman spoke in favor of the project, adding that he was in favor of anything that the Council could do to support growth in the community. Mayor Cutillo declared the public hearing closed at 6:45 p.m. and returned to the Special Session of the Council . AGENDA ITEM #3 - DISCUSS AND POSSIBLY ACT UPON RESOLUTION 1991-34, ORDERING IMPROVEMENT AND APPROVING ASSESSMENT DIAGRAM Mr. Nordin gave an indepth slide presentation covering Resolution 1991-34 adding that everything in his presentation had been covered in previous Council meetings and said that he would answer any questions that were not covered. Mr. Nordin addressed the Council and stated that staff would not recommend approval unless the proper assurances had been put in place. Mr. Nordin distributed another Resolution to the Council and stated that all of the necessary safeguards were not yet in place and they were still working with the developer who had displayed a good faith effort . Mr. Nordin continued, saying that because everything had not been put in place, the staff's recommendation was to pass the Resolution that he just handed out to them. Mr. Nordin said that the newly distributed Resolution would delete paragraphs two through six which was all of the verbage that was necessary for the project. to actually commence. Mr. Nordin stated that staff could recommend approval of the new document and staff would come back to the Council when all of the proper credit enhancements were in place. Councilman O'Brien asked what the purpose of passing a legally incomplete document was and Mr. Gliege replied that it was not a legally incomplete document, hut simply different than the one they had originally. He said adopting this one at this point was a milestone and an end to the first phase. Councilman O'Brien made a Minutes of the Special and Work/Study Session of the Town Council 7/10/91 Page 2 of 5 MOTION to table the Resolution until such time that staff would be able to present what they considered to be a complete document. MOTION DIED due to the LACK OF A SECOND. Mayor Cutillo made a MOTION to adopt Resolution 1991-34 as stated with the stipulation that the order was to receive bids prior to the sale of bonds and not he given without a final Council decision and that negotiations for those final agreements and guarantees would be done within forty five days and ended within ninety days or the motion would be rescinded. SECONDED by Councilman Minarsich. Councilman Fox asked what the difference between tabling the motion and going on was and Mr. Gliege stated that the most substantial difference was that it was a show of good faith by the Council. Mr. Scott Rose stated that this would make a substantial difference in how his client could proceed. Mrs. Doris Dugger asked if the placement of the credit enhancements would be made public and Mayor Cutillo said they would he. Mayor Cutillo repeated the motion. The motion CARRIED by a vote of five ayes to one nay, Councilman O'Brien casting the nay vote. AGENDA ITEM #4 - DISCUSS AND POSSIBLY ACT UPON THE LIQUOR LTCRNSE APPLICATION FOR THE RiPF. TOMATO CAFE Mayor Cutillo -made a MOTION to approve the application for the Ripe Tomato Cafe and Councilman Fox SECONDED it . Motion CARRIED unanimously. AGENDA TTEM #5 - DTSCIJSS AND POSSTBLY ACT UPON RETAINING CRONSTROM & TRBOVTCH TO PROVIDE AUDITING SERVICES FOR THE 1990-91 FISCAL YEAR AUDIT Councilman Minarsich made a MOTION to approve as read and Councilwoman Tibbetts SECONDED it . Motion CARRIED unanimously. AGENDA ITEM #6 - DISCUSS AND POSSTBLY ACT UPON ADOPTING THE PORTIONS OF THE 1991- 92 TENTATIVE BUDGET DISCUSSED AT THE JULY 9TH WORK STUDY SESSION Mr. Nordin stated that he had revised pages to distribute to the Council and also that he wanted to address the four areas of the budget that were not agreed upon the night before. Mr. Nordin addressed the Town Council budget and recommended that the Council approve the budget as it was presented the night before. Councilman Fox made the MOTION and Councilman Minarsich SECONDED it. Motion CARRIED unanimously. Mr. Nordin then addressed the administration portion of the budget and stated that the suggested changes had been made. Mrs. Julie Ghetti and Mr. Nordin reviewed the changes that had been made, such as the street department's vehicles. Councilman Fox stated that he wanted to see the existing trucks scrapped and Mr. Harvey said that he wanted the old vehicles as hack-up. Mayor Cutillo said that he felt the decision should he left up to the Town Manager and the Street Supervisor. Mr. Nordin stated that staff would like to leave the tool amount at $4,000. Minutes of the Special and Work/Study Session of the Town Council 7/10/91 Page 3 of 5 Mr. Nordin then moved to the Marshal 's budget stating that there was an addition of $600 for the purchase of two additional Department of Public Safety used vehicles and that staff had added some money for the outfitting of those vehicles. Councilman O'Brien asked if there had been any information provided on the Reserve hours and Mayor Cutillo requested that this budget item be taken out of the consent agenda. Mayor Cutillo made a MOTION to approve the administration and street portions of the budget as revised and Councilman O'Brien SECONDED it . Mr. Songer asked if the Town could use street bond money for maintenance and Mr. Nordin said that Councilman Fox had only pointed out that the situation could arise. Mr. Nordin said that one of the primary ways that staff would recommend bond money be used for street maintenance activities would be if there was money left over. The motion CARRIED unanimously. Mr. Nordin said that the outstanding issue in the Marshal 's budget was the acquisition of the patrol vehicles and he felt that it was appropriate to proceed with the discussion. Marshal Dean explained his report which provided the information that Councilman O'Brien had requested the night before, stating that the report showed the manhours of patrol time. Marshal Dean said that with only two vehicles, the trainees on patrol with Sgt. Dalrymple had to ride three to a vehicle with one in the hack seat and this was not ideal . Marshal Dean stated that it would-be ideal to have four or five vehicles available for patrolling. Councilman O'Brien asked how many vehicles and officers there would be at the end of the year and Marshal Dean stated that they had eight certified officers and the balance was community service officers. Marshal Dean also stated that the newer vehicle would be good to obtain, as there would be less likelihood of it breaking down. Councilwoman Tibbetts asked how the two older vehicles were performing and Marshal Dean said that they had been doing well. Mayor Cutillo made a MOTION to approve the Marshal 's budget as presented. SECONDED by Councilman Fox. Counciiman O'Brien questioned the $18,000 for the purchase of a new vehicle. The motion CARRIED unanimously. Mr. Nordin said that it would now be necessary to adopt the tentative budget in it 's entirety, as presented and for the Council to direct that it he published in accordance with the appropriate state law in order to prepare for the final budget hearing that would take place in August. Councilman O'Brien made the MOTION as stated and Mayor Cutillo SECONDED it. The motion CARRIED unanimously. AGENDA ITEM 47 — CALL TO THE PUBLIC Mr. Ed Woodley addressed the loud music at Club Mirage and cited the noise ordinance. Mayor Curillo asked Marshal Dean if he was aware of,this and Marshal Dean said that the Sheriff's office had taken the call and a report had been submitted to the Town Prosecutor for review. Mr. Nordin said that this had been discussed already and it would be followed up on. Mr. Bruce Hansen asked why someone from the Town hadn't spoken with the Club Mirage people. Mayor Cutillo stopped the discussion saying that it may not be legal to discuss the case at that rime. Mr. Songer asked questions on the Town Manager's presentation and Mayor Castillo called him out of order. Minutes of the Special and Work/Study Session of the Town Council 7/10/91 Page 4 of 5 AGENDA ITEM #8 — ADJOURNMENT Mayor Cutillo called for a motion to adjourn the Special Session and Councilman Minarsich made the MOTION. SECONDED by Councilwoman Tibbetts and CARRIED unanimously. The Special Session of the Council adjourned at approximately 8:00 p.m. TOWN OF FOUNTAIN HILLS By: ?4,44^-4 Z414— V'c.e,t.)44 John M. Cutillo, Mayor e ATTEST: 041.4 . 45 • /��1.M41.�1 Cassie B Hansen, Town Clerk PREPARED BY: Lari L. Bratcher, Secretary CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Special Session held by the Town Council of Fountain Hills on the '= 10th day of July 1991 . I further certify that the meeting was duly called and that a quorum was present . DATED this 5+ day of September 1991 . o.41J,L1 � 45. /Ji-AAA-Al•-) Cassie B. Hansen, Town Clerk Minutes of the Special and Work/Study Session of the Town Council 7/10/91 4100 Page 5 of 5