Loading...
HomeMy WebLinkAbout1998.0609.TCWSM.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE WORKSTUDY SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL JUNE 9, 1998 A public meeting of the Fountain Hills Town Council was convened and called to order by Mayor Morgan at 6:30 P.M., Tuesday, June 9, 1998, in the Fountain Hills Town Hall Council Chambers, located at 16836 E.Palisades Blvd., Building B,Fountain Hills, Arizona. ROLL CALL - Present for roll call were the following members of the Fountain Hills Town Council: Mayor Sharon Morgan, Councilmembers John Wyman, Sharon Hutcheson, Sid Apps, Marianne Wiggishoff, and Penfield Mower. Vice Mayor Poma was absent. Also present were Town Manager Paul Nordin and Town Clerk Cassie Hansen. AGENDA ITEM #1 - PRESENTATION AND DISCUSSION ON THE PROPOSED COMMUNITY CENTER INCLUDING PROJECT DESIGN AND FINANCING. THE PRESENTATION WILL BE MADE BY TOWN MANAGER PAUL NORDIN, CCAC MEMBER DANA SAAR, ARCHITECT ROB DIETZ AND CCAC CHAIRMAN WALT FRANKLIN. Dana Saar stated past surveys and town hall meetings had suggested amenities and priorities to fit the needs of the community. He reviewed some of the ongoing priorities, which included street maintenance, law enforcement, park development and a community center. Architect Rob Dietz reviewed the previous year's process in getting the initial input from the community and determining the needs of a new community center. He presented drawings of a proposed building, which he felt reflected the input that was received from citizens, volunteers, and council members. Mr. Saar described some of the functions of the community center in providing accommodations to the general public, community organizations, students and businesses for commercial and social events. Mr. Dietz presented exterior drawings of the proposed building with an entry into the facility looking to the East towards Fountain Park. Another rendering showed the rear view looking to the West. There would be an additional entrance on LaMontana with parking on the east side shared with MCO. Walt Franklin referred to a drawing of the interior floor plan and building features of the performing arts wing including the stage and theatre facility. He said the 720 seating capacity of the theatre consisted of 17 rows of seats designed for good viewing from any location. He stated the theatre had been patterned after the Gilbert High School theatre. He also outlined where the four-compartment meeting and conference room, kitchen-dining area, classrooms,childcare area,game area,administrative offices, storage and computer resource center were located. Town Manager Paul Nordin discussed the financial aspects of the project. He stated there were three options: paying cash for the project in 6-7 years, selling General Obligation Bonds, or a municipal property corporation. He stated there would not be a tax increase if the municipal property corporation option was taken. He reminded the Council that one of the four priorities for disbursing revenues generated by the imposition of the sales tax was the construction of the Community Center. He estimated the cost of the project at $7.9 million, which included $500,000 for furniture and equipment. He anticipated private sector donations to cover the costs for additional furniture and would recognize those groups with commemorative plaques to be displayed in the building. A review of the debt service would be an annual requirement of $560,000 for a period of twenty years at 5.5% interest rate, which would produce a net yield of$6.5 million. A cash down payment of$1 million,payable from current funds, would complete the needed financing when coupled with the bond proceeds. He projected an annual operational maintenance expense of $276,000, which included salaries and benefits, repairs and maintenance, supplies, services and utilities. He predicted an annual average estimate of$836,000 total to cover Town Council Workstudy Session 6/9/98 Page 1 of 3 Cow the principal and interest payments along with related expenditures. After a review of the non-recurring annual expenses,he concluded that the Town could afford this building with no additional tax increases. In summary, Walt Franklin stated that the building met the community's priorities, was affordable and offered a focal point for the development of the downtown area, providing an important amenity for the community's future. Councilman Wyman asked if the budgeted amount set for the existing Community Center would offset the estimated maintenance expenses of the new building. Mr. Nordin answered that the costs for the old building were modest and would not play a part in offsetting the new Community Center. He stated that the municipal property corporation option does not allow an election for the issuance of bonds since the authority would come from the Council. Councilwoman Hutcheson suggested the present Community Center be sold to defray expenses and that the management fees be moved to the new Community Center. Mr. Nordin said the disposition of the old Community Center had not been completely addressed and an Advisory Committee was looking at future options. In response to a question from Mayor Morgan, Walt Franklin stated royalties were based on the number of tickets that were sold,not the number of seats available. Scott Pickering stated he thought the projected cost figures were inaccurate because the figures did not reflect the interest payments,landscaping and equipment expenses. He felt the total costs of the project were higher than the community could afford and suggested the north half of the project be built and the south half postponed until the surplus was built to absorb costs. Mr. Nordin pointed out that the $560,000 annual debt service included both principal and interest payments. Wally Hudson stated an advisory committee with members John Cutillo, Peg Tibbetts, Frank Clark,Joe Bill and himself had met to establish a questionnaire for organizations that might be interested in using the current Community Center. He stated the committee would be forwarding a recommendation to the Council sometime after the closing date the end of July. Bruce Hansen encouraged the Council to proceed with the construction of a Community Center. Councilman Apps asked Mr. Franklin if a piano had been planned for the facility. Mr. Franklin stated a piano could be accepted from public donations. Councilman Wyman asked if MCO Properties planned to reimburse the Town for a portion of the planning fees. Mr. Nordin stated MCO had committed to paying for two-thirds of Rob Dietz's fees for the planning of the south forty acres. AGENDA ITEM#2-ADJOURNMENT. Mayor Morgan adjourned the meeting at 7:55 p.m. L Town Council Workstudy Session 6/9/98 Page 2 of 3 TOWN OF FOUNTAIN HILLS (fir By: L Sharon Morgan,Mayor A 1 11,ST: Cassie B.Hansen,Town Clerk PREPARED BY: Linda D.Lemmen,Executive Assistant CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Session Meeting held by the Town Council of Fountain Hills on the 9th day of June, 1998. I further certify that the meeting was duly called and that a quorum was present. DATED this 2nd day of June, 1998. Cassie B.Hansen,Town Clerk L Town Council Workstudy Session 6/9/98 Page 3 of 3