HomeMy WebLinkAbout1999.00805.TCRM.Minutes TOWN OF FOUNTAIN HILLS
MINUTES OF THE REGULAR SESSION OF THE
FOUNTAIN HILLS TOWN COUNCIL
AUGUST 5,1999
A public meeting of the Fountain Hills Town Council was convened and called to order by Mayor Morgan at 6:30 P.M., Thursday,
August 5th, 1999,in the Fountain Hills Town Hall Council Chambers,located at 16836 E.Palisades Blvd.,Building B,Fountain Hills,
Arizona.
ROLL CALL-Following the pledge to the flag and the invocation by Rubin Daily,Church of the Jesus Christ of Latter-Day Saints,
roll call was taken. Present for roll call were the following members of the Fountain Hills Town Council: Mayor Sharon Morgan,
Vice Mayor Pen Mower and Councilmembers John Wyman,Sharon Hutcheson,Sid Apps,Marianne Wiggishoff,and Al Poma. Also
present were Town Manager Paul Nordin,Town Attorney Bill Farrell,Town Clerk Cassie Hansen,Town Engineer Randy Harrel,and
Director of Community Development Jeff Valder.
Mayor Morgan proceeded by stating there would be a change in the normal order of the agenda. Due to the fact that
the consent agenda included a few items from the 1999-2000 budget, the Council first needed to hold a public hearing
to consider the approval of the budget.
AGENDA ITEM #1 — PUBLIC HEARING ON RESOLUTION 1999-34, ADOPTING THE TENTATIVE
BUDGET AS THE 1999/00 FISCAL YAR BUDGET FOR THE TOWN OF FOUNTAIN HILLS.
Mayor Morgan recessed the Regular Session of the Town Council and opened the public hearing at 6:33 p.m.
She called upon the Town Manager, Paul Nordin, to address this item. Mr. Nordin explained this was the
second to the last step in the annual budget process. He stated the budget had been published, as required by
state law, and the Council had held two extensive special sessions on this subject. He said the tentative
roudget had been approved at the first meeting in July. The last step in the adoption process, the adoption of
the property tax levy that would be required to pay off the general obligation bonds that were currently
outstanding for the town's street paving, would take place on August 16t•. He explained it was possible for
the Council to technically reduce any expenditure previously authorized at this point but they could not
increase any budget item. The purpose of the public hearing would be to take public comment and have staff
respond to any questions the Council might have. There were no comments or questions from the public or
the Council.
Mayor Morgan closed the public hearing and reconvened the Regular Session of the Town Council at 6:35
p.m.
AGENDA ITEM #2 — CONSIDERATION OF ADOPTING RESOLUTION 1999-34, ADOPTING THE
TENTATIVE BUDGET AS THE 1999/00 FISCAL YEAR BUDGET FOR THE TOWN OF FOUNTAIN
HILLS.
Councilman Wiggishoff MOVED to adopt Resolution 1999-34. Councilman Poma SECONDED the motion. The
motion CARRIED unanimously.
Mayor Morgan stated the Town Manager, Paul Nordin, had requested that Consent Agenda Item#4 be removed from
the consent agenda in order to provide additional information to the Council.
Mayor Morgan read the Consent Agenda, which consisted of the following agenda items:
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Page 1 of 6
AGENDA ITEM #3 — CONSIDERATION OF APPROVING THE MEETING MINUTES OF JUNE 29, 30,
AND JULY 1 AND 6, 1999.
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,,.AGENDA ITEM #5 — CONSIDERATION OF RESOLUTION 1999-38 AMENDING THE TOWN OF
FOUNTAIN HILLS MONEY PURCHASE PLAN TO INCREASE THE CONTRIBUTION RATE FOR
EMPLOYEE AND EMPLOYER FROM 9.5% TO 11% FOR THE TOWN MANAGER.
AGENDA ITEM #6 — CONSIDERATION OF RESOLUTION 1999-39 AMENDING THE TOWN OF
FOUNTAIN HILLS MONEY PURCHASE PLAN TO INCREASE THE CONTRIBUTION RATE FOR
EMPLOYEE AND EMPLOYER FROM 9.5% TO 11% FOR THE TOWN MANAGER.
AGENDA ITEM #7 — CONSIDERATION OF AWARDING BID #PR99-021 TO COMMERCIAL
LITHOGRAPHERS IN THE AMOUNT OF $19,103.04 FOR THE PRINTING OF THE TOWN AND TEEN
NEWSLETTERS.
AGENDA ITEM #8 — CONSIDERATION OF AWARDING THE BID FOR THE WASH CLEANUP
PROJECT.
AGENDA ITEM#9—CONSIDERATION OF AWARDING THE BID FOR THE SCHOOL ZONE WARNING
BEACON PROJECT.
AGENDA ITEM #10 — CONSIDERATION OF AWARDING THE BID FOR THE TOWN DIRECTIONAL
SIGNAGE PROJECT.
AGENDA ITEM #11 — CONSIDERATION OF APPROVING THE INTERGOVERNMENTAL
AGREEMENT FOR GOLDEN EAGLE PARK DAM IMPORVEMENTS WITH THE FLOOD CONTROL
DISTRICT OF MARICOPA COUNTY AND THE FOUNTAIN HILLS SCHOOL DISTRICT.
AGENDA ITEM #12 — CONSIDERATION OF RESOLUTION 1999-35, ABANDONING WHATEVER
RIGHT, TITLE, OR INTEREST THE TOWN HAS IN CERTAIN PUBLIC UTILITY AND DRAINAGE
EASEMENTS LOCATED ALONG THE SOUTHWESTERLY PROPERTY LINE OF PLAT 431, BLOCK 6,
LOT 21 (15228 N. BAHIA BLVD.) AS RECORDED IN BOOK 151 OF MAPS, PAPGE 43 RECORDS OF
MARICOPA COUNTY,ARIZONA. (KEVIN CLOSE)
AGENDA ITEM #13 — CONSIDERATION OF RESOLUTION 1999-36, ABANDONING WHATEVER
RIGHT, TITLE, OR INTEREST THE TOWN HAS IN CERTAIN PUBLIC UTILITY AND DRAINAGE
EASEMENTS LOCATED ALONG THE SOUTHWESTERLY PROPERTY LINE OF LOT 52 (15211 E.
REDROCK DRIVE) AS RECORDED IN BOOK 437 OF MAPS, PAGE 30 RECORDS OF MARICOPA
COUNTY,ARIZONA. (SIVAGE THOMAS HOMES)
AGENDA ITEM #14 — CONSIDERATION OF ORDINANCE 99-21, SETTING SPEED LIMITS ON NEW
SECTIONS OF EL LAGO BOULEVARD,EAGLE MOUNTAIN PARKWAY,AND SHEA BOULEVARD.
AGENDA ITEM #15 — CONSIDERATION OF THE PRELIMINARY AND FINAL PLAT FOR MIMOSA
CREST CONDOMINIUMS,A THREE UNIT PROJECT, S99-016.
AGENDA ITEM #16 — CONSIDERATION OF THE FINAL PLAT FOR FOUNTAIN SUMMIT
CONDOMINIUMS, A 67-UNIT CONDOMINIUM PROJECT LOCATED AT THE SOUTHWEST CORNER
OF SAGUARO BOULEVARD AND LAMONTANA DRIVE, CASE#S98-034.
Councilman Apps MOVED to approve the Consent Agenda as read. Councilman Wiggishoff SECONDED the
motion. A roll call vote was taken with the following results:
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Councilman Poma— aye
Councilman Wiggishoff- aye
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Councilman Apps— aye
Councilman Wyman - aye
Vice Mayor Mower- • aye
Councilman Hutcheson- aye
Mayor Morgan- aye
The motion CARRIED unanimously with a roll call vote.
AGENDA ITEM #4 — CONSIDERATION OF RESOLUTION 1999-37, AUTHORIZING THE ISSUANCE
AND SALE OF GENERAL OBLIGATION BONDS, SERIES 1999, ON BEHALF OF THE TOWN AND
AWARDING THE SALE OF THE BONDS TO THE BEST BIDDER THEREFOR.
Mr. Nordin stated staff was pleased to present this item to the Council. He said it was a good opportunity to discuss
the bonds and bond rating the Town would be issuing for the acquisition of the "postcard view area" in the lakeside
area directly east of the Fountain Park. Mr. Nordin referred to a document provided by the Town's financial
consultants, which had been distributed to each of the Council members. He drew their attention to Tab C, which
stated the Town of Fountain Hills, Arizona had been assigned an A-2 rating on $1.4M general obligation debt. The
rating, which effects $9.5M in debt, was based upon a favorable tax base and economic growth given the Town's
location within the Phoenix metropolitan area, a manageable debt profile, and sound financial operations resulting in
substantial reserves. He acknowledged this was a tremendously positive statement being made all over the country to
all the various financial services regarding the Town's financial expertise.
He then referred to the bid section under Tab B, where four bids received were listed. He announced the low bid was
received from Dean Witter Reynolds with a composite net effective yield of 5.1045%. He said staff recommended
Council award the bid to Dean Witter Reynolds. He stated the Town would be closing on the$1.4M bond issue on the
16th of August and on the 17th of August the Town would be closing on the property.
ouncilman Wiggishoff MOVED to approve Resolution 1999-37. Vice Mayor Mower SECONDED the motion.
Councilman Wiggishoff commented on the information contained under Tab C, where it stated the Town had strong
financial flexibility. She stated this report made Paul Nordin look absolutely wonderful and this was a fantastic
description for all. Councilman Poma questioned the statement that 10-acres were purchased for the $1.4M. Mr.
Nordin acknowledged that was correct. Councilman Poma asked what had happened to the 60 acres that had been
advertised in the paper. Bill Farrell, the Town Attorney, responded that in approving the two adjacent subdivision, 9.2
acres were acquired and the remaining the 57± acres were acquired through dedication to the Town from the adjacent
subdivision. He clarified the Town had purchased all the land that could be built upon.
The motion CARRIED (6— 1). Councilman Poma cast a nay vote.
AGENDA ITEM#17—CONSIDERATION OF A PRELIMINARY PLAT FOR FOUNTAIN HILLS RESORT,
ONE LOT, ONE TRACT SUBDIVISION CONSISTING OF 59.67 ACRES, LOCATED AT THE
NORTHWEST CORNER OF PALISADES BOULEVARD AND SHEA BOULEVARD, CASE#S99-014.
Director of Community Development Jeff Valder reviewed the staff report and stated this was one in a series of
approvals the property owner would be asking for either at this meeting or August 16th, 1999.
He clarified this was the applicant's request for preliminary plat approval. He explained the preliminary plat was an
administrative process where the applicant asked the Town to create additional plats where there was currently one
parcel of land. He said it was obvious that the property line had been configured so the planned hotel would be
included in the lot that could be rezoned to the LP3UD zoning district; which would come before the Council on
August 16t. He admitted in the past staff had consolidated these actions at one meeting. He explained the separation
of steps as the applicant was anxious to get the project approved. He stated this item could be continued until August
(iliw.6th if the Council wanted a comprehensive staff report. Mr. Valder stated staff recommended approval of the
preliminary plat.
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Councilman Poma MOVED to approve the preliminary plat. Councilman Hutcheson SECONDED the motion. Vice
Mayor Mower expressed concern as to what the quality of the hotel would be. He questioned if the developer would
assume they would be granted the L-3 PUD zoning the Council were to approve the preliminary plat. Director Valder
,responded that staff had crafted a plan for a L-3 PUD zoning district, which would be presented to the Council on
August 16`h. He explained that the Town could not require a specific franchise be built, but the Town could require
conformance to the specifics of the site plan in order to assure a quality resort. Director Valder explained the only way
to change the site plan would be to amend the PUD, which would require Council approval.
Mr. Nordin reminded the Council this item was for preliminary plat approval only. The underlying zoning for the
project had not yet been changed He stated the project could not go forward without the rezoning that Director Valder
was alluding to. All of the necessary parts would need to be in place before the project could go forward.
Vice Mayor Mower questioned if the preliminary plat was approved,would that action give the developer an edge with
the franchises. Director Valder said he did not know. He reiterated that the agenda item before the Council was for
the Town's approval of the applicant's preliminary plat only. He said approving the preliminary plat did not obligate
the Council in any way on any of the project's future items that would need Council approval on August 16t.
Councilman Wiggishoff inquired if there had been any discussion in putting in a golf course in lot#2. Director Valder
stated earlier there had been talk of an executive 9-hole course, but the only way that could be constructed would be if
the property owner convinced the Council to abandon the hillside protection. Councilman Wyman asked what the
Planning and Zoning vote had been on the applicant's preliminary plat. Director Valder stated it had be approved on a
vote of 5—2.
Councilman Hutcheson inquired if the applicant was all right with the stipulations. Director Valder said it was his
understanding he was. She stated she saw the Council action of approving the preliminary plat as the first step in the
development process and if it helped the applicant, and did not obligate the Council on future decisions, she did not see
any harm and stated the Town should help him.
Vice Mayor Mower asked if a representative from Vladimir's group was present. Mr. Hank Lickman came forward.
Mr. Lickman said Vladimir was in Europe and confirmed that MCO had reviewed all items with him. Vladimir
understood the approval of the preliminary plat was just one step. He also confirmed Vladimir would probably not get
a firm commitment from a Sheraton or Hilton until the zoning change was in place. However, with the PUD in place
the quality of the project would be in place and the project could not built other than a quality resort. He stated a copy
of the contract with Vladimir specifies the quality type of hotel that must be built there.
The motion CARRIED unanimously.
AGENDA ITEM #18 — CONSIDERATION OF REJECTING THE BID OF JULY 13TH' 1999 FOR THE
AVENUE OF THE FOUNTAINS ELECTRICAL UPGRADE,PHASE II.
Town Engineer, Randy Harrel stated the bids had been opened on July 13th and they received only one bid from AGT
Electrical, which was too high at $210,000. It was over the engineer's estimate of $130,000 and staff believed they
could get a substantially better bid through a rebid. He explained his staff had proceeded with the rebid process and
staff asked the Council to formally reject the bid of July 13th.
Councilman Wiggishoff MOVED to reject the bid of July 13`''. Vice Mayor Mower SECONDED the motion. The
motion CARRIED unanimously.
AGENDA ITEM #19 — CONSIDERATION OF AWARDING THE RE-BID OF AUGUST 3, 1999 FOR
,VENUE OF THE FOUNTAINS ELECTRICAL UPGRADE PROJECT,PHASE II.
he Town Engineer, Randy Harrel stated the rebid took place on August 3rd and they received one bid. It was from D
& D Electric at $130,000, which matched the engineer's estimate and was below the project budget of$150,000. He
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Page 4 of 6
displayed the project on the overhead. He stated staff recommended the award of the rebid to D & D Electric for
$130,000.
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,,.Councilman Wyman MOVED to award the bid to D & D Electric. Vice Mayor Mower SECONDED the motion.
Councilman Wyman inquired why D&D Electric had not submitted a bid on July 13`s. Mr. Harrel explained some
specialty electrical sub-contractors were used to working as subcontractors instead of general contractors and might
not have had the time to put together a bond and the necessary paperwork to submit a bid. He speculated that might be
the case with D&D Electric.
Councilman Poma inquired if MCO would be paying some of the cost of the improvements. Mr. Harrel said he was
not aware of any funding due from MCO on the project.
The motion CARRIED with a 6-1 roll call vote. Councilmen Poma cast the nay vote.
AGENDA ITEM#20—CALL TO THE PUBLIC.
No one came forward to comment from the public.
AGENDA ITEM #21 — PURSUANT TO A.R.S. §38-431/-3.A.3., A.R.S. §38-431.03.A.4., AND A.R.S. §38-
431.03.A.7. VOTE TO GO INTO EXECUTIVE SESSION FOR DISCUSSION OR CONSULTATION FOR
LEGAL ADVISE WITH THE ATTORNEY OF THE PUBLIC; 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 IN PENDING OR CONTEMPLATED
LITIGATION; AND DISCUSSION OR CONSULTATIONS WITH DESIGNATED REPRESENTATIVES OF
THE PUBLIC BODY IN ORDER TO CONSIDER ITS POSITION AND INSTRUCT ITS
REPRESENTATIVES REGARDING NEGOTIATIONS FOR THE PURCHASE OR LEASE OF REAL
,,PROPERTY.
Mayor Morgan called for a vote to go into Executive Session at 7:03 p.m. Councilman Wiggishoff MOVED that the
Council go into Executive Session and Councilman Apps SECONDED the motion,which CARRIED unanimously.
AGENDA ITEM#22—RETURN TO REGULAR SESSION.
Mayor Morgan reconvened the Regular Session of the Town Council at 8:34 p.m.
AGENDA ITEM#23—ADJORNMENT.
Councilman Wiggishoff MOVED to adjourn the meeting. Councilman Apps SECONDED the motion, which
CARRIED unanimously. Mayor Morgan adjourned the meeting at 8:35 p.m.
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TO 0 FOUNTAI ILLS
By:
(law • Sharon Morgan,Mayo
ATTEST: CAL/J.4.4.'t.S.t
Cassie B.Hansen,Town Clerk
i
PREPARED BY: t/4_'"
Bev Bender,Administrative 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 5th day of August, 1999. I further certify that the meeting was duly called
and that a quorum was present.
DATED this 16th day of August, 1999. e4.4.44.LQ5
Cassie B.Hansen,Town Clerk
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