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HomeMy WebLinkAbout2000.0420.TCREM.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR AND EXECUTIVE SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL April 20,2000 A public meeting of the Fountain Hills Town Council was convened and called to order by Mayor Morgan at 6:00 P.M.. Thursday, April 20. 1999, in the Four Peaks Elementary School. located at 17300 E. Calaveras Avenue, Fountain Hills, Arizona. AGENDA ITEM #1 - PURSUANT TO A.R.S. §38-431.03.A.1; VOTE TO GO INTO EXECUTIVE SESSION FOR DISCUSSION FOR CONSIDERATION OF EMPLOYMENT, ASSIGNMENT, APPOINTMENT, PROMOTION,DEMOTION, DISMISSAL, SALARIES, DISCIPLINING OR RESIGNATION OF A PUBLIC OFFICER, APPOINTEE OR EMPLOYEE OF ANY PUBLIC BODY, EXCEPT THAT WITH THE EXCEPTION OF SALARY DISCUSSIONS,AND OFFICER,APPOINTEE OR EMPLOYEE MAY DEMAND THAT SUCH DISCUSSION OR CONSIDERATION OCCUR AT A PUBLIC MEETING. THE PUBLIC BODY MUST PROVIDE THE OFFICER, APPOINTEE OR EMPLOYEE WITH SUCH PERSONAL NOTICE OF THE EXECUTIVE SESSION AS IS APPROPRIATE BUT NOT LESS THAN 24 HOURS FOR THE OFFICER, APPOINTEE OR EMPLOYEE TO DETERMINE WHETHER SUCH DISCUSSION OR CONSIDERATION SHOULD OCCUR AT A PUBLIC MEETING. THE COUNCIL WILL BE INTERVIEWING MAGISTRATE STUART SHOOB REGARDING HIS POSSIBLE REAPPOINTMENT. AGENDA ITEM#2—RECESS THE EXECUTIVE SESSION TO CONVENE THE REGULAR SESSION. Mayor Morgan recessed the executive session and convened the regular session of the Town Council. Following the pledge and the invocation by Councilwoman Hutcheson,roll call was taken. ROLL CALL - Present for roll call were the following members of the Fountain Hills Town Council: Mayor Sharon Le Morgan, Vice Mayor Sid Apps and Councilmembers John Wyman, Pen Mower, Al Poma, Marianne Wiggishoff, and Sharon Hutcheson. Also present were Town Manager Paul Nordin, Town Attorney Bill Farrell, Director of Administration/Town Clerk Cassie Hansen, Acting Town Engineer Tom Ward, and Director of Community Development Jeff Valder. Mayor Morgan stated that Consent Agenda Item #3 had been removed at the request of staff. She then read the remaining items on the Consent Agenda, which consisted of the agenda items 1, 2, and 4 - 12: AGENDA ITEM #1 - CONSIDERATION OF APPROVING THE MEETING MINUTES OF APRIL 6 AND 12,2000. AGENDA ITEM #2 - CONSIDERATION OF THE LIQUOR LICENSE APPLICATION SUBMITTED BY DANIEL LEVATO FOR CHE RIOS LOCATED AT 16720 EAST AVENUE OF THE FOUNTAINS. THE APPLICATION IS FOR THE SALE AND TRANSFER OF AN EXISTING CLASS 7 BEER AND WINE LICENSE. AGENDA ITEM #3 - CONSIDERATION OF AWARDING THE BID TO BONAFIDE IMPROVEMENT COMPANY FOR IMPROVEMENTS AND REPAIRS TO THE TOWN-OWNED COMMUNITY THEATER BUILDING IN THE AMOUNT OF $64,608.22. (PROJECT #ADM2000-01). This item was removed at staff's request. AGENDA ITEM#4- CONSIDERATION OF RESOLUTION 2000-18,ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST THE TOWN HAS IN CERTAIN PUBLIC UTILITY AND DRAINAGE EASEMENT LOCATED ALONG THE EASTERLY AND SOUTHERLY PROPERTY LINE OF PLAT 505- C, BLOCK 4, LOT 10 (16247 N. BOULDER DRIVE) AS RECORDED IN BOOK 158, PAGE 42 RECORDS OF MARICOPA COUNTY,ARIZONA. (MATT & VICKI GERETSCHLAEGER EA 00-13). Town Council Regular and Executive Session 4/20/00 Page I of 14 AGENDA ITEM #5 - CONSIDERATION OF RESOLUTION 2000-19, ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST THE TOWN HAS IN CERTAIN PUBLIC UTILITY AND DRAINAGE EASEMENT LOCATED ALONG THE SOUTHEASTERLY PROPERTY LINE OF PLAT 102, BLOCK 3. LOTS 1 AND 12 (16640 AND 16654 E. PALISADES BOULEVARD) AS RECORDED IN BOOK 142, PAGE ‘kim,, 12 RECORDS OF MARICOPA COUNTY,ARIZONA. (ASLAN I,INC./JOHN A. GILLIGAN EA 00-14). AGENDA ITEM #6— CONSIDERATION OF THE PRELIMINARY AND FINAL PLAT FOR THE 2-UNIT AGW LAMONT CONDOMINIUMS,LOCATED AT 12023 LAMONT DRIVE, CASE NUMBER S2000-006. AGENDA ITEM #7 — CONSIDERATION OF THE PRELIMINARY AND FINAL PLAT FOR THE 2-UNIT CAMEO COURT CONDOMINIUMS,LOCATED AT 14041 CAMEO DRIVE, CASE NUMBER S2000-014. AGENDA ITEM #8 - CONSIDERATION OF THE PRELIMINARY AND FINAL PLAT FOR THE 2-UNIT ,IAVELINA HEIGHTS CONDOMINIUMS,LOCATED AT 14253 N.ASHBROOK DRIVE, CASE NUMBER S2000-016. AGENDA ITEM #9 - CONSIDERATION OF THE PRELIMINARY AND FINAL PLAT FOR THE 2-UNIT ASHBROOK CONDOMINIUMS,LOCATED AT 16713 ASHBROOK DRIVE, CASE NUMBER S2000-013.. AGENDA ITEM #10 — CONSIDERATION OF THE FINAL REPLAT FOR PLAT 111, BLOCK 7, LOT 16 AND ASHBROOK CONDOMINIUM II, A LOT LINE ADJUSTMENT PROJECT, CASE NUMBER S2000- 012. AGENDA ITEM #11 — CONSIDERATION OF THE FINAL REPLAT OF LOTS 15 & 16, BLOCK 1, PLAT 430, A LOT JOIN PROJECT LOCATED NORTH OF EL PUEBLO AND EAST OF FOUNTAIN HILLS BLVD. CASE NUMBER S2000-020. AGENDA 'ITEM #12 — CONSIDERATION OF APPROVING CONTRACTS FOR ENGINEERING SERVICES WITH CK ENGINEERING AND BURGESS AND NIPLE. Councilwoman Wiggishoff MOVED to approve the Consent Agenda as read. Councilman Wyman SECONDED the motion. A roll call vote was taken with the following results. Vice Mayor Apps - aye Councilman Wyman— aye Councilwoman Mower- aye Mayor Morgan - aye Councilman Poma - aye Councilwoman Wiggishoff— aye Councilwoman Hutcheson - aye The motion CARRIED unanimously with a roll call vote. AGENDA ITEM #13 — CONSIDERATION OF REAPPOINTING STUART SHOOB TO SERVE AS MAGISTRATE FOR ANOTHER TWO-YEAR TERM.. Councilman Poma MOVED to approve the reappointment of Stuart Shoob for another two-year term with an increase of $4,000 the first year and $4,000 the second year for a total of $8,000 and Councilwoman Wiggishoff SECONDED the motion, which CARRIED unanimously. AGENDA ITEM #14 - CONSIDERATION OF RESOLUTION 2000-20 ORDERING THE SALE OF $3,700,000 PRINCIPAL AMOUNT OF TOWN OF FOUNTAIN HILLS, ARIZONA, GENERAL OBLIGATION BONDS, PROJECT OF 1999, SERIES B (2000), DESIGNATING AN OFFICER TO DECLARE OFFICIAL INTENT OF THE DISTRICT WITH RESPECT TO REIMBURSEMENT FROM L Town Council Regular and Executive Session 4/20/00 Page 2 of 14 BOND PROCEEDS PURSUANT TO TREASURY REGULATIONS SECTION 1.150-2; AND DECLARING AN EMERGENCY. Mr. Paul Nordin stated staff recommended approval of the resolution, which emphasized the Town's ability to obtain a reimbursement of General Fund monies from bond proceeds. He said that General Fund monies would be used in kilo, the interim to begin the bond sale process. He explained staff's recommendation requested that the Council place the emergency clause on this, which was not part of the normal process. He acknowledged that to initiate this would require six positive votes out of seven. He said the reason for this request was to allow staff to move quickly on this project. Councilwoman Wiggishoff MOVED to approve Resolution 2000-20 with the emergency clause as presented and Councilman Poma SECONDED the motion, which CARRIED unanimously. AGENDA ITEM #15 — CONSIDERATION OF AWARDING THE BID TO TARGET GENERAL INC. IN THE AMOUNT OF $5,034,000 FOR THE CONSTRUCTION OF THE NEW TOWN CENTER COMPLEX INCLUDING THE COMMUNITY CENTER AND THE LIBRARY MUSEUM. Mr. Rob Dietz, Hoffman Dietz Architect, stated bids were received on April 6th from eleven general contractors. He announced that Target General was the low bidder. He recommended that the Council award the contract to Target General in the amount of$5,034,000. Councilman Mower MOVED to accept the architect's recommendation of awarding the contract to Target General, Inc. as presented and Councilman Wyman SECONDED the motion, which CARRIED unanimously. AGENDA ITEM #16 - REPORT ON THE GOLDEN EAGLE PARK DAM BY MARICOPA COUNTY FLOOD CONTROL. Jim Leubner introduced the Maricopa County Flood Control District Project Manager, Tom Renckly and the principal engineer from Stantec Engineering, George Sabel. Mr. Sabel gave a status review of the project. He explained that Golden Eagle Park Dam was a flood control dam that had been built in the 70's for the purpose of urban flood control. He reviewed the location of the dam as being adjacent to and slightly downstream of Golden Eagle Park. He said the dam provided flood control mainly for the Ashbrook Wash area. He noted that recently the Flood Control District of Maricopa County, in cooperation with the Town of Fountain Hills and the Fountain Hills Unified School District, had completed the engineering designs for the modification of the dam. He said the reason for the modifications were primarily to restore the dam to meet current state dam criteria. The secondary reason was to reduce flooding of the Town Park and reduce flood hazard to certain school facilities adjacent to the park and dam. He said the additional benefits were flood protection for the gymnasium, the cafeteria, and the reinstallation of school security fencing at a different location. He outlined the construction schedule. The bid package would go out in the month of May,construction would begin in June, with the completion of the project in November. AGENDA ITEM #17 — DISCUSSION AND POSSIBLE ACTION REGARDING THE SELECTION OF A QUALIFIED PERSON TO SERVE THE REMAINDER OF THE TERM OF COUNCILWOMAN WIGGISHOFF. Councilwoman Wiggishoff recused herself. Mayor Morgan reviewed the series of steps that had been taken: the notice requesting applications had been placed in the paper, eight applications were received by the deadline, and the Council had interviewed those eight applicants on April 19th, 2000 in Executive Session. Mayor Morgan MOVED to appoint John Kavanagh to serve the remaining time of Councilwoman Wiggishoff s term and Councilman Poma SECONDED the motion, which CARRIED unanimously. AGENDA ITEM #18 — CONSIDERATION OF APPROVING THE TOWN ATTORNEY'S LETTER TO THE ARIZONA CORPORATION COMMISSION SUPPORTING THE ACQUISITION OF CHAPARRAL L Town Council Regular and Executive Session 4/20/00 Page 3 of 14 CITY WATER COMPANY BY AMERICAN STATES WATER COMPANY AND DIRECTING STAFF TO SUBMIT THE LETTER ON BEHALF OF THE TOWN COUNCIL. Councilwoman Wiggishoff returned to her seat. Town Attorney Bill Farrell requested that the Council continue this item for an additional two weeks. He acknowledged that the requested information regarding American States Water i440.,, Company's pending litigation in California and rate matters had been received. He said the Council should have received a letter dated April 14`h from Mr. Wicks the President and CEO, explaining the information, which had been sent. He noted that this letter acknowledged that the company did not plan a rate increase during the calendar year and the acquisition should be completed by the third quarter of 2000. He explained that because of other items on the Council's agenda he had not had the opportunity to fully review this information. He stated the additional two-weeks would allow him to review the information and prepare a full report for the Council. Mr. Farrell stated he had received approximately 160 pages of documents on the litigation matters and that he had been given access to the American States Water Company's attorney. He felt that after he reviewed the information, he might modify the Town's letter of recommendation to the Arizona Commission Corporation. Councilman Poma MOVED to continue this item for two weeks and Councilman Wyman SECONDED the motion, which CARRIED unanimously. Mayor Morgan asked if there was any comment from the public. George Post, 17014 Rand Drive. He was opposed to sending a letter of recommendation to the Commission. He wanted the letter to the Corporation to state the Council was studying the implementation of impact fees and requesting a postponement of the sale. He wanted the Council to investigate the use impact fees to help buy the Water Company. AGENDA ITEM#19—CONSIDERATION OF THE PRELIMINARY PLAT FOR THE PROPOSED 4-LOT, 5.922± ACRE SUBDIVISION TO BE KNOWN AS THE PLAZA FOUNTAINSIDE, LOCATED AT THE NORTHEAST CORNER OF SAGUARO BOULEVARD AND EL LAGO BOULEVARD (PREVIOUSLY KNOWN AS THE VILLAGE BAZAAR) CASE NUMBER S2000-008. Planner Dana Burkhardt briefly reviewed the preliminary plan and staffs recommended stipulations. He stated that staff and the Planning and Zoning Commission were recommending approval with stipulations. Councilwoman Wiggishoff MOVED to approve the preliminary plat with stipulations and Vice Mayor Apps SECONDED the motion. Councilman Poma asked if the applicant agreed to the stipulations. Mr. Burkhardt said the applicant was in agreement with the stipulations. The motion CARRIED unanimously. AGENDA ITEM #20 — DISCUSSION OF AND POSSIBLE ACTION ON PROPOSALS FOR THE COMPROMISE AND SETTLEMENT OF LITIGATION BETWEEN THE TOWN OF FOUNTAIN HILLS AND MCO PROPERTIES. Mayor Morgan stated that since last December, MCO and the Town had exchanged a total of three proposals. She said the fourth proposal had been delivered last week, along with MCO's request to be placed on the Council's agenda for public discussion. Paul Gilbert, 3200 N. Central (Attorney representing MCO) He stated MCO was present to try and settle this matter. Mr. Gilbert reviewed the terms of MCO's 13-point offer in answer to the response received from the Town Manager and Town Attorney. ■ MCO asked that this Council settle the issue as they were the Council who had grappled with this issue for two Nomm, years and they had the experience, background, and depth of understanding to make an informed decision. Town Council Regular and Executive Session 4/20/00 Page 4 of 14 • Mr. Gilbert stated MCO's corporate officer, Mr. Noteware, was in attendance with full authority to make a decision on their behalf. • Mr. Gilbert stated it was MCO's opinion that the Council did not have to go to the Planning and Zoning Commission for their approval of the plat. He noted there was time if the Council preferred to run this matter by the Planning and Zoning Commission. He stated that under the development agreement statutes of this state, the Council had full authority to settle this matter. But MCO insisted upon the approval of the plats as part of any settlement. He pointed out that the proposed plats were consistent with prior plat approvals. This plat had fewer cuts, fills, with minimized land disturbance. • MCO proposed to sell as much land as the Town wanted. • MCO stated it was mutually advantageous to both parties to settle, as there was a greater risk to the Town if the matter went to a jury to determine the price per acre. MCO's proposal would allow the Town to buy the land over time. • MCO believed that the majority of the citizens wanted the matter settled. Mr. Gilbert asked Mr. Bill Larson, landscape architect for MCO, to address the Council. Mr. Larson reviewed the major provisions of Plat 550. He pointed out that there were fewer cuts and fills in this plat and noted that this plat was consistent with past approved plats. He said that there had been three objectives: increase the preserve acreage, minimize impact to the view shed,as well as integrate and diversify the trail system. Mr. Larson discussed the graphics of Plat 505. He clarified that there weren't any cuts and fills on lots that exceeded 10'. He illustrated where there would be cuts and fills, over 10', off of the roadway corridors that required a waiver from the Town Council. Mr. Larson discussed the graphic displaying the topography (slope analysis)of Eagles Nest. He displayed an aerial photograph with a plat map overlay revealing a strong riparian community. Mr. Larson's last exhibit reflected the trail system proposed by the McDowell Mountain Preservation Commission (MMPC). He stated MCO had modified the east/west link on the north side of Eagle Ridge North by vertically elevating the trail approximately 60' and horizontally by 25' and 200'. The other modified portion of the trail system was to the south and just west of CopperWynd project. He said it was important to introduce a trail system that added continuity as well as diversity. Skiraw Mr. Larson said that MCO proposed to build a trailhead, at their expense. He described how the alignment through the wash at the bottom of the steep slope west of CopperWynd would tie into the Scottsdale system. He explained that when this option was presented to the MMPC, they had indicated the trail was too steep. Mr. Larson stated that MCO felt strongly that this would be an opportunity for three totally different riparian environments to be incorporated into a trail of less than one mile. Mr. Gilbert clarified his earlier statement by saying MCO has offered to pay only for the extension of the trail system south of the trail system proposed by the MMPC. He again observed that the two parties were not that far apart on most of the issues. He felt the differences of opinion were on the price per acre and Council approval of the plat as part of the settlement. He said MCO believed that the other technical items could be successfully negotiated. Town Attorney Bill Farrell said that this was a unique situation to see if public negotiations between the parties could bring a resolution to the two pieces of litigation. He felt that would be a difficult task. He made the observation that Mr. Gilbert had a distinct advantage as he had a single master, whereas the Town did not. He acknowledged Mr. Noteware's presence and that he was here with complete authority to settle this case, as was the Council. He pointed out that this Council had spent a substantial amount of their time working on this matter over the last two years. He said it would be fair to say that neither he nor Mr. Nordin has had seven unanimous voices. He noted that litigation was the last place that anyone wanted to be, and that included the attorneys. He reviewed that there was no degree of certainty if the valuation of property was left up to a jury to decide. He reminded the Council that they had been fully apprised of the Town's rights under eminent domain as well as the Town's financial situation. He agreed with Mr. Gilbert that there were only a couple of basic issues separating the two parties, but those basic issues had always been there. He noted there was an honest disagreement as to what the value of that property was in the McDowell Mountains, as well as the difference of opinion as to how high into the Town Council Regular and Executive Session 4/20/00 Page 5 of 14 mountains development should occur. He said this was a very important decision that would be the legacy of this Council, the previous Council, and the next Council. He pointed out that no matter how sensitive the scarring and development was, it would visible for the rest of time and therefore it was important that the majority of the Council was satisfied with the settlement. Mr. Farrell stated, in regards to the eminent domain case, that the Council could settle the issue anytime that four of the seven Councilmembers felt inclined to do so. That had never been the issue between the Town and MCO, but the issue had been the price and how that price was to be determined. He explained that if the Council could come to a conclusion this evening, as to how much the Town should pay and how many acres the Town would like to acquire, that was perfectly within the Town's purview. He said the Town could acquire the land, it could be gifted, it could be deeded to the Town, or the Town could condemn it. He explained the Council had that "absolute power"just like every other city or town,the county, or the state. Mr. Farrell stated he did not believe the Council could legally bypass the Planning and Zoning Commission or approve the subdivision plat. He proposed that if developers could bypass the Planning and Zoning Commission by merely filing a lawsuit instead of paying the exorbitant Town development fees, the Town would see a $93.50 lawsuit filed with a plat attached and everyone would go to court. He concluded it was not something that was done regularly or easily. He said one of the problems was that there wasn't any pending litigation pending regarding the subdivision ordinance. He pointed out that the only litigation that the Town had filed was the acquisition of the 280 acres in the McDowell Mountains. He said the Council had given staff a public and private indication of the Town's financial resources and that given the limitations, staff felt any change to the negotiations needed to include the financial resources to go forward. He noted that MCO had indicated a willingness to assist the Town on that level. Mr. Farrell stated an extension of time was necessary. He reiterated that he did not feel there was a legal way to accomplish this, even if all seven Councilmembers liked the plats. He said the A.R.S. § 9-461-03 and the Town's ordinances required that all plats go to the Planning and Zoning Commission and then to the Mayor and Council. He stated that to tell the Council tonight that they could approve the plat through negotiations would be false on his part and, if allowed, the Council might as well do away with the ordinances. 1 He did acknowledge that the process could be expedited. He pointed out that although a public notice was required, and the Council could ask the Planning and Zoning Commission to consider the plats, he did not believe there was any legal way to approve the plats by the April 28th deadline. However, he suggested that after listening to Mr. Gilbert, perhaps the April 28th deadline was not as critical. He reminded them that those prior plat approvals had gone through the preliminary plat approval process and that a well-defined development agreement had been presented to the Council as well as considerable debate by the Planning and Zoning Commission and other interested citizens. He pointed out that there wasn't a development agreement before the Council this evening, and the Council did not have the background information about the cut and fill waivers. Mr. Farrell commented that after listening to Mr. Larson, it sounded like there shouldn't be any problem to have the plat approved by the Planning and Zoning Commission. It sounded like the project would be in total conformance and it would a perfunctory act coming before the Council within a normal frame of time. He said that was what the Manager/Attorney Proposal (MAP) offered the Council. He concluded that it was a positive move by the Council, granting permission for this discussion to occur in public. He encouraged them to engage in additional dialogue with MCO. He said MAP was a proposal drafted last week by the Town Manager and the Town Attorney due to time constraints and open meeting law requirements. He offered this plan to the Council as a starting place for further discussions or the end of discussions. He felt the Council was capable in regards to the issues of eminent domain and the acquisition of real property in order to make progress. But in the area of plats, it was his opinion that the Council would need to take additional time. Mr. Nordin said he concurred with Mr. Farrell. He addressed problems staff would have with proceeding on the plats. He noted the precipitousness, which was clearly indicated in the MCO proposal because of the lack of processing of the plats within the subdivision ordinance guidelines. He said the Manager/Attorney Proposal (MAP) was designed to be a safe proposal both legally and procedurally. He commented on the procedure aspects stating Town Council Regular and Executive Session 4/20/00 Page 6 of 14 that the review time had been mentioned on two separate occasions in this presentation. He noted that the eight and one-half months spent by both parties studying this plat was not complete and had a long way to go. He said the clear different between MAP and the framework was that there were no lot lines on MCO's map. There reason for that was that staff could not recommend to the Council tonight, that the lot plan as presented by Mr. Larson, met the Town's ordinance requirements. Mr. Nordin explained that with help from Mr. Valder, he and Mr. Farrell came up with these numbers (maximum of 105 lots in Eagles Ridge North and 207 in Eagles Nest) based on the review done so far by staff. They felt those numbers were safe. If the Council wished to adopt the MAP plan this evening, he said staff could. with a virtual degree of certainty, guarantee the Council that MCO would be allowed build that number of lots, in accordance with the Town's ordinances. He proposed that if the application of the Town's subdivision ordinance yielded lot numbers and counts higher than indicated in the MAP plan, the Town would agree to let them to build what the law would appropriately allow. He referred to one of the response letters between the Town and MCO, on a staff level, from MCO dated December 20th, 1999. MCO had reiterated staff's concerns regarding maximum cut and fill grading, grading of roadways, and grading of driveways in the lots. He had counted over 50 lots that staff was questioning whether or not they would be allowed under the proper application of the ordinance. That was why staff had not drawn any lot lines. Staff also felt that it was presumptuous to do so as this land was owned by MCO and they had the right to draw the lot lines. He reiterated that in the MAP, staff could state with the most absolute degree of certainty, that this lot number would be acceptable under the Town ordinances. He noted these were some of the difficulties that staff had with the Council approving MCO's framework at this time. In the same spirit of cooperation as extended by MCO, staff could not recommend approval as it was too soon and there was much of the process left to conclude. He said it was not safe for the Council to do otherwise. Councilwoman Wiggishoff stated the preservation of the subdivision ordinance wasn't her primary goal. She commented she was always willing to look at other's points of view and to try to look for areas where government could show flexibility. She felt the only time that the Council did that was when there was something to be gained ilk..., by the community. She asked where would the Town be with the straight application of the Town's ordinances. She acknowledged that the state statutes gave the Council the authority to regulate land use and development through the passage and application of the Town's ordinances. It was her opinion, that the only time the Council could contemplate entering into development agreements was when that would give the community more of what was wanted and in this case it was preservation. When she looked at offers or contemplated coming to a negotiating table she asked where would the Town be with the implementation of the Town's ordinances. She said that was reflected a bit in the MAP plan as it placed brackets on the price of land. She said the big problem was number 5 addressing the number of lots and waivers needed. She felt both parties were very far apart. She pointed out that MCO wanted 445 lots. With the application of the ordinance the Town would allow 312 lots. She noted that the Town would be willing, under the MAP plan, to consider more lots if the developer could show that fair application of the Town's ordinances could be done. She acknowledged the developer's right to do that. She explained that by stipulating 445 lots right away gave away something. She addressed the fact that MCO thought their land was worth more than the Town did. She said that was a normal situation. She said if the Town went through the condemnation procedure, it would go to a jury and a price would be established. The Council felt they had a reasonable expectation of land evaluation and in court the Town would be the closer of the two. She recognized that was a gamble. She said the Town wanted to buy what land would be put into the Fountain Hills preserve and let MCO develop their property according to the Town's ordinances. She said that if Mr. Larson made the presentation, he would make a very strong case for certain waivers to be granted. He was a well-respected land planner. She hoped MCO would have more faith in the Town's system and would give them a fair hearing. To protect everyone's interests and have a basis for negotiations, the Town was better off sticking to the Town's ordinances, applying them, and letting them L. work. She reiterated that if the developer could figure out a way to get over the 312 lots that were estimated to be Town Council Regular and Executive Session 4/20/00 Page 7 of 14 buildable,then more power to them. Mayor Morgan asked if the Planning and Zoning Commission had ever been by passed. Mr. Valder responded no. Vim„ Vice Mayor Apps asked if the presented proposals could be acted on. Mr. Farrell said it was his opinion it was only a framework and not an action item that could be signed by the Mayor, Manager, Town Clerk and Mr. Noteware. He said it could be worked from. Then staff could take direction from the Council and prepare documents for future agendas. He referred to Mr. Gilbert's Item #13, which stated that, if agreed, the two parties would work out the paperwork. He acknowledged that there would be a substantial amount of paperwork yet to be prepared. Vice Mayor Apps asked that if the Council wished to address each item, one through thirteen, in a public forum as a template to talk about each item, could they do so. Mr. Farrell agreed it could be done. Councilman Wyman said he was glad for the open forum. He reviewed the situation since the July 1 decision was made. There were Councilmembers who had asked for an additional few weeks to brief the public. At that time, both the Town and the developer had said there was no more time. He hoped both parties could treat each other better. He felt there was now a framework for discussion. He said if it were legal to by pass the Planning and Zoning Commission, the MMPC, and the public process, he did not think the Council should. He felt that was part of the Council's obligation. He said the McDowells were a Fountain Hills' premier feature that couldn't be ignored in any way. If there was conflict or enthusiastic discussions on the topic, then it was worthy that the process should be done. He noted that as the Town could not hold an advisory election to see if the public wanted this agreement, he proposed there was an indirect way to do that, which had been done last month. In his judgment, that election was a single-issue election. The candidates who won ran on that preservation issue and he felt the public couldn't be ignored. It was his opinion that whatever was arrived at, in terms of framework, was going to have to be ratified by those who were elected by the public who had cared to vote. He said that point was not going to be ignored by him. Councilman Mower said the comments by MCO caught him by surprise. He had formed his comments based upon documents the Council had received. He felt some things had been changed in MCO's presentation. He said the present proposal was quite a step forward, particularly if the number of acres to be purchased was left up to the Town. He said the Town would now be able to obtain lands that would lend themselves to hiking trails and include all view-shed lots. He said what he had heard tonight was, that depending upon the price, which now seems to be negotiable, the Town could decide how much land was needed and was within the Town's financial means. He pointed out it appeared the Town and MCO were getting somewhere. He said this was a good step. The problem was that now the Town Council was being asked to approve the plat. He said he feared this issue could halt the process,just as the parties were getting close to an agreement. He agreed the plat must go through the Planning and Zoning process. He said he did not know how the agreement could be achieved in the short period of time allowed and he did not know if it could be done by April 28, May 4th or even May 18. He stated he did not want to see the progress stop just because a drop-dead date had been reached. He hoped both parties would continue working together to develop MCO's plat. Councilwoman Hutcheson said she saw this as a positive step. She acknowledged that at least there was a public proposal from MCO and there was an answer from the Council in the form of the MAP plan. She viewed that as a counter proposal. She saw significant differences and gaps and she was not sure the time frame was doable. She agreed with Councilwoman Wiggishoff and Councilman Wyman that this was a good step. She supported Councilman Wyman's opinion that the newly elected Councilmembers become involved in the process. She saw this as an evolving process and wanted to continue communication. Councilman Poma said staff and this Council had tried to negotiate and talk with MCO. Now, in the last hours, MCO brought forward a proposal. He said there were a lot of gaps. He agreed that the new Councilmembers elected should vote on this issue. Those addressing the Council with comments, recommendations and opinions were: John Rosenquist represented the MMPC. He said MMPC had voted unanimously to reject MCO's proposal, as it did y not meet the MMPC's objectives and requirements. Tony Woodrall, who represented the Fountain Hills Licensed Town Council Regular and Executive Session 4/20/00 Page 8 of 14 Contractors Association. The members had circulated a petition and in 4'/2 day they had collected 1200 signatures in favor of an agreement with MCO. He indicated that if they were given more time they could have had 3000 signatures. George Post, Al Donaldson, June Post, Arnold Van Ruitenbeck, Mark Van Boekel. Cal Combs, Jack Fraser,John Rezek, Bill Pappe,Bob Barbanica,Jody Knapp, Vincent Marcello,Jay Lawrence, and Fred Pulve. Those opposed to MCO's proposed agreement felt the Council should not buy anything without the cash in hand and proposed impact fees as an income source for the purchase. They did not want to pay premium prices for land that was unbuildable. They wanted to see MCO give that land to the Town. Some felt MCO's price was too high and proposed to bridge the missing money by a density of transfer in North Heights. Others felt circumventing the Planning and Zoning process was a problem and further stated the Council needed public input from now on, They encouraged the Town to continue the lawsuit to determine the price and value of the land. Those speaking in support of MCO's proposed agreement asked for an acceptable development compromise and a resolution to the lawsuits. Vice Mayor Apps asked if some issues were agreed upon tonight could the proposal be changed at some future point or was it locked in. Mr. Farrell stated it could be changed. Vice Mayor Apps MOVED the Council begin negotiations in open forum tonight based upon MCO's proposal versus staffs response by reviewing each of the items (1-13) one point at a time and Councilman Mower SECONDED the motion. Councilwoman Wiggishoff stated she would only entertain the MAP proposal as the Council's response to MCO's framework letting MCO respond as they wished. She hoped that the discussion could go back and forth, the negotiation teams could change and both parties would continue with a point and counter point framework with the discussion done in a public forum so the people could see what both parties were up to. Councilman Wyman endorsed Councilwoman Wiggishoffs suggestions and stated the MAP was a definitive counter proposal to MCO's kkhor framework. Vice Mayor Apps asked where the Council went from here. Mr. Nordin suggested if the Council wanted to establish MAP as their baseline tonight, the Council could direct staff to report back to the Council in whatever time frame they were directed to by the Council. Councilman Wyman asked if the response brought back to the Council would be in a public forum. Mr. Nordin responded yes. He said that the Town Attorney and he would have had the opportunity to meet with MCO and bring back what had been accomplished. Vice Mayor Apps asked if MCO came back with a proposal, could the Council discuss it in a public forum before it was publicized in the local paper, etc. Mr. Farrell responded yes, he understood that what he had heard was that the Council wanted both parties to work closely and in good faith. He would be happy to give the response to the Council first, and then to the public second, in an open public meeting, even though the local paper might not like that. The motion FAILED on a vote of 5—2. Councilwoman Wiggishoff MOVED that the Council adopt MAP as their formal first time response to the latest MCO offer and that the Council would reply in an open forum to any MCO response made at the May 4th Council meeting, if a response was received. Vice Mayor Apps SECONDED the motion, which CARRIED on a vote of 6 to 1. Councilman Mower cast the nay vote. Jim Noteware, representative of MCO/MAXXAM, stated he was delighted with the progress made but wished there had been more. He felt progress was being made because decision-makers were talking to decision-makers. He said MCO was pleased to continue negotiations with decision-makers. He expressed concern with staffs analysis and with lawyer to lawyer communications that the two parties would not get anywhere. He reminded the Council that Town Council Regular and Executive Session 4/20/00 Page 9 of 14 the process had been ongoing for nearly 10 months. The plat proposed had been submitted by MCO for approval since last July. He said the process that ended July Ist, 1999, had been initiated 10 months prior to that at the unanimous directive of all Councilmembers only to have it denied. He said MCO was very proud of the development of the Fountain Hills community. He said they had a long-term stake in Fountain Hills. MCO wanted what was right for Fountain Hills, the public, as well as what was right for their shareholders. He explained that was why they had endeavored for so long to craft solutions to as many diverse objectives simultaneously as possible. He said he appreciated Vice Mayor Apps' motion to try and resolve all thirteen points one by one. He said that was how things got accomplished. He focused on the points of disagreement: • Plat and the plat process • Land price gap • Trails Mr. Noteware called for the Council, as the representatives of the people, to listen to the people. He said MCO had initiated an open dialogue initiative called "common ground", as they wanted the community's dialogue about all affairs. Through that process everyone could come to resolutions of issues. He stated that MCO wanted to offer the process of land development as sensitively and collaboratively as possible. He said he appreciated the Council's gesture of sending back MAP as the Council's formal response to their framework, but he reiterated their offer. He suggested that he would be willing to meet with a member of the Council or a sub group of the council that would like to continue to meet with MCO. He noted that they would be delighted to meet with them in public, in private, or in any other forum as long as decision-maker could meet with decision-maker. He said if there was a will to make a deal and to continue the process he believed the two parties could make it. He clarified that the MCO offer was open until April 28th. He thanked the Council for their consideration at the meeting and he believed progress had been made but there was more to be made. AGENDA ITEM #21 - CONSIDERATION OF RESOLUTION 2000-17 ABANDONING A PORTION OF THE LASER DRIVE RIGHT-OF-WAY, ALL OF THE COSMIC DRIVE RIGHT-OF-WAY, AND THE ABANDONMENT OF ALLEY RIGHTS-OF-WAY IN PLAT 412-A. Councilman Mower started the discussion by displaying and reviewing a map of the proposed industrial park re- alignment of Laser Drive. Ralph Pew, Barclay Group representative He said the Barclay Group was in agreement with the proposed reconfiguration and abandonment of Laser Drive. He said if the roads were reconfigured, as proposed, without moving the buildings as designated on the site plan,they would have a hard time keeping the exact amount of landscaping as shown on the plan since they would be losing about an acre of land in the process. He clarified they would be buying land and then giving it away to make the roadwork. He asked for some relief on that issue and some recognition that they wouldn't have to keep the exact amount of landscaping there. He also wanted to know, from the Engineering Department, how wide the right-of-way would be versus how much would be paved from curb to curb. He felt if those issues were addressed, as well as the methodology of payment, the developer would be agreeable. Councilman Poma asked if the developer was asking to table this issue as there still were questions as to whom was going to finance this and at what cost. Mr. Pew said they were prepared to deal with that. He stated they wanted the Council to give them direction and an indication if they were supportive so that the Town Attorney could bring forward a resolution. Councilman Poma asked what the cost was. Councilman Mower interjected that Mr. Larson, MCO's representative, had estimated the cost to be $250,000, which had been discussed as being split in thirds between MCO, the Barclay Group and the Town. Councilwoman Wiggishoff pointed out that Mr. Larson would probably have been quoting the prices the developer would have been paying, but since this would be a public process and dealing with government funding, the likelihood was that the Town's portion would be more like $300,000 or $350,000. She said the Council needed to get a budget estimate of costs from the Town's engineers. Councilman Mower reviewed his memo, which was sent to the Council, listing the contingencies that would apply as part of the Council's consideration for the closure of Laser Drive. • Installation of a three-way stop sign configuration at the intersection of the loop and Saguaro Dr. Town Council Regular and Executive Session 4/20/00 Page 10 of 14 • In the event there was an ingress/egress off of the loop to serve the supply trucks, there would be a posted "no left turn" sign for outgoing truck traffic, thus preventing large semis to traverse Saguaro to Shea intersection. • Truck traffic on Saguaro south of Shea would be restricted by weight with appropriate signage and ,, enforcement. • Technology would be closed from the Laser loop south to Saguaro. • The alley currently west of Technology would be closed at Saguaro. • Construction of a monument identifying Firerock Estates at the corner of loop and Saguaro and commercial vehicle restriction signage. • All changes would be implemented on or about the same time. Councilwoman Wiggishoff acknowledged that Councilman Mower had worked very hard with all of the interested parties. She reviewed that the Council had started out to separate the residential traffic from the industrial traffic by closing Laser Drive. Now this plat would make it a couplet allowing traffic to get from Shea to Saguaro and by avoiding a couple of traffic lights. She saw this as a possible thoroughfare for people who lived east of Denny's, Firebrick, Lunar Lane and so forth. She thought the Council should contemplate unintended consequences. She acknowledged that the proposed plan answered questions in terms of getting SRP off of Saguaro. The industrial traffic could still exit from the Industrial Park without making a left hand turn. She felt this had happened so quickly that the Council might want to take a closer look at the plan, as there were cost and effect issues. Mr. Pew pointed out that this would take cooperation from the three parties the Town, MCO and Barclay. He explained that the Barclay Group and MCO would be actually be giving land for the right-of-way and the costs would be for improvement costs only. He stated there would not be acquisition costs involved as long as all three parties could agree. He stated that on behalf of the developer of the Target project, they were agreeable to each party bearing 1/3 of the cost. He pointed out that they needed to hear from the other two parties on that topic and that they needed some direction from the Council on this issue. Councilman Wyman said the Firerock people had a proper concern for the traffic in the area, which needed to be respected. He said the industrial neighbors also had the same kind of concerns. He acknowledged that this was a major project and he reminded the Council and public that 63% of the people had voted in favor of the Shea retail site being developed. He said all of the concerns should be reconciled or the site should not be developed. He asked how failing to develop the retail site would be explained to the 63% of the people who had voted for this development. Councilman Poma stated that the people working together on the roadway was a needed aspect of the project. He said it was working out and everyone would benefit from the outcome. He noted that new public comments were that they had not realized how big the project was and how much traffic would be created. He pointed out that the next agenda item was for consideration of giving back to the Barclay group almost $1M and now they were asking for more money from the Town for the street improvements. He felt that if the developer wanted this project to go forward,they should pay for it. Councilwoman Hutcheson stated progress had been made in addressing some of the problems, but she wanted to know more from the traffic engineer as to the consequences. She also wanted to know how much the Town would be asked to contribute and if it was feasible for the Town. She felt more information was needed before she could commit her approval. Mr. Pew suggested that the Council instruct staff to prepare a resolution for the next Council meeting regarding the abandonment of Laser and incorporating the elements as discussed. If only continued, there might not be a resolution for the Council's consideration, as staff needed the Council's directive. Mayor Morgan asked if the item could be continued with direction given to staff to prepare a resolution. She acknowledged that the Council wanted to know what the costs would be before going on further with the project. She questioned whether or not a resolution could be prepared without knowing the costs involved since it was a priority. Mr. Farrell responded yes, a new legal description would be needed for the resolution and now a number of other factors that would come into play so staff would prepare a resolution of abandonment with the conditions Town Council Regular and Executive Session 4/20/00 Page 11 of 14 discussed and a small development agreement could be added to the agenda. The issues of the costs and participation of all parties would be in a development agreement rather than in a resolution of abandonment. He said staff could get those materials for the Council and make the necessary components fit together but it would take two documents to accomplish that. He said those items could be completed by the May 4th meeting. Mr. Nordin stated after the engineering staff studied the proposed new plan, they could have such a document for the Council in two weeks. Mayor Morgan asked for public comment. Those addressing the Council with comments, recommendations and opinions were: Bob Tripp, Jack Fraser, Pamela Curtis, George Post, Elaine Tar, Jack Bercel, Scott LaGreca, Jane Bell, Gorden Reil,Arvid Dennis, and Jody Knapp. Those opposed to the proposed plan stated that some of the homeowners in Firerock had not been consulted and they objected to the traffic pattern that would be created. Some felt that the Town should not have to contribute money towards the project, as the developer should pay for it. Others questioned if the Town was receiving money for the abandonment of Laser and how much. Homeowners north of Shea asked why they had not been contacted to meet with the developer for their input. They requested that the weight restriction of current commercial traffic remain the same and that the commercial traffic be allowed to use Saguaro Blvd. Concern was expressed for truck traffic in the proposed parking lots off Technology. The question was raised if a traffic study should include a truck count of those trucks, which would be traveling through the parking lots, logging the time of day. Rural Metro requested that the turning radius be adequate, as Fire Station #2 was located on Saguaro. Rural Metro expressed concern that a hydrant would need to be moved to meet the fire flow calculation for a project (on lots 50& 49) which was currently underway as the hydrant located on the corner of Saguaro/Technology had originally been used for the calculation. The tax base was a concern. Another asked that the Council look at the entire traffic flow pattern before committing themselves. Those speaking in support of the project said the project was going in the right direction. They asked that all parties keep working towards the solution. Residents in Firerock stated they were willing to compromise to separate the industrial traffic from residential traffic as much as possible. A suggestion was made to change the ingress and egress at Bank of America. Nimor Councilman Mower addressed the concern of the ingress and egress at Bank of America. He indicated he had talked with Linda Melucci, branch manager at the Bank of America. She had talked with their Phoenix office. Bank of America agreed they would accept a right turn in and a right turn out only from Saguaro into their parking lot. Councilman Poma felt that cones would be necessary as well to ensure that the traffic would go down Saguaro and make that U-turn. Councilman Wyman MOVED that staff be directed to prepare a new resolution, development agreement, and traffic study as discussed for review at the May 4th Council meeting and Mayor Morgan SECONDED the motion. The motion CARRIED unanimously. AGENDA ITEM #22 - DISCUSSION AND POSSIBLE ACTION REGARDING APPROPRIATION OF $987,000.00 OF PUBLIC FUNDS FOR ECONOMIC DEVELOPMENT IN CONNECTION WITH THE BARCLAY PROJECT. THE APPLICANT HAS REQUESTED THAT THE COUNCIL CONSIDER AN APPROPRIATION OF FUNDS OVER A PERIOD OF TIME TO ASSIST IN THE CREATION AND ENHANCEMENT OF THE ECONOMIC WELFARE OF THE TOWN. Mr. Farrell acknowledged a $2,000 error in the verbiage of this agenda item. The amount should have read $989,000. He said that the Council had before them a revised version of the economic development agreement. Mr. Farrell briefly reviewed the changes. He referred to the A.R.S. § 9-500.11, which was the specific statute allowing the Council to enter into economic development agreements. He felt it was important that the Council and public understand that this action was legal as long as the Town found that the Barclay Center, Target, and the other retailers would either improve or enhance the economic welfare of the Town. He said it was an appropriate action, for a general law town,to fund economic development activities with monies they had available for that. 411116,0-. Town Council Regular and Executive Session 4/20/00 Page 12 of 14 He explained that the original agreement presented to them on April 6th had called for the payment of$189,000. A change was made to paragraph#1,at the request of the developer, for an annual interest component of 7%. He noted a word change in paragraph #2, from "agreement" to the word "obligation". He pointed out that paragraphs #3. #4 and #5 were identical to the previous agreement. He stated paragraph #6 required that each of the tenants sign a ‘4060, financial disclosure waiver. He stated how much sales tax a participant paid was confidential information and would not be available by public request and not revealed to the Council. That information was private between the taxpayer, the Department Revenue, the Town Manager, and Ms. Ghetti, the Town's accountant by state law. He explained that as the reason for the disclosure waiver. It would allow the information to be gathered so that the Town could make the payment. Paragraphs #7 and #8 explained how the calculations were made and when the payments were to be made. Paragraph#9 stated the payments would continue until the amount was paid in full or for 10 years, which ever came first. Paragraph #10 was added by the Town, which basically states this was not a debt within the constitutional or statutory authority regarding municipal debt. If there were to be an economic development payment, each Council would have to vote on the issue each year during the 10-year period and therefore it must be included in the budget. He said one Council could not obligate another past the next fiscal year. Paragraph #11 stated that Barclay might assign its interest in the agreement. He understood it would be assigned directly to Target. Paragraph#12 stated that the agreement must be interpreted under laws of the State of Arizona. Mr. Nordin stated that Mr. Ralph Pew, the attorney for the Barclay Group, suggested they would be agreeable to a continuance of items #22, 23, and #24 due to the lateness of the hour and in order to effect a resolution of the issues relative to Laser. Councilman Poma asked Mr. Farrell to confirm that the Town would be paying the tax back over a period of 10- years or sooner. He reiterated that the developer also wanted 7% of the public's money. He stated the Town was looking to Target for tax revenue, but wouldn't see any for 10 years. Councilman Wyman MOVED that the Council continue agenda items 22, 23, and 24 and Councilwoman Wiggishoff SECONDED the motion, which CARRIED unanimously. istitioe AGENDA ITEM #23 - CONSIDERATION OF A CUT AND FILL WAIVER APPLICATION FOR THE PROJECT KNOWN AS THE SHEA RETAIL CENTER, A PROPOSED 36.42± ACRE DEVELOPMENT, LOCATED SOUTH OF SHEA BOULEVARD, WEST OF SAGUARO BOULEVARD, AND NORTH OF LASER DRIVE, CASE NUMBER CFW99-08. AGENDA ITEM #24 - CONSIDERATION OF THE PRELIMINARY PLAT FOR THE 9-LOT, 36.42± ACRE SHEA RETAIL CENTER, LOCATED SOUTH OF SHEA BOULEVARD, WEST OF SAGUARO BOULEVARD,AND NORTH OF LASER DRIVE, CASE NUMBER S99-040. AGENDA ITEM#25- CALL TO THE PUBLIC Jody Knapp, 17041 E. Monterey She stated the Council had put some of the public in a quandary by continuing the Target issues. She said there had been talk of a referendum being filed, which had to be filed against the C-2 vote, which only allowed two weeks to gather enough names. She said Councilman Poma was right,that there was a lot of discussion on this project as the project was not being presented with all the facts. George Post, 17014 E. Rand He was against corporate welfare and if the Town wanted to give away$1M his first preference would be to give it to the senior citizens. His second preference would be to buy Councilwoman Wiggishoff a new house and put her back on the Town Council. John McNeill, 15533 E.Thistle He pointed out that this meeting was Councilwoman Wiggishoff s last Council meeting. He said he appreciated her comments on the MCO issue and thanked her for her years of service. Town Council Regular and Executive Session 4/20/00 Page 13 of 14 AGENDA ITEM#26-ADJOURNMENT. Councilman Poma MOVED to adjourn the meeting. Councilwoman Hutcheson SECONDED the motion, which CARRIED unanimously. Mayor Morgan adjourned the meeting at 11:20p.m. TOWN OF FOUNTAIN HILLS By: Sharon Morgan, yor ATTEST: (4)4A-A— --1-5 Cassie B. Hansen,Town Clerk PREPARED BY: ; Bev Bender,Executive Assistant 4tior 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 20th day of April 2000. I further certify that the meeting was duly called and that a quorum was present. DATED this 4`h day of May 2000. Cassie B. Hansen,Town Clerk Town Council Regular and Executive Session 4/20/00 Page 14 of 14