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HomeMy WebLinkAbout2000.0518.TCRM.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL May 18,2000 Mayor Morgan called the regular session of the Town Council to order. Following the pledge by the Cub Scout Pack 243-The Tigers,and the invocation by Rev.Mark Lansberry—The Fountain United Methodist Church,roll call was taken. ROLL CALL - Present for roll call were the following members of the Fountain Hills Town Council: Mayor Sharon Morgan and Councilmembers John Wyman, Pen Mower, Al Poma, John Kavanagh, and Sharon Hutcheson. Vice Mayor Apps was absent. 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 read the Consent Agenda Items 1 —7. AGENDA ITEM #1 - CONSIDERATION OF APPROVING THE MEETING MINUTES OF MAY 1 AND 4, 2000. AGENDA ITEM#2- CONSIDERATION OF THE EXTENSION OF PREMISE APPLICATION SUBMITTED BY KENNETH BOWMAN FOR THE AMERICAN LEGION LOCATED AT 16850 EAST AVENUE OF THE FOUNTAINS. THE LEGION IS REQUESTING TO TEMPORARILY EXTEND THE LEGION'S CLUB LIQUOR LICENSE ON SATURDAY,MAY 20 FOR A SCHOLARSHIP FUND GOLF TOURNAMENT. AGENDA ITEM#3- CONSIDERATION OF THE PRELIMINARY AND FINAL PLAT FOR THE 3222±ACRE, 2-UNIT DEERFIELD CONDOMINIUMS I, LOCATED AT 16777 ASHBROOK DRIVE, CASE NUMBER S2000- LI8. AGENDA ITEM #4 - CONSIDERATION OF THE PRELIMINARY AND FINAL PLAT FOR THE 1.4536± ACRE, 20-UNIT WESTBY TOWERS CONDOMINIUMS, LOCATED AT 16626 E. WESTBY DRIVE, CASE NUMBER S2000-017. AGENDA ITEM #5 — CONSIDERATION OF THE FINAL REPLAT FOR LOTS 3 THROUGH 6, BLOCK 3, FINAL PLAT 201,APPROXIMATELY±1.41 ACRES,A LOT JOIN PROJECT,CASE NUMBER S99-039. AGENDA ITEM#6—CONSIDERATION OF THE FINAL REPLAT FOR LOTS 20 AND 21, BLOCK 5,FINAL PLAT 208,APPROXIMATELY 12,000 SQ.FT.,A LOT JOIN PROJECT,CASE NUMBER S2000-023. AGENDA ITEM #7 — CONSIDERATION OF RESOLUTION 2000-22 AUTHORIZING THE TOWN, PURSUANT TO A.R.S. §28-2603, TO USE UP TO TEN PERCENT OF LOCAL TRANSPORTATION ASSISTANCE FUND MONIES FOR ALL USES AS ALLOWED BY LAW. Councilman Mower MOVED to approve the Consent'Agenda as read. Councilman Poma SECONDED the motion. A roll call vote was taken with the following results. Councilman Wyman— aye Councilwoman Mower- aye Councilwoman Hutcheson - aye Councilman Poma- aye Councilwoman Wiggishoff— aye Mayor Morgan - aye The motion CARRIED unanimously with a roll call vote. L Town Council Regular Session 5/018/00 Page 1 of 11 AGENDA ITEM #8 — PRESENTATION TO MIKE SEVERSON FOR HIS EFFORTS TO CLEAN UP kSHBROOK WASH AS PART OF HIS EAGLE SCOUT PROJECT COMPLETED APRIL 22,2000. Nrigayor Morgan presented a plaque of appreciation to Mike Severson for organizing the clean up Ashbrook Wash between Vallecito and Calico. She then introduced his parents,Fred and Teresa Severson. AGENDA ITEM #9 — CONSIDERATION OF ACCEPTING THE RECOMMENDATION OF THE CITIZEN COMMITTEE FOR THE 1999-2000 DISTRIBUTION OF LOCAL TRANSPORTATION AUTHORITY FUND MONIES. Director of Administration/Town Clerk Cassie Hansen explained that the Town had$10,598.00 available for distribution. She reviewed the process through which staff and the volunteer five-member citizen review committee had gone through. She stated that twelve applications had been received totaling $27,317.87. She noted that all the applications met the required criteria for matching funds. She noted that although the committee found merit in each application, some reductions were necessary since the funds requested far exceeded the funds available. She summarized that the youth related programs were considered very important by the committee and were given a higher priority if the numbers served by the program were significant. The committee had based their funding recommendations on the following rating system: High - $1.500, Medium - $1,000, Low - $500. She stated that the committee had reached a consensus in a relatively short period of time and was comfortable with the recommendation presented. She reported that the Town could distribute the funds as directed by the Council as the State Treasurer's Office had announced they had reached the required $23 Million dollar mark for the LTAF distribution. Director Hansen reviewed the committee's recommendations: Organization Requested Recommended amount Award Fountain Hills PTA $500.00 $500.00 Fountain Hills Soccer Club $1,200.00 $500.00 Lre Cub Scout Pack 243 $1,000.00 $500.00 Fountain Hills Community Theater $3,000.00 $1,000.00 Boy Scouts of America Troop 343 $3,500.00 $500.00 Falcon Fiesta Committee $2,000.00 $2,000.00 Fountain Hills Girl Scout Neighborhood $1,500.00 $500.00 Golden Eagle Foundation, Inc. for the Middle School $2,500.00 $1,500.00 &Fountain Hills High School Fountain Hills and Lower Verde River Historical $750.00 $500.00 Society Cattleguard Alliance $1,428.00 $500.00 Rural Metro-Prevention Education Division $4,939.87 $1,000.00 Fountain Hills Arts Council $5,000.00 $1,598.00 Total $27,317.87 $10,598.00 Councilman Mower asked if the Council could exceed the $10,000 if they chose to. Director Hansen explained that the $10,000 was a set amount and could not be exceeded._Councilman Poma asked if the Council could change the way the funds were distributed among the organizations. Director Hansen said yes. She stated that the Committee recognized that they were only making a recommendation to the Council and that the Council had the final say in how it was awarded. Councilman Poma pointed out that the Arts Council award should be less and the Cattleguard award should be more as they were doing a lot for kids. Director Hansen responded that this particular request from the Cattleguard would be used for a youth court and the money would be used as a stipend for kids to volunteer in the court. She explained that the Committee felt that if the kids wanted to volunteer in the court, perhaps offering money in this instance would not be the best use of the funds. The Committee was supportive of the Arts Council because of what would be happening in the downtown area. Councilman Poma asked if these would be the only funds given to the Cattleguard for the whole year. 'irector Hansen said under this program, yes. Councilwoman Hutcheson asked if the Cattleguard Alliance sometimes %was the recipient of Town funds from the Special Benefits Program from the Town's fiscal budget. Director Hansen said Town Council Regular Session 5/018/00 Page 2 of 11 yes. Councilwoman Hutcheson asked if the Cattleguard's program and other programs could still be funded through that rocess and Director Hansen agreed. Nur Councilman Mower MOVED to approve the recommendation for distribution of LTAF monies as presented and Councilwoman Hutcheson SECONDED the motion, which CARRIED unanimously. AGENDA ITEM #10— DISCUSSION AND POSSIBLE ACTION REGARDING AUTHORIZATION FOR THE FOUNTAIN HILLS SANITARY DISTRICT TO DRILL AND OPERATE A WELL AT GOLDEN EAGLE PARK. Town Attorney Bill Farrell directed their attention to his staff report. He stated that the Sanitary District was requesting permission to go upon a portion of the Golden Eagle Park parking lot adjacent to the high school property and drill a production well. He explained that this well would be exchanged with Chaparral City Water Company for production well#9. Well#9 would be transferred to the Sanitary District and converted into an injection well replacing the water lost from the current well #9 to Chaparral City Water Company. He described that the well would be encased in a 6' high block fenced area with a locked gate. He said it was his understanding that the well would not be visible above the 6' height limitation. He said the contracts had been prepared to specification and were ready to go. He said the Sanitary District would like the Council's permission to go onto the property and start the construction. He stated that the Sanitary District's attorney, Andrew McGuire, had prepared the lease agreement under his specific indemnification and protection requirements and instructions. This would assure the Council that if there were any liability issues with regard to the well's location, the Town would be protected. He explained that due to the delay of the documents, he was offering two alternatives to the Council. • To approve the lease agreement as submitted. • Or, have the Council give verbal permission to the Sanitary District to go upon the property to begin the construction. Then, by the end of the month, the Council could have had whatever agencies, bodies, groups, or individuals examine the lease to be sure that everyone was satisfied with the document. The lease would then be assigned with all the obligations and responsibilities to Chaparral City Water Company and ultimately transferred to American States Water Company. He said at that point then the American States Water Company would operate the well. He noted that the location for the well was picked primarily for the access and availability to the existing water system, which would connect under Golden Eagle Boulevard so that the production from the well would integrate right into Chaparral City Water Company's distribution system. He said that the Town was facilitating the injection program with this action and had adequate legal protection. Councilman Wyman MOVED to authorize the Fountain Hills Sanitary District to drill and operate a well at Golden Eagle Park and Councilwoman Hutcheson SECONDED the motion. Councilman Poma asked how many parking spaces would be lost, as there wasn't enough parking at that site as it was. Town Manager Mr. Nordin noted that this was the least used parking lot. Councilman Poma noted that west on Panorama there were large holes without coverings, which would allow animals or children to enter. He felt that the openings should be covered. He stated he had placed calls to the Sanitary District and had not received any response. He was concerned the Town had a liability issue. Mr. Huber responded that the well driller had been instructed to construct a welded steel cap over the wells. He assured the Council that when the wells were in use for the purpose for which they were being constructed, they would be in underground vaults. He stated that all the monitor and injection wells constructed in the park would be in underground vaults. These wells were designed in such a way that grass could be grown on top of the wells as there would be 18"of soil on top. He further explained that the only thing at that grade level would be the hatches that would be locked allowing only the Sanitary District staff access. He said if those caps have not been placed over the holes it would be done tomorrow. Mr. Ron Huber responded to Councilman Poma's earlier question nd said that 4—5 parking spaces would be lost. L. Town Council Regular Session 5/018/00 Page 3 of 11 Councilman Kavanagh asked if the other monitoring wells just mentioned had been previously reviewed or were nticipated requests. Mr. Huber said all of the wells that were to be drilled were either in the process of being drilled or Ilibriad been drilled. Mr. Kavanagh asked if this was the only additional well. Mr. Huber said yes. Councilman Kavanagh asked where the well that would be switched from production to injection was located. Mr. Huber stated it was located in parcel 12 and was visible from Saguaro Blvd. Mr. Huber explained the reason for utilizing that particular well was that in order for the Sanitary District to receive permission to perform the injection that potable water well had to be relocated outside of a 3/a mile radius of where the injection was to take place. The site at Golden Eagle Park fit those constraints. Councilman Kavanagh expressed three concerns: • The Parks and Recreation Commission had not been asked to review this request. He asked that Mr. Hansen contact them. Sanitary District Chairman Bruce Hansen responded that he had talked with Mr. Lorenz. He had explained to Mr. Lorenz that the Sanitary District had talked with the Parks and Recreation Director Robin Goodman as far as the wells being placed in Golden Eagle Park. Chairman Hansen indicated that the Sanitary District felt they had informed the Parks and Recreation Commission of their plans by reviewing the issue with and taking any direction from the Parks and Recreation Director. He stated he had made a presentation to the Parks and Recreation Commission about the Sanitary District's work with recharge wells and monitor wells in Fountain Park. He noted literature had been provided to the Commission and also to the Council. He stated that the Parks and Recreation Director had been kept appraised of what they would be doing over the last several months. This included the well that was being drilled in Golden Eagle Park. In his conversations with Mr. Lorenz he had responded to concerns about what the area would look like after their work was done. Mr. Hansen asked Mr. Lorenz to provide input on what the Commission wanted the area to look like and stated they would comply. He expressed that the Sanitary District wanted to work with the Parks and Recreation Commission. He said they would present the finished product to the Commission for their review. He expressed that the Sanitary District wanted the Commission's input and vision on what the area should look like after the work was completed. He stated it was not the Sanitary District's intention to exclude the Commission as they were an important part of the plan. Councilman Kavanagh said that was in important issue to Now him and was glad Mr. Hansen had communicated with Mr.Lorenz. • He wanted American States Water Company brought on-line, as they would be a part of the overall plan. Mr. Hansen said the Sanitary District had met with American States two months ago and discussed the recharge program as American States Water Company had expressed some concern. After the meeting, Mr. Hansen said, their representatives felt comfortable with the program and the trading of the wells. • He stated the drilling on Monday and Tuesday resulted in a hole directly where the Sanitary District wanted their well. He asked whether or not the construction had been started prematurely. Councilman Kavanagh pointed out the work had begun without the permission of the Council. Mr. Hansen stated the Sanitary District had held several conversations with staff but realized that the Council had not yet granted permission for this well's drilling. The Sanitary District felt that because of the conversations held with the Parks and Recreation Director and other Town staff, they were comfortable with proceeding. Councilman Kavanagh stated he did not want to stop the project but was disappointed that drilling had started before the Council had given their permission regardless of which staff members knew about it. Mr. Hansen apologized but felt they had informed the proper staff. Councilwoman Hutcheson said it was important to keep in mind that this project was a needed project to handle the effluent problem. She asked if the reason that the Sanitary District needed the Town Council's approval was because it would be placed on Town owned land. Mr. Hansen said that was correct. Councilman Poma pointed out that even though the project was important to the Town, the Sanitary District should have followed the proper procedures. He asked if any Town staff had given the Sanitary District permission to drill. Mr. Hansen replied it had been discussed with Town staff but the Sanitary District always knew it was the Council's decision to give the final OK. Mr. Hansen said yes that they had received permission to drill the wells in Fountain Park. Councilman Poma asked who gave that permission. Mr. Nordin stated he had given permission to drill test holes. Mr. Nordin said he felt that he had the authority to allow temporary well drilling for a test procedure. Once it was determined that the test sites were successful and an appropriate rmanent well could be drilled there then that issue would then come before the Council for approval as a permanent Norwirangement. Town Council Regular Session 5/018/00 Page 4 of 11 Mr. Farrell stated he might have contributed to the confusion. He stated he had no problem with the Sanitary District's njection wells and would probably not have come to the Council for an easement. When he found out that this was a ‘Pifproduction well that was eventually to be turned over to a private company, he then insisted that a lease be drafted. He acknowledged that was at the last minute. He apologized to the Council stating that part of the delay was his fault because if the well was to be transferred to a private company he wanted the lease and the insurance protection in place. He acknowledged that he probably would not have asked for the same things from the Sanitary District for the injection wells. Mr. Nordin pointed out that staff had long been delegated authority to allow utility companies access to Town property and right-of-ways. He said that was done on a routine basis. He felt that in terms of the test hole operations,that procedure would certainly fit within the Town's standard operating procedure in allowing a utility company to come and do some work on Town owned property. Councilman Poma asked if all easement applications came before the Council for permission. Mr. Farrell said that was correct, but encroachment permits could be issued without ever coming before the Council. Councilman Poma noted that Chairman Hansen said the well was a test site but it was actually a permanent site. Mr. Nordin explained that he had been asked by the Sanitary District to approve test holes and he did so on his authority. Councilman Poma inquired if Council did not approve this action, where would the well go. Mr. Hansen said at this time, there was no other place to go for a production well. Councilman Mower questioned Councilman Poma's concern. Councilman Mower agreed with Councilwoman Hutcheson that this procedure was needed. He said there was only one place to drill the well and felt it was important to proceed. He noted that staff had deviated from normal procedures but he did not want to crucify them for that action. Councilman Kavanagh said it had not been his intention to rake the Sanitary District over the coals, as there was a long and mutually beneficial relationship. He said he saw the problem as a communication problem. He did not know that the well was there and when he asked people about the well nobody knew anything about it. He said he would not have objected to the preliminary test work as it could be patched quickly. He asked for better communication in the future from all parties to void being caught off guard. He accepted the Sanitary District's apology stating he felt this had been an oversight and a l'Eommunication problem. Councilman Wyman said regardless of who owned the water company, the Town needed a production well. Regardless of the fact that the Sanitary District was a separate district, they needed an injection well. He pointed out that this was all one Town and the project should proceed because essentially they were taking from one pocket and filling the other. He said this project was important. Councilman Poma agreed the project should go on, but pointed out that staff needed follow normal legal procedures. The motion CARRIED on a vote of 5 - 1. Councilman Poma cast the nay vote. AGENDA ITEM #11 — DISCUSSION AND POSSIBLE ACTION REGARDING THE LEGAL STEPS AND FINANCIAL OBLIGATIONS REQUIRED TO ACQUIRE THE ASSETS OF CHAPARRAL CITY WATER COMPANY. Mr. Farrell reviewed his staff memo, which outlined the detailed financial aspects. He also described the history of the Town negotiations with Chaparral City Water Company. He quoted from the Arizona State Statutes, which gave the municipal corporations the right to engage in any business that performed by persons by virtue of a franchise. That meant the municipal corporation could be an electric company, a gas company, a telephone company or a water company and technically, it could also be a trucking company as the Arizona Corporation Commission also gave them franchises. He explained that the Council had that power to engage in the basic utility service. He said a sewer company was not normally franchised but if the Town did not have a Sanitary District,the Council would also have that power. He quoted from State Statute ARS § 9-517 stating that before the municipal corporation could construct, purchase, acquire, or lease any of the businesses as described in the earlier statute, the municipal corporation must first (one time lly) go to the voters of the community to ask for permission to engage in that business. He said that was called a 9514 lection. He said the Town had not gone to the voters in the Town's ten-year history. He explained that although there Town Council Regular Session 5/018/00 Page 5 of 11 was a statute authorizing that action, the Town had not sought voter approval for that. However, there was another set of -sstatutes called the Community Facilities District Statutes contained in ARS § 48-701, which provided that a Mayor and council may form and become the board of directors of a Community Facilities District. He said that the Town in November of 1998 had properly and legally formed a Fountain Hills Water Community Facilities District. It had been formed specifically to acquire the assets of Chaparral City Water Company. He pointed out that the Facilities District was still in place and functional. Although the Town itself could not exercise the power of eminent domain, the Mayor and Council as the board of directors on the Community Facilities District could. He briefly reviewed some of the financial aspects and history of the prior negotiations because for a long period of time those negotiations had been shrouded in a bit of secrecy. He noted that there was still a confidentiality agreement in place. He said in May of '98, the Town was informed by the Chaparral City Water Company that they had retained a consulting firm, in the state of New York who specialized in the sale of regulated public utilities and that a confidential sealed bid process would be started. He said the Council at that time authorized staff to sign a confidentiality agreement and obtain a copy of the initial documents that were offered. He said that many of the documents seen over the years were public records and were available through the Arizona Corporation Commission. He said the Town was given access to more confidential information than required by the Corporation Commission. The Town found out that Chaparral City Water Company only wanted to sell the stock. He noted that the acquisition of stock was very difficult by a Municipal Property Corporation and presented a unique problem for government, as there wasn't a method of stock disposal. He said there was a constitutional provision that stated the municipal entity should not purchase the stock of a company. So the Town did not participate in the first round of sealed bids. As those bids were confidential,the Town did not know what those bids were. In November of 1998,the Town was asked if there was still an interest by the Town to purchase the Water Company as it was still for sale. He and staff then assumed that none of the first bids were acceptable to Chaparral City Water. However,because of the amount time and effort involved,the Town asked for and received a very specific offering price. The Town was given a price and told if the Town could meet that price, Chaparral City Water would sell the Town the -ompany. It was announced to the public that the Town would attempt to acquire the company through the Community ,,,acilities District for no more than$31.5 million dollars, with a rate increase of a single digit of no more than 9%,and at a fixed rate of interest for monies borrowed. He said then the Council authorized staff to bring in a number of consultants to analyze the water company and even brought in another law firm to do the bonding due diligence. He said staff went through an exhaustive study of the assets, feasibility, operations, and the legality of the acquisition. Staff came to a financial conclusion, which was presented to the Council in executive session. Staff went to the Council for direction as to whether or not the Town should make an offer to acquire the company. A meeting was set up, attended by staff, Councilman Wyman, and now former Councilwoman Wiggishoff, who wholeheartedly supported the acquisition. But the negotiations broke down at that meeting and there was no budge from the stated price from the Water Company. The Town never got a chance to present the Town's last and best offer. Mr. Farrell continued that shortly thereafter, late in 1999 or early 2000, round two of the private negotiation started. Again the Town was sent a confidentiality agreement, which was executed. With Council's direction and authorization,a sealed bid was submitted. Like the first bid, none of the bidders were informed of where they stood or how they came out. However, approximately 60 days ago Chaparral City Water Company announced that they had entered into an agreement at $31.2 million dollars with American States Water Company. He noted that the Town's bid had been lower than that price. He explained that the Council was now at a point where they could make a decision. Previous attempts to acquire the Water Company had been through negotiations. He noted that the Town staff had done the due diligence and the Council had seen those reports in executive session, seen the rate analysis, and given staff instructions on bidding. He explained that those documents remain confidential for two reasons. 1. Because of the confidentiality agreement entered into. 2. If the seller knew what the Council's position was, it would be impossible for him and Mr. Nordin to do any negotiations. He pointed out that information was not purposely being concealed from the general public but it was not in the public's best interests to publicly say how much the Council was willing to pay for the company. Mr. Farrell explained that if the )uncil were to exercise their legal power, the courts would look at an appraisal method that was different than real `kegLate. In most real estate appraisals, the court would require an appraiser to look at comparable sales and then the court Town Council Regular Session 5/018/00 Page 6 of 11 would look at comparable sales. He noted that most water companies were unique. He acknowledged that there was ititatt;obably no other system in the state of Arizona identical to Chaparral City Water Company. Therefore,the courts tended favor reconstruction cost of the plant new, less depreciation, plus a component for ongoing valuation of the company (known as "blue sky"). He said that was the traditional method that cities and towns used to buy private water companies. This situation would be a little different because the Town had not announced a public market sale of the company. So the floor for the eminent domain action would be $31.2 million dollars. It would be likely that Chaparral City Water Company would introduce an appraiser who would also show the value through the reconstruction less depreciation method. He said that estimate could favor reconstruction cost of the plant new, less depreciation, plus a component for ongoing valuation of the company some where between$40 and 45 million dollars because of the growth of the company. He said it was his opinion the financial obligation would not go below $31.2 and could be more. He stated that he and Mr. Nordin were recommending that the Council not take that action at this meeting. He reiterated that the Council did have the power and could make a motion if they so desired and staff would carry that motion forward. Councilman Wyman restated that it was the Town Attorney's opinion the Town did not have a legal right to purchase the Water Company without taking that action to a vote of the public. Mr. Farrell agreed that was correct. Councilman Wyman stated that if eminent domain was an immediate action that only the Water Facility District could initiate, he asked why this item on the Council's agenda. Mr. Farrell said that the Community Facilities Districts were allowed to operate without the necessity of the 9514 Election. He explained that this item was on the agenda for two reasons: 1. Vice Mayor Apps had asked that this issue be placed on the next Council agenda. 2. Should the Council want to start this action,the Council could call a 9514 election in September or November to offer the question to the electorate. The first course of action would be to ask voters the question: Does the public want the Town in the utility business. If that vote was affirmative,the Council could, without the Community Facility District, exercise the power of eminent domain. Councilman Poma stated he had wanted to get this information to the public and let them know the Council had negotiated to purchase the Water Company. He also wanted the public to know that a new water company had been able L.acquire Chaparral City Water at a lower price than first thought. Councilman Poma MOVED to table the issue for consideration by the new Council and Councilman Kavanagh SECONDED the motion. Councilman Mower acknowledged that the Town had a couple of opportunities to purchase the Chaparral Water Company and did not do so because the price was too high and the bids were not accepted. As it was now purchased by an outside utility, if the Council tried to go through with an eminent domain action on this,the Town would be looking at a higher price than the $31.2 million. It didn't seem to be a logical action to pursue any further as the sale was a done deal. He felt the Town should get on with their other business. Councilwoman Hutcheson agreed with Councilman Mower. She then asked if the Council did nothing, would the new Council or any future Council still have the opportunity to bring this matter up again. Mr. Farrell responded yes,although he noted that Councilman Poma did not have a date in his motion. Councilman Wyman felt the Council was beating a dead horse, because this Council or any future Council could take eminent domain action as the board members of the Community Facilities District. That meant that the eminent domain action could be enacted at their leisure. He suggested that the issue just die at this point. Councilman Mower noted that the motion was unnecessary and the agenda item did not need to be tabled as any Council could bring the eminent domain process forward at any time. Mr. Farrell agreed and stated that the board members of the Communities Facilities District could convene at any time. Councilman Poma withdrew his motion and Councilman Kavanagh withdrew his second of the motion. Councilman Poma reminded the public that the taxes saved would more than pay for the Water Company and other things needed by `e Town. L Town Council Regular Session 5/018/00 Page 7 of 11 AGENDA ITEM #12 - CONSIDERATION OF A MOTION TO RECONSIDER THE VOTE ON THE MOTION TO APPROVE THE TOWN ATTORNEY'S LETTER TO THE ARIZONA CORPORATION COMMISSION 'SUPPORTING THE ACQUISITION OF CHAPARRAL CITY WATER COMPANY BY AMERICAN STATES WATER COMPANY AND DIRECTING STAFF TO SUBMIT THE LETTER ON BEHALF OF THE TOWN COUNCIL. Mr. Farrell stated that this item was before the Council at the request of Councilman Mower. He said the previous staff report had been copied to the Council. If the Council now chose they could entertain a motion to reconsider the item if the motion was brought by a Councilmember who was in support or in the majority of the last vote. He said if the motion received a second, this item could be placed back on the agenda for reconsideration. Councilman Wyman asked if the second also needed to be made by someone who met the same criteria. Mr. Farrell said there was nothing in the Garfield rules that controlled the second. Councilman Mower MOVED to reconsider the vote on the motion to approve the Town Attorney's letter be sent to the Arizona Corporation Commission and Councilman Wyman SECONDED the motion. Councilman Mower said at the last Council meeting he had denied the request for the letter of support because Mr. Farrell's comments that the letter would do no harm or good. Therefore, he thought it might be a waste of time and resources to write the letter. However, he did not realize that there was some anxiety on the part of American States Water Company and MCO. He noted that if the letter did no harm, he asked that the Council reconsider sending it. Councilman Kavanagh said he,the Councilmembers elect,Town Manager, and the Town Attorney had the opportunity to meet with representatives from American States Water Company about their company. He said he had been very impressed with their expertise and professionalism. He personally felt they would be good guardians of the Town's water resources both in terms of keeping the prices reasonably low and protecting water quality. He said that was one of the reasons he had asked if the Sanitary District had been advised about the well transfer. As this was a company who owned iany water companies, had a lot of staff, and was just as interested as the Town was in keeping the water pure. He said it as a good decision to have American States come in. He said that he and the other Councilmembers elect made it clear that they were concerned with the rates just as Councilman Mower and Vice Mayor Apps had been. He said they had conveyed that by giving the letter to the Corporation Commission, it was not a free rein to increase rates. They also made it clear that condemnation was always a big ax in the background and if they did something extreme like raising the rates unjustly, eminent domain was always a possibility. Overall, it looked like it would be a beneficial partnership between the Town and American States Water Company. He said that was why he voted in favor of sending the letter and he was glad to see it was being reconsidered. George Post, 17014 E. Rand Dr. He said he personally saw no gain to the Town by sending the letter of support to Corporation Commission. He felt the Town needed to own the Water Company. A roll call vote was requested by Mayor Morgan and was taken with the following results. Councilman Kavanagh aye Councilwoman Mower- aye Councilman Wyman— aye Councilman Poma- aye Councilwoman Hutcheson- aye Mayor Morgan- aye The motion CARRIED unanimously with a roll call vote. Councilman Poma requested that Mr. Farrell read the letter to be sent. Mr. Farrell did so. george Post, 17014 E. Rand Dr. e urged the Council not to send the letter. Town Council Regular Session 5/018/00 Page 8 of 11 Councilman Wyman MOVED to send the letter of support to the Arizona Corporation Commission and Councilman'oma SECONDED the motion. Councilman Mower called for a roll call vote with the following results: Councilwoman Mower- aye Councilman Wyman— aye Councilman Poma - nay Councilwoman Hutcheson- nay Councilman Kavanagh aye Mayor Morgan- aye The motion CARRIED on a vote of 4—2 with a roll call vote. AGENDA ITEM #13 - CONSIDERATION OF A MOTION TO RECONSIDER THE VOTE ON THE MOTION TO APPROVE A SPECIAL USE PERMIT TO ALLOW A WIRELESS COMMUNICATIONS FACILITY TO BE LOCATED AT 16701 LASER DRIVE. A.K.A. VAN'S STORAGE. ALONG THE EAST SIDE OF THE LOT WHICH FACES TECHNOLOGY DRIVE.CASE NUMBER SU2000-02 AT THE JUNE 1.2000 COUNCIL MEETING. Mr.Farrell reviewed that at the last Council meeting this item failed on a 4 -3 vote. The applicant contacted staff shortly thereafter in a friendly but firm manner asking the Council to reconsider their decision. A number of discussions were held regarding certain sections of the Telecommunications Act of 1996, which specifically addressed the reasons for denial of an application for a wireless facility by a municipality. He said Section 704 said that the governing body should provide in writing along with substantial reasons for the denial. Mr. Farrell stated it was his opinion that their decision was questionable and that the substantial supporting evidence had been provided along with the reasons for the denial. He noted that the company was not threatening litigation over this particular issue. He explained that the applicant was asking, and he was asking, that the Council come forward with a motion for reconsideration. Then the Council should schedule another hearing on June 1st so that the residents could be informed and the applicant could make their presentation. He had indicated to the applicant that he would seek the Council's permission to reconsider. He pointed out the applicant it was possible that the vote against them could be 7—O. He said no promises were made to the applicant. Note said that he and the applicant felt it would be a better policy, and better record for the Town, to offer through a staff report a written recommendation for the Council's findings and allow either side to support that with open quotes, substantial evidence, and closed quotes. Mr. Farrell asked that one of the four Councilmembers who had voted against the application make a motion to reconsider this item at the June 15t or 15th Town Council meeting. Mr. Farrell confirmed for Mr. Wyman's benefit that the second to the motion did not have to be a person who was in the majority. It was the motion,which needed to be made by someone who voted with the prevailing side. Councilman Wyman MOVED to reconsider the vote on the motion to reconsider the vote on the motion to approve the special use permit to allow a wireless communication facility at Van's Storage at the June ls` Council meeting and Councilman Poma SECONDED the motion. Mr. Farrell suggested June 15th because staff would then have time to make adequate notice to those neighbors who were strongly concerned about this issue. Councilman Poma agreed a meeting date of June 15th was more appropriate. Councilman Wyman agreed with the Town Attorney's suggestion that adequate reason was not part of the minutes at the time and the Council would need to do that as well as alert the neighbors in the area. Councilman Mower said in as much as his term would be over before the next meeting date, he requested that every effort be made to determine why it was not possible to put this 65' tower next to the 89' foot tower now located at Taco Bell. Councilman Wyman asked that staff provide, by the next meeting, sufficient information to suggest more palatable alternative sites. Mr. Farrell sensed that the Council was looking forward to this newer procedure. He suggested that the Council entertain the motion to hold the meeting on the June 15th agenda as that would give the applicant more time and would certainly give staff more time. He said that would allow for a three-week notice to the neighbors informing them that a presentation that more technical in nature would be held on the June 15th agenda. Councilman Wyman withdrew the previous date in his motion and changed the date to June 15t. Mayor Morgan agreed and said she would also like to ,ow why the tower had to be located where the applicant had presented it. She said there must be someplace else for Town Council Regular Session 5/018/00 Page 9 of 11 their facility. Councilman Kavanagh said he had voted for granting the permit, not because he liked to see ugly monopole )wers around town, but because there was no record of opposition. He said that if staff was to attempt to develop a Illorecord of reasons to reject,he felt it was important that staff addressed the report of the Planning and Zoning Commission. He said after reading their minutes, he thought they had been very thorough. He acknowledged that the Commission had unanimously agreed the town should permit the tower to be located at Van's. He was concerned about the legal aspect and had requested from the Town Attorney any backup material and was given more material than he could imagine. He said after reviewing the law,he felt it was almost impossible to deny towers in cases where there were no alternative sites. Councilman Kavanagh said he felt the only solution was Taco Bell, but the applicant should again be contacted as he remembered them saying that tower would not support two arrays, as it was not structurally solid enough. He said if the Van's tower did go in, it fortunately would be able to accept two arrays. Councilman Mower responded that he was not asking the applicant to put their equipment on the Taco Bell tower, only to locate their tower adjacent to it. He recognized that the service building for that equipment was larger but he had not heard any indication that they could not find enough space at the Taco Bell location. That was why he has kept insisting that the applicant reconsider the Taco Bell site as a location. The motion CARRIED unanimously. AGENDA ITEM #14 —PRESENTATION OF DISTINGUISHED SERVICE AWARDS TO THE OUTGOING MEMBERS OF THE COUNCIL INCLUDING MARIANNE WIGGISHOFF(SIX YEARS OF SERVICE),SID APPS(FOUR YEARS OF SERVICE).AND AL POMA(FOUR YEARS OF SERVICE). Mayor Morgan presented the distinguished service awards to the outgoing Councilmembers. She read each plaque and presented gold diamond fountain pins to:Marianne Wiggishoff,Al Poma,and Pen Mower. She acknowledged that Vice Mayor Apps was absent. LGENDA ITEM#15- CALL TO THE PUBLIC AND ADJOURNMENT. Bruce Hansen He stated that the Sanitary District has had not received any reports of unsafe conditions. He asked that calls be placed to him personally if unsafe conditions were found and those situations would be taken care of immediately. George Post,Rand Drive. He asked that the Council consider implementing 10% impact fees. Councilman Wyman MOVED to adjourn the meeting and Councilman Poma SECONDED the motion, which CARRIED unanimously. Mayor Morgan adjourned the meeting at 7:56p.m. Ley Town Council Regular Session 5/018/00 Page 10 of 11 TOW UNTAIN HI LS B . Sharon Morgan, ayor ATTEST: Cassie B.Hansen,Town Clerk PREPARED BY: 4/0`.."162./A Bev Bender,Executive Assistant ERTIFICATION worhThereby 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 1e day of May 2000. I further certify that the meeting was duly called and that a quorum was present. DATED this 1st day of June 2000. Civi4L,Q3 Cassie B.Hansen,Town Clerk Town Council Regular Session 5/018/00 Page 11 of 11