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HomeMy WebLinkAbout2000.0620.TCSM.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE SPECIAL BUDGET SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL JUNE 20,2000 A public meeting of the Fountain Hills Town Council was convened and called to order by Mayor Morgan at 6:30 P.M., Tuesday,June 20, 2000, in the Fountain Hills Town Hall Council Chambers, located at 16836 E. Palisades Blvd.,Building B,Fountain Hills,Arizona. AGENDA ITEM#1 - ROLL CALL—Following the pledge to the flag and a moment of silence, roll call was taken. Present were Mayor Sharon Morgan,Vice Mayor Sharon Hutcheson and Councilmembers John Wyman, Susan Ralphe, John McNeill, Leesa Fraverd, and John Kavanagh. Also present were Town Manager Paul Nordin, Community Development Director Jeff Valder, Director of Administration/Town Clerk Cassie Hansen, Deputy Director of Recreation Bryan Hughes, Interim Town Engineer Tom Ward, and Town Engineer Randy Harrel. AGENDA ITEM #2 - REVIEW AND CONSIDERATION OF THE PROPOSED BUDGET FOR THE TOWN OF FOUNTAIN HILLS FOR THE 2000/2001 FISCAL YEAR. ALL ASPECTS OF REVENUES AND EXPENDITURES WILL BE DISCUSSED AND CONSIDERED. AS PART OF THE BUDGET CONSIDERATION, THE BENEFITS COMMITTEE WILL PRESENT AN IMPROVEMENT TO THE TOWN'S BENEFIT PACKAGE BY AMENDING THE VACATION ACCRUAL POLICY. Parks and Recreation Mr. Nordin reviewed the newly created pie chart, which had been created at the request of Councilwoman Ralphe. The new pie chart combined the individual Parks and Recreation sections into one. Mr. Nordin noted that other than wages, the biggest line items were the combined totals of the special programs, youth sports activities, and youth and teen programs. Councilman Kavanagh MOVED to approve the Parks & Recreation budget of$681,400 as presented. Councilwoman Fraverd SECONDED the motion. Councilman Wyman pointed out that the numbers referenced on page 16-4 differed from those shown on page 3-5. Deputy Director of Recreation Hughes explained that the numbers shown on page 3-5 were the original projections before the cuts were made. Mr. Nordin stated that the revenue numbers on page 16-4 reflected that reduction and were correct. Mr.Nordin said page 3-5 would be corrected. The motion CARRIED unanimously. Golden Eagle Park Mr. Nordin explained that in all of the parks it had been the Town's practice to contract with the private sector for services and employ in-house staff for supervision of those activities. He pointed out that under the repair and maintenance section there was a hefty expenditure to pay for those contracts instead of under the individual park's salary and wages line item. He said the budget reflected previously negotiated inflation clauses for the coming fiscal year. He pointed out that in Golden Eagle Park there was a request for some capital outlay for park improvements. Mr. Hughes clarified that once the dam project was completed there would be some connectivity issues around the school property and those improvements were also included in the capital outlay figures. Don Clark explained that$30,000 was for grading and granite work to be done beside the park. He stated that there would be some connectivity sidewalks to the high school and the middle school,construction of Town Council Budget Session 6/20/00 Page 1 of 7 3' walls around the basketball courts, general construction projects to connect some sidewalks within the park, and brush clean up. Councilman McNeill MOVED to approve the Golden Eagle Park budget in the amount of $297,505 as presented. Councilwoman Fraverd SECONDED the motion,which CARRIED unanimously. Four Peaks Park Mr. Nordin pointed out that there weren't any requests for staff increases. He said there was some capital outlay for park equipment being requested, which would be used at other parks as well. He explained the Four Peaks Neighborhood Park budget also included an IGA with the school district for maintenance of the school grounds, which then allows Parks and Recreation to hold programs at their facility. Councilman Wyman MOVED to approve the Four Peaks Park budget in the amount of $124,750 as presented. Vice Mayor Hutcheson SECONDED the motion. Councilwoman Fraverd questioned the salary and wage line item under the revised estimate and why the budget reflected an increase of$8,000. The Town Accounting Supervisor Julie Ghetti explained the revised estimate was prepared in April or May when staff was beginning to look at the budget and estimate how the Town would wind up at year 's end. She explained that it was probably closer to the budget of$34,400. Councilman Wyman questioned page 18-3 under mowing landscaping and maintenance. He asked why there was an additional 10% added to the budget for special requests by the Parks and Recreation Department. Park Manager Dave Arnold responded that the 10% would be used for special projects for either extra mowing or scalping the field or extra work required that staff could not handle. He said a landscape company would then come in and complete the work. He said that the 10% figure had been computed by adding the fees for the different landscaping projects as previously described. Mr. Nordin noted that staff had tried to pin down the costs as closely as possible and eliminate the cushion because of the spending limitations. Mayor Morgan expressed her concern that more supervision was needed at the Skate Park located at Four Peaks. Mr. Hughes addressed her concerns by stating Parks and Recreation had part-time staff who monitored all the parks until closing at 11:00 p.m. He said there was no one assigned to sit and watch the Skate Park. He said usage of the Skate Park fluctuated. He stated they would like to have more part-time staff but for now staff would continue to monitor the park as best they could. Mayor Morgan asked staff to keep a close eye on the activities. Councilman Kavanagh asked if the establishment of the Skate Park had impacted the usage of other parks. Mr. Hughes stated that at first it had. He felt that it would take more than staffs prompting to get kids to use the Skate Park on a regular basis. The motion CARRIED unanimously. Fountain Park Mr. Nordin asked that the Council approve this section in its present form. He noted that the budget did not reflect the lower bids recently received on the fountain liner project. He stated this adjustment would be made and presented to the Council for review at the July 6th Council meeting. Mr. Nordin said that the purchase of the liner and pad out of this year's budget would give some relief to the expenditure limitations for the next fiscal year. Councilman Kavanagh MOVED to approve the Fountain Park budget in the amount of $1,201,600 as presented. Councilman McNeill SECONDED the motion. Councilman Wyman questioned the wage line item on page 19-7, which reflected a 15% increase. Ms. Ghetti responded that in the budget figure for the fiscal year 1999/2000 there was an allocation for overtime in the event that was needed. That was not the case. She explained that overtime had also been included in Town Council Budget Session 6/20/00 Page 2 of 7 the 2000/2001 budget figures in the event that it was needed. She said the revised estimate was lower because there was no need for the overtime. Councilwoman Ralphe said she was glad the liner was being replaced along with the work at Fountain Park. She hoped that because there was a huge capital expense here that the Parks and Recreation Department would cut back or forego other capital improvements for a while. She asked that the staff think in terms of its citizens and be fiscally responsible. The motion CARRIED unanimously. Desert Vista Park Mr. Nordin acknowledged that no staff member had been associated with this park's budget. He said Robbie Ford, whose salary was budgeted in Fountain Park, was providing the supervision for this park. He stated that under the mowing/landscaping maintenance line item there was an effort to aggressively address the turf management of this park as this was the newest park. Councilman Wyman MOVED to approve the budget for Desert Vista Park in the amount of $69,200 as presented. Councilwoman Fraverd SECONDED the motion,which CARRIED unanimously. Engineering Mayor Morgan welcomed back the Town's Engineer Randy Harrel who was back from a long medical leave. Mr. Nordin noted that this was a large budget. The Engineering Department was requesting a large expenditure for engineering fees. Some of the fees were related to the large projects now under way. He said staff was requesting to purchase another bi-fueled vehicle. He emphasized that staff would look at alternative fueled vehicles whenever possible. Vice Mayor Hutcheson MOVED to approve the Engineering budget in the amount of$1,123,990 as presented. Councilwoman Ralphe SECONDED the motion. Councilwoman Fraverd stated she was glad to see staff looking at alternative fueled vehicles. Councilman McNeill agreed. He asked if the Town had requested that SouthWest Gas install a fueling station in town. Mr. Nordin said that was correct. Councilman McNeill asked what would happen if that station did not materialize. Where would the Town fuel these vehicles? Mr. Nordin responded that staff would investigate a bi-fueled factory equipped propane vehicle. Councilman McNeill asked if the fueling station would be made available to the public. Mr. Ward said yes, that was their intention. They hoped to encourage residents to purchase these vehicles as well. Mr. Nordin pointed out that fueling stations were critical. Councilwoman Fraverd asked if bi- fuel vehicles were preferred over electric vehicles. Mr. Ward agreed they were preferred, as the gas stations were more readily available. He acknowledged that the electric vehicles were not available for purchase and only available by lease. He said staff would use this lease as an experiment. Councilman Wyman noted a decrease in the amount budgeted for outside contract services. He asked if the Engineering Department was projecting a considerable decline in building activity. Mr. Ward responded yes. He said that typically in an economy that has a decrease in residential building activity due to the increase in interest rates, that the commercial building activity picks up and thereby off sets each other. Mr. Wyman asked if the decrease in permit fees had been worked in to the Town's revenue projections. Town Accountant Julie Ghetti replied yes that she had consulted with Community Development Director Jeff Valder before preparing her figures. She acknowledged that scenario had been taken into account. The motion CARRIED unanimously. Town Council Budget Session 6/20/00 Page 3 of 7 Public Works/Medians,Dams& Washes Mr. Nordin noted that there had been a reduction in personnel due to the elimination of one position. He explained that staff had budgeted for matching funds regarding the Golden Eagle Dam Project in the amount of $390,000. He said staff was also requesting that the Council consider the expenditure of the Shea Boulevard landscaping/median installation at 144th Street and Palisades. He pointed out that there were also significant numbers included for median,dam,and wash maintenance. Councilman McNeill MOVED to approve the Public Works/Medians, Dames & Washes budget in the amount of$1,057,260 as presented. Councilman Wyman SECONDED the motion. Councilman McNeill had a question with regard to page 22-6. He asked why there was such a decrease in the 99-2000 revised estimate section. Mr. Nordin responded that the decrease was due to the delay of the Golden Eagle Park Dam project and deletion of the wash clean up. Ms. Ghetti also pointed out that there was some work on the Shea Boulevard medians that had not been accomplished. Councilman Wyman expressed that a lot of people had no knowledge of the costs involved to maintain the Town. He said that he would like to see more citizens involved in the budgeting process. Mayor Morgan commented that she would like to see the local paper run a feature on each department describing what was involved to run the Town in an effort to educate the public. The motion CARRIED unanimously. Street Department Mr. Nordin acknowledged that streets were one of the five main priorities previously set by the Council. He pointed out it was perfectly legal to spend general fund monies for street related projects. He reviewed that staff was requesting two new positions being requested by the department: • Mechanic's Helper,to assist with maintenance of the 50 Town owned vehicles and equipment. • Street Maintenance Worker,entry level worker to address signage issues. Mr. Nordin said that road maintenance was a large line item. He explained other proposed projects: • Shea Boulevard widening • New signal light at the corner of Palisades Boulevard and Avenue of the Fountains • Slurry Seal Program Councilman Kavanagh MOVED to approve the Street Department budget in the amount of $3,210,309 as presented. Councilwoman Ralphe SECONDED the motion. Councilman Kavanagh asked if there was a set rotation of street maintenance and what was the life expectancy of the maintenance. Mr. Ward said yes, there was a rotation of street maintenance. He reviewed the street improvement schedules. He stated that the life of an asphalt street was approximately 20 years. He said that with the current maintenance schedule in place,staffs goal was to stretch that life expectancy to 30+years. Councilwoman Fraverd questioned if the Fire Department had been approached to help pay for the proposed three-way fire signal. Mr. Ward stated that the Town had been pressed by the Fire District Board to put the signal in as the Fire Department felt it was a safety issue. He explained the light had also been discussed in the Traffic Standards Committee. He said the Town was agreeable to the installation in an effort to take a pro-active stance due to the development in that area. He did acknowledge that the proposed signal site did not meet one of the twelve warrants required. Mr. Ward explained that staff called this a fire signal so as not to create a liability for the Town by installing a signal that was not warranted if there was ever an accident there. Mr. Nordin stated that the Fire District was not contributing towards the costs. Town Council Budget Session 6/20/00 Page 4 of 7 Mr. Nordin stated that if so directed by the Council, staff could approach the Fire District Board with this request. Mr. Ward stated a conversation had been held with the Fire Department to discuss the situations with regard to the proposed Blackbird Street speed humps and the signal. Councilwoman Fraverd AMENDED the motion to direct staff to solicit a portion of the funds allocated in Town's budget for the proposed fire signal from the Fire District Board and report back to the Council. Vice Mayor Hutcheson SECONDED the amendment,which CARRIED unanimously. The vote on the original motion as amended CARRIED unanimously. Debt Service Mr. Nordin explained that the Debt Service fund was required to receive the Town's principal and interest payments to service the bond and interest debt. Councilman McNeill MOVED to approve the Debt Service budget in the amount of$1,453,405 as presented. Councilwoman Ralphe SECONDED the motion, which CARRIED unanimously. Grant Fund Mr. Nordin stated that this was the Town's wish fund. He said this was where monies were put that were anticipated or known that the Town would receive. He pointed out this was where the$1 million Los Arcos money was listed. He said if the money was received, a motion by the Council could transfer the funds, and the money could be spent. Councilman Kavanagh asked what would trigger the awarding of the $1 million Los Arcos monies. Mr. Nordin responded those trigger points were a subject of negotiations at this time. He said there was no formal agreement yet. Vice Mayor Hutcheson asked if there was something that needed to be completed in August as a follow through with regard to the project. Mr. Nordin stated she was correct and that he thought that was an indemnification agreement with the City of Scottsdale and this had an action deadline of August by the City of Scottsdale. Councilman Wyman noted that with regards to grants, the work must be completed, the money spent, and then the Town could apply for grant money reimbursement from the state. Mr. Nordin clarified that the Town received progress payments but did not have to wait until the project was complete. Councilwoman Fraverd MOVED to approve the Grant Fund budget in the amount of $3,253,199 as presented. Vice Mayor Hutcheson SECONDED the motion,which CARRIED unanimously. Eagle Mountain Community Facilities District Mr.Nordin stated this budget applied to the Eagle Mountain Subdivision. Vice Mayor Hutcheson MOVED to approve the Eagle Mountain Community Facilities District budget in the amount of $318,350 as presented. Councilwoman Ralphe SECONDED the motion,which CARRIED unanimously. Cottonwoods Maintenance District Mr. Nordin said the Council had approved both an improvement and maintenance district. He explained that the improvement district was for the initial improvement costs for the renovation. He stated the Town had financed the improvements up front and were now being reimbursed by the homeowners. Councilwoman Fraverd MOVED to approve the Cottonwoods Maintenance District budget in the amount of $3,200 as presented. Councilman Kavanagh SECONDED the motion, which CARRIED unanimously. McDowell Mountain Preservation and Open Space Preservation Mr. Nordin said this was primarily for the $6 million dollars bond money that was available to the Town and available in the event that the funds were required. He drew the Council's attention to the additional reserve sum for the open space preserve in the amount of$500,000. Town Council Budget Session 6/20/00 Page 5 of 7 Councilwoman Ralphe MOVED to approve the McDowell Mountain Preservation budget in the amount of $6,000,000 and the Open Space Preservation budget in the amount of$500,000 as presented. Councilman McNeill SECONDED the motion,which CARRIED unanimously. Municipal Property Corporation Mr. Nordin said the bond attorneys and financial advisors did recommend the bond sizes in the amount of $5.5 million. He explained that at the time this budget was prepared staff had been unaware of that figure. He suggested that the Council increase the proposed budget amount up to the $5.5 million in recognition of the actual bond amount itself. Ms. Ghetti agreed. Councilman Wyman MOVED to approve the Municipal Property Corporation budget up to the amount of $5,500,000 as presented. Vice Mayor Hutcheson SECONDED the motion. Mr. Nordin explained that the amount of $5.5 million was just in case the Town could not expend the $600,000 for construction this fiscal year. Councilman Kavanagh said he supported the new Community Center and its construction. He said he opposed the mechanism to fund this municipal corporation bond as they did not require a public vote and a higher interest must be paid as opposed to a general obligation bond. The motion CARRIED unanimously. Kiwanis Building Mr. Nordin reminded the Council that the Town did own the Kiwanis Building and new carpet was being requested as well as maintenance costs. Mayor Morgan MOVED to approve the Kiwanis Building budget in the amount of $13,050 as presented. Vice Mayor Hutcheson SECONDED the motion, which CARRIED unanimously. Mr. Nordin pointed out that the 5-year CIP had been included for the Council's reference. AGENDA ITEM#3-CALL TO THE PUBLIC. There were no comments from the public. AGENDA ITEM#4-ADJOURNMENT. Councilman Mower MOVED to adjourn the meeting. Councilman Apps SECONDED the motion, which CARRIED unanimously. Mayor Morgan adjourned the meeting at 8:18 p.m. L Town Council Budget Session 6/20/00 Page 6 of 7 TOWN OF FO AIN HILLS Sir By: aron Morgan,Ma or ATTEST: Cassie B.Hansen Director of Administration/Town Clerk PREPARED BY: A i ✓i Bev Bender,Executive Assistant CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Special Budget Session held by the Town Council of Fountain Hills on the 20th day of June, 2000. I further certify that the meeting was duly called and that a quorum was present. DATED this 6th day of July, 1999. Caw C ) Cassie B. Hansen, Director of Administration/Town Clerk Car- Town Council Budget Session 6/20/00 Page 7 of 7