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HomeMy WebLinkAbout2001.1101.TCREM.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR AND EXECUTIVE SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL November 1,2001 Mayor Morgan called the regular session of the Town Council to order at 5:30 p.m. AGENDA ITEM#1. PURSUANT TO A.R.S. §38-431.03.A.3., VOTE TO GO INTO EXECUTIVE SESSION FOR DISCUSSION OR CONSULTATION FOR LEGAL ADVICE WITH THE ATTORNEY OR ATTORNEYS OF THE PUBLIC BODY(SPECIFICALLY REGARDING THE FIRE DISTRICT). AGENDA ITEM#1. CONSIDERATION OF APPROVING THE MEETING MINUTES OF OCTOBER 18, 2001. Councilman Wyman MOVED that the Council convene the executive session and Councilwoman Fraverd SECONDED the motion, which carried unanimously. Mayor Morgan adjourned the executive session at 6:20 p.m. Mayor Morgan reconvened the regular session at 6:30 p.m. Following the pledge to the flag and invocation by Father Tot O'Dea from the Church of the Ascension,roll call was taken. ROLL CALL - Present for roll call were the following members of the Fountain Hills Town Council: Mayor Sharon Morgan, Vice Mayor John Kavanagh, and Councilmembers Sharon Hutcheson, John McNeill, John Wyman, Susan Ralphe, and Leesa Fraverd. Also present were Acting Town Manager/Town Attorney Bill Farrell, Director of Administration Cassie Hansen, Director of Public Works and Town Engineer Randy Harrel, and Director of Community Development Jeff Valder. AGENDA ITEM#1. CONSIDERATION OF APPROVING THE MEETING MINUTES OF OCTOBER 18, 2001. AGENDA ITEM#2. CONSIDERATION OF THE FINAL PLAT FOR "FIREROCK INDUSTRIAL PARK",A RE-SUBDIVISION OF LOTS 68 AND 69,FINAL PLAT 414. AGENDA ITEM#3. CONSIDERATION OF THE PRELIMINARY AND FINAL PLAT FOR EAGLE MOUNTAIN, PARCEL 10/11, TRACT G, LOCATED IN THE EAGLE MOUNTAIN SUBDIVISION SOUTH OF SHEA BOULEVARD, CASE NUMBER S2001-27. AGENDA ITEM#4. CONSIDERATION OF RESOLUTION 2001-48 ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST THE TOWN HAS IN CERTAIN PUBLIC UTILITY AND DRAINAGE EASEMENTS LOCATED ALONG THE SOUTHERLY PROPERTY LINE OF LOT 6, BLOCK 5 OF PLAT 603C, (15803 E. CHOLLA DRIVE) AS RECORDED IN BOOK 161 OF MAPS, PAGE 43 RECORDS OF MARICOPA COUNTY,ARIZONA.(ROBERT OLNEY) EA01-24 Mayor Morgan advised that a councilmember had requested the removal of Agenda Item #3 from the consent agenda. She then read agenda items 1, 2, and 4. Councilwoman Fraverd MOVED to approve the Consent Agenda as read and Councilwoman Ralphe SECONDED the motion. A roll call vote was taken with the following results. Councilman Wyman - aye Councilman McNeill - aye Councilwoman Hutcheson- aye Councilwoman Fraverd- aye Vice Mayor Kavanagh- aye Councilwoman Ralphe— aye Mayor Morgan - aye The motion CARRIED unanimously AGENDA ITEM#3. CONSIDERATION OF THE PRELIMINARY AND FINAL PLAT FOR EAGLE MOUNTAIN, PARCEL 10/11, TRACT G, LOCATED IN THE EAGLE MOUNTAIN SUBDIVISION SOUTH OF SHEA BOULEVARD, CASE NUMBER S2001-27. Wikka., Councilman McNeill expressed he had questions. He noticed that the proposed lots were in an area that had been originally platted as an open space tract. He stated that in looking at the plat of the subdivision he felt the terrain was very steep. Councilman McNeill asked if any of the affected area was going to be visible from any portion of the Town, outside of Eagle Mountain. He asked whether any of the lots had been sold and if so, had the lot owners been notified of the change. He questioned if the division of a tract into two lots was subject to the Town's split lot policy, and if so, would it meet the policy requirements? Director Valder replied no to the first question. With regard to the second question, he responded possibly some portions of the Fire Rock Country Club area would view the project. He confirmed that a sign had been posted on the property a couple of weeks ago, which represented the subdivision noticing requirement that the Town adopted several months ago. Director Valder commented that staff had not received any calls on the notice. He remarked that it was subject to the Town's lot split policy. He did not feel the map clearly reflected the topography of the area, as it was not as steep as it appeared. He apologized to the Council that an error had been made in the agenda verbiage. Director Valder pointed out that the Council was being asked to take action on the approval of the preliminary plat only. He acknowledged that there were still a number of stipulations that the applicant needed to complete before the Council considered the Final Plat. Councilman McNeill wondered if the Town's hillside ordinance applied to this subdivision. If so, had the applicant complied? Director Valder explained that Eagle Mountain was approved and had been originally titled under the Los Arcos Hills agreement, which had been submitted shortly after the Town incorporated. He stated that it was staff s interpretation that they would not. However, after the lots were sold, they would have to comply with the standard hillside preservation regulations by which any other lot would have to abide. Vice Mayor Kavanagh MOVED to approve the Preliminary Plat as presented and Councilwoman Hutcheson SECONDED the motion. Councilwoman Hutcheson reviewed that Eagle Mountain, as a whole, had been proposed a long time ago. If the project were looked at as a whole, it could be seen that, the applicant had different entitlements than some of the other subdivisions in the community. She noted that this was just another one of those examples. Councilman McNeill commented that it was something that the Council should be evaluating on an individual basis. Although he heard Director Valder's explanation that the area had been legally posted, he did not have any sense that the individual property owners in the neighborhood had been contacted or made aware of the proposal. He remarked that what was being created were lots in an area that was located in highly steep terrain that had originally been platted Las open space. He stated that he would like to know a lot more about neighboring parcel owners and what notification the owner of the proposed subdivision had given to them or if there had been any objections received. Anyone buying in that area that would have been looking at the original plat, which would have had the expectation, that this would have been maintained as open space. On that basis he said he would vote against it at this time. Councilwoman Fraverd asked if the applicant was present. Director Valder did not know if the applicant was present, as he had not seen him. Mayor Morgan called for the applicant to come forward. No one came forward. Councilwoman Fraverd noted that Councilman McNeill had previously suggested that the Council hike this area to look at it closely. She pointed out that she had not. If the Council felt that they would like to take another look at the area with respect to Councilman McNeill's request, she would be interested in continuing this item. Councilwoman Fraverd MOVED to continue until the November 15th Council meeting and Councilman McNeill SECONDED the motion,which CARRIED on a vote of 6— 1 with Councilman Wyman casting the nay vote. AGENDA ITEM#5. PRESENTATION OF A PLAQUE OF APPRECIATION TO DAVID COMBS FOR HIS SERVICE ON THE PLANNING AND ZONING COMMISSION Mayor Morgan presented a plaque of appreciation to former Planning and Zoning Commissioner David Combs. AGENDA ITEM#6. UPDATE BY ACTING TOWN MANAGER BILL FARRELL ON THE TOWN'S FINANCIAL STATUS. Mr. Farrell stated that last month he had attended a special hearing convened by Senator Gnant, President of the Arizona Senate. Mr. Gnant discussed the issue of whether or not the Senate and the House would be reducing the State Shared Revenues that was distributed to cities and towns. At that meeting six of the valley mayors and five supervisors from the fifteen counties made presentations to Senator Gnant and other members of both the Senate and the House about the impact that such a reduction in revenues would have. All stories centered on the events of September 11`h and the increase in police and fire protection needs as well as the regular needs of the counties, cities, and towns. He noted that Town Council Meeting Minutes 11/1/01 Page 2 of 12 all of the cities and towns, due to the changes in the state budget law in the 1980's, exercised a good deal of fiscal restraint and all of the 87 cities and towns were in the black. The larger cities and towns were concerned that the September 1l`h disaster, coupled with the lack of tourism, would have them see a decrease in the anticipated gains in terms of the forthcoming fiscal year. The cities and towns urged that the State not take any action. Senator Gnant had ,,. pointed out specifically that the letter regarding the proposed 4% reduction in State Shared Revenues came from the Governor's office and not the Arizona Legislature. He stated that everyone had been particularly pleased that Senator Gnant had taken the time to listen to the pleas of the cities and towns to maintain the revenue base. He felt it important to pass on to the Council and citizens that the revenue base of the State and the Town of Fountain Hills was not growing at the anticipated rate that the state had forecast for budget increases. As a result, programs that were to be funded on the increase would have to be put on the shelf until such times as the increase materialized. More importantly it was everyone's' concern that the State not penalize the cities and towns who had accurately forecasted a down turn in revenues and budgeted downward during the past fiscal year. Mr. Farrell indicated that Senator Gnant had understood the concerns expressed by the cities and towns. Mr. Farrell stated it was important to note that the troubles in other parts of the State did not have as great an impact on the cities and towns as they had on the counties and the State itself. He acknowledged that the legislature would go into special session of November 13th, 2001. As had been the tradition of Mr. Nordin, he stated that he would try to be available to participate. He intended to make an appearance from time to time on behalf of the Town, specifically with the State Senator and two representatives who occupied key leadership positions, to reinforce the Town's statistics, desires and to request that they protect the interests of Fountain Hills. Mr. Farrell reviewed the Town month budget report for September, 2001. He proposed that the budget was on track and was in good shape. He acknowledged that Phase II of the bonding program had been started. Although the process was reversible, staff was now committed to a great deal of activity over the next thirty days. He noted that Ms. Ghetti was in the process of putting together the offering statements in order to be in a position to close on the mountain transaction in December, if still financially viable. Mr. Farrell commented that he had frozen major capital expenditures and was limiting overtime. He stated that the only major capital project that was budgeted and that would be held at this point was the Senior Center Renovation. He acknowledged that the Council would receive a more detailed budget report on the night of December 4t. Councilman McNeill expressed his concern for the Town's viability to go forward and fund t. the mountain project. He asked that staff explain next month to the Council how the lag time in the collection of sales tax revenue would relate to the projected budget numbers. He wanted staff to continue to be vigilant in the monitoring of the economic situation and how it could possibly affect Fountain Hills. Mr. Farrell confirmed that staff would try to explain next month the unpredictability of the time lag between the issuance of the building permit and the time that the sales tax transaction of the new construction was paid. He commented that he hoped to have a number of the fire issues resolved by the December 4th meeting. AGENDA ITEM#7. DISCUSSION WITH POSSIBLE ACTION REGARDING NEGOTIATIONS WITH THE FOUNTAIN HILLS FIRE DISTRICT. Mr. Farrell said this was an information item. He noted that some action had already been taken. He stated that the primary purpose of this item was to give the Council and the public a recap on what occurred yesterday. He reviewed the events and agenda items of the meetings held on Tuesday, October 29, 2001, and Wednesday, October 31, 2001. He summarized the results of the Wednesday Council meeting. He stated that Ordinance 01-18 had been adopted by a vote of 6 — 1, thereby establishing, in his opinion, the immediate provision of fire protection services to residents by the Town of Fountain Hills. The second item on Wednesday's agenda was a letter agreement to be entered into with Rural Metro to continue their services as the fire protection provider through June 30, 2002. The third item on the agenda was retention of a law firm to assist the Town Attorney in anticipated litigation regarding these matters. He confirmed that all agenda items passed affirmatively and the meeting was adjourned. Mr. Farrell continued that he then met with the attorney who represented the District and began preliminary discussions with them about the method and manner of a transition of services. He was of the opinion that the obligations and responsibilities for fire protection came to the Town immediately upon the effective date of that ordinance. However, the ordinance and the Statutes that provide for such an ordinance did not set forth a framework for such a transition. He had a conversation with the District's attorneys, in which he stated that the Council wanted an orderly and dignified transition of the assets, liabilities, responsibilities, equipment, and property to the Town. The Council had specifically wanted respect for the five elected officials who constitute the Fire District Board. He had asked that the community try Town Council Meeting Minutes 11/1/01 Page 3 of 12 to work together to see that the transition and service was seamless to the residents of the Town of Fountain Hills. He remarked that because attorneys can't bind governing bodies, it was agreed that the District's attorneys would discuss these matters with the Fire Board and that Mr. Farrell would have a discussion with the Council in executive session this evening. Mr. Farrell confirmed that he had met with the City of Scottsdale and Maricopa County attorneys to determine the boundary issue and concurred that everyone was in agreement. During that meeting he had received a call from the fourth attorney for the District who indicated that he had been retained today and he wanted to set up a meeting. The meeting was set for the following day to discuss those issues. He indicated that during the executive session he had received from Council some instruction regarding the settlement of possible litigation and he planned to meet with the attorneys for the District tomorrow afternoon. He said he was led to believe that the District Board wanted to hold a meeting on Monday. Mr. Farrell was concerned that the transition had not begun. He commented that he would try to meet with Chief Brown to discuss some of the issues and arrest some of the wild rumors regarding destroyed documents and hidden assets. He stated that he had received verbal assurance from three of the four attorneys representing the District that no documents were being destroyed not assets squandered or wasted. He said that he had known all of the attorneys involved and found them to very ethical men and women. He wanted to get a report to the citizens early next week that a peaceful transition was underway and assure them that all 911 and non-emergency calls were being called. He believed that was the situation. He recapped that effective at approximately 2:00 p.m. on Wednesday of this week, it was his opinion that the Town assumed control for fire protection services and that the assets and liability of the District should be transferred to the Town by operation of law. He said that he would keep the Council posted on developments. Councilman Wyman MOVED to direct the town attorney to proceed with negotiations in conjunction with directions given during the executive session for the possible litigation and or resolution of litigation issues with the Fire District and Councilwoman Ralphe SECONDED the motion. Councilman McNeill AMENDED the motion to give notice to Rural Metro of the Council's cancellation of the Fire Board's termination agreement and Vice Mayor Kavanagh SECONDED the amendment. These individuals spoke in support the Fire District's position. Fire Board Chairman Dave Hansen Francis Hoffman,new fire department captain's wife—said she and her husband that they left their jobs all in good faith because they thought the Fire Board had the authority to hire them. Ken Erickson,Echo Hills—stated that he didn't understand the Council's actions. Ken Van Tine—he stated that he had been impressed with the Fire Board and their leadership while working with them to set up their selection process to find a new chief. Fire Board Commissioner Bob Travis — he asked that the Council work with the Fire Board. The Fire Board was experienced on the financial end. Fire Board Commissioner John Winters, 11247 N. Inca—he felt that the Council had created the emergency. Fire Board Clerk Tammy Rothermel, Deerskin Dr. — she felt that by not continuing with the personnel that Fire Board had hired that it would be the community's loss. Joshua, one of the new hires for the Fire District—he felt the Town citizens deserved their own department. Bill Stockley,new hire for the Fire District—stated he had not known of the turmoil before accepting the position. These individuals spoke in support of the Town's position Mark Van Boeckel, Cabrillo Dr.—he asked where the Board's money was coming from to cover litigation costs. Richard Fredrick, Zapata Dr. —he agreed with the process in place but asked that the Council somehow take care of the people brought in by the Fire Board. Bob Barbanica, he felt the Fire Board was responsible for the plight of the new hires and expressed concern on how the Board had run the District. Bob Thompson, 16126 E. Glenview Dr.—thanked the Council for taking this courageous action. Paul Katavy, Kingstree—disturbed by the situation of the people hired, but the Fire Board had caused the situation and the way it evolved. Chris Marschell, Brodea Dr. —taxes were currently being paid to the Fire District and would be diverted to the Town to pay for the fire service so she felt it was a wash and taxes should not be an issue. L Town Council Meeting Minutes 11/1/01 Page 4 of 12 Public comment: Edwin Key,Agate Knoll—he felt the citizens had been deprived of expressing their opinion by not having an election or option of referendum. Ken Ulrickson — he wanted to have a say about how things were being done. He had wanted to vote on this issue and Nkri was looking forward to the coming election. Dave Combs, he felt that petitions meant that the people merely wanted to vote. He asked the Council to focus on the facts,cap taxation in view of the new economy. Mike Archambault,El Sobrante—he felt that he had been robbed of his constitutional rights. Vice Mayor Kavanagh stated that with respect to the new hires that no one on Council had in any way suggested that they were unqualified or unfit or anything negative. He commented that to a certain degree it was recognized that they were victims in this situation. Vice Mayor Kavanagh remarked that he had suggested that the Council consider some type of economic assistance for them where appropriate. He said he would support such action. He stated that the Council's actions had followed an evening discussion with the Fire Board. As the discussion progressed it became apparent that just as the Council was entrenched in their position that the voters were the ones who had to decide now that the petitions were filed, it became equally apparent that the Fire Board was just as deeply entrenched with their position to hire the new fire fighters the next day. If the Council had not taken their action, there would have been 3—5 year contracts put in place that would have economically committed the Town to pay millions of dollars worth of severance pay should the voters in March have voted to keep Rural Metro by abolishing the Fire Board. The Council had no choice. The Council had implored the Fire Board to freeze the action, cease hiring any more people, extend Rural Metro's contract, and let the voters decide at the March election as the petitions mandated. If the voters had said Fire Board we back you and we want our Town Department, the Fire Board would have still had three months to finish the hiring process. But if the voters said that they wanted to keep Rural Metro and the Fire Board was being abolished, then the Council would have been allowed to extend the Rural Metro contract. That was the reasoning why the Council had to rush into action. He said that this was the only way that the Council would reasonably and fairly settle the issue in the interest of the voters. Councilwoman Fraverd said this had been an extremely difficult decision to make yesterday. She had based her decision on the fact that if the Council waited to vote at this meeting tonight, she felt that the District's financial expenditures and further legal challenges would have put all in an untenable position. She felt badly for the newly hired employees. She noted that the Council hoped to put together some kind of a financial package. Councilwoman Fraverd expressed she wished the Council could have waited to act so the citizens could have voted on the issue. In light of recent events she felt that she had to act in the Town's best interests. Councilwoman Fraverd hoped that all the former commissioners, all fire fighters, and residents whether for or against, would join the Council in making this a smooth transition. Councilwoman Ralphe said that she had a hard time making a decision that eliminated the March election. She expressed that the Council had felt there were overriding concerns about financial problems that would result from those contract severance packages and that the money would have to come out of taxpayers' pockets if the Council hadn't acted. She had misgivings about the inclusion of an emergency clause because it prevented a referendum. She agreed that if the Council had not acted in emergency mode, the taxpayers could possibly face millions of dollars of expenses for which she couldn't be responsible. She felt badly about the status of the newly hired firemen. She reiterated that it was the Council's intent to work on a package that would assist them. Councilwoman Ralphe reviewed that the Council had asked staff to prepare a Plan`B"in order to provide for continuous fire services should Rural Metro not work out or should things not work out for Rural Metro because of their own financial difficulties. She noted that the plan should be ready for Council consideration at the December 4th meeting. Vice Mayor Kavanagh asked Mr. Farrell to elaborate more on potential backup plans. Mr. Farrell clarified that staff would set the standards of the employment, the application criteria, physical and background checks, the analysis of the stations, the amount of the equipment, and the number of personnel. It was intended that, in conjunction with Scottsdale, Carefree, Cave Creek, and Paradise Valley, that should Rural Metro no longer function in terms of providing personnel for public safety services a Plan B would be in place. Councilwoman Hutcheson said the Council made many decisions and some were hard. She pointed out that none of the councilmembers had taken this decision lightly or casually because the implications were severe. Councilwoman Hutcheson had stated that she had carefully weighed the voters' options, not only if she made a decision but also if she Town Council Meeting Minutes 11/1/01 Page 5 of 12 didn't make a decision. She felt that the only way that the taxpayers would have any recourse was to take the action as taken yesterday. Councilwoman Hutcheson said this would give them time to study the issues and try to help the taxpayers without being encumbered by the type of debt that would otherwise be incurred. Mayor Morgan echoed that these decisions were not made lightly and reiterated that the Council could not afford to wait to see if this was a bluff or ,,,, not. The Council did what they felt was best for the Town. Councilman McNeill refuted the statement that the Council's actions were rash. He agreed with the previous statements made by the Council. Councilman Wyman commented that he disagreed with the other six councilmembers position, but he hoped that what the Council did from this point forward was in the best interests of the Town. Mayor Morgan called for a vote on the amendment, which CARRIED unanimously. Mayor Morgan then called for a vote on the original motion including the amendment, which CARRIED unanimously. Mayor Morgan called for a recess at 8:25 p.m. and reconvened the meeting at 8:45 p.m. AGENDA ITEM#8. CONSIDERATION OF A CUT/FILL WAIVER REQUEST FOR THE VILLAS AT FIREROCK CONDOMINIUMS DEVELOPMENT PROPOSED FOR THE SOUTHEAST CORNER OF THE INTERSECTION OF SHEA BOULEVARD AND FIREROCK COUNTRY CLUB DRIVE, CASE NUMBER CFW2001-04. AGENDA ITEM#9. CONSIDERATION OF A PRELIMINARY PLAT FOR THE 10.74t ACRE, 26-UNIT THE VILLAS AT FIREROCK CONDOMINIUMS DEVELOPMENT PROPOSED FOR THE SOUTHEAST CORNER OF THE INTERSECTION OF SHEA BOULEVARD AND FIREROCK COUNTRY CLUB DRIVE, CASE NUMBER S2001-18. Senior Planner Dana Burkhardt requested that the Council consider both Agenda Items#8 and 9 together. He reviewed the development and displayed a map. He stated that staff was recommending approval. The Planning and Zoning Commission also recommended approval but that they had added stipulation#1 as listed in the report. Director Valder further explained that staff was requesting that the Council approve the Preliminary Plat without stipulations 1 and 2 as outlined in the memo that he recently distributed. He reviewed the two stipulations and rationalized staff's reasoning with the assistance of visuals. He suggested that if the Council chose they could make one motion to approve both items as staff had just recommended with the elimination of stipulations from the staff report in concurrence with November 15t, 2001, memorandum as reviewed. Vice Mayor Kavanagh MOVED to approve the cut/fill waiver and the preliminary plat as just presented by staff and Councilwoman Hutcheson SECONDED the motion. Councilman McNeill asked if the disturbance issue would have been resolved had the applicant located the streets within separate tracts of lands. Director Valder explained that the site was heavily constrained by hillsides. The applicant had been limited by the topography in order to get the type of a product that he felt the Town should encourage. He agreed that in order to get that exemption in a technical manner the applicant should put the streets in a separate tract of land, thus creating a property line from which a set back would be created. He noted that there wasn't enough room to plat that street and then plat the setbacks. Because of the configuration, there wasn't any reasonable remaining use of the property on which to put their units. Staff had made the decision to recommend to the Council something other than what the Council had experienced in the past. In order to fulfill the Town's obligation to construct on this piece of land, a concession was needed and thereby providing them that added ability to achieve the development. Councilman McNeill questioned if the applicant did not have to meet the normal setback requirements. He felt that would affect visibility issues. Director Valder said that the only part of the Town's road standard that had not been met was the creation of the property line. Everything else met Town's standards. Councilman McNeill asked about the number of units, which had been presented as 26 versus 25. He looked at it as 26 versus some number in between 15 and 25, which was what the Town's regulations would have otherwise allowed. He felt that the Planning and Zoning Commission had rightly looked at this as a public safety issue. Director Valder responded that the lower roadway would be constructed to a local road standard,not a hillside road standard. Councilwoman Fraverd stated that she had spoken to Mr. Greg Bielli. She understood that there was a difference of tikko.,.. opinion between staff and the developer. Per the development agreement, the issue was taken to the Town Manager for Town Council Meeting Minutes 11/1/01 Page 6 of 12 a decision. The Town Manager had allowed them 26 units and the additional disturbance. She asked if somewhere in the development agreement it actually allowed Mr. Farrell to do that. Mr. Farrell responded yes. The FireRock Development agreement stated that in instances of disputes that the Town's representative would be the Town Manager. Mr. Farrell said this had not been an ill placed decision by staff. He had looked at the issue with the idea of trying not to 411br constrain the Community Development Department. He had tried not to have them make decisions that they didn't want to do in order to let the free flow of information go forward. Mr. Farrell gave further background on how he got to his decision. Councilwoman Fraverd questioned how the development agreement worked. If there were to be a dispute, would he hear both sides of the issue and decide what was best or was it the language in the agreement that he was interpreting. Mr. Farrell explained the development agreement provides that where the terms and conditions of the code could not be met by the developer, that the developer could then appeal that decision to the Town Manager. He had weighed all the options and had made the decision for the number of units. Councilwoman Fraverd said that since Mr. Farrell had already approved this,the Council did not really have an alternative but to also approve it. She felt the decisions needed to be respected. Councilman McNeill believed that as Council members they were charged with making the ultimate decisions. He took into consideration the recommendation made by the Planning and Zoning Commission. Councilman McNeill moved to AMEND the motion to make the approval in accordance with the recommendations of the Planning and Zoning Commission and Councilwoman Ralphe SECONDED the amendment. Vice Mayor Kavanagh asked if this were not to be approved and the developer then decided to put in as many units as possible, based upon the Town's ordinance, how many units could be built. Director Valder responded perhaps thirty- five to forty. Vice Mayor Kavanagh clarified that by voting against this the Council ran the risk that the developer could legally come in with 35 —40 two story until or 64 units. Director Valder agreed that was possible. Councilwoman Hutcheson clarified that the developer was proposing an overall decreased number of units in that gated community. Director Valder agreed.Jim Leubner, Senior Civil Engineer,confirmed that there wasn't a line of site issue present. Dave Montgomery, engineer for the project, quoted from the development agreement. He addressed the street width safety issues and concurred with a member the Town's engineering staff,Jim Leubner. Mayor Morgan called for a vote on the amendment, which FAILED on a vote of 5 — 2 with Councilman McNeill and Councilwoman Ralphe casting the aye votes. Mayor Morgan then called for the vote on the original motion for both agenda items #8 and#9, which CARRIED on a vote of 5—2 with Councilman McNeill and Councilwoman Ralphe casting the nay votes. AGENDA ITEM#10. DISCUSSION WITH POSSIBLE ACTION ON AMENDING THE LEASE AGREEMENT WITH THE FOUNTAIN HILLS COMMUNITY THEATER TO INCLUDE THE BUILDING FORMERLY KNOWN AS THE COMMUNITY CENTER WITH DIRECTION TO STAFF TO DRAFT THE AGREEMENT. Councilwoman Hutcheson MOVED to approve amending the lease agreement with the Fountain Hills Community Theater with direction to staff to draft the agreement as presented and Councilwoman Fraverd SECONDED the motion. Councilwoman Hutcheson felt the Community Theater had provided an important to this community and was supported by a number of citizens and throughout the valley. She was happy to support this action. The motion CARRIED unanimously. AGENDA ITEM#11. PUBLIC HEARING ON ORDINANCE 01-20 AMENDING THE ZONING ORDINANCE FOR THE TOWN OF FOUNTAIN HILLS, SECTIONS 6.02 AND 6.03, TO PROHIBIT NEON SIGNS,CASE NUMBER Z2001-06. Mayor Morgan recessed the regular session and opened the public hearing at 9:30 p.m. Town Council Meeting Minutes 11/1/01 Page 7 of 12 Director Valder stated that back in August Vice Mayor Kavanagh had sought the Council's initiation of an amendment to prohibit neon signs within the Town. At that meeting the Council had before them the identical modification to Chapter 6, Sign Regulations. He noted that the Planning and Zoning Commission held a public hearing and recommended against Council approval of this ordinance. The Commission felt that the Town should double the effort ,, on code enforcement based upon Director Valder's advice to them that a very large percentage of neon signs that exist today in Town were illegal signs. The Commission said the Town should remove illegal signs and reevaluate the number of neon signs that were still out there. If it was felt there were still too many, then the issue could be revisited. However, if the Council felt that weren't any neon signs that they liked and wanted to ensure that there would never be any future permitted neon signs, then the Council should approve Ordinance 01-20. Director Valder confirmed that staff did not have a recommendation, as it was a subjective preference. He felt that a small open or closed sign was a benefit to the public. Mayor Morgan agreed with the Planning and Zoning Commission that the Town just needed to enforce the ordinances the Town already had. Kay Parks, Crystal Hills Dr. Asked that the Town enforce the ordinances already in place. Mayor Morgan closed the public hearing the 9:35 p.m. AGENDA ITEM#12. CONSIDERATION OF ORDINANCE 01-20 AMENDING THE ZONING ORDINANCE FOR THE TOWN OF FOUNTAIN HILLS, SECTIONS 6.02 AND 6.03, TO PROHIBIT NEON SIGNS, CASE NUMBER Z2001-06. Director Valder asked the Council to consider that there were smaller storefronts where the Town could not require comprehensive sign packages where staff had the ability to influence the type of the sign that a company could put out front. It was technically possible for businesses to put their main wall sign as a neon sign. The neon signs that typically are seen today that are the problem were those that people hang up in the windows advertising beer. These were almost always exclusively found at restaurants convenience stores and bars. Director Valder stated that if the Council passed this ordinance, the Council would ensure that there wouldn't be any more permitted neon signage. He pointed out that NNW right now it was OK to have the business signage in neon, although it wasn't typical. Vice Mayor Kavanagh explained that he had become concerned with the wide spread use of neon signage. He felt that neon signage was extremely gaudy and flashy. He said there was a potential for abuse. He wanted to try to stop the spread of illegal and future neon signage. He did not find this type of signage consistent with the image that the Council was trying create for the Town. Mayor Morgan reiterated that the Town needed to enforce the ordinances already on the books and not create a new one. Vice Mayor Kavanagh refuted that enforcement of current ordinances would not solve the problem. Councilman McNeill understood the problem to be the signs that crept in after the fact that were creating the bulk of the problem. He agreed with the recommendation made by the Planning and Zoning Commission. He noted that enforcement would be needed if the Town wanted to cure the existing problem. Councilwoman Fraverd had talked to the Chairman of the Planning and Zoning Commission who asked why this ordinance had been initiated. She explained this had been precipitated by a conversion from a car wash to the gas station and the applicant had asked that a part of his allowed signage be neon. The Council had felt it was not appropriate. Councilwoman Fraverd said that Chairman Howes had expressed that the Planning and Zoning Commission had not been made aware that this was the reason that this had come up. Planning and Zoning Commission Chairman Howes stated that the Commission had not been looking at signage on new facilities or commercial enterprises but had been thinking in terms of those neon signs already in place. She noted that enforcement was also a major concern. Councilwoman Ralphe did not think this needed to be thought of as an either or proposition. She said that the Town could both enforce current ordinances and adopt this neon sign prohibition. It could be considered an improvement to ordinances already on the books and give the Town some flexibility. Town Council Meeting Minutes 11/1/01 Page 8 of 12 Councilwoman Fraverd MOVED to approve Ordinance 01-20 as presented and Vice Mayor Kavanagh SECONDED the motion. Mayor Morgan called for a roll call vote with the following results: Councilwoman Hutcheson Nay Councilwoman Fraverd Aye Vice Mayor Kavanagh Aye Mayor Morgan Nay Councilman Wyman Aye Councilman McNeill Nay Councilwoman Ralphe Aye The motion CARRIED on a vote of 4 — 3 with Councilwoman Hutcheson, Mayor Morgan and Councilman McNeill casting the nay votes. AGENDA ITEM#13. PUBLIC HEARING ON ORDINANCE 01-17 REZONING FINAL PLAT 412-B,BLOCK 6, LOTS 5 AND 6 FROM THE "R1-43 - SINGLE-FAMILY RESIDENTIAL ZONING DISTRICT" TO A "C-1 PUD - NEIGHBORHOOD COMMERCIAL AND PROFESSIONAL PLANNED UNIT DEVELOPMENT', CASE NUMBER Z2001-01. Mayor Morgan recessed the regular session and opened the public hearing at 10:00 p.m. Senior Dana Burkhardt reviewed the proposed rezone application and his staff report. He noted the major difference from this request from the previous was that lot 7 was not included as the applicant did not own or control the property. He stated that staff recommended denial. The Planning and Zoning Commission recommended denial on a 5 — 1 vote. He said that he had received an amendment to a stipulation from the Engineering Department and he distributed their memo for Council consideration. Mr. Burkhardt explained the content of the memo. Director Valder commented that letters of objections had been received from adjacent lot owners, which required a super majority vote of the Council to approve the rezone. Councilman McNeill asked for clarification of the situation with regard to Lot 7 and asked him to explain what was different this year. Mr. Burkhardt stated that it was described as poor timing for the property owner as he could not get involved with the rezone at this time. Councilman McNeill pointed out that a prior Council had made the change to the General Plan in this area. He acknowledged that he would not have supported that change. One of his major concerns was that commercial development at this site would generate considerable traffic at what was already a very congested intersection of Shea and the Beeline Highway and would require additional median cuts and cross flow of traffic. In addition to all of the other reasons given for denial,he would say that this property was not appropriate to have access from Shea. Councilman Wyman expressed that the businesses located there would not compete with the downtown area, except in some minor way, as the downtown area would be unique and a destination. He felt that there were some businesses that were suitable for the highway market and would be appropriate. If access couldn't be achieved, then that was a technical matter. Councilman Wyman agreed review of the General Plan might be helpful. Councilman McNeill reviewed the various landowners' objections. Councilwoman Ralphe said the best time to determine the best use of the property went along with updating the General Plan. She said she would find it difficult to approve a project where there were objections from 25% of the people living adjacently. Vice Mayor Kavanagh asked for clarification on how many people 25% were. Mr. Burkhardt replied objections had been heard from two adjacent property owners, Arvid Dennis, and he had a call from a FireRock Casitas resident. Councilman McNeill said that after the applicant had spoken to those who had raised objections, they withdrew their objections because they had been told that if this project were not approved undesirable uses would be placed on the property. Vice Mayor Kavanagh said the change in the General Plan to make the area commercial was a good change. Arvid Dennis, 16644 Lost Trail Dr. He expressed that to rezone to the detriment of the neighborhood was wrong. Vice Mayor Kavanagh asked if there were certain time constraints that attach to actions like this if the application were to be denied. Mr. Farrell said yes. He explained it would be one year from the time of the rezone denial before the applicant could reapply. Vice Mayor Kavanagh questioned that if there was no motion or action taken that the time clock would not start. Mr. Farrell agreed that if the Council did not act then there would be no denial and the time clock L_, would not start. Vice Mayor Kavanagh said it was his opinion that the only way that this site would be developed would Town Council Meeting Minutes 11/1/01 Page 9 of 12 be if some sort of agreement could be worked out with the neighboring property owners and the owner/agent of the property. Vice Mayor Kavanagh MOVED to table this issue so that the owner and the local property owners had the opportunity to get together and to come back with something in the future and Councilman Wyman SECONDED the motion. It was pointed out that the Council was still in the public hearing. Stuart Ryder, applicant He noted that there was one legal objector and identified on the displayed map the lot's location. He explained his development plans. He took exception to the staff report and refuted each point listed. He asked that if the Council were going to turn this application down for the third time, please give them some direction as to what the Council felt would be viable to go there. They did not feel multi-family would be appropriate. Councilwoman Fraverd asked why Mrs. Walters wrote the Council and was she of the opinion that the alternative to the project would be low cost rental units. Mr. Ryder explained that he had responded to her question as to what type of development could go there because of the zoning. He had also told her two churches had inquired about buying the property. He had understood that the current zoning that would be a permitted use. Councilwoman Fraverd asked if he was aware that low cost rental units could not built there. Mr. Ryder said a house was a rental unit. Councilwoman Fraverd stated that she had misinterpreted that to be multi-family. Councilman McNeill suggested the use of single- family residents, as these lots were large. Mr. Ryder pointed out that homes on Shea were part of large subdivisions, walled off from Shea and had been set back quite a distance Mayor Morgan closed the public hearing the 10:35 p.m. AGENDA ITEM#14. CONSIDERATION OF ORDINANCE 01-17 REZONING FINAL PLAT 412-B, BLOCK 6, LOTS 5 AND 6 FROM THE "R1-43 - SINGLE-FAMILY RESIDENTIAL ZONING DISTRICT" TO A "C-1 PUD - NEIGHBORHOOD COMMERCIAL AND PROFESSIONAL PLANNED UNIT DEVELOPMENT", CASE NUMBER Z2001-01. Councilman McNeill MOVED for denial of ordinance 01-07 and Councilwoman Fraverd SECONDED the motion. Councilwoman Hutcheson commented she did not see this as the best use for this property but she did have some ideas NOY for a later time. Vice Mayor Kavanagh MOVED to table so the owner and the local property owners had the opportunity to work something out without the constraints of time limits and Councilman Wyman SECONDED the motion. Mayor Morgan asked for a roll call vote with the following results: Councilwoman Fraverd Nay Vice Mayor Kavanagh Aye Councilwoman Ralphe Nay Councilman Wyman Aye Councilman McNeill Nay Councilwoman Hutcheson Nay Mayor Morgan Aye The motion to table failed on a vote of 4—3. Mayor Morgan asked for a roll call vote on the original motion to deny with the following results: Vice Mayor Kavanagh Abstained Councilwoman Ralphe Aye Councilman Wyman Nay Councilman McNeill Aye Councilwoman Hutcheson Aye Mayor Morgan Nay Councilwoman Fraverd Aye The motion to deny CARRIED on a vote of 4—2. AGENDA ITEM#15. CONSIDERATION OF THE PRELIMINARY PLAT FOR THE PROPOSED 56.65± ACRE, 5-LOT, 68-UNIT, THE SUMMIT AT CRESTVIEW CONDOMINIUM PROJECT INCLUDING A Town Council Meeting Minutes 11/1/01 Page 10 of 12 PROPOSED HILLSIDE DISTURBANCE TRANSFER FROM THE SINGLE-FAMILY CRESTVIEW SUBDIVISION TO THE PROPOSED THE SUMMIT AT CRESTVIEW MULTI-FAMILY SUBDIVISION, CASE NUMBER S2001-08. Mr. Burkhardt described the details of the proposed development. He stated that staff and the Planning and Zoning %lbw Commission both recommended approval. Councilwoman Hutcheson MOVED to approve the preliminary plat as presented and Vice Mayor Kavanagh SECONDED the motion. Councilman McNeill asked where the land was located that would be transferred as part of the hillside transfer. He asked if the land was in the Crestview subdivision already set-aside in an open space tract. Director Valder responded that no it had been set aside. He explained the standard that staff had used in the past was that staff would not recommend approval of a transfer if it had already been encumbered by either a hillside protection easement or some type of an open space zoning district. He said it was still up to the Council if they wanted to make that transfer happen, but to be consistent with past recommendations, staff was recommending that the Council approve the transfer. Councilman McNeill said he understood the technical answer that it had not been set aside as open space and therefore it was eligible but it was already part of a platted subdivision. When looking at the terrain, was that land amenable to development or was the Town just setting aside land that could not be developed any way. Director Valder said he was correct, practically speaking, as he did not think that land was useable for anything. But in order to be consistent, staff was maintaining that recommendation. Councilman McNeill said he would rather see the hillside protection done within the confines of the property. He noted that he had a number of other concerns with this project. Councilman McNeill said he would be more comfortable with this proposal if it did not have a network of roads that snaked over the top of the hill. Hank Lickman,MCO He shared MCO's philosophy used when they went out to find a purchaser and developer for this property. He noted that they were entitled to build 150 units through the development agreement. He agreed it was a main intersection into the community. Therefore they had wanted a community that would be compatible with the 100 lot single development in Crestview Estates. He stated that they would rather see a large product like this that would be between 2900-3800 sq. lbw ft. per unit than putting a larger number of units on the site and have them boxy and small. He confirmed that MCO was in escrow with Monterey Homes. Jason Morris,Representative of Monterey Homes He described and reviewed the proposed product design and development. He focused his comments on the preliminary plat before the Council. He noted that they were not requesting any waivers or variances. He urged the Council to approve the application. Mayor Morgan stated that in her opinion that this development would make a magnificent entrance for the Town of Fountain Hills. Councilman McNeill questioned the statement that this project did not require any variances. His response was that it did include a proposed hillside disturbance transfer, which in his mind was a variance of sorts. Mr. Morris said he was referring to the technical review that went along with the preliminary plat. Vice Mayor Kavanagh felt that this development, although not the best option, was better looking than what was found just over the hill in Scottsdale. Councilwoman Hutcheson pointed out that had the Town not agreed to the M-1 use, the Town could have been faced with permitting this development under the County rules, which would have allowed a much different project than seen today. While the Council would have seen single-family residents there, that was never the option. She said the applicant had been very considerate by deciding to abide by the Town's zoning request when the property had been annexed. She stated that she was impressed that there were no other significant waivers requested and that the Planning and Zoning Commission unanimously supported this. Councilwoman Fraverd asked what the minimum required distance was between the units. Mr. Burkhardt replied the building height distance. She asked what the approximate building height was. Mr. Morris deferred to Director Valder. Director Valder said the maximum height was 30' and he felt that the minimum distance between the units would be approximately 30'. Councilman McNeill addressed the fact that it might be possible to put additional units on the land (46 but he was skeptical that the number could go much higher without requiring the dedication of additional land. He felt ,,,,, this was land that probably would not be developed. Therefore, the Town did not need to have it transferred. He Town Council Meeting Minutes 11/1/01 Page 11 of 12 commented that the units were attractive but went too far up the hill. He suggested that if Skyline Drive were to be removed from the project,he felt it would have less of a visual impact although it would then be a smaller project for the developer. He proposed that then he would be able to support it. Mayor Morgan called for the vote. The motion CARRIED on a vote of 6-1. Councilman McNeill cast the nay vote. AGENDA ITEM#16. CALL TO THE PUBLIC. No one came forward. AGENDA ITEM#17. ADJOURNMENT. Councilwoman Hutcheson MOVED to adjourn and Councilman McNeill SECONDED the motion, which CARRIED unanimously. Mayor Morgan adjourned the meeting at 11:05 p.m. TOWN OF FOUNTAIN HILLS B . Sharon Morgan,May ATTEST: (../k/JA- ' J-2) 11'4-- Cassie B. Hansen, Director of Administration/Town Clerk L.,PREPARED BY: Bev Bender,Executive Assistant CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular and Executive Meeting held by the Town Council of Fountain Hills on the 1st day of November 2001. I further certify that the meeting was duly called and that a quorum was present. DATED this 15th day of November 2001. Cassie B. Hansen, Director of Administration/Town Clerk Town Council Meeting Minutes 11/1/01 Page 12 of 12