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HomeMy WebLinkAbout2002.0606.TCREM.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR AND EXECUTIVE SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL June 6,2002 Mayor-elect Jon Beydler convened the regular session at 6:30 p.m. He welcomed President Clinton Pattea from the Fort McDowell Yavapia Indian Tribal Council who had agreed to attend and swear in the new Councilmembers and mayor. President Clinton Pattea administered the oath office to Councilman-elect Kavanagh, Councilman-elect Archambault, and Councilwoman-elect Nicola. Followed by the administration of oath of office by President Clinton Pattea to Mayor-elect Beydler. Comments were made by each of the newly elected officials: Councilwoman Kathleen Nicola,Councilman Michael Archambault, Councilman John Kavanagh and Mayor Jon Beydler. President Pattea and Mayor Beydler exchanged gifts to commemorate the occasion. Following the pledge to the flag and an invocation by Pastor Steve Gilbertson, Fountain Hills Community Church, roll call was taken. ROLL CALL - Present for roll call were the following members of the Fountain Hills Town Council: Mayor Jon Beydler, Vice Mayor Kavanagh, and Councilmembers Rick Melendez, Kathleen Nicola,Mike Archambault, Susan Ralphe, and Leesa Fraverd. Also present were Town Attorney Bill Farrell, Acting Town Manager Roy Pederson, and Director of Administration/Town Clerk Cassie B. Hansen. Mayor Beydler read the consent agenda(items 1 - 6): AGENDA ITEM #1 - CONSIDERATION OF APPROVING THE MEETING MINUTES OF MAY 16 AND 30, 2002. ;NDA ITEM #2 - CONSIDERATION OF A LIQUOR LICENSE APPLICATION SUBMITTED BY 'FIFER GIBSON FOR THE VILLAGE PUB LOCATED AT 16740 PALISADES BOULEVARD. THE " LICATION IS FOR A NEW CLASS 12 RESTAURANT LICENSE. AGENDA ITEM #3 - CONSIDERATION OF A PRELIMINARY AND FINAL PLAT FOR THE 16-UNIT SAGUARO VILLAS CONDOMINIUMS, LOCATED AT 11842 N. SAGUARO BOULEVARD, AKA PLAT 201, BLOCK 3,LOT 3A, CASE NUMBER S2002-11. AGENDA ITEM #4 - CONSIDERATION OF A PRELIMINARY AND FINAL PLAT FOR TWO-UNIT NIELSEN-WOLFE OFFICE CONDOMINIUMS, LOCATED AT 16851 PARKVIEW AVENUE, AKA PLAT 208, BLOCK 6,LOT 33, CASE NUMBER S2002-14. AGENDA ITEM #5 - CONSIDERATION OF A PRELIMINARY AND FINAL PLAT FOR THE TWO-UNIT DE'JA' VIEW ON THE AVE. CONDOMINIUMS,LOCATED AT 16704 AVENUE OF THE FOUNTAINS, AKA PLAT 208,BLOCK 3,LOT 14, CASE NUMBER S2002-16. AGENDA ITEM #6 - CONSIDERATION OF A PRELIMINARY AND FINAL PLAT FOR THE TWO-UNIT CASA SEGUNDO CONDOMINIUMS, LOCATED AT 16339 E. SEGUNDO DRIVE, AKA PLAT 206, BLOCK 1, LOT 10,CASE NUMBER S2002-17. AGENDA ITEM #7 - CONSIDERATION OF RESOLUTION 2002-22 ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST THE TOWN HAS IN A SEGMENT OF THE 1' VEHICULAR ACCESS EASEMENT LOCATED ALONG THE SOUTHERLY PROPERTY LINE OF FIREROCK PARCEL D, LOT 15 (16100 SHOOTING STAR TRAIL) AS RECORDED IN BOOK 507 OF MAPS, PAGE 10 RECORDS OF MARICOPA COUNTY,ARIZONA(LARRY GARBERICK) NVAE 2002-04. Councilwoman Fraverd MOVED to approve the consent agenda and Councilman Archambault SECONDED the motion. A roll call vote was taken with the following results: Councilman Archambault Aye 111r+ Councilwoman Ralphe Aye Councilwoman Nicola Aye Councilwoman Fraverd Aye Town Council Meeting Minutes—June 6,2002 Page 1 of 32 Vice Mayor Kavanagh Aye Councilman Melendez Aye Mayor Beydler Aye ,e motion CARRIED unanimously AGENDA ITEM #8 — ROTATION OF THE POSITION OF VICE MAYOR TO COUNCILWOMAN FRAVERD. THE VICE-MAYOR IS AN EIGHT-MONTH, ROTATING POSITION TO BE HELD BY EVERY COUNCILMEMBER. Mayor Beydler explained that the Vice Mayor position was an eight-month rotating position to be held by every Councilmember. Vice Mayor Kavanagh passed the Vice Mayor nameplate to Councilwoman Fraverd. Town Attorney Bill Farrell stated that a motion had been prepared for Council consideration regarding a possible vote to readjust the order of the agenda. He said it would appropriate at this time to make the motion. Councilwoman Nicola MOVED to suspend the rules and place items numbered#9, #10, #11, #12,#13 and 14 to the rear of the agenda to be considered immediately after item#25 and in conjunction with item#26 and Councilman Archambault SECONDED the motion. Councilman Kavanagh asked for the reason behind this motion. Councilwoman Nicola responded there were two executive sessions on the agenda and she wanted to try and accomplish some of the business items before going into what the Council anticipated might be a lengthy executive session. Councilman Kavanagh said the second executive session referred to the payment of legal fees. Mr. Farrell listed the two iten- on that executive session. One was for claims for legal fees and the other was to be a report on the BNY and Merrill '1 litigation. Councilman Kavanagh commented that while those items were especially important to the attorneys money, he felt that most people had come tonight for the Fire District and Marshals issues. Based upon the size -.:,mplexity of the rest of the agenda, if the agenda were rearranged and the Fire District issue were to be placed last,he xted that the Council would not get to that issue until late. He remarked that most people in attendance would be upset with the new arrangement. He stated that he preferred to keep the agenda order as written. Councilman Melendez agreed with Councilman Kavanagh that the public needed to listen to the Council articulate on the fire issue. He stated that the fire issue and the law enforcement issue were the two key issues that would be discussed at this meeting. He recommended that the Council move forward with the written agenda. Vice Mayor Fraverd agreed that the majority of the public had come to hear about the fire issue. She stated that the Council should proceed with the agenda as written. It would incumbent upon the Council to not prolong the executive session and begin the public meeting as soon as possible. Mayor Beydler commented that this change to the agenda was proposed because there had been concern that there wouldn't be any public audience left when the Council adjourned the executive session. He noted that the Council could not guarantee a short executive session. He did not have a problem with continuing with the agenda but he did not want to see the lawyers the only people left when they returned. Councilman Archambault agreed with Mayor Beydler that the intent was to have one executive session. He also expressed concern that this executive session might be a lengthy. If the people were willing to stay and wait for the Council, he would go along with the will of the Council. Councilman Melendez asked Town Attorney Bill Farrell and Acting Town Manager Mr. Roy Pederson to clarify what their recommendation would be. Mr. Farrell said the executive session would proceed as quickly as possible. He felt that the new members of the Council might have a lot of questions. Mr. Pederson said the issue was a matter of Council preference. He said the Council members were better judges as to what issues were of most importance and interest to the pub'ic. He deferred to their judgment. tncilwoman Ralphe was interested in public discussion and she preferred to go into the executive session now. She aggested that the Council make it as short as possible. She wanted to hear what the public had to say. Town Council Meeting Minutes—June 6,2002 Page 2 of 32 The motion FAILED unanimously. GENDA ITEM#9 - PURSUANT TO A.R.S. §38-431.03.A.4,VOTE TO GO INTO EXECUTIVE SESSION FOR: DISCUSSION OR CONSULTATION WITH THE ATTORNEYS OF THE PUBLIC BODY IN ORDER TO CONSIDER ITS POSITION AND INSTRUCT IT S ATTORNEYS REGARDING THE PUBLIC BODY'S POSITION REGARDING CONTRACTS THAT ARE THE SUBJECT OF NEGOTIATIONS, PENDING OR CONTEMPLATED LITIGATION, OR SETTLEMENT DISCUSSIONS CONDUCTED IN ORDER TO AVOID OR RESOLVE LITIGATION PURPOSES (SPECIFICALLY: KNAPP V. TOWN OF FOUNTAIN HILLS, ET AT.,HOFFMAN V.TOWN OF FOUNTAIN HILLS AND ROBINSON V.TOWN OF FOUNTAIN HILLS). Councilman Kavanagh MOVED that the Council convene the executive session at 7:15 p.m. and Vice Mayor Fraverd SECONDED the motion, which CARRIED unanimously. AGENDA ITEM#10-RETURN TO REGULAR SESSION. Mayor Beydler recessed the executive session and reconvened the regular session at 8:35 p.m. AGENDA ITEM #11 - DISCUSSION AND POSSIBLE ACTION REGARDING DIRECTION TO STAFF FOR THE PREPARATION OF AN ORDINANCE REPEALING ORDINANCE 01-18, DISCONTINUING FIRE AND EMERGENCY MEDICAL SERVICES TO TOWN RESIDENTS AS PROVIDED BY THE TOWN OF FOUNTAIN HILLS AND ESTABLISHING A DATE FOR THE DISCONTINUATION OF SERVICES. Councilman Archambault MOVED to direct staff to prepare an ordinance to repeal 01-18 discontinuing fire and emergency medical services by the Town and Councilwoman Nicola SECONDED the motion. Mr. Farrell gave an explanation of the current situation. He noted that as a result of meetings held, Mr. Countryman sent 1,' i two letters with some discussion points. Mr. Farrell said he had placed those items on the agenda as requested by Mr. itryman (agenda items 12, 13, and 14 respectively). He commented that the repeal of any ordinance required another Slow. dance, as it could not be done by motion or resolution. He acknowledged that this agenda item, if approved, would .- ct staff to prepare an ordinance stating that the Town of Fountain Hills would no longer provide fire and emergency medical services and that cessation would occur on a specific date (to be determined by the Council). He said it was his legal opinion that if such a proposed ordinance were passed, it would not breath life back into the Fire District. That would only occur by order of the Superior Court Judge. He asked if the Council wanted to stay in the fire business or did the Council want to indicate to the citizens that at some point in the future the town would be out of the fire business. Mayor Beydler commented that there was some interest in the issue of how the Fire Board would come back and whether or not the secondary property tax could be reinstated. There was also concern that there wasn't a revenue source to pay for the fire and emergency services even though there was currently a surplus that could be utilized over the next year to pay the bills. He noted there was interest in identifying a permanent revenue source to fund this policy. Mr. Ken Countryman made opening remarks. He said he was here because there had been some indication from some of the parties that a global resolution was something of interest. He noted that a jury trial was set for August 13, 2002 (Hoffman case). He felt they would prevail on that case. His clients felt that the most important things were: 1. To continue to provide fire service to the community. 2. Their jobs. He referred to the terms of the settlement agreement stating that they felt time was of the essence because of some of the procedural mechanisms that need to be in place in order for the Fire District to come back into service. He spoke to agenda item#13. He asked if the Town Council wanted to consider the settlement proposal that was made at the request of some of the members of the community. He said that the Town had no meaningful way of paying for fire service. Elections were held and the tax questions were rejected overwhelmingly. Any money that the Town had would be in the reserves that would be for use in the event of an emergency or to provide other services. He felt that there was a lawfully exis:ing governmental entity that was authorized to provide fire services in Fountain Hills. He noted that the Fire District Lao held the lowest cost basis in terms of offering full service fire protection. Mr. Countryman said they had provided fire tection more efficiently, effectively, and less expensively than any other Fire District in this state. He pointed out that %ire Fire District had a mechanism by which they could provide funds for those services that the Town did not have. Town Council Meeting Minutes—June 6,2002 Page 3 of 32 Mr. Countryman stated he would never have made this settlement proposal based upon how strong he felt his clients' case was. He confirmed that he had been instructed by his clients to make this offer because his clients believed their jobs were iportant (they were not looking for a windfall) and because his clients had made a commitment to the Fountain Hills lbw sidents that they would come here and serve them. Many had moved from out of state and the actions taken by the Town had cost his clients both financially and emotionally. He did not think the settlement proposal was fair to his clients. Mr. Countryman observed the Town would spend over $100,000 to defend litigation and that was assuming the Town was successful. If the Town were not successful,the Town would face a$13 million exposure on one case. On the other case the Town would face fees and costs that would be considerable. He noted that Rural Metro's contract expires on June 30, 2002 and his clients were ready to provide fire service on July 1, 2002. Mr. Countryman said that because of the financial situation of this community, he and his clients felt that the District was the appropriate entity to provide fire service. He was confident that there was a mechanism by which fire service could be returned to the Fire District. He said that was important because that was where the funding was. The District knew how to provide fire service, and the Fire District could provide it more efficiently than any one in the state. He asked the Council to consider the settlement proposal because it was fair and it was something that his clients wanted to see. Mr. Countryman said the Town should be concerned with the exposure they were facing, cost of litigation, and what was good for the community. He felt that the community had indicated they liked the things they way they were. Under the proposal being made,the Town's exposure was limited. If the Fire District came back and someone challenged that action, then under this proposal the control of fire service would return to the Town and the only thing lost would be the liability exposure. Councilman Kavanagh said that the Fire District had been more economical for a long time but that was because they were using Rural Metro. He referred to the current Rural Metro contract under consideration by the Council in the amount of $2.4 million vs. the proposed budget by the possibly existing Fire Board, which called for$3.5 million. He concluded that the Fire District was no longer cheaper. He took issue with settling this to avoid future claims. He felt that anytime a Town rolled over anytime a lawsuit was filed the Town becomes a target for every frivolous lawsuit. He did not think that • a good argument. He confirmed that the Town did have the money but would be tightening the budget. Councilman ..nagh acknowledged that the question was, who was going to win the lawsuit, Mr. Countryman's clients or the Town. aid the cost of the proposed settlement agreement was pretty expensive at $900,000 plus legal fees. Councilman anagh asked what Mr. Countryman's legal fees were. Mr. Countryman responded they were in the area of$40,000 or $50,000 but regarding the Robinson matter the legal fees were between $15,000-$20,000. Mr. Countryman suggested that the Town's legal fees were more than that. Councilman Kavanagh disputed that statement. He stated that the issue here was what Mr. Countryman wanted from the Town. He said what the Council had to decide was did Mr. Countryman have a case and settle or does the Council examine this more closely. He pointed out that Mr. Countryman's ethical responsibilities were to his clients and not to the people of Fountain Hills. - Mr. Countryman agreed. Councilman Kavanagh concluded that Mr. Countryman's statement that this was a"win-win"situation was not necessarily true. • Mr. Countryman pointed out that he was not present to explore the case. Councilman Kavanagh said that Mr. Countryman was here to propose a settlement agreement and he felt that a critical issue to the settlement was who was going to win. Councilman Kavanagh stated that if Mr. Countryman could convince the Council that he had a winning case by showing counter citations to the brief submitted by the Town's attorneys that listed three cogent arguments and solid citations, then he would be open for discussion of the proposed settlement agreement. If Mr. Countryman did not have a foundation beyond simply saying he was going to win, then Councilman Kavanagh could not take his proposed settlement seriously. Councilman Kavanagh said the Council could not give $1 million dollars of the taxpayers' money to Mr. Countryman nor give the authority and responsibility to control the Town's fire service destiny. The settlement agreement told the Council who and how many people to hire as well as to sell a truck that the Town desperately needed. He again asked Mr. Countryman to convince him of the merits of his clients' case. He was not going to give money and all rights just on Mr. Countryman's word that he had a winning case because he represented people that were suing the Town. Councilman Kavanagh stated he represented the people of Fountain Hills. He reiterated that Mr. Countryman needed to show him the facts. Mr. Countryman replied that he was not here to engage in showmanship. He said he was unaware of what brief "ouncilman Kavanagh was talking about or which case Councilman Kavanagh was referring to (Hoffman or Knapp). Mr. lntryman said that the Town's attorneys had filed many motions and no hearings have been held. He stated that he had ponded to all motions that he has received although he understood more motions had been filed today. Mr. Countryman .�iu he had not seen any brief was considered to be persuasive to them. Mr. Countryman restated that he was not present Town Council Meeting Minutes—June 6,2002 Page 4 of 32 to litigate the case. He thought he had been asked to submit a proposal in the interests of the Town. Mr. Countryman said that the ultimate outcome would be what a jury or judge decided. Councilman Kavanagh pointed out there were numerous arings that could take place before the jury trial began and the case could be thrown out before the trial. Mr. .)untryman acknowledged that was true. Councilman Kavanagh restated that the Council could not consider the settlement proposal if they did not know what the responses were to the Town's arguments. He asked Mr. Countryman if he would advise his clients to settle not knowing these facts. Mr. Countryman said he would not. He said the Town's attorney should contact the opposing attorney,ask what the merits of the case were,and then pass that information along to the Council. Councilman Kavanagh asked what Mr. Countryman could say to convince him that Mr. Countryman would win. Mayor Beydler interjected that the document that Councilman Kavanagh was referring to was dated June 4, 2002. He was not sure that Mr. Countryman has had adequate opportunity to either review or respond to it. Mr. Countryman stated that he had been attending the state bar convention and had not seen the brief referred to. He apologized, as he did not want to argue with Councilman Kavanagh. Mr. Countryman said it was not appropriate to cite cases in an answer so he assumed that it was some type of motion to dismiss or something different. Mr. Farrell said this was a unique situation as the Town has never attempted to settle a lawsuit from the podium before but in the interest of public debate and in order to help the new Councilmembers through the issues these items had been added to the agenda. He stated that a second motion to dismiss had been filed and he did not think that Mr. Countryman has had the opportunity to see it. Mr. Countryman thanked Mr. Farrell for his cooperation in submitting the settlement proposal to the Council because of the timing issues involved. Councilwoman Nicola asked Mr. Countryman to discuss ideas in which to reinstate the Fire Board prior to trial. Mr. Countryman said he had been responding to Mr. Farrell's opinion and although he has not looked into the issue that by rescinding the ordinance that was passed would not bring the Fire District back. If there was a resolution to the cases, there were several different ways that a judge could order the district back into place. Obviously the courts have broad table powers with authority to approve settlements. One of the ways that if there was a finding on the open meeting that would require things to go back to the status quo and that would require the District to come back into place and ,,,• would eliminate the concern that Mr. Farrell addressed. He said that was only one of the ways that could happen. He ,:ed with Mr. Farrell that this was not the usual way attorneys negotiate. He stated that he was reluctantly here to discuss agenda item#13 although he had included agenda items 11 and 12. He said ultimately his clients did not want to see the Town without fire service. Councilman Melendez asked Mr. Countryman to explain why he first said the settlement was fair and now was stating the settlement was not fair. Mr. Countryman clarified that he did not believe the settlement was reflective of the damages that his clients had suffered. He said that his clients' out of pocket losses from October 31,2001 to today totaled to about$1.7 million, when talking about wages benefits, and other issues. Mr. Countryman confirmed that the settlement agreement was a fair resolution for the Town. His clients were willing to enter into that agreement. In talking about an attorney's ethical obligation Councilman Kavanagh was correct that he would not resolve cases against his clients' wishes. He stated that he personally did not like this meeting and saying that his clients wanted to settle, as he was competitive. He said he believed too strongly in his case but this was what his clients had instructed him to do. Councilwoman Ralphe said the Council had been advised that the Town could be expected to win all three of these cases. She said it could cost $100,000 or $200,000 to defend these cases, yet the settlement asks for $900,000 plus legal fees, which totaled roughly $1 million. She asked how that could be a fair deal for the Town, especially if the Council went the other way and possibly won. Mr. Countryman said from their perspective the Council would be spending $2.4 million from the emergency or rainy day fund to pay for fire service. At the end of the year the Town would not have the money to continue to provide fire service. Under the alternate proposal of keeping Rural Metro his clients were still around. He said that if the Council's attorney has advised them that they had a strong cases and the Council believes him, Mr. Countryman said they should accept his proposal. He reiterated that there was an urgent and pressing need to reinstitute the District if the Town was going to have money for fire service in this community. This was the only reason he was present and the reason he had submitted this proposal. The debate over whether or not the case had merit was an open •,lestion. He said that issue would decided by either a judge or a jury. He clarified that the August 13, 2002 trial was a trial. Town Council Meeting Minutes—June 6,2002 Page 5 of 32 Mr. Farrell asked Mr. Countryman if he would agree that the Hoffman case had been consolidated with the Robinson case with the trial date set for August 13th. There was not an August trial date set for the multi-million dollar Knapp lawsuit. -. Countryman agreed Mr.Farrell was correct. Vice Mayor Fraverd stated that the Rural Metro contract expired at the end of June. She asked what guarantees could be given to the Council that on July 1St the Fire District would be operational and they would have the $2.4 million to fund the fire department. Mr. Countryman stated that they were ready to go and based upon the meeting they held on Monday. He and his clients felt they could get to a court and get an order to have that in place. Vice Mayor Fraverd again asked if he could guarantee that those actions could be accomplished in that amount of time. Mr. Countryman confirmed he could because of conversations he has had with his clients. In terms of the contacts of getting a judge to sign off on something like this did not take that long. In terms of the procedures of whether or not the fire department was up and running through his discussions with the former/or current district members they know what they're doing and that could happen very easily. Vice Mayor Fraverd asked what guarantees could Mr. Countryman give that the legal system would cooperate with him. Would they reinstate the Fire District and would they automatically put that$2.4 million into their account. Mr. Countryman said he did not want to speak for the courts or other parties but he strongly believed that if something were structured appropriately, there would not be an impediment. He could not guarantee the Council that the courts or other parties would not do anything to prevent that but because time was of the essence, he could guarantee that court would hear it request and decide that issue. Mr. Farrell responded to Vice Mayor Fraverd 's question. He agreed that if all the parties walked into court arm-in-arm and said please put a Fire District together, a superior court judge would be the only person with that authority. The money would have to come from the property tax. The Fire District Board would reinstitute the levy and the property would be taxed so cash would not start to flow until September — November and then March —May, when the property taxes were paid. No judge would reach into anyone's coffers and immediately make $2.4 or $3.5 million available. The judge would then authorize the Board to levy a property tax and the tax that taxpayers think were not going to be there would be reinstated. The funding would have to be worked out between the Town and someone else. Archambault commented that last week the Fire District or Fire Board had posted a meeting. He understood hey were asked by the County Attorney's office to hold off until this week. He assumed that had something to do this global settlement. Mr. Farrell responded that neither he nor Mr. Countryman represented the Fire Board. The County Attorney has been present at all of the negotiations that have taken place and was a defendant in two of the three lawsuits. Mr. Farrell noted that the County was taking a passive role. It was fair to say the County did not look with strong favor upon the Board calling the meeting. However, the County has never closed the door to him or Mr. Countryman to facilitate a settlement. He felt these were two separate avenues in the County's mind. The old Fire Board having a meeting was an entirely different issue from the County helping the firemen, Rural Metro and the Town from reaching some type of agreement. Councilman Archambault asked if the County would help facilitate something should that be the decision reached. Mr.Farrell said it would be fair to say that if the plaintiffs in the three lawsuits and the Town had a proposal that required the County to go with them to the judge that the County would go along and ask for a settlement. He further stated that the County would not institute anything independently and their position in the two lawsuits was aligned with the Town. Councilwoman Nicola asked who would pay the judgment against all of the collective defendants should the decisions go against the Town. Mr. Farrell summarized that it was important that the cases of Hoffman and Robinson be decided because it had a profound affect on the damages of the Knapp lawsuit. If Mr. Countryman ultimately prevailed in the litigation regarding the Knapp case,the fire fighter would be entitled some damages. Those damages would be paid by the Town of Fountain Hills and out the General Fund. He expressed that he would not go into the insurance ramifications. He concluded that this action was a breach of a contract and noted that contract actions were not covered by the general liability insurance policy. If different lawsuits were filed saying that the Council did something for which they had a duty to do and that was breached then perhaps insurance would come into play. As currently placed for the Town it was considered a breach of contract and therefore not covered by the Town's insurance. Mr. Countryman agreed that would not be covered by the Town's general insurance policy. He pointed out that if they 'ere successful on the Hoffman/Robinson cases, then the Knapp case would change. It would go from a breach contract to probably some other type of action because the Town action taken caused his clients to not have wages. He _timed there could be separate actions brought forward through those claims. Mr. Farrell reminded the Council that all .ectsions were subject to appeal. Town Council Meeting Minutes—June 6,2002 Page 6 of 32 Mayor Beydler commented that he had spent time with Mr. Countryman and other concerned citizens attempting to bring a negotiated settlement forward. He noted that they had been successful in that action since the proposed settlement was g, w being discussed. He expressed that he was having difficulty with Mr. Countryman's numbers contained in the Nor 3posed settlement. Mayor Beydler remarked that during previous discussion prior to the election had indicated that the .1)900,000 was being based on the assumption that jobs would be provided for the plaintiffs at the same rank and pay. Now as part the proposed settlement agreement included that the plaintiffs would be working in Fountain Hills. He pointed out that was a big difference whereas before those fire fighters would be getting jobs elsewhere in the state or wherever they could be found. He noted because of that change Mr. Countryman's clients should be willing to settle for a lower number given the fact that the proposed terms were better than they were prior to the election. He said that Mr. Countryman had also included in the $900,000 total all legal fees and court cost, which were now being shown as a separate line item. Mayor Beydler stated that as mayor of the Town he was interested in fiscal responsibility and in keeping the Town's exposure at the lowest possible level. He asked Mr. Countryman to respond to those points. Mr. Countryman replied that he could not specifically respond because to consider anything else would require that he consult with his clients. He observed that if the proposal differed from what some of the citizens in the community had discussing, he would entertain discussion. Mr. Countryman did not think that was his clients' intent. He felt that it might have been a misunderstanding by the parties (his clients) on some of those things. Mayor Beydler asked Mr. Countryman if in those prior discussions, the legal fees and court costs had been included in the number. He questioned because the situation had changed somewhat if Mr. Countryman could he go back to his clients and discuss possibly lowering this number. Mr. Countryman agreed that Mayor Beydler's statements were true. He submitted that there were other discussions with other individuals who requested the proposal in the manner in which it was proposed. He said he would be willing to talk to his clients about that but currently he was not authorized to comment. Councilman Archambault asked if there was negotiating room to remove some of those dollars off the table tonight. Mr. Countryman said many of his clients were present and he could talk to them about that possibility, as it was ultimately their decision. Vice Mayor Fraverd pointed out that since the settlement proposal clearly stated that the $900,000 was non- negotiable what was there to discuss. Mr. Countryman clarified what he thought he had been asked was he willing to go %,-k and talk to his clients. He stated the proposal before the Council had was a reflection of what his clients authorized %kw to submit at this time. Councilman Kavanagh said the impression was being created that the Council was now only thousands of dollars away from a settlement that made everyone happy, which was not true. He asked the Council to review what the consequences would be if the old Fire Board were to be reinstated. • The property tax that 70% of the voters said they did not want to pay would automatically be reinstated. • It would dump all of the current Rural Metro fire fighters. • New fire fighters would come from the outside. He remarked that these were fire fighters who were suing the Town. He commented that these new fire fighters had not taken the same type of physical agility test that the Rural Metro fire fighters had taken. • The Town would lose automatic aid currently utilitized through the Rural Metro contract. • Fire service would cost an extra $1 million a year. The current Rural Metro contract for fire services was $2.4 million and the proposed budget submitted by the old Fire District was for$3.5 million. • This rush settlement did not allow the Council time to consider what form the ambulance and fire service should take. He wanted to the opportunity to decide in a calm manner and allow for maximum public input. • The Council might be breaking the law by trying to facilitate the return of an organization that legally could not be brought back. • The Town would have to accept terms of this settlement agreement. • The Town would give up numerous rights and it would be the lawyers who decided the settlement instead of elected representatives. Councilman Kavanagh did not feel this was a good deal for the people of Fountain Hills. He suggested waiting to see how the preliminary hearing go. He stated that he personally trusted the Town's legal staff. He said he had read the brief and they were cogent and good arguments. He pointed out that Mr. Countryman had not offered good answers so as far as he nows the Town has a slam-dunk. He did not want to give up everything on the word of someone whose best interest lies coo h his clients and not with the people of Fountain Hills. He said he would be opposing the motion. Town Council Meeting Minutes—June 6,2002 Page 7 of 32 Councilwoman Nicola asked Mr. Countryman if he considered Fire Chief Brown and Assist. Fire Chief Knapp who were hired by the Fire Board as outsiders, given the fact they had served collectively for 7 seven years for Rural Metro as chiefs Fountain Hills. Mr. Countryman responded no. He disagreed with Councilman Kavanagh regarding a lot of the issues. :e did not think Councilman Kavanagh or other Councilmembers had taken their time to make their decision on repealing or eliminating the Fire District since they did not know much of anything about how the Fire District did business. He noted that several of his clients had moved to Fountain Hills and have continued to reside here because Fountain Hills is a wonderful community. His clients were committed to the Town as much as Councilman Kavanagh and others. This matter was a difference of opinion as to what happened. He did not think that was a reason to disparage or characterize them as outsiders. Councilwoman Nicola asked if Chief Brown and Asst. Chief Knapp had been employees of Rural Metro for approximately 40 years between the two of them. Mr. Countryman said that was correct. Councilwoman Nicola asked if the Fire District had gone into operational mode on December 15, 2001 the Town would have received the same excellent service provided by Rural Metro. Mr. Countryman said absolutely. He said they had trained very hard and were prepared to take over the department. These fire fighters were still ready and able to provide excellent services to the community. Councilman Kavanagh clarified that he did not say the fire fighters did not have the ability to perform the job. He restated that these fire fighters had been given a watered down physical agility test. The Town did not know if they could past a standard physical agility test. He felt that the standards of the Fire Board were lower than those that the Council would want to use. He pointed out that 33 of the 35 were not residents of Fountain Hills. Therefore, he felt the term"outsider" was reasonable. Mr. Countryman replied that there were definitely more than 2 that worked in this community. Councilwoman Ralphe referred to a comment made by Mr. Countryman that the May election results said the people liked the things the way they were. That was not what the citizens were telling her nor was that how they explained their vote against the $2.4 million property tax for fire services. She reviewed conversations with citizens who stated that their vote had nothing to do with fire issues one-way or the other. It was a message to government to cut back on spending and adopt a lean budget. It was a message for fiscal responsibility. It did not make sense to her to repeal the ordinance that the ' vious Council passed last October that provided for fire and emergency services. %by' Countryman stated that he had followed the election very closely. He agreed there were many interpretations on what election meant. He saw the election bring a change in mayor leadership, new Councilmembers, and the rejection of the tax increase. He had not heard that the Fire District had been subject to question about their financial propriety or the way they operated fire service over the past 24+years until they decided Rural Metro was not the provider that the Fire District wanted to use. He disagreed with Councilwoman Ralphe as to what the election results meant. Mr. Countryman felt it was more fiscally responsible to return fire service to where it belongs particularly since this Council and the Town did not have the financial ability to pay for it. Councilman Kavanagh confirmed that the Town could pay for fire service. He noted that the Town would be tightening the budget substantially. With respect to interpreting the election as a mandate for restoring the Fire District, he agreed with Councilwoman Ralphe. He felt it was very pretentious and dangerous to try and interpret the will of the voters especially in an election that had many controversial issues. He compared the stance of the candidates in the election and the election outcome. He did not see a clear mandate in either direction. Vice Mayor Fraverd encouraged Mayor Beydler to move the meeting along. She asked for public input. A roll call vote was taken with the following results: Councilwoman Nicola Nay Vice Mayor Fraverd Nay Councilman Kavanagh Nay Mayor Beydler Aye Councilman Archambault Aye Councilwoman Ralphe Nay Councilman Melendez Nay The motion FAILED on a vote of 5 -2. Town Council Meeting Minutes—June 6,2002 Page 8 of 32 AGENDA ITEM #12 - CONSIDERATION OF HIRING PLAINTIFFS IN HOFFMAN AND KNAPP T,ITIGATION FOR A MUNICIPAL FIRE DEPARTMENT,EITHER AFTER TERMINATION OF THE RURAL ETRO CONTRACT OR AFTER THE FIRE DISTRICT BOARD DISSOLUTION ELECTION. AGENDA ITEM #13 - CONSIDERATION OF APPROVING A SETTLEMENT PROPOSAL IN KNAPP V. TOWN OF FOUNTAIN HILLS AND HOFFMAN V. TOWN OF FOUNTAIN HILLS AS OUTLINED IN THE LETTERS OF KENNETH COUNTRYMAN DATED JUNE 4'H AND JUNE 51H,2002. Councilwoman Nicola MOVED to approve agenda items #12 and #13 and Councilman Archambault SECONDED the motion. Councilwoman Nicola urged the Town Attorney and all parties involved to immediately work out a settlement that would be palatable. She noted that the Town was equally divided on this issue and it would only continue to cost attorney fees. She stated that she would support both items. Councilman Archambault remarked that the previous Council should have moved forward to start hiring its own fire department as the Town already had the equipment. In mentioning the $3.5 million submitted by the Fire District for a budget last year, Councilman Kavanagh neglected to include the cost of operating the equipment, buildings and incidental cost that went into it. He stated that the budget of$2.4 million was strictly for personnel. Councilman Kavanagh said many of his arguments regarding the last item applied to this one. One thing that was clear was that there was tremendous number of unknowns until the lawyers talked more and some of the preliminary court rulings were available. Then the Council would know where the Town stood. Councilman Kavanagh MOVED to continue items 12 and 13 indefinitely until more information was available and Vice Mayor Fraverd SECONDED the motion. Mr. Farrell interjected that a motion to continue was debatable only as to the time of the continuous and not as to the merits. He explained that the "motion to continue" took precedence over the first motion. Councilman Kavanagh clarified that he had purposely said indefinitely so that the items could be revisited as soon as or as late as any r'ouncilmember desired. )11 call vote was taken with the following results: Councilwoman Ralphe Aye Councilwoman Nicola Nay Mayor Beydler Nay Councilman Kavanagh Aye Councilman Melendez Aye Councilman Archambault Nay Vice Mayor Fraverd Aye The motion CARRIED on a vote of 4-3. Mr. Farrell stated that he would take very seriously the Council direction indicated earlier. Mr. Farrell commented that he would contact Mr. Countryman on Monday with regard to reestablishing the talks. Mr. Farrell pointed out that Mr. Countryman did not represent all of the parties involved. Mr. Farrell pledged that he would directly work with Mr. Countryman over the next week or so to see if some type of alternative proposal could be reached. AGENDA ITEM #14 - CONSIDERATION OF APPROVING A ONE YEAR CONTRACT WITH RURAL METRO CORP. FOR FIRE PROTECTION AND EMERGENCY SERVICES FOR THE TOWN OF FOUNTAIN HILLS. Vice Mayor Fraverd MOVED to approve a one-year contract with Rural Metro and Councilwoman Ralphe SECONDED the motion. Mr. Pederson reviewed that this contract that had been negotiated with Rural Metro Corporation separate and aside from all of the issues discussed this evening. It had been distributed at a Council meeting three weeks ago so that there would plenty of time to make the contents available not only to the Council but to the public. He announced that the Town's ?sultant Mr. Bob Edwards from RTE Consultants was present. Mr. Pederson confirmed that Mr. Edwards had Illiregotiated the contract with Rural Metro on the Town's behalf. He recommended that the Council favorable consider this contract. Fire protection would need to be provided by the Town as of July 1, 2002. Town Council Meeting Minutes—June 6,2002 Page 9 of 32 Councilman Melendez had noticed that the contract contained some errors. He understood that Mr. Ted Beam was no 'Inger representing Rural Metro. Mr. Edwards confirmed that Mr. Kurt Krumperman would now be the signature on the ntract. He remarked that a letter would be sent to Mr. Pederson outlining that and another error regarding who paid for :e fuel. Councilman Melendez asked if the Legion Insurance Company, who represented Rural Metro, had been down graded in the state of Pennsylvania. Mr. Edwards confirmed that the insurance company had been down graded to an "E" rating but within 48 hours the problem had been corrected. He assured the Council that the new contract noted that the insurance company used by Rural Metro could not be rated any less than BB rating. If the insurance company's rating were to slip, they were required to notify the Town immediately of the problem. He noted that the problem was not quite as bad as it appeared because Rural Metro had a cash reserve to cover that part. Councilman Archambault asked what it would take to move up from a 4-class rating to a 3-class rating. What benefits would that have for the Town? Mr. Edwards responded that the Town was due an ISO rating. The contract stated that if the contract was given to Rural Metro for a year they must take a hard look and make sure that they maintain any rating that the Town currently has or better that rating. He explained that if the Town were to only agree to a one-year contract with Rural Metro, it would be an arduous process to have them complete the full insurance rating. He stated what would probably take place was that the Town would ask for a continuance on that issue until such time as the matter was settled as to whether or not the Council knew that they were going to have their own fire department or continue with Rural Metro before asking for that rating. Councilman Archambault asked how often was that done. Mr. Edwards replied every ten years. He noted that it was a very important issue for businesses and for residents. It was not something that the Council would want to jump into. If the rating went into the higher category, it would change the insurance rating for everyone. He cautioned that this should not be taken lightly. Mr. Edwards explained the process that would determine if the rating could be changed. Mr. Pederson said the rating was based upon ten categories. The two categories that had the highest points were the fire department and the water service but other factors were considered such as the Town's building code. He said it took planning and analysis to identify those areas that could raise points. iayor Beydler said he had met with Lou Jekel and Bob Sternfels along with Councilmembers Melendez and Nicola about Now .,onth ago. At the meeting they had requested from Mr. Edwards proposals showing the costs for a 30-day plan, a 90- aay plan, 180-day plan as well as a purchase contract offer for the ambulance. The contract proposed to lease the ambulance for$10,000 per year. Mayor Beydler asked who would be paid for the lease. The way he read the contract to say it was a reimbursable item. The Town would not actually receive a check. The $10,000 would be taken out of next year's contract. Mayor Beydler asked Mr. Edwards why they had not received the requested information. Mr. Edwards responded that he did not work for Mr. Jekel. He remarked that this was the first time he had heard of this informational request. He said he was willing to put that information together. He pointed out that any purchase agreements should be put together by Rural Metro and reviewed by him first. If Mr. Jekel passed that request on to Mr. Pederson, he felt certain that Mr. Pederson would have passed the request onto him. Mr. Pederson confirmed that he had no communication with Mr. Jekel. Councilman Melendez asked if there was anyone present who was representing Mr. Jekel. Steve Randall, Maricopa County Fire Chief for Rural Metro acknowledged that Mr. Jekel had been here earlier but had to leave and catch a flight. Due to the length of the meeting, he was not able to stay. Mr. Randall said he would follow up on the request with Mr. Jekel as he was not aware their request either. Mayor Beydler asked Mr. Randall to address the lease issue. Mr. Randall stated that the lease agreement came in once the contract price had been established. There was a direct credit on this year's contract and the contract amount had been reduced by the $10,000 lease amount. Councilwoman Nicola directed attention to page 34 of the contract where it referred to the credit to the 2003 Agreement with Rural Metro for Fire Protection and Emergency Medical Services. She expressed concern that the Fire Board had paid approximately $60,000 for this vehicle. It was estimated that Rural Metro could potentially make $200,000 in revenue from the use of that ambulance during this fiscal year. Mr. Edwards explained that the lease amount was set at $10,000 because the normal life span of an ambulance was 5-years. The payment would recover the depreciation of that ambulance. This ambulance would be sold after the five years and another one bought. Mr. Edwards said what Rural Metro generated in revenue, in his opinion should not be an issue. Rural Metro had given the wn a sole subscription and the only thing charged to the residents was the third party reimbursements. He remarked that id save the Town's residents approximately $100,000 or more. Rural Metro would absorb the bad debt portion, which old be as high as $40,000. He stated that the $10,000 lease was pretty standard. The Town would still own the unit and Town Council Meeting Minutes—June 6,2002 Page 10 of 32 was only leasing it to Rural Metro. He noted that the Arizona Department of Health Services clearly states that whoever -aerates the ambulance had to be in control of the vehicle. That was why the lease had to be negotiated. ouncilwoman Nicola asked if this ambulance would primarily stay in Fountain Hills or go all over the valley. Mr. Edwards said the ambulance was here to protect the Fountain Hills residents. Once the ambulance was called into service in Fountain Hills,Rural Metro(with automatic aid)would call for another ambulance to come into Fountain Hills. Councilman Archambault understood that the Fire District contract paid Rural Metro $80,000 to supply an ambulance in Fountain Hills so that the residents wouldn't be charge the difference not paid by their insurance. Mr. Edwards stated in the meeting held with Rural Metro, that fact was unfounded. He remembered years ago that there was an amount paid to Rural Metro of$65,000, which had been for a master subscription similar to what service the Town was getting now. He noted that with the population growth of the Town that subscription would be worth approximately$100,000. Councilman Archambault said under the contract with the Fire District there was a purchase agreement of equipment. He did not see a list of equipment owned by the Town contained in this contract. It listed only vehicles. He stated that he wanted to know exactly what the Town owned since there was a lot of equipment. Mr. Edwards responded that the Town owned 98-99% of all equipment. The contract negotiated required Rural Metro to give the Town a complete listing of inventory that they had on the trucks within the Town. He said that he and the Town had negotiated a price to buy that inventory and that had been done. Councilman Archambault asked about the turnout equipment. Mr.Edwards replied that turnout equipment was personal equipment and the Rural Metro fire fighters owned it. Councilman Archambault asked if the Fire District had purchased some turnout gear. Mr.Edward said he was not aware of that. Councilwoman Nicola understood that the Town contracted with Mr. Edwards to prepare this contract. Mr. Farrell said that was correct. Councilwoman Nicola assumed that as a long time employee and officer of Rural Metro Mr. Edwards still possessed a number of shares of Rural Metro stock. She asked Mr. Farrell if that posed a conflict of interest for Mr. Edwards. Mr. Farrell responded no. Employees would have a conflict of interest but Mr.Edwards was an agent contractor with the Town and not subject to the State's conflicts of interest law. . Farrell stated that he had started the selection process. He acknowledged that he has known Mr. Edwards for a long time and knew of his abilities in this area. At that time Public Safety Director Steve Gendler had requested technical assistance and he had pointed out that Mr. Edwards was available. Mr. Farrell felt that Mr. Edwards would negotiate a tough contract with Rural Metro because of his background. Shortly after Mr. Edwards was selected Mr. Farrell stated he left the position of acting town manager and Mr. Pederson administered the rest of the contract. Mr. Farrell confirmed that Mr. Pederson also knew Mr. Edwards. Mr. Farrell pointed out that his selection of Mr. Edwards had been based primarily on Mr. Edwards' knowledge of Rural Metro and his need for someone with Mr. Edwards' abilities to negotiate. Mr. Farrell commented that he had not asked him about his stock ownership. Councilwoman Nicola said she would be concerned that the Town was utilizing the services of someone who had a financial interest in this contract. Mr. Pederson said he had asked Mr. Edwards about that issue. Mr. Edwards had advised him that he no longer owned any Rural Metro stock. Mr. Edwards remarked that had he kept the stock Councilwoman Nicola would have been right because it would be very difficult to own stock of the company and negotiate against the company. He stated that his credibility was more important to him than owning stock in a company and then being charged with a conflict of interest. Councilwoman Nicola said that put her mind at ease. Councilman Melendez noted three specific points that the Council needed to keep in mind: • The safety of the residents. • Being able to offer service at the best available cost. • The integrity of the service. Councilman Melendez referred to page 10 of the contract. He said he liked the cost. He examined the information on page 25. He asked Mr. Edwards if Fountain Hills would have twelve people servicing the residents. Mr. Edwards confirmed that was correct, as it was their assignment. Mr. Edwards referred to a NFPA's proposal #1710. He explained that most Fire Departments had until 2006 to come up with a plan to meet the requirements in Proposal#1710. He said by Fountain Hills currently having automatic aid, it allowed the Town to be in compliance with #1710 right now and that was pretty portant. .•uncilman Archambault asked what happened to the automatic aid if City of Scottsdale went with a municipal owned fire department. Would the Town have to have an IGA with Scottsdale? Mr. Edwards answered that the Town should have an Town Council Meeting Minutes—June 6,2002 Page 11 of 32 IGA with them and all neighboring towns anyway. Whether or not the Town would continue to have automatic aid with *he City of Scottsdale was a question that the Town would have to wait to ask until Scottsdale established their fire partment. He said that as long as the Rural Metro contract was in place and had not been down graded with Scottsdale, _ would allow Rural Metro to make movements into Fountain Hills, Cave Creek, Carefree, and Paradise Valley at their discretion. Mayor Beydler asked Mr. Edwards if he knew when Scottsdale would vote on whether or not to form their municipal fire department. Mr. Edwards responded perhaps in November, as there was a movement in Scottsdale to get signatures to put an item on their agenda. Mayor Beydler remarked that he had talked with Lou Jekel about Scottsdale. He had asked if Scottsdale were to vote to go with their department, what would happen to the Fountain Hills contract. Mayor Beydler said he was told that the cost would go up close to a$1 million. It had also been discussed that if Rural Metro were to lose the Scottsdale contract, they could potentially move out of Maricopa County because of the sensitivity and center of influence that Scottsdale played in their overall system. Mayor Beydler asked Mr. Edwards if that could happen. Mr. Edwards replied that he was not sure he should comment because he would be talking on issues that Rural Metro should be commenting on. Mr. Edwards said it was his opinion that if the City of Scottsdale decided to go with its own fire department, it would certainly be a major blow to Rural Metro's fire services. It was his opinion that Rural Metro would be able to continue service in Fountain Hills and other areas. He did not know if price would go up as predicted by Mr. Jekel. Mr. Edwards anticipated if that scenario were to happen, Fountain Hills would probably back stop itself and would probably have to hire one or two other employees to ensure that there was sufficient personnel on the scenes of fires and emergency medical. He strongly felt it would not cost$1 million to do that as predicted by Mr.Jekel. Councilwoman Ralphe recalled the events of the October 31, 2001 Council meeting when the previous Council had decided to provide fire and emergency medical services. She had been concerned because Rural Metro's financial condition had been reported in the news at less than ideal. She had suggested at that time as the Town assumed fire services that the Town adopt a Plan B. Councilwoman Ralphe stated that staff had worked out Plan B, which would go into effect if and when Rural Metro was unable to provide service. She pointed out that there was a plan on paper that could be put into effect quite quickly. That was a protection that the Town had right now. r ,uncilman Kavanagh asked if there was a phase in period if Scottsdale were to establish their fire department. Mr. Edwards said that was true. There was a contract that would voted on by their Council at an upcoming meeting that would most likely give Rural Metro a multi-year contract with the ability for Scottsdale to get out of the contract. He commented that Scottsdale was breaking away their EMS contract away from their fire contract in order to have them separate. Councilman Kavanagh felt the worse case scenario was that Fountain Hills would have a good six months to scramble to put their plan together. Councilwoman Nicola commented that she has never seen Plan B in writing and asked if this Council was bound by that plan. Mr. Farrell replied that Councilwoman Nicola had not received Plan B in writing but he had discussed it briefly with her in his office. He explained the essence of Plan B. The Town's human resources department, along with the Town Manager had worked out a situation with the City of Scottsdale. If there was a collapse of the Rural Metro Corporation and they were unwilling to perform, Fountain Hills would work with the City of Scottsdale and use such techniques as radio and television advertising to recruit firemen. Large surrounding municipalities would be contacted about using off- duty fire fighters to man the Town's equipment and work with the City of Scottsdale to ensure that both emergency medical services and fire services were provided. He stated that staff has not had to go anywhere near this because Rural Metro has performed under their contract. Councilwoman Nicola asked which cities and/or towns did the Town currently have IGAs with. She also asked which cities and/or towns had Fountain Hills attempted to enter into IGAs with. Mr. Edwards stated that the process had been started and was one of the things listed in his proposal that should be completed soon. He reiterated that there wasn't any current agreement. He noted that the agreement that the Town had with Scottsdale was as good as, if not better than, an intergovernmental agreement right now. He also felt that the Town should have an intergovernmental agreement with the Indian Community. Councilwoman Nicola asked Mr. Farrell if the agreement with Scottsdale was just a verbal agreement and if they were bound to it. Mr. Farrell confirmed that the agreement was verbal. Mr. Edwards commented that the :partment of Health Services, which oversees emergency medical care, had stipulations within their regulations that ild take care of any company that would go bankrupt. He said the Town had the ability to commandeer their equipment well as do anything necessary for no longer than 90 days. Town Council Meeting Minutes—June 6,2002 Page 12 of 32 Councilman Archambault asked if law mandated the NFPA 1710 standard. Mr. Edwards answered no. He commented that the National Fire Protection Administration(NFPA) was the group that devised the recommended standards for all fire ;3artments. Councilman Archambault asked if the NFPA required four men on a vehicle. Mr. Edwards replied no. That Nir_cision was left up to the town/city to work out between now and the year 2006. He noted that could change in 2006. He hoped that all fire departments would look at the #1710 standard and make sure that they complied. Mr. Edwards acknowledged that the Town of Fountain Hills was in as good as shape as any town in the valley right now. He noted that there were very few towns that maintain four people on a truck all the time. Councilman Archambault asked how many people would be provided on a truck under this contract. Mr.Edwards deferred to Chief LaGreca. Fountain Hills Fire Chief Scott LaGreca stated that this contract would follow through with the existing contract providing three people on a fire truck, two people on an ambulance and one chief. He explained that the NFPA's #1710 standards talked about the different ways of getting those people on the scene. It was the response time that was looked at in this standard. He remarked that this was a very timely question for any fire department in the United States as to how any fire department would meet this standard. He reminded the Council this was a standard and a goal for any fire chief to try to comply with as best as he or she could. Chief LaGreca reviewed that what the standard was telling fire chiefs and governmental bodies was that the community must analyze their risks, fire flow and Codes. Then devise a standard and plan that could somehow come close to meeting this standard. He acknowledged that this was a well thought out standard. He felt that the fire community would start using this as their standard and wish list rather than using the Insurance Services Office (ISO) rating. He reviewed the fire department's average response times for various calls. He noted that the fire department was hitting their response time and that was one of the key indicators of the #1710 standard. He discussed automatic aid. He was in favor of this contract as it gave everyone collectively a year to figure out what the Town truly wanted to do. He believed the Town had one shot to get this right. He did not think the decisions should be rushed. Chief LaGreca reiterated that this option gave the Council one-year to decide. Councilman Archambault asked how many fires had the fire department responded to in the last three months. Chief LaGreca said they averaged fifteen fire calls a month. Councilman Archambault asked about the number of house fires. Chief LaGreca estimated they responded to two to four structure fires a year. He stated that with the sprinkler ordinance is doing a good job. Mr. Edwards commented that the big difference between the #1710 Standard and the ISO rating that the ISO had not changed their standards since 1980. He reminded the Council that there were competing factors between the two because the insurance company was worried about property damage and not rescuing lives. Councilman Archambault said a change in the insurance rating from a 5 to 2 would not make any -difference in the insurance premiums. Mr.Edwards agreed there would not be any change in residential premiums,but there would be a big difference for commercial premiums. Councilwoman Nicola asked if the Fountain Hills fire fighters provided any automatic aid to Scottsdale stations. Mr. Edwards responded that most likely they would do a move up if the need were to come up on the border. He stated that it was always a possibility. Councilwoman Nicola said she understood there was a lack of fire fighters and stations in the northeast part of Scottsdale. Mr. Edwards referred to station 815 noted the response guide contained in the contract (Appendix A). He said that was a fairly new station and until that station had been made available, Scottsdale might have had some lack of coverage. Mr. Edwards stated that Scottsdale currently had two other fire stations under construction. Chief LaGreca responded that the Fountain Hills Fire Department provided move up to primarily Rio Verde. If and when Fountain Hills must send their unit there a unit from Scottsdale would move into Fountain Hills. He noted that they had joint response with Scottsdale units on the east end of Scottsdale,the west end of Fountain Hills,and with the Mayo Clinic. Councilwoman Nicola asked if there was ever a time when three or more people would be on a rescue and taken out of Fountain Hills. Chief LaGreca said there were times, depending upon the seriousness of the need, when an ambulance could go in with three people on board. If it were seen that Fountain Hills was getting too low on personnel, he would automatically request an additional engine company to come in and cover. Councilman Archambault asked if there was an additional cost involved. Mr. Edwards responded hopefully no as it was a free intergovernmental agreement between two agencies. Councilwoman Nicola asked staff why the town had not attempted to enter into the IGAs with neighboring communities. Mr. Pederson said it was a matter that has been on the '-'e, which staff intends to address. He observed that there had been other priorities that had to be addressed first. ncilwoman Nicola asked if there was now a timeframe. Mr. Pederson replied there was not a specific time frame. It Nie_s something that staff planned to move forward on soon. Mr. Edwards interjected that two of the three IGAs had aiready been drafted. Town Council Meeting Minutes—June 6,2002 Page 13 of 32 Bob Travis, 14218 N. Chinook Plaza He discussed some of the changes he would like to see made in the contract. He reviewed some of the points contained in the report submitted to Scottsdale by their consultant (Maxim), which discussed how they felt Rural Metro should operate. % rile said there were many issues involved and asked the Council to carefully go over the details of this contract. Mr. Travis volunteered his assistance to review the contract with the Council. He recommended that Fountain Hills follow Scottsdale's lead and commit to a renewable 30-day contract with Rural Metro. Mr.Edwards responded that Maxim was paid approximately$100,000 for their extensive report. He noted that the report's recommendations were not recommendations that Scottsdale was reviewing. He pointed out that Scottsdale had not decided what they would do. He defended the equipment issue in the contract. He explained that because Fountain Hills was now responsible for all equipment that was purchased. If in six months or one year down the road the Town decided that they wanted a municipal fire department, there would not be a major capital issue. He reminded the Council that the Scottsdale report had been prepared for a city with a larger population and that covered 183 square miles. He felt that there were issues that were complementary in certain areas. He noted that Rural Metro and the Fountain Hills Fire Chief were making sure that issues were dealt with in a like manner and specifics were being brought to the attention -of the town manager. He stated that the town manager would then bring any issues before the Council to address in a timely manner. Councilman Archambault asked if the Town was currently on a month-to-month contract with Rural Metro. Was there a reason why it couldn't be extended if that were the case? Mr. Farrell explained that the Town was actually on the last month of the ten-year contract originally entered into by the Fire District. Rural Metro was paid on a monthly basis. Councilman Archambault asked if the Town had assumed the Fire District's contract with Rural. Mr. Farrell answered yes. He responded that there was no reason why the Town couldn't enter into a monthly contract, but presently it was a one-year contract. Councilman Archambault expressed he was uncomfortable signing a one-year contract without having other viable options. He wanted the opportunity to look at other options. Councilman Archambault asked for an explanation as to why Section 5.1 (Confidentiality) had been included in this proposed contract. Mr. Edwards clarified the reasoning for this section. Since Rural Metro was a corporation who wanted have the right control what information was considered as public information. They did not want company information -'en to their competitors. Councilman Archambault asked who Rural Metro's competition was. Mr. Edwards admitted there was not a lot of competition in Arizona, but there were three other private fire companies within the United States and one in Holland. Councilman Archambault expressed concern it might be implied that they were hiding something from the public. Mr. Edwards said the meeting that he had with Rural Metro executives and town staff indicated that was not the case. He stated that Rural Metro had been very forthcoming on any requested information. He did not think that approach would change. Councilman Archambault asked if this confidentiality section had been included in the Fire District's contract. Mr. Edward responded yes. Fire Chief Steven Randall said the bigger issue was that Rural Metro was a publicly held company and because of some FCC regulations Rural Metro was restricted on what financial information could be released. Regarding the competitor issue, if Rural Metro was to give information in one cost center there could be the requirement to give it in all. He confirmed that this clause did not preclude Rural Metro from sharing information with the Town. Councilman Melendez asked Mr. Farrell if the Town signed the one-year contract, could the contract be canceled in 180- days as stated in Section 2.2 (Termination). Mr. Farrell said yes, the notice could be given at any time. He referred to Section 2.3. The fact that the Council would be making budget decisions in 30 days and if the Town were to fail to fund due to settlement and litigation, there was no obligation after 90-days. Another option would be that if there were cause, there was the ability to follow the procedure and cancel the contract in 30-days. Sandy Dunn,N. Saguaro She was against the one-year contract. She asked the Council to either wait to vote on the contract so they can get more information or go with a 30-day contract. Mark Van Boeckel,Cabrillo He said he signed the petition and understood it to mean to save the Rural Metro fire fighters and keep them in Fountain Li;Hs. He said the misinformation came from the former Fire Board members. Town Council Meeting Minutes—June 6,2002 Page 14 of 32 Councilwoman Nicola confirmed that she had signed the petition. She had understood that the petition was a decision by the voters on whether or not to dissolve the Fire District. She had signed it not with the intent to automatically vote to dissolve the District but so that she, as a voter, could be educated on what the differences and options were. She reminded %weveryone that the 3,000 signatures were only 25% of the registered voters. This was not a majority. She expressed concern for entering into a one-year contract because the Rural Metro fire fighters, who had worked in Fountain Hills for many years, were not members of the Arizona Public Safety Retirement System and they did not have much of a retirement to look forward to. She wanted them to have retirement in their future. Rocky Dziepak, 16316 E.Jacklin Dr. He felt the Town should focus on empathy for the people. The Council should never forget they represent people. He requested that Mr.Farrell should move forward as he had been directed and get resolution to these issues. He suggested an eight-month contract time period in order. He wanted the Town to avoid a lawsuit. Glen Brown, 16426 E.Fountain Hills Blvd. He described his Rural Metro background and experience. He recommended denial of the proposed contract. He noted that the Maxim report submitted by Scottsdale's consultant had caused a citizens group to arise to try and remove Rural Metro from Scottsdale. Her quoted from the report. He stated what the petition drive in the City of Scottsdale was for was a charter amendment. If approved in November, it would change the city charter and would not allow them to utilize a private fire department. Scottsdale would have to start a municipal fire department and they would have to have that done within six months. He encouraged everyone to visit the Scottsdale citizen group's website www.911Scottsdale.com. for more information. He concluded that if the Town enacted a one-year contract and the Scottsdale voters ousted Rural Metro at their November election, Rural Metro would have be out of Scottsdale by May. He stated Fountain Hills would have a contract with an organization that had just lost their major contract within Maricopa County. He said no one knows what will happen after that and that was a tremendous unknown. He offered his experience and knowledge to the Council in order to assist them with the review of this proposed Rural Metro contract. Councilwoman Nicola asked if Mr. Brown felt the $10,000 lease was adequate for the wear and tear of a vehicle. Mr. Brown said there was not enough information available for the Council to approve that. He said that before approving the iktoy.ase he would want to know what costs were involved and what revenues Rural Metro would receive. Councilman Kavanagh said there was a lot of controversy as to what Scottsdale's Maxim study had concluded. He recalled that after the report came out, some in the citizens group had twisted the information. The author of the study then came out and voiced his conclusion that Rural Metro provided efficient and low cost fire service to Scottsdale. He said it was wrong to say that the Maxim report was critical of Rural Metro. With respect to the citizen's group, he noted there was heavy union involvement in this group. He said the goal of the citizen's group was to create a public fire department so that a public pension could be given to the fire fighters. He did not say that was wrong and that Fountain Hills would do that someday but to suggest that this was a grassroots citizens group that was springing up was somewhat disingenuous. He said there was heavy union involvement for publicizing that department and getting the public pensions in. Mr. Brown noted that he never said they were a grassroots campaign. Councilman Kavanagh asked Mr. Brown if he had said the Town should wait to see what Scottsdale did. Mr. Brown replied yes. Last October he had said the Town should wait until Scottsdale got their study back and see what happened. Now he felt it would be beneficial to wait to see what Scottsdale does as far as ousting Rural Metro after the November election. Councilman Kavanagh replied that by that scenario in November, the Town would know what Scottsdale's election results were and by May, Scottsdale would have to form their own department if approved by the voters. Mr. Brown said that was correct. Councilman Kavanagh said therefore, if the Town approved this one-year contract with a six-month cancellation clause then in November when the Town knew what Mr. Brown wanted the Council to know, the Council would be able to give notice to Rural Metro and in May the Town would be free to follow what Scottsdale did. He restated that what Mr. Brown was saying was that the Council should adopt this one-year contract because it did exactly"time wise"what Mr. Brown wanted. Mr. Brown disagreed. He agreed that the Fire District had a one-year escape clause, which they enacted it and look where they were today. Councilman Kavanagh reiterated that Mr. Brown had just said that the Council should wait and see what Scottsdale did and the Town would know what that action was in November. If the Town were to sign a one-year contract )w,the Town could execute their six-month exit clause in November and then in May when Scottsdale was forming their wn fire department and with Rural Metro possibly gone, the Town could establish their own department. He asked Mr. Town Council Meeting Minutes—June 6,2002 Page 15 of 32 Brown to explain why he was saying that the Town shouldn't adopt this contract if this contract perfectly coincided with Mr. Brown's calendar recommendation. . Brown pointed out that was not all he had said. He remarked that the Council did not have all of the information necessary to approve this contract. He reiterated that there were many issues that had not be addressed including maintenance costs. By enacting a one-year contract the Council was destroying their ability to do the last two things on agenda items 12 and 13 that the Council had asked staff to do. Councilman Kavanagh felt that the Town's consultant had pretty much addressed all of the Council's concerns. Mayor Beydler said it would not be wise to leave this meeting without a contract for fire and emergency services in place. He remarked that those who provide those services must be respected. He wanted to give the people in the community a sense of closure on that issue. He felt one-year time frame was adequate. He stated he would like to see the escape clause a little shorter with 90-days at the maximum so the Council had something to work with. He wanted to consider altering the lease on the ambulance and have Rural Metro purchase this vehicle for its fair market value so that the Town was not in a billing mode or waiting for it to be credited out of next year's contract. He also wanted to see the move up package made a requirement. Councilman Kavanagh said additional time was needed along with additional public input. He did not want this decision to be made by lawyers behind closed doors under threat that the Town would have to pay more. He again expressed concern that once word got out that the Town had rolled over there would be lawsuits all over the place. This decision was monumental and the Council needed public input. He wanted to see a citizen's group and a study done. He did not want to rush into this, as it was dangerous to do so. He also wanted to see what happened in Scottsdale. He felt the proposed contract gave the Council adequate time and gave the Council at least six-months. He confirmed that these issues were so complicated it would not be possible to get adequately resolved and adequate public input in less than six months. He did not see any problems with the terms of this contract. He did not want to make the same fatal mistakes that the Fire Board had. Tom Knapp %blo,::e understood that fleet services were not part of this contract nor were fire prevention materials included. He asked the Council if they knew what the bottom dollar of this contract was. He suggested that fleet maintenance on an ambulance for a year, even though it was new, could cost approximately $10,000 - $18,000 to keep it running. He stated that according to this contract,the Town was paying for this and not Rural Metro. In the Fire District contract,fleet service and preventative maintenance had been included. He restated that he did not think the Council knew what the bottom line was and that concerned him. Steven Randall,Maricopa County Fire Chief for Rural Metro He responded to the questions and concerns that had been raised. He discussed the ambulance lease. When the Town chose to assume fire protection authority, the Town had inherited that ambulance because the Fire District owned it. He explained that Rural Metro could not operate it unless there was some form of financial tie to it. He acknowledged that Rural Metro did not want to buy it as they had just bought a new ambulance 18-24 months ago. Essentially,the Town had an ambulance that they could not use and Rural Metro could not operate unless there was some form of an agreement such as this lease. He explained they discussed how this could be done. The Town did not want the ambulance sitting and doing nothing. So a plan was made for an equitable exchange allowing Rural Metro to use the Town owned ambulance. He explained the $10,000 was close to what the annual interest and depreciation cost was on the ambulance that Rural had in Fountain Hills. By using the Town's ambulance, Rural's ambulance could be moved to another area. That meant Rural's cost of doing business in Fountain Hills had been reduced by $10,000. He reiterated that this was a one-year contract. A one-year's use of the vehicle was approximately 1/5 of the depreciation of the cycle of that ambulance. Vice Mayor Fraverd asked about the "may" "shall" on the move up. Mr. Randall pointed out Rural Metro did not have an infinite number of ambulances. Even though Rural Metro was a large company, he could not guarantee that Rural Metro would have an ambulance to redeploy to Fountain Hills. It would be bad business to state in a contract that Rural Metro could unless he had one thousand ambulances lined up. He reminded the Council that the Town was part of a big EMS system that was fluid and moved to cover areas larger than Fountain Hills. Ambulances were deployed in such a manner to ensure that all customers had an ambulance as close as possible. Town Council Meeting Minutes—June 6,2002 Page 16 of 32 Councilman Archambault asked if it wouldn't be more prudent for the Town to keep their ambulance here in town, let Rural Metro keep their ambulance in Town, and allow Rural Metro to use the Town's ambulance in situations when Rural Metro's ambulance was on a run and another call came in. Otherwise, the Town was without an ambulance in the move %pup. This way the citizens would at least have the Town owned ambulance in Town that could be staffed. Mr. Randall pointed out that Rural Metro did have an ambulance that was unstaffed here just for that very purpose. Councilman Archambault asked if Mr. Randall was saying the Town had two ambulances. Mr. Randall said yes, the proposed lease ambulance and one that Rural Metro owned. In the event that there weren't any ambulances and then it could be staffed. Councilman Archambault asked how many miles did the Rural Metro ambulance have on it. Mr. Randall estimated the mileage on their spare vehicle to be between 150,000 to 180,000 miles. Councilman Archambault questioned the mileage because it was past the mileage that had been indicated was the life of an ambulance. Mr. Randall said he had talked about the life of an ambulance in years(the depreciable life). Councilman Archambault responded that it had been suggested the life of an ambulance was 100,000 miles. Mr. Randall did not recall making that comment. Mr. Randall brought up the issue of maintenance. Vehicle maintenance was provided for under the proposed Rural Metro contract and the only cost to the Town would be for parts. He said it was the Town decision to take care of the day-to-day things, which resulted in a corresponding reduction in the original contract amount that had been first discussed. Mr. Randall confirmed that there was a 30-day provision that was more for Rural Metro's benefit. If the Town simply stopped paying,Rural Metro had 30-days to vacate. Councilman Archambault asked Mr. Randall if Rural Metro would come after the Town for non-payment. Mr. Randall reiterated that the contract gave Rural Metro the right to leave if the Town were to stop paying them. Councilman Archambault said he did not want to think about becoming involved in another lawsuit. Mayor Beydler posed that raised issues as to how much it would cost to get out of the contract if the Council decided to leave Rural Metro even with 90 to 180-days notice. Mr. Randall reiterated that the contract would stop in 90-days and there would be no payment past that and no services would be rendered. Mr. Edwards disputed some of the statements made by Glen Brown. Mr. Edwards acknowledged that he was the kikwonsultant that had been working with the citizen's group in Scottsdale. He confirmed that he had reviewed the Maxim report in great detail with the group and noted that there were a lot of things going on. He verified that the group was trying to get signatures in order to have a referendum but that was not done yet. He pointed out that the group was looking to make sure that everything was done in an orderly manner. He acknowledged that the Maxim report recommendation given to Scottsdale was that the contract should remain with Rural Metro. He said this situation was not as dire as it may have been painted out to be for the Mayor and Council. John Winter, 11247 Inca He stated that as one of the former Fire Board Members they had fought with Rural Metro to get the new ambulance. The others were always breaking down and that was why the Town had a new ambulance. He wanted to make sure that there were two ambulances to serve the residents. Tammy Rothermel,Deerskin She asked that the Council keep their options open. She suggested that this issue be tabled or she proposed that the contract term be shortened. Then the Council could address these concerns and come back with a contract that would not only provide protections for the citizens but would also allow the Council the freedom of movement rather than being roped into a 6-month escape clause. Councilman Archambault AMENDED the motion to change the contract wording on page 7 (1.5 — Fire and Emergency Related Equipment Assignments) from "may provide move ups" to "will provide move ups" as well as remove the word "adequate"from the second paragraph (same section), on page 9 (2.2 -Termination) change the "180-days notice"to"30- days notice", and remove Lease Section entirely from the contract and keep the ambulance in Fountain Hills for back up and Councilwoman Nicola SECONDED the amendment. Mr. Farrell reviewed the wording of Councilman Archambault's amendment. Muncilman Kavanagh stated that the Town's consultant and legal representative had put all concerns raised to bed and Nirern them adequately except the terms of the escape clause. He reviewed the town's options. He asked what type of long-term security was being offered to the citizens on a month-to-month basis. He reiterated that the Council needed time Town Council Meeting Minutes—June 6,2002 Page 17 of 32 to decide and he wanted a citizen's group to have public input. He said he was not going to settle this in 30 or 60 days. He wanted to see what happened with the lawsuit hearings because the Town may be totally out of the woods in August when the preliminary hearings were held. If that were the case, then the Town did not owe anybody anything and the Town would decide their own destiny. It was his opinion that regardless of what happened the Council must make their decisions with public input. By asking for a 30-day out that told him that they wanted to make a quick back room deal with lawyers without public input. H said he would not support that. He wanted the people to make the decision. The Council was going to take their time and not rush into anything as important as public safety. Councilman Archambault clarified that he was not suggesting that the contract be eliminated in 30-days once it was signed. He was suggesting that if the 180-days term was left in the contract and 3-months later it was decided to terminate the to go with a Town fire department, then with a 30-day notice submitted to Rural Metro the Town could have their own system in place to form the Town's Fire Department. Councilman Kavanagh pointed out that there was still the issue of discovering what Scottsdale was going to do. Councilman Archambault said he did not understand what the problem was with changing the contract to 30-days. Councilman Kavanagh said he would not stiff anyone on a contract. Even if the Town could get out of the contract by not paying,he would not do that at the cost the Town's reputation. Councilman Melendez said he has seen this community divided over three issues: mountains, law enforcement, and fire service. He believed that the Council needed to continue support what service the citizens had. He suggested that the Council move on the one-year contract with the six-month clause. He MOVED to amend the motion but Mayor Beydler pointed out that Councilman Archambault already had an amendment on the floor. Mr. Farrell proposed that the Council vote on the amendment first. Councilwoman Ralphe said that she would be supporting the original motion for a one-year contract. It would provide the community with a certain amount of stability and assurance that fire and emergency medical services would be there for them. Vice Mayor Fraverd asked Councilman Kavanagh to clarify what his direction had been on agenda items #12/13. She had understood that he had wanted those items pursued after the lawsuits and not next week as some people seemed to believe. She questioned why would the Council be initiating a one-year contract when staff had just been directed to begin negotiations. She did not believe that was what he had in mind. Councilman Kavanagh said he wanted all facts and that evolved understanding the Town's legal position. He wanted input from the lawyers in terms of where they were willing to go. Vice Mayor Fraverd acknowledged those actions would take time. She said she was interested in supporting the original motion. A roll call vote was taken with the following results: Councilman Kavanagh Nay Councilman Melendez Nay Councilman Archambault Aye Councilwoman Ralphe Nay - Councilwoman Nicola Aye Mayor Beydler Aye Vice Mayor Fraverd Nay The motion FAILED on a vote of 4-3. Councilwoman Nicola expressed she would not be supporting the contract as currently written. Councilman Archambault reiterated his contract concerns. He said he would be voting no on the contract. Mayor Beydler concurred 'with Councilwoman Nicola and Councilman Archambault. He said it appeared that some of his colleagues were anxious to go to court to see what the jury might have to say. Councilman Melendez disagreed with Mayor Beydler. He had heard Mayor Beydler say not too long ago that he was going to approve the one-year contract with a 90-day cancellation clause. That had given him the indication that Mayor Beydler was for the contract and what the Council was going to do was to hammer out the difference between 90-days and 180-days. He asked Mr. Farrell if the Mayor were to approve the one- year contract, would that clause be negotiable. Mr. Farrell confirmed that staff was getting some direction from the Council. He noted there were areas in the contract that could be approved to the satisfaction of all the members of the Council. He pointed out that he had not been directly involved but would be more than happy to reinsert himself to address these issues with Rural Metro. Councilman Melendez said the new Councilmembers and the Mayor had talked `gout the timing and all were pretty much in agreement that the service must be continued to the community.- He ,`gout requested that staff be directed to work on the 90 vs. 180 days clause. Town Council Meeting Minutes—June 6,2002 Page 18 of 32 Councilman Melendez AMENDED the motion to direct staff to work with Rural Metro and or appropriate parties to negotiate to 90-days vs. the 180-days cancellation clause now contained in the current contract or somewhere in between. Councilman Kavanagh restated that the Council was being asked to approve the one-year contract with the 180-day clause nd with direction staff to attempt to get some concessions and he SECONDED the amendment. Mayor Beydler said he would be voting against this amendment unless it was it contained a 90-day cancellation clause. He verified that he was willing to compromise off 30-days but would not support more than 90-days. Mr. Randall acknowledged that the move up issue was important. He said he did not have a problem changing the contract wording so that it specifically states that if there were a unit available, there would be a move up. Regarding the 90-day issue, he proposed that if an action by a court took place, the Council could enact the 90-day clause. He understood there was concern that if the lawsuits had an impact on the Town, the Council would want a shorter time to be able to get out of the Rural Metro contract. He asked Mr. Farrell if that was what the Council was trying to accomplish. Mr. Farrell confirmed the Council was asking Rural Metro to change the 180-day provision to 90-days and to have staff meet with Rural Metro on the other issues. Mr. Randall stated that he was willing to do the 90-days. He cautioned the Council about starting an entirely new fire department in 90-days as it could be problematic. Mayor Beydler responded that he was not tying this action to any court decision. Mr. Farrell clarified that if Councilman Melendez and Councilman Kavanagh would agree that the amendment was to the main motion and would provide for a one-year contract with the change in Section 2.2 from 180 — 90-days with staff directed to meet with Rural Metro on the issues as outlined (primarily the ambulance and the mandatory move up)the vote would include the amendment. A roll call vote was taken with the following results: Vice Mayor Fraverd Aye Councilman Kavanagh Aye Councilman Melendez Aye Councilman Archambault Nay Councilwoman Ralphe Aye Councilwoman Nicola Nay Mayor Beydler Aye 'he amended motion CARRIED on a vote of 5 -2. Mayor Beydler called a recess at 12:20 p.m. and reconvened the meeting at 12:30 a.m. AGENDA ITEM#15 - CONSIDERATION OF APPROVING A CONTRACT WITH THE MARICOPA COUNTY SHERIFF OFFICE FOR LAW ENFORCEMENT SERVICES FOR THE TOWN OF FOUNTAIN HILLS. Mayor Beydler acknowledged that the Council had received an addendum to this proposal from the Mr. Farrell. Mayor Beydler commented that the Sheriffs Department had informed Mr. Farrell that after discussion with several members of the Council that the MCSO had resubmitted the agreement to reflect a change in Paragraph 3 (Term of Agreement). It would change the effective date from July 1, 2002 through June 30, 2004 to July 1, 2002 through June 30, 2003. All other terms and conditions remained the same. Councilman Kavanagh MOVED to approve the contract as presented and Councilman Melendez SECONDED the motion. Councilwoman Nicola asked about item#19, which stated that the Town would reimburse the Sheriffs Office(MCSO)for the acquisition of an additional vehicle at a cost of $36,000. MCSO Captain Scott Penrose explained that last year the Council approved an additional detective position along with a detective vehicle. Because that decision came after last year's fleet was ordered, the Sheriffs office was able to supply the detective position. However, the purchase of the vehicle had to be moved to this year. He noted that this year they had borrowed a vehicle from another division to supply this detective with transportation. In actuality, the Town received free use of a vehicle for a year, however this division wanted their vehicle back. Therefore, they now needed to purchase a vehicle for this third detective. Councilwoman Nicola asked if it was customary for the Town to purchase vehicles for the MCSO. Captain Penrose said yes. Anytime there was an addition to the fleet it was customary for the contractual city to purchase the vehicle. Mayor Beydler asked if the title to the vehicle remained with the Town. Captain Penrose responded yes. councilman Archambault inquired about item#12. He understood that the MCSO could not have all personnel work from this trailer. He noted that last year the MCSO was paying rent for the space that was occupied inside Building B at Town Town Council Meeting Minutes—June 6,2002 Page 19 of 32 Hall. He wanted to know why this year the lease had been changed to a "no cost" lease for the MCSO. Captain Penrose explained that the contracts were designed to be cost neutral. That meant that they couldn't make any money on the ontract but they couldn't lose any money on it either. Contracts would cover the actual costs of all personnel, equipment, Nireind/or rent. The way the contract was written before the MCSO could have actually lost money if they were paying rent and not recovering it. He agreed the wording might be misleading in #12, but all the MCSO was trying to do was to maintain their contract at "cost neutral". Mr. Pederson further interjected that the Town had been charging the MCSO rent and then paying that amount back to them in their contract. He pointed out that this just simplified the transaction and there wasn't any cost change to the Town. Councilwoman Ralphe requested to address the same type of flexibility issues as discussed with the fire contract. She stated that she valued the law enforcement services that the Sheriffs office was and has provided to the Town. She was also was cognizant that this Council needed to be able to adapt to future needs and circumstances. Councilwoman Ralphe AMENDED the motion to provide that if and when during the course of this contract the Town Council decided to set up its own police department, the Sheriffs Department and the Town would cooperate and coordinate the transition from contracting for law enforcement to providing their own and Councilman Archambault SECONDED the motion. Captain Penrose pointed out that there was a 90-day "out" clause in the contract. Mr. Farrell clarified that what Councilwoman Ralphe was calling for was cooperation. Councilwoman Ralphe agreed that was correct. She was looking towards the future of"if and when"that happened. She acknowledged that it probably did not have to be said but she would be more comfortable with that language in the contract. Vice Mayor Fraverd asked what type of cooperation was Councilwoman Ralphe looking for. To slowly reduce the Sheriff personnel as the Town added to the Marshals? She asks for further explanation. Councilwoman Ralphe said she did not have anything particular in mind because she did not wish to micro manage the delivery of law enforcement services. She wanted to leave the details of a transition and cooperation up to the professionals who knew far better than she did how to accomplish that. Vice Mayor Fraverd asked if she was looking for a more cooperative spirit. Councilwoman Ralphe responded no,just what she had stated it in her motion. Mayor Beydler asked Director of Administration Cassie Hansen to read the amendment and she complied. Captain Penrose said he understood the spirit of the cooperation but that :ncorporated many different avenues. Was the Council asking the Sheriff's office to provide training to an oncoming tkiriolice department? If so, that would open a new realm of liabilities and policy issues. He asked for additional clarification. Mayor Beydler asked for Captain Penrose's vision as to how he saw his role if there was a transition. Captain Penrose replied that would be up to Sheriff Arpaio. He personally knew that when a change over was incorporated and the Town was asking the agency to cooperate and assist there were a couple of ways to do that. If the Town were to ask the MCSO to bow out gracefully, he could see that. If the Town was asking the MCSO to assist in the forming, training, and the putting together the new police department, then he saw a problem because of liability and responsibility issues that would fall upon the Sheriffs office. Councilwoman Ralphe clarified that she had not been thinking of training when she made the amendment. She had the spirit of cooperation, bowing out gracefully, and only general assistance by the Sheriff s office in mind. Councilman Archambault felt the spirit of cooperation would also include a reduction in beats as there were more officers added to the Town's police force. Mr. Farrell sensed that what Councilwoman Ralphe was talking about was a spirit that the Town has started to see in the departments' coordination and cooperation efforts. He said specific items such as training,beat reduction,and programs of that nature were something that the Town would contract at the time this Council decided it would go with its own police department. The Council would revisit the Sheriffs contract because there were consultant's reports that indicate the beat reduction was very difficult without communication and a number of other things. He felt that Councilwoman Ralphe was merely talking about continuing the spirit of cooperation that was going on between the two agencies now and she was not referring to specific purchased services. He stated that he would try to word it in such a way as it wouldn't incur additional liability for the Sheriff's Department but it would state that if departments weren't getting along the way the Council would like to see, then the Town could ask the Marshal and Captain Penrose to talk with the Town Manager. Mayor Beydler said it was not the intent of the Council tonight to establish a police department. He said this was a t iendly amendment and that was as far as Councilwoman Ralphe wanted to take it this evening. Mr. Farrell said the Nat uditional clause would be about a spirit of cooperation. Town Council Meeting Minutes—June 6,2002 Page 20 of 32 Councilwoman Nicola asked for an update on the cad dispatch system in the Marshals Department. She wanted to know if it was possible for the Town to enter into a lease with the MCSO to provide radios and communication to the dual law nforcement agency and immediately bring the Marshals Department into radio communication with the sheriffs deputies. aptain Penrose stated that the cad system was installed on the 15th of May into the Marshals Department computer system but it was not up and running because no one was certified to operate it. On June 24th at least two if not three, dispatchers were to start their training program at the Sheriff's Office headquarters. Once completed, the system would be up and running. Regarding the radios, he stated that he did not know what the availability was and that he would have to get back to the Council with an answer. MCSO Chief Jerry Sheridan acknowledged that the radios were a scarce commodity and were very expensive. He said the MCSO would provide to the Town of Fountain Hills under the spirit of cooperation any spare radios that they might have. The Town would not have to lease them. The only issue would be as to how many radios the Sheriff's office actually had. Marshal Tate stated that the console that Captain Penrose had referred to had not yet been installed in the Marshals Department dispatch and he did not know the technical reasons. He said the training required by the Town's dispatchers would take two to three weeks. He confirmed that the Marshals Department was set to send a couple of dispatchers to training on June 24t. In regard to long term plans for field training of officers, he said in talking with different agencies he had found that there were options out there for that type of training particularly with Paradise Valley and perhaps the Department of Public Safety. Councilwoman Nicola asked for an update on the three-year plan for having both agencies with radio communications. Marshal Tate said originally all new radios were to be purchased over a two-year time frame. There were some budget cuts and that plan was extended to three-years. The Marshals Department had a choice to make in terms of purchasing new radios. They could either purchase the base units for the cars or half of the hand held radios. Acknowledging that the new hand held radios were expensive (approximately $4,500) the Marshals Department had decided to install the base units in the cars in this upcoming fiscal year. He deferred to Sgt. Ken Martinez for technical questions. ^ouncilwoman Nicola expressed her concern of the lack of ability between the two agencies to communicate directly with Ilkwach other. She was interested in achieving that as quickly and inexpensively as possible as it was important for officer safety. She asked how that could be accomplished: Sgt. Martinez said this year the Marshals Department purchased seven mobile radios similar to those installed in the Sheriffs vehicles. Three would go to the dispatch center and four would go in the supervisors' cars. These radios would allow the officers the direct capabilities of talking directly with the Sheriff s dispatch should the Marshals need to in an emergency. Due to budgetary constraints this coming fiscal year the Marshals Department has requested to only upgrade the radios in the rest of the vehicles. The year after that they would attempt to upgrade all portable radios. Councilman Kavanagh asked why three radios would go into the dispatch center. Sgt. Martinez explained that was because they used multi channels. Councilman Kavanagh noted that once the officers left their cars they would have to revert to their present radios and communicate on the prior frequency with the dispatcher. Sgt. Martinez said that was correct but officers would have the added benefit of their dispatchers having access to a radio with direct communications to the Sheriffs office. Councilman Kavanagh clarified that if a hot call came out everyone would know within a matter of seconds no matter what frequency was used because the dispatcher could access all channels. Sgt. Martinez answered that was correct. Captain Penrose clarified that the cad software was installed into the computer and if it was not in the dispatch area he was unaware that it was not there. A roll call vote was taken with the following results: Councilman Archambault Aye Councilwoman Ralphe Aye Councilwoman Nicola Aye Vice Mayor Fraverd Aye Mayor Beydler Aye Councilman Melendez Aye Councilman Kavanagh Aye amendment CARRIED on unanimously. Nor Town Council Meeting Minutes—June 6,2002 Page 21 of 32 Councilman Melendez commented that last month the Town lost the service of an outstanding individual, Marshal Gendler. He complimented Marshal Todd Tate and his officers for continuing to give the Town the service that has been Delivered through that office. He felt the Town would be looking forward to positive things for both agencies.%iirdeydler recognized Sheriff Joe Arpaio who was present in the audience and thanked him for all the good press he brought to the Town. Mayor Beydler read aloud#15(b). He asked for clarification. Mr. Farrell explained that a number of years ago during a joint effort between the Tucson police department and South Tucson police department an officer was shot and severely wounded. It resulted in extensive litigation between the two communities and a substantial judgment against the City of South Tucson. Mr. Farrell stated that the performance evaluation of their deputies always remain with the Sheriffs department so that the Town did not create an employer/employee relationship. The Town specifically did not want to get into personnel practices,assignment, or promotions/demotions. The Town retained the right through the Town Manager to meet with the sheriff and discuss personnel assignments. They wanted to ensure that under no circumstances was a Maricopa County Sheriff's employee in a position that he or she did not fully understand that their boss was the Sheriff and that the Town was not involved in their assignment. The Town did have the right to comment. He observed that system had worked successfully over the past years when the Town wanted to keep an officer or the Town wanted an officer to leave. The Town has been very careful not to create employer/employee relationship. Mayor Beydler asked if the final sentence indicated it was solely a personnel issue because he understood it to deal with issues such as the level of service. Mr.Farrell clarified that it was all personnel related. Councilman Archambault read aloud#13 (e). He asked Captain Penrose if they were in the process of doing that. Captain Penrose said yes. He stated various logos and insignias identified. He would be getting the approval from by his chain of command and then forward them on to Mr. Pederson for his review. They would then be submitted to the Council. Councilwoman Ralphe said she noticed that the most recent agreement had the words "public safety director" struck out and it had been replaced with town manager or designee. She asked why. Mr. Farrell said the public safety director position was presently unfilled. Councilwoman Ralphe commented it seemed this changed the town's relationship with the MCSO. She referred to#11 and read the last sentence. Mr. Farrell said with the advent of this new Council selecting a likkorew town manager, with the advent of the cooperation between the Sheriff and the Marshals departments, and some of the other issues that this Council would address, staff had hoped to give the current or new manager the ability to decide if he or she should start that relationship and then assign it to the Marshal without necessarily filling the position of public safety director. Mr. Pederson stated his concern did not have to do with the relationship between the two departments. There was no intent to compromise that ongoing relationship. In fact, he encouraged it to continue. His concern was one of fire issues. The prior arrangement had the public safety director responsible for fire department issues. He did not feel that it was reasonable to ask Marshal Tate to deal with fire issues at this point. Marshal Tate was still adjusting from being a sergeant to a department head. Mr. Pederson felt his choice of Marshal Tate had been an excellent one. He said Marshal Tate was doing an excellent job. He concluded that for the current period it seemed the easiest solution to make the connection a more generic. In the future and as conditions change, Mr. Pederson said that he could designate Marshal Tate, someone else, or simply do it himself. Rolly Siebert,Desert Willow He stated he was satisfied with the sheriff' service that currently provided. Stan West, Sycamore Dr. He echoed his support for Councilman Melendez's criteria for the Council making decision. Phil Gaziano, Sierra Madre(LEAP representative) He asked why was the Council considering only a one-year contract. He would like to see the Council extend the contract for two-years since there would not be an elevated cost. He expressed LEAP's thanks that Councilwoman Nicola for her support of the communication issue. He was happy with Marshal Tate taking the position. Mr.Farrell stated that he would agree with Mr. Gaziano if the price of the two-year contract had been frozen at the one-year contract price,but it was not. He remarked that the Council would be called on annually to review the contract. Wyman, Jacklin Dr. Ilitok proposed that the Council leave the contract alone and approve it. Town Council Meeting Minutes—June 6,2002 Page 22 of 32 A roll call vote was taken with the following results: Councilman Archambault Aye Councilwoman Ralphe Aye Councilwoman Nicola Aye Vice Mayor Fraverd Aye Councilman Kavanagh Aye Councilman Melendez Aye Mayor Beydler Aye The amended motion CARRIED on unanimously. AGENDA ITEM #16 - CONSIDERATION OF APPROVING A CONTRACT(S) FOR INTERIM TOWN MANAGER SERVICES. Councilwoman Ralphe MOVED to approve the contract and Vice Mayor Fraverd SECONDED the motion. Councilwoman Nicola inquired about item#6. She asked what expenses would be reimbursed. Mr. Pederson explained that would typically be reimbursement for a lunch meeting and that sort of thing. Councilwoman Nicola expressed she had a problem with the last sentence contained in #6 where it states Mr. Pederson would be reimbursed for travel expenses from out of state. She had understood that Mr. Pederson's February travel plans were set in stone and that was why the Town found themselves facing this dual tag team situation for the next couple of months. Councilwoman Nicola AMENDED the motion to strike the last sentence in item #6 and to have Mr. Pederson responsible for his own travel expenses and Councilman Archambault SECONDED the amendment. Councilman Melendez said that he had not felt it was a good move to have two interim managers from the beginning and from the cost standpoint it was $27,500. The Town had a well-qualified staff in place with the Director of Administration, Julie Ghetti, Jess Drake and others in the audience. He always felt that they could be asked to step up and take over the day-to-day routine for that period that they were talking about right now. Those dollars could go for other community -projects. Councilman Kavanagh agreed it was not a good idea to spend that kind of money but there was the possibility Swat the Council and the Town would desperately need Mr. Pederson' services. Therefore, it was only reasonable that the Town pay him. Councilman Kavanagh AMENDED the amendment to reinstate the last sentence but change the wording "will be directed" to "may be directed" and inserting "and if so directed" after the words "under this contract". That way the Council had the option to summon Mr. Pederson back if necessary. Councilwoman Ralphe SECONDED the amendment. Vice Mayor Fraverd asked Mr. Pederson what his travel plans were during this time period and what could the Town's expenses possible be. Mr. Pederson responded this would involve two flights between here and southern Oregon. He noted that these plans had been in place for a long time. When this discussion was first started, at the request of the Council, he had indicated a willingness to help the Council and the Town but not at the expense of the plans that he had in place with his family and others. He reminded the Council that he was seriously retired and he enjoyed it. In checking the clock he noticed that his June 6th contract was now expired and he was attending this Council meeting on his own time. He considered himself responding to a Council request to help the Town. He was doing the Town a favor. He stated that if he were also expected to pay his own travel expenses, the Council did not need to consider this matter any further. He explained that he was interrupting his vacation and putting his family and himself to some inconvenience. If the Council had another option that they would like to pursue, he said he would not have any hard feelings about that. It would make his life a lot easier, his wife happier, and his retirement more enjoyable. He stated the cost would be approximately $400 for each flight($800). Vice Mayor Fraverd asked if the Council was willing to go without a Town Manager for the small amount of approximately $1,000. She felt that a town manager was needed even though the Town had a terrific staff. Should there be a problem with a department head, how would the other department heads handle that situation? She said that circumstance would call for a manager and there was a need for one on board. She did not think that this amount was out of line in this particular contract. uuncilwoman Ralphe stated that Mr. Pederson had been with the Town for some time now and she greatly respected his professional management skills. She expressed that she was grateful to him for delaying his retirement to help Fountain Town Council Meeting Minutes—June 6,2002 Page 23 of 32 Hills. She echoed that same sentiment to Mr. Bladine who was willing to help the Town similarly through this time in which the Town did not have a town manager. Councilwoman Ralphe felt it was very important to have a strong hand at ie helm of town government. She acknowledged that the Town had been through many contentious times and the Town eeded what a strong manager could offer the Town. Vice Mayor Fraverd pointed out that this amendment required too much of Mr. Pederson by asking him to be available at a moments notice to fly back if the Council should need him. She would rather know that he would be here no matter what. She said she would not support the amendment. Councilwoman Nicola understood that the Town was not reimbursing Mr. Pederson for a call back on a moments notice. She said the Town was subsidizing Mr. Pederson's already planned travel plans. She asked if she was incorrect. Mr. Pederson said that was not correct. Mr. Pederson stated that he did not plan on flying back and forth other than those two trips that he had mentioned. He explained that if it were not for Fountain Hills, he would be southern Oregon period and he would not be coming back. Councilwoman Nicola said that with all due respect to Mr. Bladine, she could support paying for Mr. Pederson's trips if the Town were to struggle through on the days that Mr. Pederson was not planning on being here and thereby saving the Town's money. In other words, when Mr. Pederson was not here the Town would suffer. Councilman Kavanagh stated that after hearing what Mr. Pederson said he and Councilwoman Ralphe agreed that they would WITHDRAW the amendment and SECOND to the amendment. He said he was willing to go with the original contract. Councilman Archambault said the calendar that was shown to the Council by Mr. Pederson indicated dates that Mr. Pederson would be gone and the other dates he would be here. Councilman Archambault asked if the dates shown represented those dates that he would be available at the request of this Council or were those planned trips. Mr. Pederson confirmed those were the dates that he could be here. Mr. Pederson restated that if it were not for Fountain Hills he would not be here. Mayor Beydler stated that he wished Mr. Pederson could get on that plane and just go. He acknowledged that Mr. "ederson had a great reputation gave a summary of Mr. Pederson's background. Mayor Beydler said it has been a pleasure r+ have the brief opportunity to know him. Mayor Beydler said that in the perfect world Mr. Pederson would sail and Mr. Bladine would hang with the Council for a couple of months, but in the imperfect world that would not work. He said the real question was on those days that Mr. Bladine could not be in Fountain Hills could the Town make it through or was it absolutely critical that he be here. He asked if the Council have the ability to access Mr. Bladine by telephone or e-mail when he couldn't be here. Was there a way to bridge this in order to accommodate the cost cutting request so as to have the expertise of Mr.Bladine available, which would allow Mr. Pederson to be put on that boat? Mr. Pederson said it would difficult to reach him, as he would not be near a telephone. Mr. Bladine responded that he would be in town. Mr. Bladine reviewed what he knew the plan to be, which was he would be filling in for Mr. Pederson when Mr. Pederson was not in town. Mr. Bladine said normally Mr. Pederson would have left the service of the Council yesterday and the Town would have been without a manager. Mr. Bladine stated that he had considered the possibility of letting Mr. Pederson go on his vacation with his committing to the Council that he would carry on. Mr. Bladine said he could not do that. Mr. Bladine confirmed that he had rearranged his schedule so that when Mr. Pederson was gone he could be here covering for Mr. Pederson. He stated he would be available on weekends and other times, as any manager would be who was placed in that position. Mr. Bladine said if the Town did not require him to come to Fountain Hills, he would not have to come out to Fountain Hills. He suspected from the discussion held with Mr. Pederson about the issues facing the Town that the Council did need another set of hands to get some of the things done. He acknowledged that it would be the Council's decision and not his. Councilman Kavanagh said it sounded like Mr. Pederson was not anxious about leaving Oregon and racing down to Fountain Hills. He said it would have to be an emergency where Mr. Pederson was desperately needed before the Council would even activate this clause in the contract. Councilman Kavanagh said he was willing to let the language stand and put his faith in the professionalism of Mr. Bladine and Mr. Pederson. Mayor Beydler AMENDED the amendment to state that the Town retain Ray Bladine as proposed and allow Mr. Pederson take his retirement. Mr. Bladine said if that was the Council wish it could be looked at. He had found it helpful to ‘ippend the day with Mr. Pederson to acclimate himself so he felt comfortable that next week he knew what to do. He acknowledged that he had not been planning on Mr. Pederson being gone forever and he would have to rethink about that Town Council Meeting Minutes—June 6,2002 Page 24 of 32 situation. He restated that if that was the direction the Council was going, he would have to sit down and think about making that commitment and determine if he would work that out. Mr. Bladine said he was willing to try. Councilman 416yMelendez SECONDED the amendment. A roll call vote was taken with the following results: Councilwoman Ralphe Nay Councilwoman Nicola Aye Mayor Beydler Aye Councilman Kavanagh Nay Councilman Melendez Aye Councilman Archambault Aye Vice Mayor Fraverd Nay The amended amendment CARRIED on a vote of 4-3. Mayor Beydler asked if the first amendment now on the floor was relevant. Mr. Pederson clarified that the contract that the Council was now considering only involved Mr. Bladine and the amendment, which pertained only to Mr. Pederson, was irrelevant. Mayor Beydler asked for the vote on the main motion, which would to basically contract with Mr. Bladine for town manager services. Mr. Bladine pointed out that now there would be some gaps in coverage as he had only planned on working in Mr. Pederson's absence. Mayor Beydler agreed that was correct. Mr. Bladine noted that the Council needed the services of Mr. Pederson more than his, as Mr. Pederson had been involved in issues for a lot longer. Mayor Beydler restated that Mr. Bladine would be compensated at the rate of$500 per day. Mayor Beydler understood that Mr. Bladine's availability was somewhat dependant upon situations somewhat out of his control. Mr. Bladine clarified that he had prior commitments that might take him away for a half a day during that period of time. On the private side,he noted that his wife was fighting ovarian cancer but he did not expect a problem. However,that was why he had committed to the previous schedule because he knew he could work that out. He reiterated to commit to any more than that he did not know if that was possible. He restated he could meet the commitment worked out with Mr. Pederson but he honestly could not tell the Council that he could commit to more. 'uncilman Kavanagh asked what it was that the Council was being asked to approve. Director of Administration Hansen clarified that the first amendment had become a moot point because it had only pertained to Mr. Pederson. There was no need now to vote on that amendment. The Council would be voting for the main motion(the original contract but only for Mr. Bladine's services). Councilman Kavanagh asked if the contract that the Council was now considering had basically eliminated Mr. Pederson. Director Hansen responded yes. Councilman Kavanagh stated that was a mistake because it had taken quite sometime to bring Mr. Pederson up to speed there were many complicated issues facing them. He was not sure that the Council should be putting Mr. Bladine in this situation. Councilman Kavanagh asked what amendment could be made now to restore the contract to the original contract. Mr. Farrell responded that the issue of the removal of Mr. Pederson from the contract had been voted on so it would take someone in the majority of the vote to move for reconsideration. Mr. Farrell said there wasn't an amendment that could be made to bring Mr. Pederson back into the contract. Director of Administration Hansen clarified that reconsideration would have to come from Councilwoman Nicola,Mayor Beydler,Councilman Melendez,or Councilman Archambault. Vice Mayor Fraverd said this was a major mistake. This meant that the Council would go into the budget process without someone who had looked at it. She noted that there were four on the Council who had never seen a budget before. That left three Councilmembers looking at a budget with no help from a manager. She expressed that this would not be a smooth budget that the Council would be reviewing. Vice Mayor Fraverd stated that the Council would have to make difficult cuts with no one to really help them. She restated that it would be a great imposition to the Town's senior staff members to be asked to handle all problems that the Town might have. Vice Mayor Fraverd pointed out that if there were a staff problem on the highest level, they would be asking their co-workers/peers to help solve it. That could potentially put them in a difficult position. She reiterated that this was a major major mistake over a little bit of money. She asked one of the four Councilmembers who voted for the amendment to reconsider their vote. Councilman Melendez corrected Vice Mayor Fraverd by stating the last budget that he had supervised was $19 million. Vice Mayor Fraverd said she was talking about a town's budget. Councilman Melendez said he had done budgets before i d he felt others on the Council also had. His concern was that having two interim managers would be very confusing to illogtaff. He felt there were those staff members who could put the budget together and work things towards a positive end. Councilman Melendez stated what he was hearing from some of his colleagues that staff needed babysitting on the days Town Council Meeting Minutes—June 6,2002 Page 25 of 32 that would be vacant with out a manager. He proposed that if the Council needed someone, why couldn't someone else be found other than Mr. Bladine who would be full-time during the period that the Town did not have the dual interim situation. Councilwoman Nicola acknowledged that as the former court administrator for nine years she had spent a lot of time redoing not just the court budget, but also the entire Town budget. She commented that she had reviewed line by line this current fiscal year budget. She felt prepared to dissect the next fiscal year's budget. Councilwoman Nicola agreed with Councilman Melendez that the current situation was dysfunctional. She pointed out that the current town attorney had spent seven months as the Town's acting town manager,the Director of Administration and several department heads have been with the Town for twelve years,and she felt the Town could muddle through with the budget process. Mr. Bladine said in listening to the Council's discussion he would not be in a position to give the council the assistance that they want. Under the terms of amended contract, Mr. Bladine stated that it would not be something that would work for him but he thanked the Council for their consideration. Councilwoman Nicola said she had heard Mr. Pederson say he would not be available by phone and she assumed that Mr. Bladine would be. Mr. Bladine restated that he was not interested in entering into a contract under the terms that it were now being offered. Mayor Beydler asked Mr. Pederson if there were other alternatives that the Council had not considered. Mr.Pederson said there might be others in the valley. He suggested that the Council contact the Arizona League of Cities and Towns. Mr. Bladine recommended that the Council could contact Mr. Lloyd Harrell. Councilwoman Nicola proposed that Mr. Mercer might be able to come up with other suggestions. Mayor Beydler felt the focus needed to be on a full-time town manager. He confirmed that there wasn't a motion to vote on. Councilwoman Nicola MOVED that the Council take all non-critical items that were not of a time sensitive matter and continue them to the next Council meeting. Mr. Farrell asked Councilwoman Nicola to identify specific agenda items. Councilwoman Nicola stated#17, 18, 19, and 20. Mr. Farrell stated he had wanted a short executive session after agenda item 21 to discuss the BNY issue which was critical to the budget. Presiding Judge Stuart Shoob requested to be heard on agenda item 18 as he had been waiting all evening. He pointed out that he would be leaving office soon and would not be cailable to defend this matter. Mayor Beydler asked if there was a second to the motion. Councilman Melendez said Judge Shoob had served the Town for many years and he felt the Council owed him the courtesy of hearing from him. Councilwoman Nicola WITHDREW agenda item #18 from her motion. Councilman Archambault SECONDED the motion. Parks and Recreation Director Mark Mayer addressed the Council. He recognized the hour was late but stated there were a number of items that his department had on this agenda that were time sensitive. He referred to agenda items 21, 22, and 23, as those contracts would be expiring effective July 1, 2002. He stated a decision was needed in order for them to move forward. Staff also needed direction on the fire works issue. Councilwoman Nicola clarified that her motion only pertained to 17, 19, and 20 since the Council would consider Judge Shoob' comment. The motion CARRIED unanimously. Agenda items 17, 19,and 20 were moved forward to the next council meeting. AGENDA ITEM #17 - DISCUSSION OF RESOLUTION 1990-04 THAT PROVIDES FOR PETITIONS, COMMUNICATIONS AND COMMENTS OR SUGGESTIONS FROM CITIZENS PRESENT AT COUNCIL MEETINGS WITH POSSIBLE DIRECTION TO STAFF TO DRAFT AN ORDINANCE AMENDING THE RULES FOR ADDRESSING THE COUNCIL. AGENDA ITEM #19 - CONSIDERATION OF A PROPOSED ETHICS POLICY FOR THE TOWN OF FOUNTAIN HILLS. AGENDA ITEM #20 - CONSIDERATION OF A REQUEST TO APPOINT A FOUNTAIN HILLS REPRESENTATIVE TO THE SCOTTSDALE FIRE ADVISORY BOARD. GENDA ITEM #18 - CONSIDERATION OF AN INTERIM PRO-TEM SYSTEM FOR MUNICIPAL JUDGE SERVICES. Town Council Meeting Minutes—June 6,2002 Page 26 of 32 Mayor Beydler asked for motion to approve. Councilwoman Nicola stated she did not know what the Council was being asked to approve. Mr. Farrell said material had been received concerning the interim pro-tern system and he was not sure what the action was to be this evening if anything. Councilwoman Nicola asked Judge Shoob to begin with the statement hat was directed towards her. Judge Shoob asked if Councilwoman Nicola had requested this be put on the agenda. Mr. Farrell asked for direction because if there wasn't Council direction to change to the Town Code or to appoint an interim judge, there wasn't an issue. Mr.Farrell asked Councilwoman Nicola if she hoped to appoint an interim judge through the Town Council. Councilwoman Nicola replied no. Mr. Farrell asked if she hoped to change the Town Code. Councilwoman Nicola said she would have liked to talk about the issue at a more appropriate hour. Councilwoman Nicola asked Judge Shoob how many pro-tems were currently appointed to the Fountain Hills court and how were the pro-tems able to fill in during his absenses? Judge Shoob stated that he did not understand the agenda item and what interim pro-tern system for municipal judge services meant. If Councilwoman Nicola was asking him about the Town's existing pro-tems, he replies there were five. Judge Shoob said they all met the qualifications of judges, as they were all attorneys with at least five years practice experience and to the best of his knowledge they had all worked as a pro- tern elsewhere. He explained that when a pro-tern was needed, a pro-tem was called and it was determined if they were available. Assuming that they were the pro-tems would be scheduled into the court and assume the duties of sitting on the bench for that period of time. He stated that they did not have any administrative functions as they were only hearing judges for particular trials and hearings. Councilwoman Nicola stated that she had asked for the current and past selection procedure under the Supreme Court administrative rule. She asked about the Administrative Order 2000-80 that has been in effective since November 9, 2000. She asked if Judge Shoob had appointed pro-tem judges to the bench since that rule has become effective. Judge Shoob said he believed he had. He estimated that maybe one or two had been appointed under the part-time temporary provisions that allowed the presiding judge to do it at his own will and discretion. Councilwoman Nicola asked how long the appointments were for. Judge Shoob responded that they were indefinite appointments as they were at the will of the presiding judge. Councilwoman Nicola asked if the Human Resource Department (HR) had an application or letter of application on file for each. Judge Shoob replied that Human Resources had the individual records necessary for payment. He confirmed that each appointment made and signed by him has gone to HR. (tiot'ouncilwoman Nicola quoted from the order stating that the judge was responsible for appointing or recommending appointment of special judicial officers including those being talked about and would adopt written selection procedures and file them with the clerk of the Supreme Court. Councilwoman Nicola asked if that had been done. Judge Shoob assumed that it had. He asked Councilwoman Nicola if that was done while she was the court administrator. Councilwoman Nicola said it had been done under 93-17. Judge Shoob clarified that it did not require any additional order as the 2002 ordinance strictly restates the 93 order. Councilwoman Nicola asked if the Town had postings and advertisings for pro-tern judges in the Town court on file. Judge Shoob said they currently did not because they were not looking for any pro-tern judges. Councilwoman Nicola referred to the last twelve years. Judge Shoob said yes they had. Councilwoman Nicola pointed to the fact that the Judge would be leaving for vacation soon. Judge Shoob interjected that he was retiring in two weeks. He had given notice three months ago and at that point had asked for a new presiding judge to be appointed. He explained that the position was advertised with a committee appointed to interview that had included Mr. Beydler and then Mayor-elect Beydler, Mayor Morgan, a presiding judge from Phoenix, the Town's HR person Joan McIntosh and him. He reviewed that sixteen applications had been submitted to the Town and after the committee reviewed the applications five were chosen to interview. Those five candidates were interviewed and at that time two had been selected for an interview by this Council and ultimately their selection. Judge Shoob reminded the Council that he had wanted the process started about three months ago so that there would be an orderly transformation of the court. He said the time was running out. He stated that it was his understanding that those two interviews were scheduled for June 11. Judge Shoob said he assumed that would be done. He hoped he would have some time to work with who ever was appointed. Councilwoman Nicola asked if both individuals were ready to come to work right away. Judge Shoob did not know. Councilwoman Nicola pointed out that she had not requested an interim pro-tern system and thought it was the town attorney who had come up with that in the event that the Town found themselves short. Mr. Farrell said the communications were such that he had hoped that Judge Shoob would appoint a pro-tern judge before he left office on Lie 21,2002 after the Council had made their decision on June 11. He said staff would not let the court go unjudged. He cs.aowledged that Judge Shoob had made a nice offer of training but due to a number of things the Town was unable to take full advantage of that offer. Mr. Farrell was comfortable there were several people available and willing to act with Town Council Meeting Minutes—June 6,2002 Page 27 of 32 the judge's appointment until the Town could get the candidate that they had selected on board and trained. He stated that he had misunderstood what Councilwoman Nicola had in mind on this agenda item and he apologized. ayor Beydler said he had thought this item was for a proposed system since the Council might have to fill the gap temporarily with pro-terns. Judge Shoob clarified that the Council did not have the ability to appoint pro-tern judges. He reminded the Council that only the presiding judge had that ability. The Council might appoint the presiding judge, but the Council could not appoint a pro-tem. If the Council were to appoint a presiding judge, according to Arizona Law, it has to be for at least a two-year term. He restated that this issue was getting to be time sensitive. Judge Shoob referred to the fact that Councilwoman Nicola had requested a copy of the Town Code for Paradise Valley, which made him wonder what was going on. He stated that Paradise Valley worked on a volunteer judge system. They have an appointed judge that never shows up and who just appoints twenty-six pro-terns to come in. Judge Shoob commented that Paradise Valley's system was a complete and absolute disaster. When he learned of Councilwoman Nicola's request he became concerned that she might propose that system for this court. He asked if that was what she was proposing. Councilwoman Nicola asked if the opinion expressed by Judge Shoob regarding the Paradise Valley Court system was that of the Supreme Court. Judge Shoob said yes. He noted that the Supreme Court had been in there at least once that he knew of. Judge Shoob asked Councilwoman Nicola if she familiar with their Paradise Valley Court System. Councilwoman Nicola responded yes, for many years. Judge Shoob asked if she was aware that the Paradise Valley Court Volunteer System budget for this year was $377,000 and that the Fountain Hills' Court budget was $330,000. He reported that next year the proposed Fountain Hills Court budget was $330,000 (the same as before) and the Paradise Valley Court budget was to be $423,000. He did not think that was a very efficient system. He stated that the Fountain Hills Court had been operating within the court's budget for a number of years. He noted that the Fountain Hills' court had been cited by the Supreme Court as being a model court. The Fountain Hills Court had been put on a short list that helped train other courts and he did not have the slightest notion why anyone would try to reform this system unless it was something personal. Mr. Farrell confirmed with staff that agenda item #21 was the only item that must be determined tonight as long as the ,council was willing to entertain agenda items 22, 23,and 24 on June 11 after the executive session. Councilwoman Nicola asked if there was a pressing reason why the Council couldn't continue agenda items 25, 26, and 28 also to June 11t. Mr. Farrell agreed these items could be continued. Mr. Farrell said the Council needed to discuss the fire works issue and proposed that the Council could wait on the executive session(agenda items#26/27). Mayor Beydler asked if the Council concurred with Mr. Farrell, to move the balance of the agenda items to the meeting on June 11 and deal with one additional issue this evening (the fireworks). Councilman Kavanagh MOVED to continue the balance of the agenda items to the meeting on June 11 and deal with one additional issue this evening (the fireworks) agenda item#21 and Councilwoman Nicola SECONDED the motion, which CARRIED unanimously AGENDA ITEM #21 - CONSIDERATION OF TOWN SUPPORT OF THE JULY 4TH FIREWORKS PROGRAM. Mayor Beydler MOVED to approve town support of the July 4th Fireworks Program and Councilwoman Nicola SECONDED the motion. Mr.Farrell pointed out that it was staff's recommendation to not go forward with the fireworks. Fire Chief Scott LaGreca stated that his recommendation last week had been that the Fire Marshal not issue the fireworks permit for the July 4th shoot. Fire Chief Scott LaGreca read from a letter he recently submitted to Interim Town Manager Roy Pederson, which stated the Fire Department's concerns. He reviewed that the Fire Department's decision had prompted discussion from Town and community leaders, which was followed by their request for other options that might be acceptable to the Fire Department. He said even though he was not in favor of this, he had bowed to that request. He reiterated that the use of anal fireworks would pose a particularly high fire risk this year but through discussions with the Fire Marshal Zimmerman a fire works show could possibly happen under the following guidelines: • Fallout from the anal show would fall within the Fountain Park boundaries. The largest shell iktor size allowed would be 3"in diameter or less. • Fountain Hills Fire Department would make the final determination as to if the show should be produced to any weather related development. Town Council Meeting Minutes—June 6,2002 Page 28 of 32 • Should other emergency responses within the Town deplete the Fire Department recourses on site at the park, the show would be delayed until sufficient Fire Department recourses were available or cancelled if an extensive delay was apparent, due to wind affect created by the running of the fountain. • The fountain would not run during the shooting of the fire works axial display. • The Fire Chief had full and final authority to delay, postpone, or cancel the area shoot based upon public safety concerns. Fire Marshal Zimmerman proceeded with an overhead presentation, which showed the layout of Fountain Park and the proposed guidelines by which fire works could be allowed. He explained the problems that would be associated with allowing fireworks. He also discussed using the 4" ad *8" shell size and how that would affect the shoot. He expressed concern that the homes were now too close to the shoot area and it that was unacceptable per the fire code. Chief LaGreca explained what affect wind could play into the fire works shoot. He stated that if the Council should decide that the fire works should continue under their proposed guidelines, the Fountain Hills Fire Department would prepare and man appropriately to provide the Town and citizens with the utmost service and fire protection. He suggested that lasers be substituted for fire works. Mayor Beydler asked Parks and Recreation Director Mayer if they had looked into the availability of lasers as either a short or long-term solution. Director Mayer said yes. He briefed the Council on his findings. He asked Supervisor of Recreation Bryan Hughes to cover the associated costs and other issues. Mr. Hughes said that what had been planned was $15,000 for fire works. He said the cheapest laser show he found was $17,000 and that was just for "green" lasers. He noted that the top of the line laser show could run about$90,000. Mayor Beydler asked if the$17,000 laser show could be available on such notice. Mr. Hughes said it could be put together in time. Councilman Kavanagh said the laser shows he was familiar with had been in conjunction with fire works as lasers played off smoke. He had not been impressed with those laser shows especially without fire works. With only green lasers being available, he felt it would be a disappointing show. Vice Mayor Fraverd agreed with Councilman Kavanagh. She uggested that the Town have an old fashion 4rn of July celebration and skip the lights in the air. Mr. Hughes reminded the liktrZouncil that there were other cost considerations. Staff estimated that an additional $15,000 would be spent in support of putting on the event. Such costs would include staff wages (the streets department, marshals department and the parks and recreation department),port-a-potties, and related vendors,etc. He stated that the entire expenditure was closer to$30,000 for the event. Councilman Archambault asked Fire Marshal Zimmerman if there was a way to reposition the shells over the lake instead of straight up. Fire Marshal Zimmerman confirmed the fire works company did angle the shells as much as possible over the lake but there was only so far that they could angle them for safety reasons. Councilman Archambault asked if the Fire Department had considered shooting southward. Fire Marshal Zimmerman responded they would have the same distance problem, as the houses were too close. He said the only way to do it here was to float a barge. Councilman Archambault asked if he had looked into it. Fire Marshal Zimmerman confirmed that it was not a possibility this year. Fire Chief LaGreca said he did not know if the north end shoot would be the answer as it created other considerations. Fire Chief LaGreca said that he hated to rain on everyone's parade, but he had to consider the safety of the entire town. He again expressed concern for the extremely dry condition in the washes. He admitted to being more nervous this year than in years past but said the Fire Department would support the Council's decision. Councilman Archambault asked Public Works Director Tom Ward if it were possible to reduce the fire hazard situation in the washes. Director Ward responded no. Councilman Melendez remarked that this was a safety issue vs. positive economics. Jim Mycek,Firebrick(business owner) He favored the Town having fire works. Councilman Kavanagh asked what the differences were between this year and last year. Fire Chief LaGreca said in addition to more homes had been built in the area and Colony Wash having had tripled its size in one year there were the ,remely dry conditions to consider. Councilwoman Nicola asked if the staff had heard any citizen concerns about fire NNW L rks this year. There wasn't any reply. Town Council Meeting Minutes—June 6,2002 Page 29 of 32 Sharon Morgan,Mustang Dr. She did not favor the Town having fire works. (41/6r1ob Scarpetti,Glenpoint Dr. He was against the Town having fire works. Mayor Beydler said he represented the business community. He expressed this was one of the best business days of the year for the Town's small businesses. He said it would be a travesty if the Council could not be creative enough to come up with some compromise to support the small businesses community. Councilwoman Nicola added it also provided potential fund raising for vendors who attend the 4th of July event. Vice Mayor Fraverd suggested that the small businesses to band together and come up with a creative way of celebrating the 4th of July that was both safe and economical. She did not think that the Town's budget could afford it now and she was not willing to gamble on the fire issue. Councilman Kavanagh acknowledged that he knew that when the houses got too close things might change. He noted that if the fire works show were mediocre people would get restless and leave. If a serious fire were to spread, that would never be another fire works display. He expressed concern from a liability standpoint. He also did not want to lose the good faith of the residents in that area. Councilman Kavanagh said that if the Council wanted to at least consider continuing fire works for a year or two, then the Council better heed the advice of the Fire Marshal this year. Hopefully the conditions would be better next year. Councilman Kavanagh did not support having fire works this year. Mayor Beydler said he did not expect the Fire Chief to explode anything in the park. He felt the surest way to kill this event was to not have it at all. He felt the key was consistency. He suggested there was a mandate to consider and make the business health the number one priority in the community as safely and responsibly as possible. Councilman Kavanagh said Fire Marshal LaGreca had made reference to possibly canceling the event. Based upon the circumstances that he had discussed, he said he had the feeling that there was a significant possibility that might happen. Fire Marshal LaGreca reiterated that the fire danger was far greater this year than in years past. Councilman Kavanagh asked how many people attended last year's event. Marshal Tate was not sure but stated the entire western side of the park vas full from El Lago to Palisades. Supervisor of Recreation Bryan Hughes stated that Marshal Gendler used to give him 'imates following every 4th of July event. Last year it was 7,500 but Marshal Gendler had estimated crowds in the past to be as great as 15,000. Councilman Kavanagh said if there was a higher probability than normal of canceling this event,he was also concerned about having 10,000 people in a dark park and then being told they had come to Fountain Hills for nothing. He suggested that a crowd control issue might occur. Mayor Beydler disagreed with Councilman Kavanagh. Councilwoman Nicola said she supports having fire works. Councilman Melendez questioned that since the Fire Chief had advised the Council that it was unsafe to hold fire works and if the Council approved having fire works,would it open the Town to liability issues. Mr.Farrell responded he did not think the Town's exposure was any greater than it would be in any other year as long as the conditions and recommendations set by the Fire Marshal were followed. Councilwoman Ralphe asked if the Parks and Recreation Department had any thoughts on other types of 4th of July Town activities that could be offered to the public at the lake. Director Mayer agreed that was a possible and the challenge would be for staff to put something together in a timely manner. Sharon Morgan,Mustang She reminded the Council that the Town would have to pay for contracted services even if the fire works event were cancelled. Rocky Dziepak, 16316 E.Jacklin Dr. He hoped that the Council would base their decision on public safety but not because of budget issues. Sharon Hutcheson,Tumbleweed She said budget concerns were extremely important. She asked the Council to consider the safety of the public first. (low\ oll call vote was taken with the following results: Councilwoman Nicola Aye Councilwoman Fraverd Nay Town Council Meeting Minutes—June 6,2002 Page 30 of 32 Vice Mayor Kavanagh Nay Mayor Beydler ikory Councilman Archambault Aye Councilwoman Ralphe Nay Councilman Melendez Nay The motion FAILED on a vote of 4—3. Agenda items 22,23,24,25,26,27,and 28 were continued until June 11,2002. AGENDA ITEM#22 - CONSIDERATION OF THE RENEWAL OF THE BID FOR THE COMPASS AND JUST 4 TEENS PUBLICATIONS-BID#PR99-021. AGENDA ITEM #23 - CONSIDERATION OF AWARDING THE BID FOR THE ANNUAL LANDSCAPING CONTRACT-BID#02-01. AGENDA ITEM #24 - CONSIDERATION OF RESOLUTION 2002-23 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. AGENDA ITEM #25 - CONSIDERATION OF ACCEPTING THE RECOMMENDATION OF THE CITIZEN COMMITTEE FOR THE 2001/2002 DISTRIBUTION OF LOCAL TRANSPORTATION AUTHORITY FUND MONIES. AGENDA ITEM#26 - PURSUANT TO A.R.S. §38-431.03.A.4,VOTE TO GO INTO EXECUTIVE SESSION FOR: PURPOSES OF OBTAINING LEGAL ADVICE FROM THE TOWN ATTORNEY REGARDING PENDING OR CONTEMPLATED LITIGATION SPECIFICALLY: CLAIMS FOR LEGAL WORK DONE FOR THE FOUNTAIN HILLS VOLUNTARY FIRE DISTRICT BY THE FIRMS OF MARTINEZ AND CURTIS AND LV)WN AND BAIN;AND THE TOWN OF FOUNTAIN HILLS VS.BNY AND MERRILL LYNCH. AGENDA ITEM#27-RETURN TO REGULAR SESSION. AGENDA ITEM#28- CONSIDERATION OF DENIAL OF CLAIM FOR LEGAL FEES. AGENDA ITEM#29- CALL TO THE PUBLIC AND ADJOURNMENT. No one came forward. Councilman Kavanagh MOVED to adjourn the meeting and Councilman Melendez SECONDED the motion, which CARRIED unanimously. Mayor Beydler adjourned the meeting 3:05 a.m. L Town Council Meeting Minutes—June 6,2002 Page 31 of 32 TOWN OF FOUNTAIN HILLS By: Jo. :- . er,Ma 47 ATTEST: ,,4_(A .„ 1..t,t„„..., Cassie B. Hansen, Director of Administration/Town Clerk PREPARED BY: 1 4 2.-C,k-- d.�,�4 ) 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 6th day of June, 2002. I further certify that the meeting was duly called and that a quorum was present. DATED this 20th day of June 2002. Cassie B. Hansen,Director of Administration/Town Clerk Town Council Meeting Minutes—June 6,2002 Page 32 of 32