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HomeMy WebLinkAbout2002.0625.TCSEM.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE EXECUTIVE AND SPECIAL BUDGET MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL Now June 25,2002 Mayor Beydler called the meeting to order at 6:00 p.m. AGENDA ITEM #1 - PURSUANT TO A.R.S. §38-431.03.A.1., VOTE TO GO INTO EXECUTIVE SESSION FOR: DISCUSSION OR CONSIDERATION OF EMPLOYMENT, ASSIGNMENT, APPOINTMENT, PROMOTION, DEMOTION, DISMISSAL, SALARIES, DISCIPLINING OR RESIGNATION OF A PUBLIC OFFICER, APPOINTEE OR EMPLOYEE OF ANY PUBLIC BODY, EXCEPT THAT WITH THE EXCEPTION OF SALARY DISCUSSIONS, AN OFFICER, APPOINTEE OR EMPLOYEE MAY DEMAND THAT SUCH DISCUSSION OR CONSIDERATION OCCUR AT A PUBLIC MEETING. THE PUBLIC BODY MUST PROVIDE THE OFFICER, APPOINTEE OR EMPLOYEE WITH SUCH PERSONAL NOTICE OF THE EXECUTIVE SESSION AS IS APPROPRIATE BUT NOT LESS THAN 24 HOURS FOR THE OFFICER, APPOINTEE OR EMPLOYEE TO DETERMINE WHETHER SUCH DISCUSSION OR CONSIDERATION SHOULD OCCUR AT A PUBLIC MEETING. (THE COUNCIL WILL INTERVIEW CANDIDATES FOR INTERIM TOWN MANAGER ON MONDAY AND DISCUSS TOWN MANAGER CANDIDATES ON TUESDAY.) Councilman Archambault MOVED that the Council convene the executive session and Councilwoman Nicola SECONDED the motion,which CARRIED unanimously. AGENDA ITEM#2-RETURN TO SPECIAL SESSION. Mayor Beydler recessed the executive session and reconvened the special session at 6:20 p.m. Following the pledge to the flag,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 Leesa Fraverd, and Councilmembers Rick Melendez, Kathleen Nicola, Michael Archambault, Susan Ralphe, and John Kavanagh. Also present were Town Attorney Bill Farrell and Director of Administration/Town Clerk Cassie B.Hansen. AGENDA ITEM #1 - REVIEW AND CONSIDERATION OF THE PROPOSED BUDGET FOR THE TOWN OF FOUNTAIN HILLS FOR THE 2002-2003 FISCAL YEAR. ALL ASPECTS OF REVENUES AND EXPENDITURES WILL BE DISCUSSED AND CONSIDERED. Mayor Beydler reviewed where the Council had stopped in the budget review process. Mayor Beydler stated that Councilman Melendez had contacted the Maricopa County Treasurer's office to verify the Fire District fund balance effective June 25, 2002. He noted that the capital fund balance was $373,733 and the Maintenance and Operation Fund was $509,058. With regard to the monies included in the Pension Fund of $178,542, Councilman Melendez had been instructed that this fund was not to be used in accordance with any withdrawal. So the total fund balance was $882,791 as of June 25, 2002. He understood that there would be additional tax dollars that would trickle in. Ms. Ghetti said that was correct. Mayor Beydler asked if Ms. Ghetti was still comfortable with the projected$1.1M. Ms. Ghetti said she would be more comfortable with the County's numbers since she did not know what would come in between now and July 15th. She noted that included in the $1.1M would be the Pension Fund monies. It had been her understanding that the County was turning all of the money over to the Town after July Pt. She had been unaware of any restrictions on the Pension Fund. Councilman Melendez clarified that the County Treasurer Doug Todd's office had instructed him that the Pension Fund could not be part of the withdrawal. Mayor Beydler pointed out that the Council might want to consider that fact. Mayor Beydler asked if Director Hansen had an update regarding the issue of property taxes for the Town complex. Director Hansen said she had pulled the Town Council minutes from the two meeting regarding the lease. She stated that the final Council motion, as per the November 15, 2001meeting minutes, also was to have 6/25/02 Executive and Special Budget Meeting of the Town Council Page I of 24 the Mayor approve the execution of the master lease agreement once the insurance provisions were finalized as presented. The motion was seconded by Councilwoman Ralphe and was approved by the Council. Since that time,it was her understanding that the insurance issues had not been resolved so the lease remained unsigned. The answer that she got today, regarding the legal requirements of paying the property tax, was that the lease was not signed;therefore,the Town was not legally bound. That would not keep the Town from receiving notice to vacate the premises. Basically the Town was on a month-to-month basis right now. Mayor Beydler asked how much money was she talking about. Director Hansen asked if he was referring to the current monthly rate. Mayor Beydler said no. He wanted to know what the total was for the town property tax issue. Director. Hansen reiterated that the property tax had been calculated at approximately $100,000 for the next fiscal year. She clarified that the Administration Department Budget had been approved at last night's meeting with that figure included. Mayor Beydler covered that the Community Center Director's proposed plan of action regarding the rental rates apparently had a process to follow that would not result in the Council seeing anything that might include a recommendation for a new policy until later in the summer. Ms. Ghetti asked if the Council wanted to continue with the questions that had come up last night. She was prepared with answers. The consensus was to go forward with the report from last night. Ms.Ghetti responded to the Council's questions: • Litigation fees up to May, 2002,were$96,366. • Year to date prosecutor hours as of May,2002, were 1,412.2 hours. • Prisoner fees were estimated to be a $35,000 total expenditure. Jail fees received as of June 25, 2002, were$22,797. • Conferences, Dues, and Publication were decreased. Ms. Ghetti stated that as she met with each department, cuts were made that would not jeopardize any certification, accreditation, or affiliation. She stated she had prepared and distributed a detailed memo to the Council. Councilman Kavanagh asked what the savings were regarding Conferences,Travel,&Dues and Publications. Ms. Ghetti stated the savings on conferences was $19,900 for all general fund departments. Travel savings were $12,150. Savings as related to Dues and Publications were $8,686. Councilwoman Ralphe noted that the savings totaled roughly $40,000 and she was pleased with this process. She questioned whether or not the Council should Lir have been talking to staff earlier in the process. iftw Councilwoman Ralphe MOVED to adopt the revisions as in the proposed budget according to these departmental recommendations and Councilwoman Nicola SECONDED the motion. Councilwoman Nicola and Councilwoman Ralphe thanked staff for revisiting these items. The motion CARRIED unanimously. Ms. Ghetti continued with the Community Development Department Budget. She commented on the Salary and Benefits section noting a significant difference in health insurance. She explained that some of the increase was attributable to vacancy savings in addition to having new employees having different medical insurance requirements. She stated the total reflected the community development director vacancy in there that was funded at full overage. Ms. Ghetti stated that Interim Community Development Director Jesse Drake was present to discuss any questions that the Council had regarding either the Community Development Department or the Building Safety Department. Councilman Kavanagh asked if the $20,000 decrease in contractual services was due to more in-house labor. Interim Director Drake replied the drop was due in part to a reduction in some of the commercial plans that staff had in-house. The Target site was wrapping up and the Fry's project was complete. Staff did not know whether or not this budgeted amount would actually cover the costs needed for next year but staff was investigating other methods to have third party review where the applicant would pay for a part of the review costs. The Town would produce a little less income in that methodology,but it was a way for the Town to save on this year's budget. John Wyman,Jacklin Dr. He asked that the Council refer to page 17. He pointed out this department had been consistently bringing in between 40 - 50% of the Town's revenue. In these two departments the Council wanted to be careful that they didn't neglect being able to inspect new construction or work in a timely manner with the developers or the Town would be shooting themselves in the foot. The Town would not want to see the revenue stream slow down just because staff could not service it. 6/25/02 Executive and Special Budget Meeting of the Town Council Page 2 of 24 Mayor Beydler asked if the Council wanted to consider Community Development Department and Building Safety Department as one department. The Council indicated that was agreeable. thkee Ms. Ghetti talked briefly talked about the Building Safety Department Budget. She reviewed that under the Low Salaries and Benefits there was a reduction. She acknowledged that the Chief Building Official left and that position was now vacant and unfunded. Other than that there weren't any changes to Salaries and Benefits. Councilman Archambault asked if the same number of employees would be maintained in the two departments. Ms. Ghetti reminded the Council that once a position was no longer funded, it was no longer authorized. The Chief Building Official position would become a zero unless the Council decided to change it. She further explained that any position that was not funded would become unauthorized and these sheets would have to be revised. She referred to the schedule that she had handed out yesterday that outlined the changes for New and Vacant Positions 2002-2003. Councilman Archambault stated that the total wages reflected wages for eight full- time employees. Ms. Ghetti said that was correct. Interim Director Drake pointed out that she would be addressing some of the staffing issues for this department through the supplemental requests. She did not want to go into those issues at this time because the Council had indicated they wanted to review the supplemental requests at the end. As this department currently exists, staffing was operating 27% short. Councilman Melendez thanked Mr. Wyman for the time and effort that he has devoted to examining the budget for the Council. Councilman Melendez said although he was very interested in the issue of the Chief Building Inspector,he would prefer to move on and hold that to the end. Councilman Kavanagh MOVED to approve the Community Development Department and the Building Safety Department Budgets as presented contingent upon Councilwoman Ralphe's motion. Councilman Archambault SECONDED the motion. The motion CARRIED unanimously. Ms. Ghetti continued with the Public Works Department Budget. Included behind that tab was the Streets Department Budget. She commented that Tom Ward was the department head. She explained that because the Le Streets Department was not funded through the General Fund she would talk about it after the General Fund discussions were complete. She explained that the Salaries And Benefits for the Public Works Department showed an increase because during this past year the Engineering Department and-the Public Works Department had been merged into one department. It was now called the Public Works Department. Both prior departments had been included in the request total for next fiscal year but both departments were not reflected in the revised estimate numbers or in the budget from the prior year. She restated that there weren't any staffing changes. This was only a consolidation of those two departments. Councilman Archambault asked what was included in the Dam and Wash Maintenance item of$150,000. Public Works Director Ward reviewed how those funds would be used. Councilman Archambault questioned if the $200,000 under Median/Landscape Maintenance included the contract recently approved by the Council. Director Ward replied yes. The contract was for Parks and Recreation as well as for Public Works. This was their portion of that contract. Councilman Archambault asked what the $8,000 electricity charge was for. Director Ward responded that encompassed all of the clocks, the water feature at Palisades/Shea, and any pumps that would move water. He recapped it basically covered all medians and Town owned property. Councilman Melendez commented he has had residents' inquire about the entrance to Fountain Hills from the Beeline Highway. He asked Director Ward what could be done to improve the surface of the entrance into Town. Director Ward said he had a bare bones budget this year and did not have any plans to improve on that area. Staff would be looking at creative ways to do those types of things. He suggested that someone might come along such as a developer who would be moving trees or doing any type of development on.which the Town could possibly talk them into helping with the aesthetics of Shea Boulevard at that entrance. Director Ward noted that MCDOT would be coming into Town this fall and they would be resurfacing the east and west end of Shea Boulevard. He stated when he would be discussing the Street Department, he would be asking for budget approval to finish off the resurfacing of Shea Boulevard. Councilman Kavanagh inquired if MCDOT would resurface Shea Boulevard from the Beeline to Saguaro. Director Ward responded they would not go all the way to Saguaro Boulevard but 1/410. the Town would take care of the small distance left. 6/25/02 Executive and Special Budget Meeting of the Town Council Page 3 of 24 Mayor Beydler said he did not see any markers when coming in from Scottsdale that indicated you've entered Fountain Hills. Director Ward acknowledged that had been quite a discussion in the past with the developer. At one point the Town had worked with the Arts Council on the possibility of an entrance sign up on the hill on the north side. He did not know what the status was. He proposed that staff would reopen the dialogue with the developer. Mayor Beydler asked who the developer was. Director Ward replied MCO. Mayor Beydler asked Director Ward to look into this and report back to the Council. Director Ward replied he would. Councilman Kavanagh thanked Director Ward for designing and installing new service club announcement monuments at the Fountain Hills entrance. Director Ward reported that the project came in under the budget and provided the Town with a$7,000 savings. Mayor Beydler asked if the budget was sufficient to keep up with the street cleaning project. Director Ward said that would be addressed during the Streets Department Budget. Councilwoman Ralphe MOVED to approve the Public Works Department Budget as presented contingent upon Councilwoman Ralphe's motion. Councilman Archambault SECONDED the motion. The motion CARRIED unanimously. Ms. Ghetti moved on to the Parks and Recreation Department Budget. Ms. Ghetti proposed that the Council consider the parks and recreation programs as one whole package. She stated that Parks and Recreation Director Mark Mayer was present for any questions. She covered that there were no staffing.changes with the exception of the three Parks and Recreation intern positions that the Town has typically utilized for the past several years. These positions and the funding for them had been eliminated. Councilman Kavanagh asked Director Mayer to highlight any major changes to the operation. Director Mayer commented this was a bare bones budget and was significantly different from his original one. The original budget that he submitted was for $3.1M and this budget was less than half. He felt that this was the biggest change. He noted that a lot of the original budget had been tied to the scheduled improvement for Fountain Park and the skate park. Their goal had been to maintain their operations. However, cuts were made to the program areas, which would make it a challenge to reach the projected revenue numbers. Staff was convinced that if they rnw could work with the Parks and Recreation Commission, and with the support of Council, some adjustments could be proposed so that they can realize those revenues that they were seeking.• Mayor Beydler asked how the Heritage Fund worked in association with the Town's matching funds for Fountain Park improvements. Director Mayer gave a brief history of this fund. He listed proposed projects that were involved. He stated that this week he had talked with a representative from Arizona State Parks who administers that grant on behalf of the federal government. He had argued that because the Town was using land and not cash the Town should in fact still be eligible for a match of that $237,000. He acknowledged that he did not get an answer but he was not told no. He had been encouraged by that conversation. Director Mayer had also asked that if the Town could not package the grant in that particular way, was there some other mechanism that could be utilized if the Town needed to come up with some dollars. He noted that the project would probably have to be scaled back considerably. He felt the only caveat was that typically the project was ranked by the number of elements contained in the grant. Therefore, some of the points that the Town had previously received might be compromised. He stated he has asked that the Arizona State Parks look at that consideration too but no final ruling has been made. Councilman Kavanagh asked if the grant would be available through next year. Director Mayer relayed that the Town would have up to eighteen months to start the project. Arizona State Parks has been known to grant extensions. The Town might have up to three years to complete the project. Director Mayer reminded the Council that an additional source of revenue would be the development funds. There would be a possibility of using a portion of those funds if and when that became necessary. Councilwoman Ralphe asked about the new programs and the expanded programs. Director Mayer reviewed how the budget was put together. He listed the programs for next year. Councilwoman Ralphe commented that with funding tight this year it was the right time for Parks and Recreation to be able to offer seven expanded programs and add six new ones from funds contained within their bare bones budget. 6/25/02 Executive and Special Budget Meeting of the Town Council Page 4 of 24 Vice Mayor Fraverd expressed concern that the Youth and Teens programs were losing money. Director Mayer responded that it depended upon the nature and location of the program. Sometimes it was not possible or practical to charge a fee. He stated that staff has a commitment from the Parks and Recreation Commission to look at fees in general. Director Mayer stated that he would come back to the Council in the future and seek their support for some adjustment to their fees. Staff would be looking at ways that they could institute a fee or increase a fee if justified. Vice Mayor Fraverd MOVED to approve the Parks and Recreation Department Budget as presented contingent upon Councilwoman Ralphe's motion. Councilman Kavanagh SECONDED the motion. The motion CARRIED unanimously. Ms. Ghetti continued with the Public Safety Department Budget. She stated that this budget contained two departments (the Marshals Department and the Fire Department) with two separate department heads. She proposed starting with the Marshals Department. She talked about the Salaries and Benefits noting that there were seven vacancies that were not funded and were not included in the budget. She confirmed that there was an increase in the budget due to officers that had been previously funded by state grants. She explained that these grants would be expiring and the Town's General Fund would now pay for those positions. She stated that Interim Town Marshal Tate was present to answer any questions. Councilman Archambault asked what was the total dollar amount of the grants that ran out from last year to this year. Interim Town Marshal Tate responded that the department had one grant position (school resource position) that was not filled. There were two grant-funded positions under public property protection. One of those positions was now fully funded by the Town and the other grant-funded position would run out in September with the Town acquiring responsibility for funding. Councilman Archambault asked if the Town was looking to fill the school resource position. Interim Town Marshal Tate confirmed that position has been filled. Councilman Archambault asked for clarification. He said there was a grant that would fund the school resource position. Was that cost included in the Marshals Department budget? Interim Ms. Ghetti responded that the only portion that was included in this budget was the General Fund contribution for one grant officer. She restated that the grant Lie would run out in this next fiscal year so that position would be partially funded by the grant and then fully funded by the General Fund when the grant runs out. What was seen in this budget was only the General Fund portion of this grant position. Councilman Archambault asked if the Town would lose the position if it weren't filled. Interim Town Marshal Tate said that was correct. Councilman Melendez questioned the employee count listed in the budget summary vs. the verbiage on page 133. Ms. Ghetti explained this had been her original misinterpretation of authorized FTE. She had been under the impression that once a position was authorized the position was forever authorized. She referred to the updated list of new and vacant positions town wide that had been distributed to the Council. This listing showed that if the position was not funded the positions would not be authorized. Ms. Ghetti confirmed that the Marshals Department had lost seven officers, which were not funded and therefore not authorized. She noted that on page 133 in the column for 2002-2003 Authorized FTE it should read a total of 19. Councilman Kavanagh asked for the breakdown. Ms. Ghetti reviewed the breakdown as being 1 - Town Marshal, 3 - Sergeants, 8 - Deputy Marshals, and 7 -Dispatchers. Councilman Archambault asked how many dispatchers were currently employed. Interim Town Marshal Tate replied six with one position yet to be filled. Councilman Archambault asked about the $54,000 for capital expenditures. He referenced a statement made yesterday that eight hand held radios would be made available to the Marshals Department. He asked if that was what the $54,000 was to be used for. Interim Town Marshal Tate clarified this line item would be used to equip the remaining 10 patrol cars with the new mobile radios. Councilman Archambault asked how large was the fleet. Interim Town Marshal Tate replied 15. Councilman Archambault reflected that a new grant would bring in a new vehicle. He asked if they would be retiring a vehicle. Interim Town Marshal Tate said that could be done although they had not done this in the past because those older cars had been utilized when their newer vehicles were down for maintenance. Councilman Archambault asked if the Town was getting the lowest rates when buying these radios or was there room to move the pricing lower. Interim Town Marshal Tate deferred to Sgt. Ken tkor Martinez who reviewed the purchase process. He explained the Town would purchase the radios under the state contract pricing. He described the differences between the new radios and the old ones. Councilman Archambault 6/25/02 Executive and Special Budget Meeting of the Town Council Page 5 of 24 asked if the radios had multi-agency frequency capabilities. Sgt. Martinez responded yes. Councilman Kavanagh asked if once the radios and the consoles were installed would the Sheriffs and the Marshals be on the same frequency within Fountain Hills. Sgt. Martinez responded not exactly. The departments would be able to talk to each other but not in that way until all of the radios were converted. Interim Town Marshal Tate confirmed that he had talked with Captain Scott Penrose of the MCSO who said they would loan the Marshals up to eight of the portable hand held radios. Captain Penrose acknowledged that the Sheriffs Office would be able to donate radios to the Marshals Department until it was feasible financially for the Town to purchase them. With the installation of the radios in the vehicles and the portable radios all should be on the same frequency and would be able to talk to each other. Councilman Kavanagh pointed out that the whole idea behind these radios was to have the both departments on the same frequency all of the time,not just for emergencies. Everyone was to work together. Captain Penrose said that was correct. They would be on the same frequency between departments and everyone would know what everyone was doing. It was in the spirit of cooperation and officer safety that the Sheriffs Department made the commitment to this communication effort. Interim Town Marshal Tate agreed that with the eight portable hand held radios both departments would be on the same frequency. Councilwoman Nicola remarked that the second phase would convert all portable radios to the new system and that was what she had based comments on yesterday regarding the Senior Center. She felt what she was hearing tonight was different. Interim Town Marshal Tate explained what the radio installation and purchase timeline was to have been. Councilwoman Nicola acknowledged that she had not found the money that she had thought could be used for the seniors. Councilman Melendez asked Captain Penrose what he meant that the radios would be loaned to the Marshals Department until it was financially feasible for the Town to purchase the radios. Captain Penrose confirmed that there was no time limit on this loan. Councilman Archambault asked if the Town was receiving rent monies from the Sheriffs Department for the space that they occupied. Ms. Ghetti responded that next year the Town would not be charging the Sheriffs Department rent. She explained that the Sheriffs Department was a full cost recovery expense. This meant that everything that cost the Sheriffs Department would have to be turned around and Lcharged back to the cities or towns. Last year the Town got away with the fact the Sheriffs Department did not charge back the cost of the rent to the Town. This year it showed up in the contract. It did not make sense to charge the Sheriffs Department rent when they would in turn charge the Town back for that same amount. Councilman Archambault pointed out that was not what their contract said. Captain Penrose clarified that when the County Board of Supervisors approves a contract they ask that it be a total cost recovery or a zero balance on everything. All the Sheriffs Department wanted was to recover the money that they put in. They could not lose money, as the County Board of Supervisors would not approve such a contract. He stated that they would take care of the maintenance; supplying all furniture, computers, and equipment and supplies that go into the actual building they need to operate the facility.just not the rent. The rent had to be recovered in order to meet the Board of Supervisors standards. Councilman Archambault commented that when the $1.5M Sheriffs contract was approved it appeared that was not the total cost to the Town. Ms. Ghetti stated that Mr. Pederson had recommended that instead of the Town billing the Sheriffs Department for rent and then the Sheriffs Department rebilling the Town for that same amount, it would be better to alleviate the paperwork and not charge the Sheriffs Department in the first place. Therefore, the Sheriffs Department did not have to put it back into the contract. Councilman Archambault stated that the point he was trying to make was that the Town was paying for a lease of $375,000 plus the property tax and the Town just keeps absorbing the costs with everyone taking office space. He felt that the contract read in such a way as that the Town should not be absorbing those costs from the Sheriff's Department. Councilman Kavanagh did not think it was proper to put Captain Penrose on the spot when it was the Town's own manager who said to do it this way. He did not have any objection next year to rewriting the contract. Mayor Beydler asked Captain Penrose if there were any other total cost recovery items outside of the lease for offices that the Town would incur. Captain Penrose responded none to his knowledge. Councilman Archambault asked how much the space was worth per month that the Sheriffs Department occupies. Ms. Ghetti deferred to Director Hansen, as she knew the square footage and the square footage cost. Director Hansen stated that the amount was approximately$20,000, which included some fees for cleaning the space. 6/25/02 Executive and Special Budget Meeting of the Town Council Page 6 of 24 Councilwoman Ralphe said that from year to year the Town had been carrying forward a police capital reserve in the amount of $250,000 involving the Marshals Department. She asked where that reserve was located. Ms. Ghetti responded that the amount was not there. In going through the budget process and staff did not have prior knowledge about the outcome of the BNY funds,they were placed in a difficult position to try and come up with a positive fund balance, let alone a carry forward that would be acceptable. The acting town manager made the decision not to include the$250,000 reserve. She explained that the$250,000 was an appropriation every year and it wasn't an actual bank account established or set up for that purpose. She restated that it had been an annual appropriation that was not included in this next fiscal year. Councilwoman Ralphe questioned if it would be a good idea to put it back in,just in case the Council wanted to switch to a Town owned police department. She felt the Council owed the citizens a flexible budgeting process, not only here but also in other departments. The Council needed that flexibility to be able to do things in a possible new way. John Wyman,Jacklin Dr. He pointed out that the funds had not disappeared. He asked that the Council refer to page 17. He noted where that line item was now reflected. Regarding the rent charge, he reiterated that it was a wash. If the Town charged the Sheriffs Department for rent, the Sheriffs Department in turn would invoice the Town for that same amount. He said that Mr.Pederson had been right. Councilman Archambault MOVED that $250,000 be placed back into a Police Department Capital Reserve for fiscal year 2002-2003 and Councilwoman Ralphe SECONDED the motion. Vice Mayor Fraverd said that it was critical that the money stay in the Town's carry over, as that was 1/6 of the funds that the Town would have going into the next year. To take this out and put it into capital expense for the Marshals Department was severely limiting the Town's ability to use that money for something else that the Town might need. Why would the Council want to plug this sum into one department and not have it available for all departments or anything else that the Council might want to use it for. She said she would not be supporting the motion. Councilman Kavanagh agreed with Vice Mayor Fraverd. He noted that money was being put into the development fees for law enforcement and the money was not going anywhere. He felt the community had enough controversy without unnecessarily opening up a Pandora's box. It would be switched when the Council actually began to firm up a policy. He asked why start unnecessary problems. Mayor Beydler said that the budget was the most important document that the Council would create in a year. This was the blue print, road map, and the plan. He said he would support this motion. A roll call was taken on the motion with the following results: Councilwoman Nicola Aye Vice Mayor Fraverd Nay Councilman Kavanagh Nay Mayor Beydler Aye Councilman Archambault Aye Councilwoman Ralphe Aye Councilman Melendez Nay The motion carried on a vote of 4—3. Bob Travis,Chinook Plaza He asked if the Marshals Department would be dispatched on the Sheriff's frequency or would the Marshals have to switch their radios to the Sheriff Department in order to communicate with them. Interim Town Marshal Tate understood that they would have to switch their radios to the county's frequency for it to work. He did not understand the plan to work with them all on the same frequency 100% of the time. Mr. Travis said he did not understand why the there was a hiring freeze on a grant position that didn't cost the Town anything. He asked why the Town was not filling that position. Vice Mayor Fraverd reminded everyone that grants only paid for those positions for so many years and after that the Town did have to fund those positions. She pointed out that the Town was currently paying for a number of positions now that previously had started out as grant positions. That was how the Marshals Department had grown to be so large. It was found during the Kavanagh plan that the Town did not need that many Marshal 6/25/02 Executive and Special Budget Meeting of the Town Council Page 7 of 24 officers, yet the Town was still paying for these officers because they had been funded by grants and now they were not funded that way. Ir° Councilman Archambault MOVED to approve the Marshals Department Budget as amended, contingent upon Councilwoman Ralphe's motion. SECONDED the motion. The motion carried on a vote of 6 - 1. Vice Mayor Fraverd cast the nay vote. Ms. Ghetti continued on with the Fire Department Budget. She stated this budget was the second department contained within the Public Safety Department Budget. Since the Town contracted for services with Rural Metro there weren't any salaries or benefits. She pointed out that the majority of the Fire Department's budget was the Rural Metro contract. She acknowledged that Fire Chief Scott LaGreca was present for any questions. Councilman Archambault asked Fire Chief LaGreca about the line item for Gas and Oil. Fire Chief LaGreca explained this amount was to pay for the gasoline used at the new fueling site located at the fire station. Previously Rural Metro had paid for the fuel directly to the Red Rock Gas Station. With the inception of the new fuel site,the Town's fire department consultant, town manager, and Rural Metro decided that Rural Metro would transfer that money over to the Town and reduce their contract amount by $20,000. That money would be paid directly to the Town and the Town would supply the gas for the fire trucks. Councilman Archambault said that the Council had been shown a one lump sum contract and not an itemized budget. He made the point that under Section 2.7,Paragraph B of the approved Rural Metro Contract it stated that "in the event of an unusual circumstance Rural Metro would retain the right to document and request an additional increase for specific items such as fuel and insurance. The Town would retain the sole authority to approve or disapprove that request." He felt that implied that Rural Metro would be paying for the gas or Rural Metro would not be corning to the Town for a fuel increase. Fire Chief LaGreca said he was under the impression that there had been several items in the contract that had been brought up at last month's Council meeting. When this contract was approved this item was to be stricken along with several others and a section was going to be added to state Lthat the Town would pay it.. Fire Chief LaGreca said that in Rural Metro's budget$2,000 had been kept under the fuel account. If they exceeded the$20,000 that had been allocated to them by the Town,then they would have the ability to pay the Town anything over and above the $20,000 allocation. Fire Chief LaGreca admitted he had not seen a fresh copy of the contract that was to have been rewritten and submitted to the town attorney for his approval and the signature of the mayor. Councilman Archambault asked if the contract was to be readdressed that the Council has never seen. Fire Chief LaGreca clarified that the Rural Metro contract had been adjusted down approximately $54,000 with $20,000 for fuel and $10,000 for ambulance rental agreement with the rest was for depreciation and interest. It was also stated in the contract that the Town owned all of the tools. Councilman Archambault restated that was not what the contract said. Fire Chief LaGreca responded that he had not negotiated the contract but he knew how it was to perform. Councilman Archambault said he did not remember seeing anything that took out Section 2.7. Fire Chief LaGreca stated that he would call his supervisor tomorrow and make sure that was taken out. Dave Hansen He felt that the Fire Department budget was confusing. He asked where the operating costs were shown. Bob Travis,Chinook Plaza He noted an approximate increase in the Rural Metro contract of$200,000. He also asked where the operating costs were. He did not see $33,000 in the budget for prevention that the former Fire Board had been required to have. He was concerned that Fire Safety was being cut. Fire Chief LaGreca responded that public education was absorbed in the Rural Metro contract and there wouldn't be any decrease in those programs. He confirmed that there would be a senior citizens program brought on line. He noted there was a $20,000 line item in the Town's budget for replacement of equipment such as hoses or axes if broken. If broken by neglect, then Rural Metro would pay for them. This past year all hoses had been replaced so they did not anticipate requiring new hoses unless there was damage at a fire. He acknowledged that regarding tho, building maintenance repairs, some costs had been included in the Town's budget. Over the past six months they had replaced one air conditioner in Station 1, 4 swamp coolers, all springs in the over head doors at Station 2, a 6/25/02 Executive and Special Budget Meeting of the Town Council Page 8 of 24 new ice machine in Station 2 electrical work and several other minor capital items. It was his opinion that going into this tight budget year,the Fire Department was in excellent shape as far facilities unless something unforeseen happened. Mayor Beydler asked where in the proposed budget would he find such a line item that would pay for some of these equipment and maintenance repairs. Fire Chief LaGreca responded that $20,000 had been allocated under office supplies. This was the category chosen because of the differences in the Town's terminology vs. Rural Metro's. Mayor Beydler asked about the issue of additional costs for water and electricity or infrastructure expenses. He questioned where in this budget would those expenses appear. Fire Chief LaGreca stated that under the Rural Metro contract they would be paying for all utilities, phone usage, gas, and minor outside and inside maintenance. The only thing that the Town would pay for would be for things such as an air conditioner. Rural Metro's contract covered the rest of the items. Mayor Beydler directed staff that when this contract comes to his desk for signature that he would like to see the motions passed by this Council that reflect the changes so that he felt there was authorization to approve those changes as mentioned earlier. He wanted to see the backup for the changes made to the Rural Metro contract before he signed it. Fire Chief LaGreca apologized for the fuel embargo language as he had been under the impression that was going to be taken out. He said that language would be removed. He pointed out that with the new fuel site located at the Fire Station, one of the benefits that the Town derived was that the electricity used to supply the pumps was paid for under the Rural Metro contract. He expressed that was a small benefit to the Town. Councilman Kavanagh MOVED to approve the Fire Department Budget with the stipulation that the fuel embargo section be amended as discussed at the original council meeting when the Council approved the contract. Vice Mayor Fraverd SECONDED the motion. The motion carried unanimously. • Ms. Ghetti stated that concluded the General Fund budget with the exception of the Supplemental Requests. She asked if the Council now wanted to entertain the Supplemental Requests from the public or staff members. She Lexplained that if the Council wanted to approve any of those items, the costs for those items would have to be added in. Once that was completed, the Council would have finished the General Fund Budget review. Mayor Beydler outlined the format the Council would follow for the review the Supplemental Requests. Vice Mayor Fraverd asked if staff had been keeping a running total of budget cuts made so far. Ms. Ghetti responded she had been making a mental note but she had not looked to see what affect the changes were having on the budget. She estimated that the budget carryover was down to $1M with $250,000 held in reserve for the Police Department. Vice Mayor Fraverd questioned if the$250,000 could only be used for the Police Department the way it was voted on. Ms. Ghetti stated although she was not an attorney but she assumed it could be allocated for whatever the Council directed. Vice Mayor Fraverd referred to an earlier discussion she had held with Ms. Ghetti having to do with the Town being able to fund Rural Metro's contract the following year (not this fiscal year). Vice Mayor Fraverd said she had asked Ms. Ghetti if the bond had passed at the May election, would the Town would have enough money to fund that contract. Ms. Ghetti's response had been that if the voters had approved a property tax for$2.4M in May that would be added to the Town's revenues estimated at $10.4M. If everything stayed the same, meaning all the contracts and expenses stayed the same,the Town could fund the Fire Department but it would eat into more of the General Fund carry forward with the Town ending up with close to a zero General Fund carry forward at the end of next year. Ms. Ghetti said that it could be done but that would be assuming that"everything stayed the same". Vice Mayor Fraverd had then asked how much money would the Town need to start the next fiscal year in order to fund the Rural Metro contract. Ms. Ghetti did not remember the figure. Vice Mayor Fraverd confirmed that Ms. Ghetti had stated the amount needed would be$1.5M. She pointed out that currently the budget carry forward was at$1M and even if the bond passed, the Town would not be able to fund the Rural Metro contract. She stated that was a problem. Mayor Beydler moved forward with the supplemental requests beginning with the Town Council Supplemental Request that consisted of the single line item for$4,500 for participation in the Sister Cities Program. Ms. Ghetti noted that she was unsure where these requests had come from so the Council might want to address this to a staff person. Director of Administration/Town Clerk Cassie Hansen said her best guess was that this was a carry 6/25/02 Executive and Special Budget Meeting of the Town Council Page 9 of 24 forward from the current fiscal year. Funds had been included to host a statewide daylong conventions of sister cities in Fountain Hills and to fund travel expenses for students to go the Town's sister city. She did not believe that there was any specific request for this budget item. Councilman Melendez said that under the conditions that exist in the budget he moved that this item be removed. Mayor Beydler clarified that individual motions would not be necessary unless the Council wished to add or delete items in the budget. Mayor Beydler asked Director Hansen to discuss the items listed under the Administration Supplemental Requests. Director Hansen stated she had talked with all entities that had put in a special request. When talking with the School District, Dr. Hermie had gone over their funding requests line by line. Director Hansen pointed out that the School District's request this year was for the same amount that the Town had funded for the last five years. It included funds for additional custodial staff, security at home games, the materials for the cleaning and resurfacing of the gym and cafeteria floors at the middle/high school that would cover events that were sponsored by the Town,and funding for additional monitoring/surveillance personnel on campus and its perimeter,for a total of$50,800. Dr. Hermie noted that with the opening of the new middle school, the School District felt they would not need as much security. They felt the location of the new middle school might solve some problems. The School District described their situation, as they would be greatly impacted if any of the funding for those items were reduced. Councilwoman Nicola asked if the Town had sufficient marshals to assist the school district with security concerns. Director Hansen acknowledged that it was Deputy Marshals that were there now for game security. Councilwoman Nicola asked if that was overtime. Director Hansen said yes as it was separate from their normal work hours. Councilwoman Nicola asked Interim Town Marshal Tate if deputies scheduled could be readjusted to accomplish this in-house. Interim Town Marshal Tate clarified that if Councilwoman Nicola was talking about security for special events,games,etc. that the Marshals Department had covered those over the last few years. He stated that game security could require anywhere from two to three officers. Some of the special games needed Lmore officers due to the crowd and other factors. A few years back the school had requested coverage for football games, basketball games and an occasional volleyball game. Each year the Marshals Department has been provided a schedule of those games for which the School District was requesting coverage for which the Marshals Department would submit the required School District paperwork. Eventually the officers were paid from the School District and the Town reimbursed the School District. Councilwoman Nicola restated her question. Was it possible for the Marshals Department, under the circumstances, to adjust the deputies' schedules so that their regular on-duty shifts could help cover some of those security needs rather than the deputies working their regular shift and being paid extra by the School District for off duty work. Interim Town Marshal Tate explained that this coverage had to be provided by those officers not on duty so that it did not impact or affect their coverage of patrol of the Town. Councilwoman Nicola questioned if the unfunded grant for the school resource officer could be used or if something could be worked out with the sheriffs' posse or reserves with a complement from the Marshals Department's regular shifts Councilman Kavanagh asked if the Marshals reserves could be used. Interim Town Marshal Tate noted that the reserves were volunteers. He pointed out that certified reserves working off-duty jobs were paid. The community officers who were not certified police officers were not open to work those events. Councilman Kavanagh inquired if the certified reserves ever worked for free. Interim Town Marshal Tate said they were required to work a minimum of 16 hours per month for which they were not paid. Councilman Kavanagh asked if they could be scheduled to work the evening school events. Interim Town Marshal Tate stated that it was hard for the Marshals Department to dictate when they volunteer since they donate their time and they have full time jobs. He said he could try, but reiterated that they were volunteers. Captain Penrose addressed the possibility of the Sheriffs Posse assisting in this area. He stated that if he were provided a schedule of events he would give it to the Fountain Hills posse commander. He did not think finding personnel to cover would be a problem. Councilman Melendez acknowledged that this could be a great savings to the community. Mayor Beydler asked what amount had the School District requested for this particular issue. Director Hansen responded $2,500. Mayor Beydler asked for information on the campus security issue. Director Hansen said the School District's terminology was security Livpeople. Mayor Beydler asked if they wanted marshals. Director Hansen said no, these would be school district personnel that they have on campus. Mayor Beydler asked how this was the Town's responsibility. Director 6/25/02 Executive and Special Budget Meeting of the Town Council Page 10 of 24 Hansen gave the history of the requests. She stated those requests represented what had been called "special programs" in the budget. They were community-based programs that originated when outside groups would 1/460 approach the Council and ask for funding through the Town's budget. Most of those requests over the years had become annual line items under "special programs". Traditionally the Town had supported the School district in the only way that they could. The Town could not just give them money. It had to be through services. When these requests started,the School District put together requests and asked the Town to fund certain services where they were suffering a shortfall. Vice Mayor Fraverd reminded everyone that in the past the Town Council has done the very best that they could to help the School District, but this year the Town's budget was in tough shape. She was not sure that the Town could help them this year. She could not support this. Councilman Kavanagh asked how much of this request was the Town incurring from out of pocket expenses to the school district based upon the Town's presence on their campus. Director Hansen apologized that the information that the Council had before them was the only information that she had. She did not know the in-depth details of their requests or needs. She did not know how that would impact any programming with Parks and Recreation if they wanted to utilize the school's campus. She did not know if they would be told they could not use the facilities because there weren't any scheduled clean ups. Councilman Kavanagh suggested that the Council should get a detailed listing from the School District. Mayor Beydler asked if anyone was here from the School District. No one came forward. Mayor Beydler said that the Council's feeling was that unless there were more hard costs as Councilman Kavanagh has requested,there wasn't any sentiment to support any particular amount. John Wyman,Jacklin Dr. He knew that the Boys and Girls Club used school facilities every afternoon. He guessed that some of the custodial service went for cleaning up after those kids. He wanted the Council to keep that in mind. Councilwoman Nicola understood that the Town provided maintenance to the school fields. Director Ward acknowledged that the Four Peaks School Park landscape maintenance was paid under the Parks and Recreation budget. Councilwoman Nicola thought a reciprocal agreement existed for use of school property in exchange for maintenance support by the Town. Director Ward was unaware of such an agreement. Director Mayer acknowledged that the Town had a joint powers agreement with the School District. The Town shares facilities with them and they in turn use the Town's facilities. The Town would also provide field access and preparation at no cost. In turn,the School District has provided facilities to the Town at no cost. Mayor Beydler moved on the Community Benefit Program Supplemental Request. Director Hansen reiterated that this program had been traditionally funded at the amount of $80,000. One year the amount had been cut to $40,000 because of the expenditure limitation problems. She explained that this was the other grant-funding program that the Town provided in the fall. Various groups in Town would make application for Community Benefit funds. She noted that there wouldn't be anyone present to specifically request those funds. Councilman Kavanagh suggested that in an effort to save time that if a council member wants to consider adding an item that he or she bring it up for discussion instead of running through every item. Michael Fleck, 14018 N.Viento He acknowledged that volunteers ran all these programs. The bang for the buck that the Town received from this line item was probably triple. Mayor Beydler continued with the McDowell Mountain Preservation Supplemental Request. Roy Kinsey, Chairman of the McDowell Mountain Preservation Commission (MMPC) addressed their request for$8,500. He listed what the original request would have been used for. In light of the budget restraints he asked that the Council consider funding$500 for a one-day open house(McDowell Mountain Month). Mayor Beydler moved forward with the Chamber of Commerce Supplemental Request. Judi Yates came forward stating that she was representing the Chamber of Commerce. She explained that they were asking for $9,000, which was for three events: Thanksgiving Day Parade, Stroll the Avenue, and the Luminarias. They felt these events were important to the community. She acknowledged that they utilized many volunteers: Mayor 6/25/02 Executive and Special Budget Meeting of the Town Council Page 11 of 24 Beydler asked what would happen to the Thanksgiving Day Parade if the Council did not allocate the$3,000. Ms. Yates did not know as the Chamber was in a financial crunch also. Ckaw Councilman Melendez MOVED to approve funding for the holiday. Ms. Yates stated that all the events were holiday events. Councilman Kavanagh pointed out that a lot of these events began as privately funded events. Over the years the Town has picked up some of the costs for events that the Town did not start. He did not see traditional events go away but this year it was not realistic for the Town to bear the entire burden. He noted that this Town had come together in the past and had a great history of volunteerism, which he thought still existed. Councilman Kavanagh suggested that Councilman Melendez change his motion and authorize$4,500 as matching funds to only be allocated if the Chamber, through their own funding or contacts, could match the $4,500. Councilman Melendez rejected Councilman Kavanagh's suggestion. Councilman Melendez AMENDED his own motion to approve funding for all events in the amount of$9,000. Director Hansen clarified that in conjunction with the Stroll there was a cost of$25,000 associated with putting up the lights and all displays. She stated that the cost did not exist in the proposed budget so the cost of hanging the lights would have to be addressed. Councilman Archambault pointed out that was a professional company's charge for putting up the lights. Director Hansen confirmed that was correct. He asked if volunteers could be found to do that this year. Councilman Archambault pointed out that the Town had a fire truck with a ladder. He volunteered to get on the ladder. Fire Chief LaGreca stated that his staff had expressed that they would be more than happy to get involved in stringing the lights this year or in any other way to assist the merchants. He proposed that some of the Street Department personnel could help them. Councilman Archambault thanked Chief LaGreca for his offer. Director Hansen interjected that using a professional company to hang the lights was based upon an agreement that was made with the Town Manager two years ago with the Civic Association when the decorations came to the Town. She said that this Council could certainly make a new agreement. Mayor Beydler SECONDED the motion. Councilman Kavanagh moved to AMEND the amended motion allocating $4,500 to the Chamber as matching funds to only be paid if the Chamber could come up with matching funds of$4,500 and Councilwoman Nicola SECONDED the amendment. Rocky Dziepak, 16316 E.Jacklin Dr. He suggested that if the Chamber was in trouble then all were in trouble. He liked participating in the Holiday events. He was concerned that Judi Yates stated that the Chamber was in trouble. He volunteered to look over their books and assist them. He wanted to give the Chamber$9,000. A roll call vote was taken on the amendment with the following results: Councilwoman Ralphe Aye Councilwoman Nicola Aye Mayor Beydler Nay Councilman Kavanagh Aye Councilman Melendez Nay Councilman Archambault Aye Vice Mayor Fraverd Nay The amendment CARRIED on a vote of 4—3. A roll call vote was taken on the amended motion with the following results: Councilman Melendez Aye Councilman Archambault Aye Councilwoman Ralphe Aye Mayor Beydler Nay Vice Mayor Fraverd Nay Councilman Kavanagh Aye Councilwoman Nicola Aye Liw. The amended motion CARRIED on a vote of 5—2 6/25/02 Executive and Special Budget Meeting of the Town Council Page 12 of 24 Mayor Beydler continued with discussion of the funding for the Substance Abuse Prevention/Intervention Program Supplemental Request. Director Hansen said that this was a Town-sponsored program that has evolved over the last four years into something that had become workable and an effective tool in the school. A vendor by the name of EVAC was used in the school. Their director was very encouraged by what has taken place over the last year. Director Hansen had explained to them what the Town's financial situation was and asked if they could continue the work that they were doing in the schools if they were funded at the same amount being paid this year. The director felt they could be affective with that amount. They have provided drug education, intervention and referral services. She noted that the Town also received $8,000 from the School District to help support this program. Director Hansen proposed that if the Town could fund $8,000, combined with the $8,000 from the School District, it was felt that the program could be funded at the level of this year. Councilman Archambault clarified that she was requesting the request of$20,000 be reduced to $8,000. Director Hansen responded yes. Councilwoman Nicola MOVED to accept staffs recommendation and approve $8,000 for the Substance Abuse Intervention Program for the school year 2003. Councilman Archambault SECONDED the motion. The motion CARRIED unanimously. Mayor Beydler continued with discussion of the Senior Services Supplemental Request. John O'Flynn (President of Senior Services) and Nancy Olson(Director of Activities) spoke. Mr. Flynn stated that they were pleased with the facilities (the old library space) and thanked the Council for what they've done. Councilman Kavanagh asked what the amount was that they were looking for. Mr. O'Flynn said their request was for$42,500. He commented that they provided home delivered meals(for eleven years)for which they received some grant funding. He noted that the Senior Center received$10K from Sun Ridge Foundation and$30K from the Piper Foundation. The Piper Foundation grant was designated for equipment needed for the move to the new facilities. He stated their major problem was that they could not find any grant money to help defray overhead costs, primarily salaries. That was the area where the seniors needed help. Councilman Archambault asked what their annual operating budget was. Mr. O'Flynn responded $115K. Councilman Archambault questioned the line item"building maintenance"in the amount of$6,950 and asked for clarification. He thought that the Town provided maintenance to that building. Ms. Olsen responded that they paid their own cleaning fees and performed their own upkeep or renovations. Councilman Archambault MOVED to adjust the Senior Services figure to $40,000. Councilman Archambault asked Mr. O'Flynn to address the issue of the sink. Mr. O'Flynn said that they missed not having a kitchen. They had requested that the Facilities Supervisor look at the feasibility of putting in one small sink with a little workspace. They found a discharge outlet outside Ms. Olsen's office. He said that the original request of$5,000 for the sink could be decreased to $3,500 and they would pick up the other $1,500 out of the Piper Fund. Councilman Archambault put some of the people in the audience on the spot who work in the building sector. He asked them if there could be some interaction between the builders' association and the senior center in order to help them put the sink in if someone could be found to donate the materials. They nodded in agreement. Councilwoman Nicola suggested that Councilman Archambault could provide the cabinetry. Councilman Archambault said that something would be figured out. Councilwoman Nicola SECONDED the motion. Vice Mayor Fraverd asked if the seniors were charged to participate in the different programs. Was that the way that they make up the difference between what the Center was asking from the Town and their total operating budget of$115K? Ms. Olsen explained that the bulk of their funding came from grants and donations and contributions. She mentioned that they did charge an annual participation fee for the Senior Center of$10 per calendar year. If there was an instructional overhead they would charge to cover that fee. Vice Mayor Fraverd suggested that they should double their fees. She asked Mr. O'Flynn if he had told her that he felt they could get by with $20,000 or $25,000. Mr. O'Flynn remembered stating that would be the absolute bottom line and at the end of the year they would be broke. Vice Mayor Fraverd reiterated that was much like the situation the Town was in. Carol Ayers,Bradford Drive She stated she was a volunteer who puts in approximately 60 hours per month. She said the older seniors were very happy with the various activities that were offered. She would hate to see the Senior Center close down because they did not get the funding, as it would be a personal disaster for them. She asked that the council approve the$40,000 request. Mayor Beydler felt that seniors and children needed the Council's support the most. L Councilman Archambault encouraged the Senior Services Director to look for more grants next year, as the Council did not know how lean the budget might be. Mr. O'Flynn stated that he and his board's objective was to 6/25/02 Executive and Special Budget Meeting of the Town Council Page 13 of 24 be as financially independent as possible. He said that they would be aggressively pursuing grants. The motion CARRIED on a vote of 6— 1. Vice Mayor Fraverd cast the nay vote. Ntio Mayor Beydler continued with the Boys and Girls Club Operations and Capital Supplemental Requests. Rich Schultz, Vista Del Lago — Director of the Boys and Girls Club discussed his funding needs. Because of the Town's budget crisis, they reassessed their funding requests. He submitted that both the Capital Request and the Operating Request be reduced to$50K each. He noted that it was critical due to matching grant requirements that they receive at least $50K with regard to the Capital Request this year. Mayor Beydler acknowledged that Mr. Schultz had met with him last week. He asked Mr. Schultz to explain, without identifying the source, what the Town stood to lose if the Town did not attempt to match funds especially in the capital area. Mr. Schultz said that he was 98% sure that the Town would lose$500,000 and that would be a significant blow for the community. He felt that the Teen Center would be thrown away first. He stated that was the most critical need. Mayor Beydler asked if the money was coming from the federal budget and Mr. Schultz confirmed that it was. Mayor Beydler noted that it was a 10 to 1 match at this point. Councilman Kavanagh MOVED to approve $50K for Capital and $50K for Operations for the Boys and Girls Club as requested. Vice Mayor Fraverd SECONDED the motion. Vice Mayor Fraverd asked Mr. Schultz if he would be back next year looking for more capital money. Mr. Schultz said yes as that would be part of the commitment. Vice Mayor Fraverd asked if he would be looking for $50K per year for 5 years. Mr. Schultz replied yes it would be for 5 years or there could be a one-year delay in their receiving $50K. Vice Mayor Fraverd asked what the time frame was. Mr. Schultz asked if he could come back later in August to give an update report and timeline. Mayor Beydler said that he had a problem with funding the $50K for Operations. Mr. Schultz stated that the Bureau of Justice gave the Boys and Girls Club $20K because the Town gave the Boys and Girls Club the $50K. He stated that the chosen location was the best place because that opened the door of"educational grants"to them. He said he could see that$50K request going down instead of going up because of that funding opportunity. Mayor Beydler asked if Mr. Schultz could take any less than$50K. Mr. Schultz said not this year,but yes in a couple of years. kirov Wally Nichols,Hawk Dr. He stated that he was on the Board of the Scottsdale Boys and Girls Club representing Fountain Hills as well as the Chair of the Advisory Board of the Boys and Girls club here in Fountain Hills. He noted that there were 2,800 kids in Fountain Hills and presently over 700 were being serviced by the Boys and Girls Club. Of the 700, about 40% were going for free. He supported funding the Boys and Girls Club Capital and Operational requests. He mentioned that there was an individual in Scottsdale who would contribute another$500,000 to help out the Town of Fountain Hills. Mr. Nichols stated that if this individual did not see some kind of Town support for the capital project he might back away from the project. The Town had the potential of losing not just$500,000 but$1M if this requested funding was not approved. Michael Fleck He supported funding both requests made by the Boys and Girls Club from a user's standpoint and that of a former executive of three different non-profit human/health agencies. Phil Gaziano, Sierra Madre He spoke in support of funding the requests made by the Boys and Girls Club. The motion CARRIED unanimously. Director Hansen asked for clarification as to if the Council wanted to make a motion regarding the MMPC's request for$500. Mayor Beydler stated that if the Council did not offer a motion there wasn't any. Councilman Melendez said he thought the Council had overlooked this issue. He noted that the funds were for a one-day event and it was important to continue with this effort for the preservation people. Councilman Melendez MOVED to approve $500 for the MMPC's request as presented and Councilwoman Nicola SECONDED the motion. The motion CARRIED unanimously. LMayor Beydler recessed the meeting at 9:30 p.m. and reconvened at 9:40 p.m. 6/25/02 Executive and Special Budget Meeting of the Town Council Page 14 of 24 Mayor Beydler continued with the Information Technology Supplemental Request. Mr. Putterman stated that in light of the budget cuts and the sacrifices that people were making, there wasn't anything in this information technology supplemental request that the Town couldn't do without. He noted that the delivery of services to the citizens this year would not be impacted. He suggested that the Council could move forward with the next department supplemental request. Mayor Beydler continued with the Community Development/Building Safety Departments Supplemental Requests. Community Development Interim Director Drake removed issues 2 & 3 from the Community Development section and items 2, 3,&4 from the Building Safety section of the supplemental requests. She asked for the Council consideration on the staffing issues. This was where their concerns were. She spoke about the Community Development position first. This part-time staff person has worked for this department for about 2 '/2 years. In that time because this department was short staffed, she has been progressively taking more responsibility. In the beginning a portion of her responsibilities were secretarial but now she was doing plan review, research, helping at the counter, and assisting the building department although she has yet to attain full- time status. Interim Director Drake affirmed that she would like to have her become full-time. She believed that this person was very deserving especially in light of the new responsibilities. Interim Director Drake stated the position that she was requesting regarding the Building Safety Department was that of a Chief Building Official. She pointed out that staff has been working very hard to form an alliance with the development community. Even though the department had made improvements, they were 27% short in staff. As of today, 50% of the positions that this department had vacant were senior staff positions. The department was very concerned because these were the people who had the experience,expertise, and authority to make decisions. She felt it was detrimental to the department to only have lower level positions. After the resignation of the Chief Building Official last January, there had been a nationwide search. She announced that the search had been successful but the candidate withdrew last month. At that time,the Town had started experiencing some of budget constraints and the acting town manager withdrew the funding for this position. Interim Director Drake stated that the department has been frozen without a chief building official since January and now the department was not able to fill that position. Staff was very concerned. Interim Director Drake said she met with the contractor's ithiy association because of this concern. She announced that they would be speaking about their concerns. Interim Director Drake explained that last week the department experienced the loss of another Senior Inspector, which was a funded position. Although the department would prefer to have both positions staffed, staff respectively requested that the Council replace the funded vacant senior inspector position, and reinstate the Chief Building Office position because his skills were needed so much more. She stated that the actual dollar increase that was being requested was between$15,000 and$18,000. Councilwoman Nicola MOVED to adopt the requested amounts of$14,100 for the administrative assistant and make it a full-time position with benefits for the Community Development Department Budget and fund the Chief Official in the amount of $73,600. Councilwoman Nicola directed staff to fill this position first and then re- evaluate the need for the senior building inspector position in a few months. She did not want to take it out of the budget at this point. Councilwoman Ralphe SECONDED the motion. Vice Mayor Fraverd asked Interim Director Drake if she was only looking for an additional $15,000-18,000 and not the $73,600. Interim Director Drake responded that the amount that she had referred to with regard to the$15,000-$18,000 was if the department did not fund the senior inspector position. If a new position was funded it would be for the $73,600 amount with benefits. Councilman Archambault asked if the $73,600 was a comparable wage to pay a Chief Building Inspector. Interim Director Drake explained that this figure represented salary and benefits. The actual salary was considerably less than that. Councilman Archambault restated that there were two positions now vacant in the Building Safety Department (a Senior Building Inspector and Chief Building Official). Interim Director Drake stated that the Community Development Department actually had four positions vacant: Senior Planner or Community Development Director position, Chief Building Official position, Senior Building Inspector position, and the Building Technician Clerk position. Councilman Archambault said he understood both departments run together but he had only been trying to break it down to the Building Safety Department. He asked how many building inspectors remained on. staff. Interim Director Drake responded two. Councilman Archambault commented that there had been four. Councilman Melendez asked what salary range would Interim Director Drake expect to pay for a Chief Building Official. Mid-range, depending upon experience? Interim Director Drake did not know what a new candidate would accept. The prior Official was making approximately $65,000 6/25/02 Executive and Special Budget Meeting of the Town Council Page 15 of 24 and the candidate accepted the position at $55,000. She anticipated that it would take approximately $58,000 to hire someone. Lip, Councilman Archambault asked if there were other candidates that Interim Director Drake would re-evaluate from the nationwide search that was done. Interim Director Drake commented that the original candidate who had accepted the Town's offer had wanted to come to Fountain Hills but he had personal family problems could not come at that time. When the 2nd candidate withdrew, staff contacted the original candidate and found out that he was still interested in coming. It was at that point Interim Director Drake was told that they could not do a hiring at that time so that position had been frozen. The original candidate has not been contacted since. She would prefer to have that candidate before anyone else and before any more money was spent advertising and time was spent interviewing. She stated that the Town had not made this individual an offer. Councilman Kavanagh asked for clarification. Would this motion add the two positions included in supplemental request and add the position back in the main budget? Interim Director Drake confirmed this motion would add one position. It would also change a half time position to a fulltime position and allow a vacant senior building inspector position(already in the budget)to exist with an option to fill it in the future. Councilman Kavanagh said the senior building inspector was vacant and therefore unauthorized. Interim Director Drake reminded Councilman Kavanagh that the position only became vacant two weeks ago so it was funded in the budget at the time it was put forth. The money would remain in the budget; it just would not be spent. Councilman Kavanagh asked why would it be put in the budget if the money were not going to be spent. Interim Director Drake acknowledged that would be up to the Council. Councilman Kavanagh AMENDED the motion to not fund the Senior Building Inspector position. Councilman Melendez asked for clarification on the cost of funding the positions. Interim Director Drake said that if the Council were to fund both the Chief Building Inspector and Senior Building Inspector positions,there would be an increase of the $73,600 plus the $14,100 for the Administration Assistant. She explained that what Councilman Kavanagh was suggesting was that the Chief Building Inspector position be substituted for the Senior Inspector position,which was acceptable to the department if necessary. Mayor Beydler asked if this approach would work. kby Interim Director Drake said that staff hoped so. Councilman Melendez SECONDED the amendment. Councilman Archambault thought the budget was for both positions but with the urgency to fill the Chief Building Official position first and later in the year fill the other position. Interim Director Drake pointed out that Councilman Kavanagh's amendment rescinded the second position (Senior Building Inspector). Councilman Archambault asked what the workload of the three building inspectors had been. Interim Director Drake had compared last year's total inspections from January-June of last year to this year's inspections. The results were that approximately 200 less inspections had been made this year but that number of inspections had been performed with one less inspector. She expressed that although staff had been able to complete those inspections it had not been easy, resulting in overtime. She discussed the different ways that staff has tried to compensate including departmental cross-training to avoid a lack of customer service. Councilman Archambault asked if Interim Director Drake was telling the Council that with the three inspector positions the department was severely handicapped. Interim Director Drake said the department was handicapped but managed for the last six months to complete inspections. Councilman Archambault stated that he would not be supporting this amendment. Dennis Brown, San Diego Circle He said it was unacceptable to have three inspectors. He spoke in support of the department's need for a Chief Building Official and a Senior Building Inspector. Gordon Pittsenbarger,Cholla Dr. (Representative from Licensed Contractor's Association) He spoke in support of the department's need for both positions: a chief building official and Senior Building inspector. Tony Woodrell, 16230 N.Edgewater(member of the Licensed Contractor's Association/citizen) He noted that this department has created anywhere from 49-69% of the Town's income over the years. He Loy supported filling both positions. 6/25/02 Executive and Special Budget Meeting of the Town Council Page 16 of 24 Ken Krudder He spoke in support of filling the Chief Building Official and Senior Building Inspector positions. He encouraged L the Town to fill both positions. Fire Chief LaGreca echoed the Fire Department's support for having a Chief Building Official. He noted that he had a deputy fire marshal performing various inspections. He felt if his deputy fire marshal was involved in the cross training process, his deputy fire marshal could assist in completing a portion of Town's inspections in addition to inspections currently performed for the Fire Department. He offered to discuss this option with his Fire Marshal to see if they could come up with a plan to share resources and assist that department. Interim Director Drake said that was exactly what they've been doing with other departments that have people who want to volunteer. She said they would be happy to cross train. Councilman Kavanagh did not challenge that there was a need for the chief building inspector, or increasing the part time assistant to full time, but the issue was the additional inspector. He felt that was borderline. With the offer from Rural Metro, he felt this was a great opportunity to be creative. He felt the town could enter into a whole new spirit of cooperation and tax savings. Councilman Archambault disagreed. He said that he has seen overloaded inspectors miss some major items not intentionally but because they had 30 or 40 inspections to complete that day. They would allow only ten or fifteen minutes in order to hit every inspection. He did not think that on a huge house there would be any way that the inspector could perform the inspection within fifteen minutes. He noted that their workload was not letting up any since the Town was down to two inspectors. It was clear to him that the work was being spread out over existing staff. He expressed concern that the Town might be opening themselves up to liability. Interim Director Drake interjected that there were certain certifications that were required to do the inspections. Even though staff was cross training, they would have to be certified in the different areas. She explained that staff did not know from day to day what the inspection calls would be for. There might be staff available who were not qualified to do the inspections. By having senior staff available, there would be people available to do all of the inspections. Mayor Beydler echoed Councilman Archambault's position. Councilman Kavanagh asked the Council to be realistic. On one hand the Council said the Town is in a crisis not only because of the fire tax but because the building permits were down. Yet the Council is saying they will maintain staffing at the same level even though permits were down. That logic did not make sense to him. In the face of a generous offer from Rural Metro to help pick up the slack, he did not understand what was going on. He noted that the Town was getting near build out. Would the Council tell these full-time new hires that perhaps in eight years they would be laid off because of the lack of work? He suggested that this might be the time to combine the help from Rural Metro with contracting. One of the reasons for the financial crisis was the decrease in building permits. He questioned how the Council could say there was a need to maintain the same level of inspections when permits were down. Mayor Beydler reiterated that permit counts had dropped by 200 out of 4,500 the first six months of this year. Interim Director Drake acknowledged that the permit count was down, but the inspection counts were not and that was the issue. She agreed inspectors were overburdened and overworked. Before some of the cross training these inspectors were working overtime every single day of the week. The problem with cross training was that these individuals might not be qualified to do the inspections required for that day. She was not denying that these people should be used, as she was very happy to have them. Interim Director Drake did not want to have a health and safety issue with people not qualified to complete the inspections. Regarding the use of contractual services, she pointed out that was one of the line items that had been taken out of their main budget this year. Their department did not have any funding in the budget to call in someone from the outside if they became overrun with inspections. Staff would have to do this in-house. Councilman Kavanagh asked why it could not be contracted out if it was cheaper. Interim Director Drake expressed it was not cheaper. The Town would not get the quality of the inspections that the community needed. Councilman Kavanagh asked about the long-term issue of build out and personnel issues. Interim Director Drake said the Town might be approaching build out, but she felt that the Town would experience a surge of redevelopment. The trend was already apparent,as there were homes in Town that were 20—30 years old. She felt they would see a cycle of new construction on old lots. Li Councilman Melendez asked if the Chief Building Inspector position was filled, what would be the percentage of non-filled positions then be. Interim Director Drake replied that they were four short out of a staff of fifteen. That 6/25/02 Executive and Special Budget Meeting of the Town Council Page 17 of 24 would still put them three short. Councilman Melendez asked what it would be if both positions were filled Interim Director Drake said they would be two short. She clarified that the reason they only requested the filling ikse, of the chief building inspector was they did not have the second position (Senior Building Inspector) available. That was a recent development. The amendment FAILED on a vote of 5 2. Councilman Kavanagh and Vice Mayor Fraverd cast the nay votes. The motion carried on a vote of 6— 1. Councilman Kavanagh cast the nay vote. Ms. Ghetti continued with the Parks and Recreations Department Supplemental Re9uests. Parks and Recreations Director Mayer covered three items. He requested funds to reinstate the annual 4rn of July celebration in the amount of$13,000. The second item was for a full-time parks operations worker for Golden Eagle Park in the amount of$34,400. The last item was funding for Fountain Park—Phase II in the amount of$1,000,000 with an additional request for$110,000 in design fees. He briefly justified his reasoning for wanting to fund these three items. He noted that there were representatives from the VFW and the American Legion who were concerned about the status of the Veterans' Memorial associated with the Fountain Park project. Councilwoman Nicola MOVED to approve the $13,000 as requested for the 4th of July Celebration. Councilman Archambault SECONDED the motion. Councilman Kavanagh briefly restated his previous objections for opposing this item. A roll call vote was taken with the following results: Councilman Melendez Aye Councilman Archambault Aye Councilwoman Ralphe Aye Mayor Beydler Aye Vice Mayor Fraverd Nay Councilman Kavanagh Nay tkiw Councilwoman Nicola Aye The motion CARRIED n a vote of 5 -2. Mayor Beydler asked about the engineering and design fees for the skate park at Four Peaks Park ($36,100). He was interested in such a park for the community. Director Mayer said the proposed location of the skate park was in the northwest corner of Four Peaks Park. This design fee would put the Town in a position to have the documents prepared to bid that project. Director Mayer noted the architect's estimate to construct the skate park was $250,000. Councilman Archambault acknowledged that this would provide the plans. He asked if Director Mayer would seek input from adults in the community to help design the park. Director Mayer said yes. Vice Mayor Fraverd noted that there was money available in the Parks and Recreation Development Fees expenditure account. She asked if they were interested in spending any of that. Director Mayer responded that at this point the Parks and Recreation Commission had asked that this be pursued under a general budget request rather than through the Parks Development fees. Vice Mayor Fraverd said she might be interested if they went into the Parks Development Fees, which had been allocated just for them. Director Mayer restated that he was following the recommendations of the Parks and Recreation Commission. They wanted to build a cash balance in that fund as it was anticipated that by this time next year that the fund would double to approximately $450,000. Prior discussions had been to try to build the fund up to a comfortable level so that if they were in a position where they needed to acquire some property for park purposes or develop a park there would be a significant funding available. Councilman Kavanagh asked Director Mayer what the time frame would be on the plans. Director Mayer responded it would be a longer process than normal because of the public participation. He felt the plan could be done in a manner of months. Councilman Kavanagh did not mind going for the fees now. He thought that the design and the construction could be piggybacked next year. He noted it would be a bad message to deny community groups' funding and turn around and spend $36,000 on design fees when the Council could instead delay the construction by a couple of months next year. Councilman Kavanagh agreed using the development fees would be a good thing now. 6/25/02 Executive and Special Budget Meeting of the Town Council Page 18 of 24 Mayor Beydler asked Director Mayer to talk about the water feature at Golden Eagle Park. Director Mayer said that this item was almost on the bottom of their list. This was an existing water feature at that park. They had a request from some of the public who use that park to replace it with a different one. Councilman Kavanagh asked if this was an upgrade. Director Mayer said it would be a replacement and upgrade. It was a wish list item. Merit Miller,Tanglewood Court(Post Commander for Veteran of Foreign Wars) He introduced his senior vice commander who spoke on behalf of the American Legion and their Post. Carl Prop,Senior Vice Commander and Chairman of the Veteran Memorial Committee, 12606 N Via Del Sol. He reviewed the history of this project and the current status. He noted that the Veterans would continue to do everything that they could so see that this project happened. He stated that they've collected and would continue to collect monies for the memorial. A drawing was displayed depicting their concept of the project. He explained they were also actively pursuing the cannon itself. They were asking for two things: money for the veteran's memorial pad this year with one flag pole and for the Town to accommodate them as best they can to they could come up with innovative ways to get things done. He gave an example of finding a contractor that would build a wall for the brass plaques for nothing. They would like to take advantage of the offer without going through a long bidding process and all things that went with it in order to minimize the red tape that would possibly turn off a benefactor. He pointed out that most of their members were WWII veterans and they don't understand the delay. Councilman Kavanagh agreed that this had started a long time ago. He acknowledged that many who wanted this memorial were WWII veterans. If this waited another year they might not be here to see it. Councilman Kavanagh MOVED to fund the slab. Councilwoman Nicola asked how much money was involved. Director Mayer explained the special requirements of this slab. He stated the cost range was up to $15,000 with another 15% associated for the design of the slab. Councilman Kavanagh directed staff to work with the veterans and contact the building trade organization for assistance. He felt that since the Council had approved additional manpower to make the contractor's jobs quicker, they would have more free time that they might be to assist with this project and cut the Town's costs. Mr. Prop said they already had some contractors identified who were more than willing to help them as long as the veterans were able to get the Town's assistance on the paperwork side. kbe Councilman Kavanagh felt the veteran's should handle the pole. Councilman Kavanagh added to his motion that funding should not exceed $15,000. Councilwoman Nicola SECONDED the motion. The motion CARRIED unanimously. Ms. Ghetti continued with the Marshals Department Supplemental Requests. She recognized that Marshal Gendler had made these requests but Interim Town Marshal Tate was present to address any questions. Interim Town Marshal Tate covered he had not been aware of three items on the list. He asked that requests 2, 3,and 4 be removed. He discussed the need for the full-time Administrative Assistant. He was requesting a civilian supervisor for the dispatchers. Councilman Kavanagh asked how much work the night dispatchers performed. Interim Town Marshal Tate commented that they received more calls and did casework data entry and filing. Vice Mayor Fraverd remarked that the Marshals Department was managing coverage with six dispatchers. Interim Town Marshal Tate observed that it was a struggle. Vice Mayor Fraverd asked if the 7th dispatcher could be made the lead dispatcher so that they could handle both categories. Interim Town Marshal Tate described the problems that would create. He stated that when he became the Marshal one of his main objectives was to reorganize the department in order to have full coverage and a supervisor for those dispatchers. Vice Mayor Fraverd asked why Interim Town Marshal Tate couldn't assume those duties. Interim Town Marshal Tate explained that he would have to be able to step into the dispatchers' rotation. His duties as the Marshal would not permit him to take on these additional duties. Councilman Melendez asked if they had seen an increase in calls to the dispatchers. Interim Town Marshal Tate said the number of phone calls had steadily risen as well as walk up traffic. He recognized there was a need to have more than one dispatcher available to handle the radio traffic, phone calls, and walk up traffic during their busy times. Councilman Archambault asked if development fees could be used to help defray the costs of that person. Interim Town Marshal Tate deferred to Ms. Ghetti. Ms. Ghetti replied that use of the development fees was restricted to itiliby capital items for the Marshals Department. 6/25/02 Executive and Special Budget Meeting of the Town Council Page 19 of 24 Councilman Kavanagh MOVED to approve the Administrative Assistant for the Marshals Department in the amount of$42,600. Councilman Archambault SECONDED the motion. Councilman Melendez believed that the tlisv heart and soul of the Marshals Department were the dispatchers. He said they did a great amount for their community. Councilman Kavanagh said that since this was a replacement position, he felt it was a reasonable use of manpower. The motion CARRIED unanimously. Ms. Ghetti stated the final supplemental request was from the Public Works Department. Public Works Director Ward reviewed there were twelve priorities present in their requests. He gave a brief description of each project. Councilman Kavanagh asked what the current operational status was of the fountain and two waterfalls located on Ave. of the Fountains. Director Ward replied they were operating but the material was not in the best shape due to age. Ms. Ghetti stated that concluded the General Fund and this would be the appropriate time to vote for adoption of the General Fund Budget. Mayor Beydler asked if Ms. Ghetti had a total on these items. Ms. Ghetti reviewed the summary of changes made. She stated the total to be added to the budget was approximately $562,600. Mayor Beydler asked what the carry forward would be. Ms. Ghetti responded the carry forward would be just under $1M. John Wyman,Jacklin Dr. Asked if the total reflected the changes from the previous budget meeting including the need of $100,000 for property tax. Ms. Ghetti replied that was not included in the numbers just discussed. Mr. Wyman reminded everyone that the $100,000 would reduce the carry forward. He said his calculations showed the Town down to less than $800,000 by the end of the fiscal year 2003. His totals took into account the changes from the previous day's budget meeting as well. Mayor Beydler asked if Mr. Wyman's carry forward included the discrepancy found between the initial amount of$1.1M from the Fire District Funds and the $858,000 discovered today. Mr. Wyman said yes. Councilman Kavanagh noted that the Town had a considerable amount of money in funds that had been set-aside for other purposes that were not legally restricted. In a dire emergency there were other places to go for funding. Vice Mayor Fraverd agreed that was true. However, if at the end of this year the bond for fire protection passes, the Town would not have enough money to pay for Rural Metro's funding. She asked Ms. Ghetti to provide a better ballpark figure that the Town would require to fund that need before the Council made their final budget approval. Mayor Beydler asked if the Council felt there was a need to appoint a citizen based group to look into not only the short term and near term financing the needs for the community, but also look further out. He recognized that this was a community that had many wants and needs. He felt the Council needed to be responsible stewards each fiscal year and into the future. He thought this would be a good item to agendize for the Council's retreat. Councilwoman Nicola MOVED to approve the General Fund Budget as amended. Councilwoman Ralphe SECONDED the motion. Vice Mayor Fraverd AMENDED the General Fund to move $250,000 from the Marshals Capital Fund back into the General Fund. Councilman Kavanagh SECONDED the amendment. Councilwoman Nicola said she would support this. Vice Mayor Fraverd asked the Council to reconsider their position and support this. It did not mean that the funds could not be used for the Marshals Department. This just opened those funds up for whatever the Town needs were. Councilman Kavanagh concurred and reiterated that this was not a vote concerning law enforcement but fiscal flexibility. Mayor Beydler thought it was a mistake to move it in the first place. He said he would not support this. Councilwoman Ralphe said this figure had been in the budget for several years and put there for a purpose. She said she would not support this. She agreed with the Mayor that the budget was a blueprint. Councilman Archambault said he would not be supporting this, as he wanted to see the fund safeguarded. He said the funds could be moved in the future if the need arose. Vice Mayor Fraverd asked Ms. Ghetti if funds could be moved once the funds had been allocated for a certain portion of a budget. Ms. Ghetti 6/25/02 Executive and Special Budget Meeting of the Town Council Page 20 of 24 responded she did not know. She understood that the Council could appropriate at anytime during the year if the Council was talking about taking funds from one category to another category within the General Fund. She tittow clarified that the Council would not be able to increase the amount. Mayor Beydler expressed concern that if the money was taken out of reserve now when the Council discusses having their own Police Department in the future,the first argument that he would hear was that the Town did not have any money allocated for this purpose. He reminded everyone that the new Council had not had this discussion yet. A roll call vote was taken on the amendment with the following results: Vice Mayor Fraverd Aye Councilman Kavanagh Aye Councilman Melendez Aye Councilman Archambault Nay Councilwoman Ralphe Nay Councilwoman Nicola Aye Mayor Beydler Nay The amendment CARRIED on a vote of 4—3. The vote was taken on the amended motion CARRIED unanimously. Ms. Ghetti continued with the budget review. She explained that the remaining funds were Special Revenue Funds that were dedicated and restricted for specific purposes. The first revenue was the Highway User Revenue Fund. These revenues were received from the gasoline tax and lottery funds. The revenues from this fund had to be used for road and street purposes and could not be transferred to the General Fund or used for any General Fund purposes. Director Ward reviewed the Street Department Budget that was contained on page 103. Councilwoman Nicola asked Director Ward to review the major road improvements that would be completed. Director Ward briefly reviewed the anticipated improvements, which totaled$514,600. Councilman Archambault itily asked if the Town owned a striper, why was funding allocated for a contracted service. Director Ward responded the sum of $30,000 was for the thermo plastic striping of Shea Boulevard. He explained that the Street Department did not do this type of striping. Councilwoman Nicola MOVED to approve the Street Department Budget as presented, contingent upon Councilwoman Ralphe's motion. Vice Mayor Fraverd SECONDED the motion. The motion carried unanimously. Director Ward discussed the list of Street Department Supplemental Request. He stated that the most important one to staff was the eastbound Shea at Saguaro in the amount of $30,000. He explained that this was the construction dollars and was not for the design of this improvement. Staff felt that even though the traffic study submitted did not warrant extending this left turn pocket lane, this was imperative because traffic would back up there during peak driving times. He confirmed that staff was doing the design in-house and Randy Harrel would be stamping the plans as the Town Engineer so there was no design cost associated with this project. He noted that there were many large cost projects. If the Council desired for him to expound on any project he would be happy to do so. Councilman Kavanagh asked if the monies for these projects had to come from the General Fund or would they come from Hurf. Ms. Ghetti replied that funds would be transferred from the General Fund into the Hurf Fund. Councilman Kavanagh suggested that if any council member was interested in one of the projects they could bring it forward for funding consideration. Vice Mayor Fraverd commented that someone had volunteered to help with request#3— 1-tone Crew Cab Pickup. He stated that Fire Chief LaGreca(Rural Metro) was not in need of one of their Town owned trucks and proposed transferring it to the Public Works Department for their use. Fire Chief LaGreca acknowledged that it was the "quick attack"truck that he was volunteering. He noted that it was red, so they would have to paint it white if they so wished. There were also code lights on it so they would have to put amber lights in there but that would be a small expense. He felt it would be a great help to the Town because it would move a twelve-year-old gasoline 6/25/02 Executive and Special Budget Meeting of the Town Council Page 21 of 24 powered vehicle into a diesel vehicle and cut down on some overhead maintenance cost on that present vehicle. Director Ward said they would be happy to take that vehicle over. Loy Councilwoman Nicola asked about the Flasher at the Glenbrook Middle School — request #8. Director Ward acknowledged that presently there wasn't any plan to put a flasher there. Staff has looked at the possibility of moving the flasher located at Fountain Hills Boulevard and Fayette. Staff at this point did not know what type of ramifications would occur if that was done. He noted that there were very few children crossing there. It was a minor arterial and there were safety concerns for that reason. Staff thought it might work well for the Montessori school in that area. Staff hoped to leave the flasher on Fountain Hills Boulevard at Fayette and construct a new one at Glenbrook. Councilwoman Nicola asked if the $30,000 would allow for that construction. Director Ward said it would. Councilwoman Nicola had expressed concerns about the traffic coming from Rio Verde area and encountering the new Middle School and possibly buses. She knew that Mr. Harrel had submitted a letter to MCDOT and was waiting for a reply. Councilwoman Nicola asked if there had been any response. Mr. Harrel confirmed that staff had met with MCDOT. MCDOT did not see any need for supplemental signals in their right- of-way. He confirmed that MCDOT was aware that the school was in their right-of-way and not in the Town's right-of-way. Councilman Kavanagh asked if the Town did not buy the emulsion seal, would that result in idle employees. Director Ward responded that the $50K did not involve the Street Department employees. He explained that this work was contracted out as part of the Town's street maintenance program. He reminded the Council that it was not done last year so it moved forward to this year's schedule. Director Ward pointed that that this was the first year that the Street Department was not funded by the General Fund. This year it was standing on its own. He wanted to make sure that the Council and the public were aware of that fact. Councilwoman Nicola said she was still concerned about the safety issue at the Middle School. She asked if there were any grants which could be applied for to assist the Town with need. Director Ward acknowledged that there were different grants out there but the problem was that sometimes because of the complexity of the situation you don't always get the money that year. He assured Councilwoman Nicola that staff was constantly looking for grants and applying for grants. Michael Fleck He was not supportive of moving the flasher at Fayette. If there was a need for an additional flasher at the Middle School, he hoped the Town would find a way to put it up. He did not want to sacrifice the safety at Fayette and Fountain Hills Boulevard. John Wyman,Jacklin Dr. He asked if any of the Street Department Supplemental Requests had been approved or was there something along those lines in the Street Department's basic budget. Director Ward responded that there was a slurry seal project and the Shea Boulevard project in the main budget. Mr. Wyman asked what the Town would be sacrificing if some of the supplemental requests were not approved. Councilman Melendez asked Director Ward if the handicap ramps within the community were in pretty good shape. Director Ward confirmed the community was always in need of more handicap ramps and sidewalks. He described there had been a small improvement done at the Community Center on the south side of the Library to make it handicap accessible. A small leg was also finished at Ave. of the Fountains and Palisades where a handicap ramp was installed because the public would not be able to get to the signal when it became functional. The sidewalk to the west was extended which tied into the existing sidewalk for 160'. Ms. Ghetti continued with the Grants. She listed and discussed the five different areas where funding was allocated. Councilman Kavanagh stated that the Council was authorizing the expenditure should the grant monies come from these outside agencies. Ms. Ghetti said that was correct. Councilman Kavanagh MOVED to approve the Grants. Councilman Archambault SECONDED the motion. Vice Mayor Fraverd asked if the Marshals Department grant required the Town after three years to fully fund that 1/4400( position. Ms. Ghetti said yes. This was the final position and it would be fully funded by the General Fund in this up coming fiscal year, as the grant would expire in March 2003. She stated that in light of the Kavanagh plan she 6/25/02 Executive and Special Budget Meeting of the Town Council Page 22 of 24 was not looking for any additional staff. Ms. Ghetti restated that this was the third year for this grant. Vice Mayor Fraverd said she had misunderstood and thought this was a new position and it was in fact the fulfillment of a prior Lso. grant. The motion CARRIED unanimously. Ms. Ghetti continued with an explanation of the Debt Retirement. Councilman Kavanagh MOVED to accept the Debt Service Fund as presented. Councilwoman Nicola SECONDED the motion. The motion CARRIED unanimously. Ms. Ghetti continued with an explanation of the Excise Tax Special Revenue Fund. Councilman Archambault asked what the fund of $175,000 would be used for. Ms. Ghetti explained that the fund was available for the Council to allocate for downtown development. The $50K that was spent this past fiscal year was for the marketing and Scottsdale promotion. Mayor Beydler asked what the$175K was set aside for. Ms. Ghetti said that amount was an estimate but not specified for anything in particular. Director Hansen explained that the figure represented an estimate of 1/10 of the sales tax for downtown development and was shown as expenditure in case a project came up and the Council wanted to spend it. Mayor Beydler asked what if the Council wanted more. Ms. Ghetti stated the Council had the ability to appropriate more than $175,000. Mayor Beydler restated that the Council was not locked into this number and Ms. Ghetti agreed that was correct. Vice Mayor Fraverd MOVED to accept the Excise Tax Revenue Fund as presented. Councilman Archambault SECONDED the motion. The motion CARRIED unanimously. Ms. Ghetti reviewed and discussed the Development Fee Revenues/Expenditures (Appendix Q). Vice Mayor Fraverd asked about the$21,600 allocated for radios as she had thought the radios had been taken care of a couple of times. Interim Town Marshal Tate stated he was unaware of this request and did not understand this entry. Vice Mayor Fraverd clarified that the Marshals Department was not interested in using that fund at this time. Interim Town Marshal Tate confirmed he was not. Vice Mayor Fraverd asked that the amount of $21,600 be removed. Vice Mayor Fraverd MOVED to accept the Development Fee Expenditure schedule as amended. Councilwoman Nicola SECONDED the motion. The motion CARRIED unanimously. Ms. Ghetti referred the Council to page 37 of the budget book. She explained that the Capital Projects Fund had been added when she heard there was the possibility of recouping the $2.1M from BNY so she had to make sure that the money was included in the budget. This would allow $1M to be transferred to the General Fund and the $400,000 would be the Debt Service on the Community Center. Of the $2.1M, $1.4M was spent for those two items leaving a balance of$700,000 in the MPC Construction Fund. Councilwoman Nicola asked how the money would be allocated once received from PG&E. Ms. Ghetti said that if and when the Town received the money,the money would need to go into the MPC Construction Fund. The Town General Fund would then requisition the MPC Fund for the General Fund's portion of expenditures that had been made. The second thing that would happen would be that if approved by the Council, the Debt Service payment would be made in January of 2003 (the first portion)out of that money. The next portion of the Debt Service would be due July 1,2003. She restated that was what this budget proposed. Councilman Archambault MOVED to accept the Capital Projects Fund as presented. Councilwoman Nicola SECONDED the motion. The motion CARRIED unanimously. AGENDA ITEM#2-ADJOURNMENT. Councilman Archambault MOVED to adjourn the meeting and Councilwoman Nicola SECONDED the motion, which CARRIED unanimously. Mayor Beydler adjourned the meeting 12:15 a.m. I 6/25/02 Executive and Special Budget Meeting of the Town Council Page 23 of 24 TOWN OF FOUNTAIN HILLS L By: // Li Jo, :eydler Mayor 6.44.4.1....z)...L., ATTEST: Cassie B. Hansen, Director of Administration/Town Clerk PREPARED BY: ,1 - Bev Bender,Executive Assistant CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Special and Executive Budget Session held by the Town Council of Fountain Hills on the 25th day of June, 2002. I further certify that the meeting was duly called and that a quorum was present. DATED this 1st day of August 2002. kb, di'lWA '' )1Link-4/ Cassie B. Hansen, Director of Administration/Town Clerk L 6/25/02 Executive and Special Budget Meeting of the Town Council Page 24 of 24