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HomeMy WebLinkAbout2002.1205.TCRM.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL December 5,2002 Mayor Beydler made a brief statement and referred to recent public recall discussions. He asked that during the budget deliberations the community and the Council participate in the spirit of cooperation. He requested discussions and decisions be made in the best interests of the community. Councilman Melendez made a brief statement as to why he had reconsidered his original request and asked that the issue of returning the Marshals Department to primary traffic responsibility be removed from this agenda. He noted that the debate of law enforcement services was far from over and that this policy issue had to take a back seat to a more important issue, which was the Town's financial condition. He acknowledged that a decision on law enforcement and traffic safety direction would have to be made soon as both issues were paramount in the eyes of this community. He quoted from an article published by Fountain Hills Times editor Alan Cruikshank, "that a recall at this time would add another distraction to the political scene in Fountain Hills and he had asked that the community focus on the important issues and not pull the focus away from the tasks at hand." Councilman Melendez confirmed that he would not participate in a recall effort. However,he would respect the decision of Fountain Hills' citizens and voters. He felt the holiday season was a period when everyone reflected upon what he or she had and it was a time to show unity. Therefore,he had not wanted to have a heated debate between the blue and brown uniform representation. Councilman Melendez stated he had requested and held a meeting with Maricopa County Sheriff Joe Arpaio. They had discussed the need for Sheriff Arpaio's office to come forward and insure additional traffic enforcement. The spirited discussion resulted in Sheriff Arpaio offering the Sheriff Departments' available traffic resources to the Town of Fountain Hills. He distributed a copy of Sheriff Arpaio's letter to the Council and read it aloud. (A copy of the letter is on file with the clerk's office as part of the permanent record.) Mayor Beydler called the meeting to order at 6:30 p.m. Following the invocation by Pastor Larry Finch, Four Peaks Community Church,roll call was taken. ROLL CALL - Present for roll call were the following members of the Fountain Hills Town Council: Mayor Jon Beydler, Vice Mayor Leesa Fraverd, and Councilmembers Rick Melendez, Susan Ralphe, Kathleen Nicola, Michael Archambault and John Kavanagh. Town Attorney Andrew McGuire, Town Manager Tim Pickering, and Director of Administration Town Clerk Cassie B. Hansen were also present. Mayor Beydler read the consent agenda(items 1-6). AGENDA ITEM#1 - CONSIDERATION OF APPROVING THE MEETING MINUTES OF NOVEMBER 13, 14,AND 19,2002. AGENDA ITEM #2 - CONSIDERATION OF A PRELIMINARY PLAT FOR THE 2-UNIT J & J PROPERTIES CONDOMINIUMS, LOCATED AT 16312 E. DESERT SAGE DRIVE, AKA PLAT 206, BLOCK 1,LOT 27, CASE NUMBER S2002-44. AGENDA ITEM #3 - CONSIDERATION OF A PRELIMINARY AND FINAL PLAT FOR THE 2-UNIT BAYMEO CONDOMINIUMS, LOCATED AT 16605 E. BAYFIELD DRIVE, AKA PLAT 104, BLOCK 1, LOT 15,CASE NUMBER S2002-49. AGENDA ITEM #4 - CONSIDERATION OF A PRELIMINARY AND FINAL PLAT FOR THE 1.160 ACRE, 10-UNIT CORNERSTONE II CONDOMINIUMS, LOCATED AT 16639 E. GUNSIGHT DRIVE, AKA PLAT 207,BLOCK 3,LOT 1A,CASE NUMBER S2002-50. AGENDA ITEM #5 - CONSIDERATION OF A REQUEST FOR A ONE YEAR EXTENSION OF THE L PRELIMINARY PLAT APPROVAL FOR "THE SUMMIT AT CRESTVIEW", A 68 UNIT MULTI- E:\BBender\Documents\Current Minutes 2002\Minutes\Regular Session 12-5-02.doc 1 of 14 FAMILY CONDOMINIUM PROJECT LOCATED AT THE NORTHWEST CORNER OF SHEA BLVD. AND PALISADES BLVD., CASE NUMBER S2001-08. AGENDA ITEM #6 - CONSIDERATION OF A FINAL REPLAT OF THE DEVELOPMENT ENVELOPE FOR LOT 17, BOULDER POINT FINAL PLAT, AKA. 15301 E. LOTUS LANE, CASE NUMBER S2002- 46. Vice Mayor Fraverd MOVED to approve the consent agenda (items 1-6) and Councilwoman Nicola SECONDED the motion. A roll call vote was taken with the following results: Councilman Kavanagh Aye Councilman Archambault Aye Councilwoman Ralphe Aye Councilwoman Nicola Aye Councilman Melendez Aye Vice Mayor Fraverd Aye Mayor Beydler Aye The motion CARRIED unanimously. AGENDA ITEM #7 - CONSIDERATION OF APPOINTING CITIZENS TO SERVE ON THE FIRE AND EMERGENCY SERVICE FINANCE COMMITTEE. Mayor Beydler MOVED to appoint Daniel Kuchan, Tim Yoder, Gene Peters, John Cutillo, Steve Gendler, Jerry Miles, and Bob Howes to serve on the Fire and Emergency Service Finance Committee and Councilman Melendez SECONDED the motion. The motion CARRIED unanimously. AGENDA ITEM #8 - PRESENTATION BY CHAPARRAL CITY WATER COMPANY ON THE WATER QUALITY IN FOUNTAIN HILLS. Mayor Beydler introduced Chaparral City Water Company's Vice President of Water Quality, James Carson. Mr. Carson noted that they had been asked to make this presentation due to the recent events in Peoria. He introduced the local management team: Rob Hanford, District Manager; Bob Carlson, Water Supply Superintendent; Mike Thompson, District Engineer; and Christy Grace, Customer Service Superintendent. Mr. Carson provided his professional background and outlined his experience in this field before continuing with the presentation. He assured the public that the Fountain Hills' water system was safe. He explained what steps their company had taken to ensure water quality as well as who regulated their company. He addressed whether or not they could provide 100-year water supply for a possible annexation of state owned land. He explained that if the Town were interested in annexing areas, or needed a water supply to a specific area, the water company would be happy to work with the Council and/or town manager and discuss the proposed land use and determine how they could best supply that water need. Councilman Kavanagh asked who had asked that question. Mr. Carson responded he did not know as he had been given a series of questions to cover in his presentation and that was one of them. Ms. Grace stated that they thought the questions had come from the Council. Mr. Carson said it would be hard to tell what the demand for water would be without knowing what the development was. • Mayor Beydler asked if additional land areas were annexed, would the water company have to provide the 100-year water supply. Mr. Carson replied that they would have to be able to meet that new demand while maintaining their existing customers. Councilman Kavanagh stated that the long-term policy of the Town, which was unchanged, was that the state owned land was going to be a preserve to beautify the Town's borders. He did not feel the water company needed to trouble themselves worrying about running water lines out there. Councilman Melendez thanked Mr. Pickering for putting this on the agenda. He asked Mr. Carson what assurances could be given to the public that Fountain Hills' water would stay healthy. Mr. Carson responded that his company employed experienced operators who understood the varying changes of the canal water. The company's water quality department was recently expanded to assist them to meet any challenges now and in the future. He reminded everyone that EPA, State, and local regulators continually monitored all of the water systems in the area. They also participate in a network with all water purveyors to monitor areas. L, Councilman Kavanagh questioned the safety of the water in terms of a terrorist act. Because of the massive amounts of water that runs down the Colorado River, he asked if would someone could possibly put a large enough E:\BBender\Documents\Current Minutes 2002\Minutes\Regular Session 12-5-02.doc 2 of 14 quantity of a toxic material into it that would do harm to the water users. Mr. Carson pointed out that he did not oversee the Colorado River so therefore he was not the best person to ask. He noted that the Government had made many changes through the Homeland Security Act. He felt that question should be directed to the Bureau of Reclamation. Councilman Kavanagh asked if he was confident on the local level that the water company was taking reasonable action to ensure that everything was safe. Mr. Carson responded absolutely. Councilman Kavanagh acknowledged that Fountain Hills received a mix of ground and Colorado River water. He questioned if the entire Town received the same mix. Mr. Carson responded no, it depended upon where the home was located. Councilman Kavanagh asked if there was noticeable difference in taste and hardness. Mr. Carson stated he could not notice a difference but the sources could taste differently. Mayor Beydler asked how the water company would respond to residents' concerns about drinking the local water because of the cumulative effect of mineral deposits having a negative affect on their health. Mr. Carson responded that the EPA had set the standards for health risks with regard to volatile organic compounds and briefly reviewed the federal guidelines. He stated that bottled water was convenient but did not offer a disinfectant in the water. That industry was not under the same stringent requirements as the utility company. He made the observation that there were risks in breathing the air and there were risks in drinking bottled water. It was his opinion that the safest water was right out of the tap. If a person did not like the taste of chlorine, he suggested they could place a GAC filter in their home. Mayor Beydler asked if he was suggesting to the community that filtering the water or drinking the bottled water was not necessary and that drinking the water straight out of the tap was probably the best choice. Mr. Carson stated he knew the regulations were in place and he was confident in the product that they sold. Councilman Kavanagh asked if there were sufficient contractual and legal safeguards in place to protect Arizona from California so they could continue receiving their fair share of the water. Mr. Carson did not have an answer to that question. Councilman Archambault said that when Fountain Hills was formed, MCO had the water rights for the water table that sits under Fountain Hills. He asked if the water rights had been transferred and Mr. Carson confirmed that was correct. Councilman Archambault asked if Mr. Carson knew what the supply was now that it was being recharged. Mr. Carson did not know and proposed that he could prepare a follow up to this presentation. Councilman Archambault agreed he would like to know the answer. He asked that Mr. Carson get back to the Council with his answer. AGENDA ITEM #9 - CONSIDERATION OF APPROVING A SIGNATURE ART PIECE FOR THE SOFFIT OF THE COMMUNITY CENTER. THE COST OF THE "DIORAMA" WILL BE TOTALLY FUNDED BY THE CIVIC ASSOCIATION TREASURY AND HAVE NO FISCAL IMPACT ON THE TOWN. Director of Administration Cassie Hansen acknowledged that the Civic Association had been very successful in their campaign to raise money for furniture, fixtures and equipment, as well as public art for the Community Center. This was one of those projects that would be purchased with some of those funds. The Chairman of the Public Arts Committee, Dr. Paul Kolwaite, was responsible for bringing this forward and had asked to make a presentation. Dr. Paul Kolwaite made a brief presentation on the project, which included showing examples of the material that would be used in construction of the diorama and a small-scale model of the complete signature art piece. Mayor Beydler asked who would be recognized for this piece. Dr. Kolwaite said that had not been settled yet. Councilman Kavanagh asked if these would be 3D objects that extended from the wall. Dr. Kolwaite said that was correct. Mayor Beydler questioned if the proposed budget included lighting for the piece. Dr. Kolwaite thought the existing soffit lighting would be sufficient. Councilwoman Ralphe MOVED to approve the signature art piece as presented and Vice Mayor Fraverd SECONDED the motion. The motion CARRIED unanimously. AGENDA ITEM #10 - REPORT BY TOWN MANAGER TIM PICKERING ON PROPOSED BUDGET L. REDUCTIONS WITH POSSIBLE DIRECTION TO STAFF REGARDING IMPLEMENTATION. E:\BBender\Documents\Current Minutes 2002\Minutes\Regular Session 12-5-02.doc 3 of 14 Mr. Pickering stated that his reduction proposal was not about individuals. He clarified that this was about activities that could possibly be reduced. He acknowledged that the Town staff was outstanding and this report could not have been presented without their input and exceptional work over the last nine business days. He reviewed that the Council had passed the present budget this past August of approximately $13.1 million dollars, less the preservation and downtown transfers. He commented that the Council, at the last public financial hearing. had directed him to prepare a report to reduce the current budget up to 15%. Mr. Pickering reviewed the process undertaken to result in this report. The initial objective was to look at the entire budget, receive recommendations from department directors, review job descriptions and identify reductions in the amount of at least $2 million dollars. Activities were also analyzed and a cost was associated with each. He confirmed that the report information was based on the full current fiscal budget. He reminded the Council that the savings would not be as much as stated in the report, because the current budget year had already begun. He estimated the percentage of ongoing savings to be about 85%. He reviewed the calculation used to determine the number of hours that employees were capable of working. Mr. Pickering presented an overview of his recommendations via a PowerPoint presentation: • Do not replace administrative non-filled positions • Reduce computer assistance • Reduce administration assistance • Eliminate special interest funding • Reduce weekday 2 a.m. —6 a.m. sheriff beat coverage • Contract out dispatching services • Reduce Parks &Recreation program funding • Reduce mowing and irrigation and eliminate re-seeding of park grounds • Discontinue wash cleanup • Eliminate Shea Blvd. bike lane project • Change health care provider • Reduce full time employee (FTE)equivalent position of 16.42 • Reduce departments from 8 to 6 Mr. Pickering briefly outlined his recommendations for reductions in each department. Administration: Do not fill the undesignated position or the vacant part-time custodial and intern position, reduce the FTEs by 3.42 (1.42-IT and 2-Administrative Services), eliminate all non essential outside finding for special interest groups, reduce repair and maintenance line items as identified, rent reduction (needs legal determination), reduce professional service line item. Total proposed cost savings: $689,986 Sheriffs Department: Mr. Pickering noted that this was a contract with the Maricopa County Sheriffs Department. They proposed to reduce staffing for a proposed savings of$184,919. Marshals Department: Eliminate dispatching personnel (6.54 FTE), reduce school security (1.51 FTE), reduce special event security (.83 FTE), turn off unused radios for the remainder of this fiscal year, eliminate 2.81 FTE from the Marshals Department and transfer (2.81 FTE) positions to Building Safety to be hired as civilian code enforcement personnel. Total proposed cost savings: $428,312. Fire Department: Mr. Pickering stated the contract would have to be reviewed at the end of the contract period but Rural Metro had offered$21,000 that could be eliminated from their non-contractual budget items. Parks and Recreation: Eliminate programs that do not generate revenue in conjunction with the associated staff (1.5 FTE),reduce customer service staff by .27 FTE, reduce park maintenance staff by 1 FTE, reduce the mowing, irrigation and reseeding of parks, reduce the amount of time that the Fountain runs to 10 minutes, and change field preparation fees and policies. Total proposed cost savings: $443,683. Public Works: Do not fill vacant position (1 FTE), reduce CAD activities by .21 FTE, reduce the median maintenance and consider in-house irrigation maintenance repairs which would offset the wash cleanup activity time reduction of.25 FTE,and discontinue the wash cleanup program. Total proposed cost savings: $225,112. E:\BBender\Documents\Current Minutes 2002\Minutes\Regular Session 12-5-02.doc 4 of 14 Street Department (not part of the General Fund): Reduce street sweeping activity (.39 FTE), reduce the crack sealing (.7 FTE), staff renegotiated a savings from the County of $13,000 for striping Shea Blvd., reduce emergency standby policy funds, discontinue the Shea Blvd. Bike Lane Grant Project, and require events contract with an outside barrier placement company. Total proposed cost savings: $297,312. Building Safety: Do not fill current vacancy (1 FTE) and reduce outside professional contracts. Total proposed cost savings: $83,100. Community Development: Do not fill current vacancy (1 FTE). Total proposed cost savings: $81,902. Community Center: Utilize additional volunteers to provide public information and reduce staff (.59 FTE), eliminate matching grants and scale back advertising costs. Mr. Pickering felt the following should be readdressed: increase fees and reduce restrictive policies. Total proposed cost savings: $75,968. Municipal Court: Do not fill current vacancy(1 FTE). Total proposed cost savings: $65,494. Mr. Pickering reviewed his overall organizational recommendations: • Implement a time management system • Implement a standardized training program • Stopping operations for specific period of time was a possibility for the Council to consider although he was not recommending this option • Savings would be realized if the health insurance provider were changed • Eliminate the vacation buy-out • Research continues on costs involved with the Town's retirement package (no recommendation at this time) • Cut cell phone expenses Mr. Pickering stated he had assessed the overall management ratio and felt the Town was top heavy. He expressed that 5-7 employees per manager was a goal. He had determined that the Town was at 2.9 employees per manager. He explained the methodology used to complete this analysis. Mr. Pickering noted that one way to accomplish this was to combine departments. If the Parks and Recreation Department and the Community Center were to be combined, that would save in administration and management. He also recommended that the Public Works Department and the Community Development Department be combined. The total proposed cost savings would be approximately$250,000. Mr. Pickering discussed charts that depicted a comparison of departmental function as a percentage of the General Fund budget to other municipalities. He noted that Fountain Hills had a high percentage of parks. This was an area that could be looked into for further cost reductions. He dispelled public comment that Fountain Hills was spending too much on law enforcement as these charts showed Fountain Hills' costs in this area to be right in line. He referred to the expenditures per capita for each municipality listed. His analysis concluded that Fountain Hills did not have enough revenue coming into the community. Mr. Pickering also noted that the General Fund budget was below any of the other communities. In summary, the reductions would amount to $2.5 million in savings in the General Fund and approximately $2.8 million overall. The work force would be reduced by 16.5 employees, which was approximately 22% of the total number of town employees. Mr. Pickering stated that the Town had outstanding employees and they needed to be treated fairly. Therefore, he recommended that the Town provide a severance package to any of those individual that would come forward and volunteer to be downsized. He reviewed the plan that Tempe used. He commented that Tempe had been very successful with their severance plan. He hoped that would help lessen the blow to the employees. He pointed out that the best way was through attrition over a long period of time but to accomplish this in a short period of time he felt the Town needed to offer some type of severance agreement. He stressed that staff did not have a great deal of time to put this report together and there were many items that needed to be researched such as reducing the number of trash haulers and town contracts. Mr. Pickering stated that the Town's financial dilemma required that serious action had to be taken but reminded the Council they needed to treat the employees fairly as the employees had done and would continue to do an outstanding job. He expressed that the motivation and attitude shown by the Town's employees had been outstanding and they continued to work diligently for the community. Mr. Pickering stated that ultimately the Town would be a leaner and more profitable town. He cautioned the Council that even with these cuts the Town was short of where they needed to be. This would be less than 1/3 of the dollars that were E:\BBender\Documents\Current Minutes 2002\Minutes\Regular Session 12-5-02.doc 5 of 14 needed to solve the financial dilemma. He reminded the Council that $5 million would be needed next year in addition to increasing the fund balance by $1.5 million. Mr. Pickering requested quick action on this item. The Council had asked the staff to provide quick information and they had done the best that they could within the time allowed. He commented that these figures might not be correct but then this was not a science but an art. He requested the Council make their decision if they were going to take action on this and then move forward quickly. Mr. Pickering noted that he had provided his report to the Council. which was more detailed that his presentation. Mayor Beydler stated that staff and Mr. Pickering had done an outstanding job preparing this report. He asked the Council how they wanted to proceed. Councilman Kavanagh asked to hear public comment first. Rita Brown She recommended that the Council accept almost all Mr. Pickering's recommendations. She asked that the Council not pick favorites and acknowledged that everyone had to hurt before the Town's condition would improve. She asked that the cuts be taken across the board and that not one department or group be singled out. Dorothy Scheele, 16622 Kingstree Blvd. (member of the Fountain Hills School Board) She pointed out that a school was vital part of any community as the taxpayers paid for the buildings and property. She acknowledged that the School Board and Council's constituents were the same and there was a long tradition of intergovernmental cooperation. If that were to cease to exist, that would be a great disserve to the community. She encouraged the Council to allow the School Board to keep their resource officers, which would assist property protection for the community. Mark Mauro, Principal at the Fountain Hills High School He understood the financial challenges facing the Town but spoke in favor of the Council allowing the school to retain the two school resource officers. John O'Flynn, 16538 Sullivan (President for Home Delivered Meals and Senior Services) He asked that the Council reconsider reinstating $20,000 to the seniors although he understood what the Council was trying to accomplish. He explained they needed the funds for operational expenses as they had not been able to secure alternative funding for these expenses and needed assistance. Rich Schultz,Director of the Boys and Girls Club He reviewed what the Boys and Girls Club had accomplished in the community and the services provided to the local youth. He reminded the Council that they had voted 7 — 0 to provide the Boys and Girls Club $50,000 for operational expenses and $50,000 for capital. Because of that commitment, the Boys and Girls Club has acquired an additional $1 million in capital funding for their project. He expressed that they would be willing to look at offering all of the youth and teen programs at no cost to the Town that Mr. Pickering had recommended be cut. He reminded the Council that this year the Boys and Girls Club had already been cut 43% and that was a greater cut than any department in the Town. He understood the Town's critical financial outlook but pointed out that they must also look out for the welfare and safety of the youth by providing the most services with the least amount of dollars. He felt that the Boys and Girls Club did that. Wally Nichols,Advisory Chairman for the Boys and Girls Club He announced that the Piper Trust had awarded the Boys and Girls Club $500,000. They had also received a HUD grant in the amount of$250,000 from the federal government. He acknowledged that Congressman JD Hayworth and his national staff had worked very diligently in Washington over the last four or five months to present the Boys and Girls case to Congress. He clarified that these grants has been awarded based upon the Council's prior commitment of$50,000 for their capital campaign with an additional $200,000 to be received over the next two to three years. He acknowledged that if the Council backed away from their commitment, the Boys and Girls Club would be required to mention the action to JD Hayworth. He expressed concern that this would be an embarrassment to the Town and himself. This might also affect all future grants for other programs if they don't feel that Fountain Hills could stand behind their commitments. He expressed that they understood that cash was tight right now. He suggested that Council could defer the money for capital this year. However, he requested that Council consider directing the town attorney to prepare a letter that would be a written commitment affirming the Council's financial commitment to the capital campaign and stating that these funds would be paid when money was available, even if it took five years. He felt that would satisfy the commitment to JD Hayworth and the Piper Trust. E:\BBender\Documents\Current Minutes 2002\Minutes\Regular Session 12-5-02.doc 6 of 14 Pen Mower, 15951 Ponderosa (Cattleguard Community Alliance Drug Prevention Program) He spoke in favor of retaining the school resource officers in the high school and keeping the law enforcement coverage as high as possible. He felt that eliminating the officers would jeopardize any help received with regard to drug abuse. He expressed his concern that the Council was planning to reduce the law enforcement in town. The result was the number of citations and court cases had been reduced by 50% and that concerned him. He asked the Council to allow the Marshals to implement law enforcement as stated in the Code. He recommended that the Council volunteer to give up their salaries and expense accounts for this period of time to help the situation. He also proposed that the Council consider selling the "postcard view" land, which had been purchased for $1.4 million. Bob Dickson,Hyde Park Drive He stated he really liked this town. He pointed out that he had not heard any discussion about raising the taxes or paying for the things that everyone loved so much. All he had heard so far was cutting expenses. He reminded the Council that they had been voted in to manage but he felt they were missing the point that they should talk about charging residents a little more. He acknowledged he was hurting because of the market but he did not want to have the employees finance all of the proposed cuts. Dave Combs, 17426 Brantley He stated the Town had an excellent staff and had been a pleasure to work with over the years. He spoke against an increase in sales tax. He did not think the Council should always turn to sales tax as a revenue source. Mayor Beydler reminded the public that discussions would be held in the future that would specifically be related to revenue sources. He asked the public to limit their comments at this time to the town manager's report. Frank Ferrara, Glenbrook He stated that the Chamber had been successful in obtaining a federal grant (thanks to Mayor Beydler) that would enable them not to ask for funding from the Town for their smaller special events next year. He noted that the Chamber paid their way for the large events. He agreed with the Council's earlier statements that they could not expect to raise taxes and have the citizens pay for revenue increases unless staff did their homework and showed the public cuts. He commended Mr. Pickering for the work completed and asked the Council to now get to work to tliby make the Town what it needs to be. Rocky Dziepak, 16316 E.Jacklin He stated that it was time to make the tough decisions. He urged the Council to look at the major numbers and to consolidate. He thought it was terrible to take things away from the children and the seniors. He stated it was time to make the decision whether to go with the Sheriffs Department or stay with the Marshals Department. Roy Kinsey,Fairway Court He asked that the Council consider the option of subscription fire service. It would provide a significant cost savings to the Town on an interim basis until other things were settled. Those he spoke to in Paradise Valley indicated that they were very satisfied with the service. Bob Travis, Chinook He suggested that the Council talk with the Rural Metro and the Sheriffs Department regarding emergency services in order to coordinate their services before making any cuts. Mayor Beydler recessed the meeting at 8:30 p.m. and reconvened the meeting at 8:40 p.m. Mayor Beydler said Mr. Pickering had asked that the Council not micromanage each individual recommendation. If the Council was willing to accept Mr. Pickering's recommendations in total and simply say go forward, Mr. Pickering was receptive to that. Mayor Beydler stated that Mr. Pickering also proposed that the Council could convene a work-study session on micromanagement of each recommendation. Mayor Beydler asked the Council what direction they wanted to take. Councilman Kavanagh agreed there wasn't any time for delay. He reminded everyone that these cuts were not large as first thought because the Town was already half way through the fiscal year. Councilman Kavanagh MOVED to direct the manager to implement these projected cuts with the understanding that there could be a small amount of micro tuning as new information came in with the following provisions: the Boys and Girls Club E:\BBender\Documents\Current Minutes 2002\Minutes\Regular Session 12-5-02.doc 7 of 14 would be provided with a letter committing the Town to future capital funding, which was dependent upon the taxpayers and other means of revenue. The Boys and Girls Club would also receive $20,000 for operating funds (programs) and the Senior Center would receive $10,000 for operating expenses. Councilman Kavanagh further clarified that the minor tweaking due to new information would have to do with all caps, which would have to come back to the Council for approval. Vice Mayor Fraverd SECONDED the motion. Councilwoman Ralphe did not think any cuts could be made when it came to fire and law enforcement services. Councilwoman Ralphe moved to AMEND this motion to add back the t of a Sheriff's night beat and the two school resource officers and the Marshals dispatch system. Councilwoman Nicola SECONDED the amendment. Councilman Melendez pointed out there had not been any discussion on the original motion. Mr. McGuire said the proper order was to consider the amendment first and then move back to the main motion. Councilman Kavanagh commented that this amendment was the proverbial "foot in the door". Either the Council was going to approve the plan and trust the town manager or the Town would go down. He asked that the Council be realistic. He pointed out that the Sheriff's Department had generously offered to provide Fountain Hills with free dispatch service. Therefore he did not understand why the Council would want to spend the money when there was a free alternative at this time. He hoped that the Sheriff's Department would attempt to provide jobs to those people in the Marshals Department that the Town would be losing. He said the same logic applied to the school resource officer. He noted that during the initial budget hearings, the school district stated that they did not want a school resource officer at the middle school, which had surprised him. The Council had that school resource officer reassigned to the high school. He expressed that he did not understand why the School District was now saying that they desperately needed that second school resource officer. Councilwoman Ralphe refuted the statement that dispatch services could be provided at no cost by the Sheriffs Department, as there wasn't any "free lunch". She questioned if that plan had been cleared with the Maricopa County Board of Supervisors that they were going to provide free services in Fountain Hills. How would that sit with the rest of the County residents? Mr. Pickering stated he had talked to the Sheriff's Department within the scope of the current contract. If calls were placed to the county dispatch, they would have to handle the calls. He said it was a matter of the number of calls increasing in the Phoenix office. That was why they were willing to do so as they had the capacity and capital invested to handle that additional volume. Councilwoman Nicola understood that the Marshals did not have the radios capable of communicating with the Sheriffs Department and that had not been mentioned. There was over $50,000 in capital for radios that had been cut. Mr. Pickering responded that was not cut. $54,000 had been budgeted for those radios at the beginning of the budget year. The Town would be keeping that to facilitate the Phoenix dispatchers' ability of talking with the Marshals. Councilwoman Nicola clarified that $54,000 expenditure would have to be made in order to save the $280,000. Mr. Pickering stated that amount was in the budget regardless whether or not the reduction plan was approved. This expense would be something that could be cut if the Town didn't go into dispatching although he would not recommend it. Councilwoman Nicola expressed she was not in favor of arbitrarily cutting the school resource officers without looking more closely into activity that was prevented by their presence. Councilman Archambault expressed he was more interested in keeping the quality of life in this town. He was in favor of streamlining the Town's waste but opposed to dismantling the Marshals Department. He pointed out that more than half of the employee cuts were coming from the Marshals Department. He did not think that was what the Council was here to do. He acknowledged that there were certain departments that could become leaner but he felt the Council could cut too much here and that would have the Town walking on its knees. He did not think that should be done. He stated that the residents would have to step up after the Council finished their job. He restated that he was not in favor of dismantling the Marshals Department. Vice Mayor Fraverd asked everyone to look at the larger picture; the town needed $6.5 million in cuts and additional revenue by the end of the fiscal year 2004. She affirmed that Mr. Pickering's cuts represented $2.5 million but this fiscal year was half over so the Town could expect that the cuts would only generate $1 to 1.25 million towards that $6.5 million. Next year, if the same flow kept going, the Town could expect approximately 85% of the$2.5 million, which was $2.125. If the cuts from next year were added to the cuts for this year,the total would be $3.375 million. Vice Mayor Fraverd referred to an earlier statement she had made, "If the town could E:\BBender\Documents\Current Minutes 2002\Minutes\Regular Session 12-5-02.doc 8 of 14 find half of the $6.5 in cuts, then the Council would need to ask the residents for the other half'. She acknowledged that Mr. Pickering had provided the Council pretty close to that half. This was where the Town needed to be in order to get to that $6.5 million which would allow the Town to break even by the end of the next fiscal year. She pointed out that the Town did not have extra funds. She acknowledged that the Council would like to be able to provide resource officers to the school but the Town did not have the funds to do so. The School District would have to pay the Town back for those services. Vice Mayor Fraverd agreed the Council needed to keep within the cuts proposed by Mr. Pickering if the Town was to remain on track for getting out of this hole. She did not support keeping dispatch when this year the Sheriffs Department could provide those services for nothing. Vice Mayor Fraverd acknowledged that the Council would have to take a look at next year. She summarized that the Council needed to stick with the program or the Town would find themselves in deeper trouble. Councilman Melendez stated that the budget cuts was only one of the components that the council was looking at in order to try to save the town. He reflected on that Council meeting in August when Dr. Hermie had stated the middle school did not require a resource officer. He noted that various hard cuts would have to be made. It was time for the Council to make the hard decisions. He supported Councilman Kavanagh's motion but asked for clarification on the Boys and Girls club stipulation as to what "when monies become available"meant. He felt that giving them a letter of intent was appropriate. He asked when would those monies be funded. Mr. Nichols responded between two to five years. Councilwoman Ralphe said the Council could not forget the things that make Fountain Hills what it was. One of those items was the dispatch service. She pointed out that those dispatchers knew the people and the streets of Fountain Hills and would respond appropriately and quickly. She acknowledged e-mails that she had received from those who were frantic about their experience with the Sheriffs dispatchers. Councilwoman Ralphe stated Phoenix dispatchers could not be expected to know Fountain Hills as well as the Town's Marshal dispatch. Councilman Kavanagh stated the first argument against this amendment had been that the Town could not get the dispatch service for free. It was discovered that it was part of the contract. Councilman Kavanagh stated that somewhere in the area of 16 people would be laid off with the holiday season upon us. To think that the Town would not take the money savings and that the Council would waste more taxpayers dollars by paying for dispatch service that the Town did not need was unconscionable. He reminded everyone that this was not the elimination of a 911-dispatch system. He hoped that anyone with a frantic need for help would always dial 911 and connect with regular 911-dispatch service that would direct cars and everything else. He reminded the public they should not be calling the Town dispatch with emergencies, as that would cause unnecessary delays. Councilman Kavanagh pointed out that purchasing the radios would allow the Town to save more money and also put everyone on the same frequency, which had been a major safety issue. Traditionally, there had been one officer in the high school and one in the middle school. Last year the school told the Council that they did not need a school resource officer at the middle school. As a result the officers were doubled up in the high school and there was now one more officer in the high school than the Town had ever had and some were trying to protect that position. He felt that this poorly disguised attempt to protect the sacred cow was sending a very poor message to the Town's employees and taxpayers. The Town could not keep unnecessary positions. He recognized that the Council had a tough job to do and they just had to do it. Councilman Archambault reiterated that he had a problem with dismantling a force that was the Town's primary police force and not doing damage to a contract force. Mr. Pickering had talked about revisiting the contracts. Councilman Archambault said he had a problem reducing the primary force(Marshals Department)and did not feel that the Council was being fiduciarily responsible by doing so. Mayor Beydler asked how many school resource officers were being talked about. Councilwoman Ralphe responded two. Mayor Beydler asked if Councilwoman Ralphe would accept a friendly amendment to cut it to one. Councilwoman Ralphe AGREED, as did Councilwoman Nicola who had made the SECOND to the amendment. Mayor Beydler felt the Council had come back to the issue of the blue and the brown. Mayor Beydler reminded the Council that at the last meeting they had approved the Marshals grant that would look into accepting five additional marshals over time. He stated that tonight the Council was looking at dismantling the dispatcher department. He asked Mr. Pickering what the plans were to replace dispatch service in the event that the Town eventually goes with its own police department. Mr. Pickering responded he did not think the two issues were linked. In any law enforcement operation, dispatch services could be contracted, as this was a service that was provided. He made the point that having your own police department did not mandate that the Town had to have their own dispatchers. E:\BBender\Documents\Current Minutes 2002\Minutes\Regular Session 12-5-02.doc 9 of 14 Mayor Beydler stated another objection had been that if the dispatchers were outsourced, those dispatchers would not be familiar with the Town's topography. He asked how Rural Metro dispatched service. Mr. Pickering replied that that their dispatch was contracted out. He pointed out that this was already done and noted that the Sheriff's Department dispatched from downtown so this was not foreign to this operation. Mayor Beydler stated that Mr. Pickering was a professional who was hired to do his job. He was torn with respecting Mr. Pickering's role and allowing him to do his job and some of the micromanaging that was going on. Mayor Beydler said he could not support the amendment. He agreed that dispatch could be handled appropriately in other ways. He felt the Council needed to give the town manager a vote of confidence. Councilman Melendez reiterated a previous statement that the town manager had asked that the Council not micromanage the subject matter. He understood that there was a lot of emotion here. The Council needed to fish or cut bait. He restated that this was just one component of what the Council was trying to do to save this community. Councilman Melendez stated he was ready for the vote. Councilwoman Ralphe said this discussion was about money. These wholesale cuts would largely dismantle the Marshals Department and were not really budget cuts, but a policy decision. She did not think this was the forum for that issue. This issue should be looked at fairly and squarely on the basis of what the Town wanted to do with law enforcement. These decisions should not come under the guise of finance. The Council needed to be honest when making their decisions. The decisions should not be hidden under some other category. Councilman Archambault thought it strange that the Council was contemplating taking $3.5 million out of the budget when revenue sources had not been considered yet nor had Mr. Pickering finished exploring such items as the garbage issue. He thought these cuts were too deep. He stated he had come to the meeting not to micromanage but to talk about each department. Councilman Archambault felt that Mr. Pickering had given the Council a proposal to consider with the idea that it could be talked about at this meeting or the next but giving him clear direction this month. He reiterated that under this proposal the cuts were too deep into this budget year. Councilman Kavanagh and Vice Mayor Fraverd called for the vote. A roll call vote was taken on the amendment with the following results: Councilwoman Ralphe Aye Councilwoman Nicola Aye Mayor Beydler Nay Councilman Archambault Aye Councilman Kavanagh Nay Councilman Melendez Nay Vice Mayor Fraverd Nay The amendment FAILED on a vote of 4—3. Mayor Beydler moved to AMEND the motion to eliminate all of the high points and only give a letter of intent to the Boys and Girls Club for the funding. Councilwoman Nicola SECONDED the amendment. Mayor Beydler asked for public input. Jerry Sheridan (Maricopa County Sheriffs Department) He stated that he spoke for Sheriff Arpaio. If the motion passed, the Sheriffs Office would be able to absorb any of the employees that were looking for jobs, for example the dispatchers. He said they were always looking for qualified employees. A roll call vote was taken on the amendment with the following results: Councilman Archambault Nay Vice Mayor Fraverd Nay Mayor Beydler Aye Councilman Melendez Aye Councilwoman Ralphe Nay Councilwoman Nicola Aye Councilman Kavanagh Nay Le The amendment FAILED on a vote of 4 to 3. E:\BBender\Documents\Current Minutes 2002\Minutes\Regular Session 12-5-02.doc 10 of 14 A roll call vote was taken on the main motion with the following results: Councilwoman Ralphe Nay Councilwoman Nicola Aye Councilman Melendez Aye Now, Councilman Kavanagh Aye Vice Mayor Fraverd Aye Mayor Beydler Aye Councilman Archambault Nay The motion CARRIED on a vote of 5—2. AGENDA ITEM #11 - CONSIDERATION OF APPROVING A NEW HEALTH CARE PROVIDER FOR TOWN EMPLOYEES. Joan McIntosh, Human Resource Specialist, gave a brief overview of the process that staff had used to determine the recommendation for the health insurance coverage for employees effective January 1, 2003. The consensus of the employees had been to go with Blue Cross Blue Shield. The main reason was that employees felt it was the best coverage for the dollar. She expressed that the employees were willing to do their part and make sacrifices because of the Town's budget crisis. Another reason was the availability of physicians. Since 60% of town staff lives in Fountain Hills, it was important to them to have easy access to physicians. The reputation of the company and the flexibility of the program were also considered as employees had more confidence in the Blue Cross Blue Shield Company. Ms. McIntosh reviewed the differences between the employees' current health provider and Blue Cross Blue Shield. She commented that the employees were willing to sacrifice their separate vision coverage as Blue Cross Blue Shield has a provision incorporated into the plan. It was staffs recommendation that the Council approve the Blue Cross Blue Shield PPO 100 plan. This would be a cost savings for the town of approximately $101,000 from what was currently being paid. Councilman Archambault asked if that amount included the dollar amount that the Town would not have to pay or did that include what the employee would match on the family plan. Ms. McIntosh clarified that the$101,000 was just the Town's savings. Councilman Archambault asked what would the Town's cost of this plan be. Ms. McIntosh stated the annual cost was $410,000 and in the past the Town had paid over$500,000, which represented only the Town's portion. Vice Mayor Fraverd MOVED to approve the new health care provider as presented and Councilman Archambault SECONDED the motion. The motion CARRIED unanimously. AGENDA ITEM #12 - PUBLIC HEARING ON A SPECIAL USE PERMIT TO ALLOW A KENNEL WITH PROPOSED HOURS OF OPERATION OF 5:30 A.M. TO 11:00 P.M. AND A MANAGER'S RESIDENCE ON THE SECOND FLOOR AT 11669 N. SAGUARO BOULEVARD, AKA PLAT 3021 BLOCK 1,LOTS 3 & 4, CASE NUMBER SU2002-09. Mayor Beydler recessed the regular session and opened the public hearing at 9:30 p.m. Planner Denise Ruhling reviewed her staff report. A visual of the project was displayed for the public and Council. She noted that there were stipulations but the Planning and Zoning Commission and staff were recommending approval. She commented that the town attorney had made a correction to her report under stipulation #4. Stipulation#4 should have said "20 foot wide driveway aisle"instead of"2=foot wide". Planner Ruhling stated the applicant had reviewed the stipulations and was agreeable to all but one. The applicant asked that Stipulation#1 be looked at again, which was to combine lots 3 and 4. Planner Ruhling stated that the reason that staff was asking for the combination as the applicant was looking for lot #3 to be used primarily for parking. The applicant felt that they could do so with a parking easement. The planning and engineering staff was not comfortable with that decision. She explained that the code states that development could not cross a property line although it also stated that parking was allowed on adjacent property. Because this parking was primarily built for this particular project, staff was not comfortable with the location of the parking to the front of the lot as that might allow the back portion of the lot to be built on at a later date for some other use. Staff was requesting that the Council uphold the lots on 3 and 4. E:\BBender\Documents\Current Minutes 2002\Minutes\Regular Session 12-5-02.doc 11 of 14 Councilwoman Nicola asked about noise mitigation measures that the applicant would take besides having a manager on site. Planner Ruhling responded that the courtyard for this kennel was on the interior so the building completely surrounded the project. That would be a complete buffer. Councilwoman Nicola noted that it was open air. Planner Ruhling replied yes but it was a two-story building. Don Letzen, 15820 Boulder Dr. (co-owner of the kennel) He stated he already had such a project in another location for which they had had no noise complaints filed with regard to the kennel. He noted that this was a special use permit and they realized that the permit could be pulled for any reason. He addressed that they would like to keep the two lots separate for the time being. Mr. Letzen noted that by doing so would also add taxes to the property tax rolls. Councilman Archambault asked why the applicant did not want to deed the two lots together. Mr. Letzen explained that it was due to the financing with the owner of the land. They were to purchase the lot outright that the building was to be on and hold a contract for deed on the second lot. Once the kennel started to roll,they would have the finances within the year to pay that off. He reminded the Council that the Town had control over the operation and could pull the permit at any time because of a violation. Councilman Kavanagh asked Mr. McGuire for his opinion on the special use and would there be any way that the Town could comply with the applicant's request to keep the lots separate yet at the same time take steps to prevent what staff feared; that someday the second lot would be developed separately. Mr. McGuire responded to the first issue that despite the broad power of a special use permit that had been espoused here. Unfortunately, since this was a legislative decision granted through a public hearing and notice, it would take the same steps to unwind it as it would for zoning. With respect to the lot join issue; he did not know that there would be any prohibition against a time stipulation. Councilman Kavanagh asked Mr. McGuire to craft such a stipulation. Mayor Beydler asked what type of time frame was being talked about. Planner Ruhling said the applicant had asked for approximately a year. She pointed out that if the Council decided to give the application such a stipulation to put the lots together with a one year timeframe, she asked that the Council also include the fact that a building permit could not be issued onto lot 3 for anything with the exception of the parking for this site until such time as that lot join was complete or that one year. Mr. McGuire said that was a great stipulation although he would condense it down to a cor couple of sentences. Councilman Archambault asked Mr. McGuire if the applicant did not own lot 3 yet and only had an agreement to purchase, could the Town encumber that lot like that. Mr. McGuire explained that was not really an encumbrance upon that second lot. It was only an encumbrance upon the permit. If the applicant did not meet the conditions of acquiring that lot, then the permit would expire. Mayor Beydler closed the public hearing the 9:40 p.m. AGENDA ITEM#13- CONSIDERATION OF A SPECIAL USE PERMIT TO ALLOW A KENNEL WITH PROPOSED HOURS OF OPERATION OF 5:30 A.M. TO 11:00 P.M. AND A MANAGERS RESIDENCE ON THE SECOND FLOOR AT 11669 N. SAGUARO BOULEVARD, AKA PLAT 302, BLOCK 1, LOTS 3 & 4,CASE NUMBER SU2002-09. Councilman Archambault MOVED to approve the special use permit with staff stipulations including the stipulation for lot join to be amended to include a time period as well as the prohibition against building permits and Vice Mayor Fraverd SECONDED the motion. The motion CARRIED unanimously. AGENDA ITEM #14 - PUBLIC HEARING ON A SPECIAL USE PERMIT REGARDING A GUEST HOUSE AT 9711 N. JAGGED CIRCLE, AKA EAGLE MOUNTAIN ESTATES, PARCEL 3B, LOT 18, CASE NUMBER SU2002-10. Mayor Beydler recessed the regular session and opened the public hearing at 9:44 p.m. Planner Ruhling gave an overview of the project and provided a visual of the site. Staff recommended approval. The only reason that this was before the Council was due to the height issue. The project would not be obtrusive, the architecture would blend into the home, and it would be difficult to see that it was a separate unit when looking at it from either street on which it had frontage. She affirmed that staff had not received any opposition to this E:\BBender\Documents\Current Minutes 2002\Minutes\Regular Session 12-5-02.doc 12 of 14 project. Mayor Beydler asked how much higher was this building than allowed by code. Planner Ruhling explained that the ordinance states that a guesthouse could not be more than 15 feet in height and this project would be 19' 6". The only reason that it was 19' 6" was how it had to be laid against the topography. Most of the height was from the finished floor to the grade as it was the fill that caused the issue because of the massive slope there. Mayor Beydler closed the public hearing the 9:46 p.m. AGENDA ITEM #15 - CONSIDERATION OF A SPECIAL USE PERMIT REGARDING A GUEST HOUSE AT 9711 N. JAGGED CIRCLE, AKA EAGLE MOUNTAIN ESTATES, PARCEL 3B, LOT 18, CASE NUMBER SU2002-10. Councilman Kavanagh MOVED to approve the special use permit as presented and Councilman Archambault SECONDED the motion. The motion CARRIED on a vote of 6 to 1. Councilman Melendez cast the nay vote. AGENDA ITEM#16 - PUBLIC HEARING ON A PROPOSED SPECIAL USE PERMIT TO ALLOW AN "OUTDOOR EXERCISE AREA" AND "OVERNIGHT BOARDING OF ANIMALS" AT PARKVIEW VETERINARY CLINIC LOCATED AT 11679 N. SAGUARO BOULEVARD, AKA PLAT 302, BLOCK 1, LOT 1,CASE NUMBER SU2002-11. Mayor Beydler recessed the regular session and opened the public hearing at 9:47 p.m. Planner Ruhling reviewed her staff report and provided a visual of the project. She pointed out that staff and the Planning and Zoning Commission had recommended approval. Only one comment had been received during the public hearing from the Chiropractic Clinic who expressed concern as to what the impact would be on his business. Mayor Beydler closed the public hearing the 9:50 p.m. AGENDA ITEM #17 - CONSIDERATION OF A SPECIAL USE PERMIT TO ALLOW AN "OUTDOOR EXERCISE AREA" AND "OVERNIGHT BOARDING OF ANIMALS" AT PARKVIEW VETERINARY CLINIC LOCATED AT 11679 N. SAGUARO BOULEVARD, AKA PLAT 302, BLOCK 1, LOT 1, CASE NUMBER SU2002-11. Councilwoman Nicola MOVED to approve the special use permit as presented and Councilman Melendez SECONDED the motion. Councilman Kavanagh asked if this special use permit would be subject to the usual noise restrictions and if a problem developed there were enforcement capabilities. Planner Ruhling noted she had asked the applicant if there would be someone on site if they were boarding an animal overnight. The response had been the animal would be attended at all times if it were to be boarded overnight. The motion CARRIED unanimously. AGENDA ITEM #18 - PUBLIC HEARING ON A SPECIAL USE PERMIT FOR AN OUTDOOR SEATING AREA AND ALCOHOLIC BEVERAGE SALES AND DISPENSING AT THE PROPOSED DEJA VU SALON AND TERRACE CAFE LOCATED AT EAGLE MOUNTAIN PARCEL 1,TRACT C-3, AKA EAGLE MOUNTAIN VILLAGE MARKETPLACE,BUILDING"C",CASE NUMBER SU2002-12. Mayor Beydler recessed the regular session and opened the public hearing at 9:30 p.m. Planner Dana Burkhardt reviewed his staff report. He discussed the project and provided a visual of the project site and surrounding area. He noted that staff had not received any objections to this request. The Planning and Zoning Commission voted 6— 1 to approve the request. Mayor Beydler closed the public hearing the 9:40 p.m. L E:\BBender\Documents\Current Minutes 2002\Minutes\Regular Session 12-5-02.doc 13 of 14 AGENDA ITEM#19 - CONSIDERATION OF A SPECIAL USE PERMIT FOR AN OUTDOOR SEATING AREA AND ALCOHOLIC BEVERAGE SALES AND DISPENSING AT THE PROPOSED DEJA VU SALON AND TERRACE CAFE LOCATED AT EAGLE MOUNTAIN PARCEL 1, TRACT C-3, AKA EAGLE MOUNTAIN VILLAGE MARKETPLACE,BUILDING"C", CASE NUMBER SU2002-12. Vice Mayor Fraverd MOVED to approve the special use permit as presented and Councilman Melendez SECONDED the motion. The motion CARRIED unanimously. AGENDA ITEM#20- CALL TO THE PUBLIC. Jerry Sheridan,Maricopa County Sheriff He made the offer to have the Sheriff's inmate work detail assist the Town with the washes to help mitigate the impact of cleaning the washes. AGENDA ITEM#21 -ADJOURNMENT. Vice Mayor Fraverd MOVED that the Council adjourn and Councilwoman Ralphe SECONDED the motion, which CARRIED unanimously. The meeting adjourned at 10:00 p.m. TOWN OF FOUNTAIN HILLS By: AV L. DiLA&4.--, eitAiLL6 on Bey, er,Mayor, ATTEST: Cassie B. Hansen, Director of Administration/Town Clerk PREPARED BY: ,�60-' l/if`l -i1 Bev Bender,Executive Assistant CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Session held by the Town Council of Fountain Hills on the 5th day of December 2002. I further certify that the meeting was duly called and that a quorum was present. DATED this 19th day of December 2002. (142JAAIJ Cassie B. Hansen, Director of Administration/Town Clerk L E:\BBender\Documents\Current Minutes 2002\Minutes\Regular Session 12-5-02.doc 14 of 14